Dive Brief:
- Even though the travel and tourism sector has the potential to gain 91 million new jobs by 2035, it will still be short more than 43 million jobs, with demand for workers exceeding supply, according to the World Travel & Tourism Council’s thought leadership report "Future of the Travel & Tourism Workforce."
- The report provided employment data projections across 20 key economies. China is projected to have the highest shortfall at 16.9 million workers, followed by India at 11 million and the European Union at 6.4 million.
- In the report, the WTTC explained that the sector’s potential is being hindered by a growing labor and skills shortage, with too few people joining the sector and too few staying, adding that some employers are turning to AI tools to help plug unfilled job roles and increase productivity.
Dive Insight:
From transport companies to hotel brands, the travel and tourism sector is a huge worldwide economic driver and employment engine.
In fact, as of 2024, the travel and tourism sector boasted a record 357 million jobs globally, with projections to reach 371 million by the end of this year, according to the WTTC.
According to the council, the sector is set to grow faster than the economy as a whole, buoyed by a growing global middle class that prioritizes travel and experiences in its discretionary spending.
Over the next decade, the sector is expected to generate 91 million new roles. Between now and 2035, one in three net new jobs added globally will be within the travel and tourism sector.
But the WTTC’s report also warns against a looming labor shortage, with global demand for workers in travel and tourism expected to exceed supply by more than 43 million by 2035, with the labor supply at 16% below demand levels.
The hospitality industry, in particular, is expected to face a gap of 8.6 million workers, approximately 18% below the required staffing levels. Overall, low-skilled roles and positions that require human interaction that cannot be easily automated will remain in high demand.
The report, unveiled at the WTTC's 25th Global Summit in Rome, is based on research including a survey and interviews with a range of WTTC members and other travel and tourism stakeholders.
When asked what the top three challenges around talent and the future of work are, survey participants said talent recruitment and retention was number one at 52%.
Although the travel and tourism sector has rebounded since the onset of COVID-19, the lasting effects of the pandemic continue to impact recruiting efforts across lodging, tours and activities, aviation and cruises. Plus, the WTTC noted in its report that younger workers, particularly Gen Z, are reluctant to take on customer-facing roles in industries like hospitality and are looking for work-from-home jobs.
According to several interviewees, “Many employees under age 30 are not prepared to tolerate what they consider intense, long and unpredictable shift patterns inherent to the industry. Employers are seeing young people who have attained high academic qualifications but typically lack the required practical work skills and experience. They say that many are unwilling to start their first major job in a basic position or don’t consider the sector a reliable long-term career option,” the report detailed.
The report outlines several strategies to address the workforce challenges including offering competitive wages and benefits and adopting a supportive company culture; strengthening the collaboration between educators and the industry to align training with employer needs; enhancing retention through leadership development, clear promotion pathways and inclusive workplace cultures; investing in digital literacy, AI adoption and sustainable practices; and implementing flexible policies to manage workforce demand, including reducing barriers to international recruitment and combining part-time roles into full-time positions.
