New Workforce Plan for the Tourism Industry in Australia: Key Insights and Strategies

The newly released “Shaping Tomorrow” Workforce Planning Report (WFPR) for the Australian tourism industry, developed by Service and Creative Skills Australia (SaCSA), offers a comprehensive blueprint to address the sector’s workforce challenges and shape its future. This report highlights critical issues such as skill shortages, regional recruitment difficulties, and the need for enhanced career pathways. Here are the main takeaways and strategic directions outlined in the report.

1. Understanding Workforce Dynamics and Challenges

The report identifies several key challenges currently facing the tourism workforce in Australia:

  • Sector Complexity: The tourism workforce spans multiple industries, including accommodation, food services, arts, recreation, retail, transport, and events. This complexity requires a holistic understanding of workforce dynamics, with improved data collection to address regional differences and specific needs.
  • Career Promotion: Tourism careers have been negatively impacted by perceptions of job insecurity, exacerbated by the COVID-19 pandemic. The report calls for more efforts to promote tourism as a viable and rewarding career, with clearer pathways and training opportunities.
  • Regional Challenges: Recruitment and retention are particularly challenging in regional and remote areas due to limited transport, housing, and social infrastructure. The report suggests targeted strategies, such as regional labor agreements, to address these challenges.
  • Upskilling and Training: Despite the high demand for roles in the tourism sector, employer engagement in formal vocational education and training (VET) remains low. The report advocates for an increase in employer partnerships with training providers to develop flexible, targeted training solutions.
  • Emerging Skill Needs: The sector is experiencing shifts due to digitalization, climate change, and demographic trends. Skills in environmental sustainability, accessibility, and digital literacy are becoming increasingly important.

2. Workforce Insights and Skill Needs

The WFPR provides a detailed analysis of the current state of the tourism workforce:

  • Labor Market Demand: The demand for specific tourism occupations, such as tour guides and travel consultants, is expected to increase over the next decade. The report emphasizes the need to address skill shortages in these areas.
  • Training Gaps: There has been a significant decline in enrolments and completions in tourism-related training programs. The report suggests that the current training offerings are not meeting the industry’s needs and calls for more flexible and relevant training options.
  • Focus on Digital and Green Skills: As digital technologies and sustainable practices become more prominent, the sector must adapt by incorporating these skills into training programs to remain competitive.

3. Strategies and Measures for Workforce Development

The report outlines several strategic measures to enhance workforce development:

  • Deepen Sector Understanding: SaCSA plans to engage with stakeholders and data custodians to improve the understanding of sector dynamics, particularly at regional levels and among disadvantaged groups.
  • Review and Update Training Packages: The SIT – Tourism, Travel, and Hospitality training package will be reviewed to ensure it aligns with current industry needs, particularly in areas like digital skills and environmental sustainability.
  • Promote Career Pathways: To attract new talent, the report recommends promoting clear and diverse career pathways within the tourism sector. This includes leveraging government initiatives like the National Skills Agreement and the Australian Universities Accord.
  • Foster Collaboration: The report encourages collaboration with other Jobs and Skills Councils (JSCs) and industry stakeholders to address workforce challenges holistically and promote a resilient and sustainable tourism sector.

4. Addressing Data Gaps and Enhancing Analysis

Recognising significant data and evidence gaps, the report calls for ongoing engagement with national data custodians like the Australian Bureau of Statistics (ABS) and industry stakeholders to improve data quality and coverage. This effort includes addressing the lack of data on disadvantaged groups and occupation transitions, as well as integrating insights from industry consultations.

5. Next Steps and Future Directions

The report sets out several priorities for the next 12 months:

  • Stakeholder Engagement: Strengthening engagement with stakeholders, including employers, training providers, and government agencies, to refine workforce strategies.
  • Policy Influence: Engaging with key national projects, such as the THRIVE 2030 strategy, to align workforce development with broader economic goals.
  • Enhanced Data Collection: Developing new survey tools and methodologies to fill data gaps, particularly around workforce perceptions and skills needs.

The “Shaping Tomorrow” Workforce Planning Report for 2024 represents a crucial step toward addressing the tourism industry’s workforce challenges in Australia. Through strategic analysis and targeted measures, it aims to build a more dynamic, resilient, and sustainable workforce that meets the evolving needs of the sector and contributes to the nation’s economic prosperity. ART looks forward to working with SaCSA on this workplan to help regional Australia build their capacoty for the tourism industry.