The Hume Workforce Development Committee Hume Regional Development Australia

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The Hume Workforce Development Committee

Hume Regional Development Australia

Accommodation and Food Labour Market SnapshotWorkforce Planning Australia | March 2012

Tourism, Hospitality and Events

2 |

Service Skills Australia includes the following sectors in the Tourism, Hospitality and Events industry.


Cultural services

Travel Agencies

Accommodation

Tour operator services

Restaurants

Take away food

services

Pubs, clubs bars and

tavern

Source: Service Skills Australia, Tourism, Hospitality and Events Skills Council: Environmental Scan 2011

Sport & Recreation

Cafes

Industry Snapshot Tourism, Hospitality and Events employment data overlapwith each other and with other industries, such as Retail, Cultural & Recreation, Sport and Transport.

ABS Tourism employment information is categorised under ‘Accommodation and Food’

3 |

Accommodation and Food

EventsTourism

Source: Service Skills Australia, Tourism, Hospitality and Events: Environmental Scan

Industry SnapshotAustralia-wide

4 |

• More than 500,000 people in Australia were employed in ‘Tourism-Related industries’ (1)

• Approximately 788,800 people work in the Accommodation & Food Services Industry (2)

• Tourism, Hospitality and Events is dominated by small or micro businesses (1)

• Between 2003 and 2010 national spending on meals in restaurants, hotels and clubs increased by 68% (1)

• Accommodation and Food Services has the highest proportion of part time workers (56.4%) and casual workers (64.2%) of all industries. (1)

• Accommodation and Food Services employs the largest share of young workers (15-24) of all industries.(2)

• Between 2003 and 2010 the proportion of workers aged 45 and over grew markedly, reaching 21.8% (1)

Source: Service Skills Australia, Tourism, Hospitality and Events Environmental Scan (1) DEEWR, Skills Info, Employment Outlook for ‘Accommodation and Food Services ‘(based on the ABS Labour Force Survey (2)

Tourism, Hospitality and Events Industries : Industry Snapshot

5 |

• Approximately 2% of workers are skilled migrants and 7% of workers are on tourism visas (3)

• Of all tourism and Hospitality industries, ‘cafe’, ‘takeaway food services’ and ‘travel agencies’ have experienced the strongest growth in employment in 2010 – 2011. Other sectors within tourism have declined or remained stable (1)

• Employment of licensed travel agents experienced strong growth between 2002-2009, but has now levelled out.

• Business events marketing is experiencing strong growth

• In 2010-2012 international visitors increased by 12 per cent and domestic visitors by 2.6 per cent.

• Tourism-dependent areas of Australia are suffering due to the increased overseas travel by Australians, particularly to Asia-Pacific region.

Source: (1) Service Skills Australia, Tourism, Hospitality and Events, 2011. (2) DEEWR, Skills Info, Employment Outlook for ‘Accommodation and Food Services ‘(based on the ABS Labour Force Survey) (3) Department of Arts and the Environment (DAE) Australian Tourism Labour Force Survey, cited in (1)

National Industry Overview

Industry Employment

• Accommodation and Food Services employs approximately 773,000 persons, full time and part time, which is around 6.8 per cent of the total workforce.

7 |Source: ABS Labour Force Survey, February 2012 data.

Industry Employment Level February 2012

Employment Growth

• Over the past five years, employment in the industry has increased at a rate of 2.4 per cent per annum.

8 |Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data)

485.8

543.3 534.0565.3 572.0

589.9608.6

637.8 642.3 638.2657.0

690.0665.1

703.6 708.1 720.3753.8

789.9751.0

0

100

200

300

400

500

600

700

800

900

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Accommodation and Food Services - Employment Level ('000s)February 1994 to 2012

Employment by Region

•Sydney and Melbourne are the largest regions for employment in the industry.

9 |

8.2

12.9

14.2

14.4

15.3

18.0

18.8

19.6

27.0

37.3

38.9

39.5

41.2

57.9

110.7

133.9

158.9

0 20 40 60 80 100 120 140 160 180

Northern Territory

Western NSW

Greater WA

Southern QLD

SA Country

Northern NSW

Tasmania

Eastern Victoria

Western Victoria

Southern NSW (incl ACT)

Hunter

Central and North QLD

Adelaide

Perth

Brisbane

Melbourne

Sydney

Accommodation and Food Services - Employment by Region ('000s)Year to February 2012

Employment by Industry Sector

10 |Source: Employment Level by Industry Sector (DEEWR Trend Data based on ABS Labour Force, Australia, Cat no: 6291.0.55.003 – February 2011)

• Cafes, Restaurants and Takeaway Food is the largest contributing sector to industry employment.

491.5

99.0

95.6

54.8

0 100 200 300 400 500 600

Cafes, Restaurants, Takeaway Food

Accommodation

Pubs, Taverns and Bars

Clubs (Hospitality)

Accommodation and Food Services - Employment Level - Feb 2012 ('000s)

Recent Growth by Sector

•There has been significant growth in the Cafes, Restaurants and Takeaway Food sector.

•Accommodation and Pubs, Taverns and Bars has declined.

11 |

59.9

0.0

-4.5

-17.1

-30 -20 -10 0 10 20 30 40 50 60 70


Clubs (Hospitality)


Accommodation

Accommodation and Food Services - Five Year Emp Growth (000s) to Feb 2012

Projected Employment Growth by Sector

• Projected employment growth for the industry is 1.2% (below the all industries average).• Cafes. Restaurants and Takeaway Food is the fastest growing sector.

12 |Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data)

-2.0

-1.2

-1.1

1.2

2.1

2.5

-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0

Accommodation

Clubs (Hospitality)


Accommodation and Food Services

ALL INDUSTRIES


Accommodation and Food Services - Projected Employment Growth(% pa) to 2015-16

Main employing occupations

• The table below provides an overview of the main employing occupations in the Accommodation and Food industry:

13 |Source: DEEWR Special Order based on ABS Labour Force, Australia, Cat no: 6291.0.55.003 – Calendar Year Average 2011.

Occupation Employment (2011-12)

Waiters 106.5Kitchenhands 88.2Bar Attendants and Baristas 81.1Sales Assistants (General) 79.6Chefs 62.5Cafe and Restaurant Managers 57.9Retail Managers 34.6Fast Food Cooks 32.0Cooks 24.0Hotel and Motel Managers 21.3

National skills in demand

14 |

Occupation Skills StatusBar Attendant Regional shortage

Waiter Recruitment difficulty (experienced workers, particularly in high end establishments).

Source: DEEWR Special Order based on ABS Labour Force, Australia, Cat no: 6291.0.55.003 – Calendar Year Average 2011.

• The table below provides an overview of the occupations with skills in demand at the National level:

Drivers of Workforce Change and Opportunities

15 |


1. Fierce competition between

destinations and record outbound

travel

2.Strong jump in visitors from China,

India

3. Growing demand for Asian language

tour guide

4.Demand for new and exciting travel

experiences

5. A lack of quality training, though

commitment to staff training is high

6. A State Govt focus on attracting

business events to regional Victoria7. Industry highly

vulnerable to economic forces

Source: Accommodation and Food Industry Skills Council, Environmental Scan 2011

There are several workforce development challenges facing the Accommodation and Food Industry

Hume region

Hume Tourism, Hospitality and Events - Priorities

17 |

Tourism Victoria’s Regional Marketing and Development Plan 2011-2012 reports the following investment infrastructure priorities in Hume:

• Re-development of the Mount Buffalo Chalet• Nature-based infrastructure including consideration of an alpine Trial e.g. Mount

Hotham and Falls Creek Wild Walk• High quality accommodation in Ski villages• High Altitude Training Centre at Falls Creek Alpine Resort• Boutique accommodation associated with food and wine• Ned Kelly Interpretation Centre – Stage Two Glenrowan Precinct• Completion of key rail trails, including Murray and Mountain Rail Trail• Promotion of Beechworth, Bright, Rutherglen and Yackandandah and Alpine Villages

under ‘Villages of Victoria’ program.• Completion of Bonegilla Migrant Centre

Source: Tourism Victoria, Regional Marketing and Development Plan, 2011-2012

Hume - Events

18 |

Events in Hume include:

• Wangaratta Jazz Festival• Kangaroo Hoppet (international Cross country Ski Event)• Beechworth Harvest Celebration• Opera in the Alps• Big Fella Festival (Music)• Audux Alpine Classic (cycling)• Bike Buller Mountain Bike Festival• Terra Australis – Great Southern Land Mountain Bike Epic

Source: Tourism Victoria, Regional Marketing and Development Plan, 2011-2012

Hume Tourism, Hospitality and Events – Key Locations

19 |

The Hume Regional Plan identifies tourism as an economic and employment growth sector in the region. Tourism in the region focuses on the Murray river, snowfields, natural attractions, historic townships, food and wine and cycling.

Key areas for tourism are in small towns and national parks including:• River towns: Echuca, Cobram and Yarrawonga• Historic Townships in Upper and central Hume: Beechworth, Glenrowan• Water sports: Nagambie and Yarrawonga • High quality food and wine: Milawa• Nature-based: Snowfields (summer), National Parks (Bogong, Mt Hotham, Mt Buffalo

and Falls Creek, Bright, Mt Beauty and Mt Buller and Barmah Forest• Cycling Network: Bright, Myrtleford, Beechworth

Source: DPCD, Hume Regional Plan: The Hume Strategy for Sustainable Communities , 20102010 -2020, Tourism Victoria, Regional Marketing and Development Plan, 2011-2012

Hume Tourism, Hospitality and Events - Challenges

20 |

Two particular challenges or needs identified in 2011 Hume Regional Growth Plan are: • The shortage of facilities for specific markets, such as high quality accommodation in

Strathbogie for people involved in the equine industry. • The predicted impact of climate change on snow-related tourism in the Alpine areas

Other challenges could include:• The increasing expectations of consumers for quality food, coffee and accommodation• Managing increasing number in nature-based tourism, particularly national parks• The quality of training. This could become increasingly important if the region hopes to

attract people in the business markets.

Source: DPCD, Hume Regional Plan: The Hume Strategy for Sustainable Communities , 20102010 -2020, Tourism Victoria, Regional Marketing and Development Plan, 2011-2012

Employment in Accommodation and Food by LGA

21 |

Towong112 (2006)

Wodonga700 (2006)

Alpine718 (2006)

Mansfield364 (2006)

Hume Region BoundarySub-region BoundaryLocal Government Area (LGA) Boundary

Indigo370 (2006)

Murrindindi463 (2006)

Mitchell498 (2006)

Strathbogie171 (2006)

G Shepparton

Moira446 (2006)

Wangaratta743 (2006)

Benalla299 (2006)

1224 (2006)

TBC (2011)

TBC (2011)TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

TBC (2011)

2006 Census vs. 2011 Census dataTotal Industry6,108 (2006)TBC (2012)

Employment growth projections in Hume

• According to Monash projections employment is expected to gradually grow and decline over the period to 2015-6.

22 |

Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria.Source: Monash Centre of Policy Studies, 2011

2010-1 2011-2 2012-3 2013-4 2014-5 2015-69.5

10

10.5

11

11.5

12

12.5

13

Accom & Food Employment

Accom & Food Employment

Occupations

•The top employing occupations in the region are as follows:

23 |

Occupation Employment (000’s)

Waiters 1.67661Bar Attendants & Baristas 1.25126Sales Assistants (General) 1.10094Kitchenhands 1.08663Chefs 1.07006Cafe & Restaurant Managers 0.8357Fast Food Cooks 0.64904Hotel & Motel Managers 0.64358Retail Managers 0.45736Commercial Cleaners 0.42466Cooks 0.40558Cafe Workers 0.26524

Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria .Source: Monash Centre of Policy Studies, 2011

Occupation growth

• Monash projections show a decline in the top employing occupations growth over the period to 2016-17.

24 |Source: Monash Centre of Policy Studies, 2011Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria.

Waiters

Bar Attendants & Baristas

Sales Assistants (General)

Kitchenhands

Chefs

Cafe & Restaurant Managers

Fast Food Cooks

Hotel & Motel Managers

Retail Managers

Commercial Cleaners

Cooks

Cafe Workers

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8

2011-22015-6

Education

Industry Education attainment levels

26 |

• Overall there has been a slight decrease in VET enrolments for the industry in Hume.• Despite this trend there has been an increase in enrolments in the Certificate II

qualification.

Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.

Advanced Diploma

Certificate I

Certificate II

Certificate III

Certificate IV

Diploma

0 500 1000 1500 2000 2500

20112008

Age profile of enrolments

• The majority of VET enrolments are in the 15-19 year old Age Group.• The decrease in enrolments is generally evenly spread across age groups.

27 |Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria.

15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 and over

0

200

400

600

800

1000

1200

1400

1600

1800

20082011

Diversity of Enrolments

•The diversity of enrolments has increased in all categories.•The greatest increase in diversity has been the increased proportion of CALD students.


Disabled Indigenous CALD0%

1%

2%

3%

4%

5%

6%

7%

8%

20082011

© Workforce Planning Australia - www.workforceplanning.com.au

Accommodation and Food Occupational VET Education Data (Hume)WaiterKitchen handCafe / Restaurant Manager

Waiter

Waiter VET Course Enrolments


• There has been a significant increase in VET enrolments from Waiters over the period from 2008-2011.

• This increase is attributable to growth in the Certificate III level qualification.

Certificate III

0 200 400 600 800 1000 1200

20082011

Waiter Age Profile of VET Enrolments


• The majority of VET enrolments for waiters are in the 15-19 year old Age Group.• There has been significant growth in the 15-19 year old Age Group.


0

50

100

150

200

250

300

350

400

450

20082011

Diversity of Waiter VET Enrolments


•The diversity of enrolments for waiters has increased in all categories.•The greatest increase in diversity has been the increased proportion of CALD students.


1%

2%

3%

4%

5%

6%

7%

8%

20082011

Kitchen hand

Kitchen hand VET Course Enrolments


• There has been a decrease in VET enrolments from Kitchen hands over the period from 2008-2011.

• The decrease is attributable to negative growth in the Certificate II level qualification.

Certificate I

Certificate II

0 500 1000 1500 2000 2500

20082011

Kitchen hand Age Profile of VET Enrolments


• The majority of VET enrolments for Kitchen hands are in the 15-19 year old Age Group.• There has been a decline in all Age Groups over the period 2008-2011.


0

200

400

600

800

1000

1200

1400

20082011

Diversity of Kitchen hand VET Enrolments


•The diversity of enrolments for kitchen hands has increased in all categories.•The greatest increase in diversity has been the increased proportion of CALD students.


2%

4%

6%

8%

10%

12%

20082011

Cafe / Restaurant Manager

Cafe / Restaurant Manager VET Course Enrolments


• There has been an increase in VET enrolments from Cafe / Restaurant Managers over the period from 2008-2011.

• The increase is attributable to growth in the Certificate IV level qualification.

Advanced Diploma

Certificate IV

Diploma

0 20 40 60 80 100 120 140 160 180 200

20082011

Cafe / Restaurant Manager Age Profile of VET Enrolments


• The majority of VET enrolments for waiters are in the 20-24 year old Age Group.• There has been significant growth in the 20-24 and 15-19 year old Age Groups.


0

10

20

30

40

50

60

70

80

20082011

Diversity of Cafe / Restaurant Manager VET Enrolments


•The diversity of enrolments for Cafe / Restaurant Managers has decreased.•The greatest decrease in diversity has been in the proportion of CALD students.


2%

4%

6%

8%

10%

12%

14%

20082011

Findings

What this means

Tourism and Hospitality statistics needs to be viewed with care because of the overlap between the industries

The main area of growth in Australia have been: Cafes, Take away food services Business events Licensed travel agents

Monash projections predict growth in Accommodation and Food jobs will peak in 2011-2012 and then decline. The reason for this projected decline is unclear.

The largest occupations are Waiters, Kitchen hands and Bar Attendants/Baristas

Much of the tourism in Hume is focused on the small towns and natural resources.

Growing areas of tourism are in specialised areas, such as nature-based tourism, cycling, food and wine, historic sites and snow sports.43 |

What this means(Continued)

Formal training in the field has been heavily focused on young people. This suggests there may be scope to look at other segments of the labour market, particularly mature aged workers.

The growth in enrolments in Cert III level qualifications for waiters and Cert IV level qualifications for Cafe/Restaurants Managers will help build the capabilities of hospitality staff and lift the quality of service in the region.

The data on training enrolments suggests there is a need to explore ways of increasing training opportunities for indigenous Hume residents.

There may be scope to further develop Indigenous tourism in the Hume region.

A particular challenge for Hume may be to work out ways to meet the needs of tourists from Asia, particularly people from China and India, if businesses in the area want to try and tap into this growing market identified by Tourism Victoria.

44 |

Questions?

The location of employment in tourism in Hume raises questions about access to training by people living in the smaller towns. Is training provided on-site, at RTOs in regional towns, on-line or a combination of both using a ‘blended’ approach?

Is training available locally that focuses on the areas of potential growth e.g. nature-based tourism?

Why has there been a decline in enrolments for Cafe/Restaurant managers among CALD groups at a time when there have been a rise in enrolments in waiter and kitchen hand courses among CALD groups?

The seasonal nature of many of these jobs in Hume suggests the need to explore how local people can move between different areas of tourism, hospitality and events management so they have greater job security and the local industry grows a pool of workers with solid and diverse experience. How can this be achieved?

45 |

Documents

The Hume Workforce Development Committee Hume Regional Development Australia