measuring employment in the tourism industries...

Measuring Employment

in the Tourism Industries

Beyond the Tourism Satellite Account:

The Canadian Experience

Scott Meis

Special Advisor

CTHRC

7th UNWTO/PATA Forum on TOURISM TRENDS

AND OUTLOOK

Guilin, China

October 22-23, 2013

INTRODUCTION

Context: ILO-UNWTO Perspective

One of the most dynamic and beneficial modern sectors of economic activity

Recent advances in the macro-economic measurement of tourism

Insufficient and inadequate study of employment and the economic value of labor

ILO-UWWTO Partnership Agreement

INTRODUCTION

Focus: Canadian best practices of measuring employment in the tourism

industries:

Methodologies of gathering, compiling, estimating, analyzing and

describing tourism labor market information on employment

Statistical instruments: TSA:HRM, Indicators, Labor models

Personal and work characteristics of workers vs. jobs

National, regional and local views

Knowledge Topics:

Tourism employment and employment in tourism industries

Jobs, labor income and labor productivity

Demographic characteristics & trends of workers: e.g. age, gender,

education, immigrant status

Labor characteristics & trends of workers and jobs, union status, duration,

seasonality, hours of work, salaries & wages

Tourism labor demand, supply, and outlook

Celebrating more than 125 years of tourism development

2011 Federal Tourism Strategy: Welcoming the World

recognizes importance of fostering an adequate supply of skills & labor

to enhance visitor experiences through quality service and hospitality

ABOUT CANADA

CANADIAN TOURISM HUMAN RESOURCE COUNCIL (CTHRC)

Employees

Government Education

Industry

Associations

Human Resource Organization Partners in all provinces & territories

Employers

1993 TOURISM LABOUR POLICY ISSUES / CHALLENGES

Lack of definition and recognition of the sector

Lack of measurement of a sector-specific labor force

Conflicting numbers

Loose labor markets

Poor image of tourism jobs and careers

Image of low skill and pay levels

Low attractiveness to labor

Lack of a training culture

Labor retention

0.8 1.5

2.1 2.7

3.1 2.8

2.9 3.1

3.3 3.4 3.3

3 2.9

3 2.9 2.9 2.8

2.6

0,5 1,1

1,8 2,4

2,9 3,1

2,9 2,9

3,1 3,3 3,4

3,3 3

2,8 2,8 2,8

2,7 2,7

2,5

5 3 1 1 3 5

100+95-9990-9485-8980-8475-7970-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-14

5-90-4

MaleFem…

2031

2013 TOURISM LABOUR POLICY ISSUES / CHALLENGES

Percentage of Population by Age Group

Feasibility Study

TSA

Development Trajectory

Labour Outlook Models

Tourism Unemployment

Compensation

TSA: Human Resource Module

National Tourism Indicators

TSA Research & Development

Tourism Census & Labour Profiles

NSO-Client Multi-year Research Agreement

Needs Assessment, Data Inventory & Vision

Tourism Satellite Account Feasibility Study

CANADIAN TOURISM LABOR MARKET INFORMATION SYSTEM (TLMIS)

1985 -2010

Source: Meis, S. (2013), Measuring Employment in the Tourism Industries Beyond the Tourism Satellite Account: A Case

Study of Canada. Geneva: International Labor Office, Publication pending.

Tourism Labour Outlook

Tourism Employment

Indicators

Provincial Human Resource

ModuleProvincial Satellite Account

Tourism Satellite Account

Human Resource Module

P1: TOURISM LABOUR MARKET INFORMATION SYSTEM

Source: Meis, S. (2013), Measuring Employment in the Tourism Industries Beyond the Tourism Satellite Account: A

Case Study of Canada. Geneva: International Labor Office, Publication pending.

29 TOURISM INDUSTRIES, 5 INDUSTRY GROUPS

Accommodations 7211 Traveller accommodation

7212 RV (Recreational Vehicle) Parks and

Recreational Camps

Food & Beverage Services 7221 Full-service restaurants

7222 Limited-service eating places

7224 Drinking places (alcoholic beverages)

Recreation & Entertainment 5121 Motion pictures and video industries

7111 Performing arts companies

7112 Spectator sports

7115 Independent artists, writers and performers

7121 Heritage institutions

7131 Amusement parks and arcades

7132 Gambling industries

7139 Other amusement and recreation industries

Transportation 4811 Scheduled air transportation

4812 Non-scheduled air transportation

4821 Rail transportation

4831 Deep sea, coastal and great lakes water

transportation

4832 In-land water transportation

4851 Urban transportation systems

4852 Interurban and rural bus transportation

4853 Taxi and limo service

4854 School and employee bus transportation

4855 Charter bus industry

4859 Other transit and ground passenger transportation

4871 Scenic and sightseeing transportation, land

4872 Scenic and sightseeing transportation, water

4879 Scenic and sightseeing transportation, other

5321 Automotive equipment rental and leasing

Travel Services 5615 Travel arrangement and reservation services

Source: Based on the Canadian Tourism Satellite Account and

the North American Industry Classification System (NAICS)

REGIONAL & LOCAL SHARES OF TOURISM WORK FORCE JOBS

Municipality Tourism Sector

Accomm F&B Rec &

Ent Transport

Travel Services

St. John’s 0.5% 0.6% 0.5% 0.5% 0.6% 0.5% Halifax 1.4% 1.4% 1.3% 1.3% 1.5% 1.5% Québec 2.2% 2.9% 2.4% 1.9% 1.8% 1.9%

Montréal 11.6% 6.9% 11.0% 13.2% 14.1% 14.6%

Ottawa 3.3% 2.7% 3.5% 3.6% 2.9% 3.6%

Toronto 15.6% 10.1% 14.6% 17.9% 17.7% 23.7%

Winnipeg 2.5% 2.4% 2.4% 2.3% 3.4% 1.8%

Saskatoon 0.8% 1.0% 0.9% 0.6% 0.7% 0.4%

Calgary 4.2% 3.0% 4.1% 3.9% 5.9% 3.5%

Edmonton 3.4% 3.0% 3.7% 3.1% 3.3% 3.3%

Vancouver 8.9% 7.1% 8.6% 9.6% 9.2% 13.8%

11.2%

16.4%

2.8%

22.0% 1.1%

0.4%

2.6% 1.9%

37.6%

3.6%

P2: BASIC CONCEPTS:

What is a tourism job?

A job = all the tasks carried out by a particular worker to complete her/his duties by an agreement with an employer (or in self employment) Employment in tourism industries = all jobs and persons engaged in both tourism characteristic and non-characteristic activities in all establishments in tourism industries

Tourism employment = jobs strictly related to the goods and services acquired by visitors and produced by either tourism industries or other industries

1.7 MILLION JOBS IN TOURISM INDUSTRIES 600,000 jobs due to tourism demand

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

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

tho

usa

nd

s o

f jo

bs

Employment in tourism industries versus direct tourism employment, Canada, 1997 to 2012

Employment in tourism industries

Direct tourism employment in tourism industries

Direct tourism employment



47.9%

21.7%

16.4%

11.2%

2.9%

Food & Beverage Services

Recreation & Enterainment

Transportation

Accomodation

Travel Services

31.8%

13.3%

13.6%

33.3%

8.0%Food & Beverage Services

Recreation & Enterainment

Transportation

Accomodation

Travel Services

% Persons employed in tourism industry groups (2006) % Tourism employment in tourism industry groups ( 2006)

SHARES OF PERSONS EMPLOYED AND TOURISM EMPLOYMENT BY INDUSTRY GROUP IN TOURISM WORK FORCE



Travel

Services 3% Transportati

on 13%

Accomo-

dation 14%

Recreation &

Entertainm

ent 17%


54%

Percentage distribution of jobs in tourism industry groups (2012)

P3: TOURISM OCCUPATIONS

A collection of jobs, similar in work performed, grouped under a common title Identified and grouped in terms of the

work performed, i.e. , tasks, duties, & responsibilities of the occupation

Factors processes used, equipment used, degree of responsibility, complexity of work, skill levels required & services provided

Identify 37 distinct occupations, of importance plus general groupings Some straddle 2 or more industry groups,

e.g. cooks/chefs in F&B, Accommodations

and Recreation & entertainment

400 occupational categories found within

tourism sector, less that 50 are significant

Demand Trip Visitor

Pu

rpose

Du

rati

on

Dis

tan

ce

P

art

y si

ze

E

xpen

dit

ure

Sou

rce

Per

son

al

H

ou

seh

old

L

oca

tion

Accommodation Transportation F&B services R&E Services

Su

pp

ly

Travel Services

$

$ Other

$

$ $

$

P4: SATELLITE ACCOUNT VIEW OF TOURISM EMPLOYMENT 2006

Tourism contribution to jobs: 3.9% of all

jobs in Canada in 2006 with 80% of all

attributable jobs provided in tourism

industries

606,500 attributable jobs in 2006 with 483,000

provided to tourism industries

Tourism’s contribution labour income:

2.2% of all returns to labour in the Canadian

economy, $16.6 billion in labour income

Labour compensation per job: $26,900 in

labour compensation per attributable job in

tourism industries in 2006

Tourism labour productivity: almost 50%

of the average GDP per job level of the

overall economy, at $39,700 in Tourism

GDP per TI job

Tourism GDP Ratio

Accommodation………………………..62.3

Food and Beverage……………………17.2

Recreation & Entertainment……..19.5

Travel Services …………………………88.8

Transportation ………………………. 29.5

22%

26%

26%

30%

27%

16%

38%

22%

20%

22%

21%

19%

16%

31%

Born Outside of Canada

CANADA

TOURISM

Accommodations


Transportation

Recreation & Entertainment

Travel Services

77.9%

76.3%

73.9%

74.8%

83.4%

74.7%

66.4%

22.1%

23.7%

26.1%

25.2%

16.6%

25.3%

33.6%

Born in Canada Born outside of Canada

Place of Birth, Tourism Sector’s Employed Labour Force

2006

Newcomers in Canada Employed in Tourism

Total Canadian Labour Force

Tourism Sector

Accommodations


Transportation

Recreation & Entertainment

Travel Services

AVERAGE ANNUAL UNEMPLOYMENT RATE OF TOURISM

INDUSTRIES AND CANADIAN ECONOMY, 2005-2012



survey of household spending

domestic travel survey*

international travel survey

DEMAND SURVEYS

Canadian System of National Accounts

Input / output Tables

Canadian Tourism Satellite Account

government revenue & transfers

SUPPLY SURVEYS

transportation survey

accommodation survey

food & beverage survey

recreation & entertainment survey

travel arrangement services survey

Balance of Payments

Other supply surveys (including goods)

TSA : Human Resource Module

census of population

Canadian productivity accounts

labour force survey (LFS)

survey of employees, payroll and hours (SEPH)

P6: TOURISM SATELLITE ACCOUNT (TSA) AND HUMAN

RESOURCE MODULE (HRM-TSA)

SHARE OF JOBS BY AGE GROUP AND INDUSTRY IN CANADA, 2012

Source: Martin, T., Human Resource Module of the Tourism Satellite Account 2012, Ottawa: Statistics Canada, 2013

MAIN OCCUPATION IN EACH TOURISM INDUSTRY, CANADA 2012


ANNUAL COMPENSATION IN TOURISM INDUSTRIES IN CANADA, 2012


NP 7: MODELS OF POTENTIAL LABOUR DEMAND, SUPPLY &

ADJUSTMENT PROCESS IN TOURISM INDUSTRIES

Employment

productivity

model

Tourism

demand

model

Projections of

demand by

occupation

Projections of the

demand for tourism

goods & services

Macro

economic

drivers

Focus

groups &

on-line

surveys

Demographic projections

Specific

workforce

Parameters

– relative wages,

attractiveness of

occupations to labor

Projections of

supply by

occupation

Economic/

tourism

forecast

models

Current

tourism

employment

Focus

groups

input

Source: Adapted from Canadian Tourism Research Institute, Conference Board of Canada, 2012

Labor

shortage &

surplus by

occupation

Supply and Demand 228,500 Unfilled Jobs

Spending on tourism goods and services

$293 Billion (2030)

56%

Demand for Labour

Supply of Labour

Gap =

228,500 full-year jobs left unfilled

(10.7% of labour demand)


TOURISM LABOUR SHORTAGES BY OCCUPATION

2010 2015 2020 2025 2030

Food-counter attendants and kitchen helpers

-2,365 11,956 25,911 35,646 42,690

Food and beverage servers

-1,845 10,209 20,710 30,847 38,782

Cooks 92 5,465 12,540 16,496 20,536

Bartenders -277 2,321 5,003 7,394 8,738

Program leaders / instructors in recreation and sport

-415 813 2,574 4,737 6,267

Labor Shortages as a Percentage of

Labour Demandd 2030

Air Pilots, Flight Engineers and Flying Instructors 23.2%

Landscaping and Grounds Maintenance Labourers 21.1%

Bartenders* 20.7%

Security Guards and Related Occupations 18.0%

Aircraft Mechanics & Aircraft inspectors 15.7%

La

bo

r S

ho

rta

ge

s b

y

Oc

cu

pa

tio

n (

full

ye

ar

job

s)

Simulations show increasing the rate of

employment of entry-level occupations can

alleviate projected shortages

Competitive compensation packages = a

key driver of workforce attraction &

engagement, not just wages & salaries

Non-cash elements integral to a HR

management strategy

Employers who compete in these areas

experience higher attraction & retention

Research & modeling show non-wage

benefits & on-the-job training both boost

attraction, retention & labor supply

COMPETITION FOR LABOR AND COMPENSATION – MORE THAN $$


CONCLUSION

Canada has developed a comprehensive set of practices and LMI products

measuring multiple aspects of employment in the tourism industries

Resolved past definitional and data compilation challenges and previous

information gaps

Developed new knowledge and industry information on employment in the

tourism industries, tourism workers and jobs

ILO recommends other countries following Canada’s path to developing a

comprehensive Tourism Labor Market Information System

New knowledge and current and relevant LMI has aided tourism labor

policy development and improved coordination and understanding among

stakeholders – industry, government, & academe

Still more to do – exploring new research topics!

Thank you for your interest & attention!

Are there any questions?

[email protected]

Thank You

Canadian Tourism Human Resource Council │www.cthrc.ca │613 231 6949

measuring employment in the tourism industries...

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