Supplying skills for the local visitor economy - Report
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Supplying skills
for the local
visitor economy
Report
Supplying skills for the local visitor economy 1Work local
HELPING PEOPLE AND PLACES THRIVE
Work Local is the LGA’s positive
vision for an integrated and
devolved employment and
skills service – bringing together
information, advice and guidance
alongside the delivery of employment,
skills, apprenticeships and wider
support for individuals and employers.
www.local.gov.uk/worklocal | #worklocalContents
Introduction 4
The national picture 6
Work Local – a new approach to delivering skills 8
Key findings 9
1. Challenges in developing a strategic response 9
2. Recruitment and retention issues 10
3. Learning and skills development 11
4. The importance of place 12
Recommendations 14
The case studies 17
Supplying skills for the local visitor economy 3Introduction
The tourism and hospitality industry in the In terms of leading and creating the
UK is an important driver of economic growth, conditions for the visitor economy to thrive,
employing over 3.2 million people nationally, local leaders and council members play a
with the potential of creating a further crucial role. The employment and skills of the
500,000 new jobs by 2021. At the same local workforce are central to growth and local
time the sector has the highest proportion authorities recognise that, as drivers of local
of hard-to-fill vacancies, and greater growth economic growth, they need to ensure that
in the number of monthly job postings, than their economies have a motivated, flexible,
any other sector of the economy. and skilled workforce which retains and
attracts employers and boosts productivity.
The Local Government Association (LGA) With the additional current uncertainty of
commissioned Rubicon Regeneration and Brexit, there is a need for a skills system
Red Box Research to show how local leaders which can quickly and easily identify and
can support this visitor economy to develop address skills gaps and shortages; one in
a pipeline of skills through a collaborative which industries and localities are involved
vision for an integrated, effective and locally in determining the type and timing of skills
responsive employment and skills system provision.
that can meet the labour market and skills
challenges of the future – a ‘Work Local’ The recent publication, ‘The future of
approach. Based on a set of six case studies seaside towns’, by the House of Lords Select
from across England1, the research findings Committee on Regenerating Seaside Towns
highlight the significant challenges the sector and Communities2 adds weight to the case
faces in retaining its competitive edge in for localism stating that, ‘For the most part,
terms of productivity, recruitment and skills. we want to avoid top down solutions imposed
from Whitehall and afar. We argue that those
Conducted during the start of 2019, it is best placed to build the seaside towns of the
clear from the research that current skills future are local people. They represent the
difficulties are being exacerbated by two main seaside’s best hope’.
factors – the possible impacts of leaving the
EU and a demographic downturn in young In the following sections, we draw together
people – the latter particularly affecting rural the outcomes of wide-ranging consultations
areas. Employers explained that even with the with employers, representatives of the
current open access to the EU labour market, destination management organisations,
the tourism and hospitality sector faces a local government officers/members, training
challenge in recruiting enough workers to providers and other relevant stakeholders
meet its needs. in each of the six case study areas.
1 Blackpool, Brighton and Hove, Cambridge, Cornwall, Royal Borough of Greenwich, Scarborough
2 House of Lords Select Committee on Regenerating Seaside Towns and Communities (March 2019) ‘The future of seaside
towns’
4 Supplying skills for the local visitor economyDiscussions were also held with the
Department of Culture, Media and Sport,
UK Hospitality, the Tourism Alliance and
the British Beer and Pub Association. This
primary research has been supplemented by
a wealth of national and regional intelligence.
Together, these different sources have
enabled us to provide a rounded picture
of the common issues facing the sector,
individual local approaches to tackling those
issues and the potential for Work Local
principles to be applied at a sectoral level.
Acknowledgements
We are grateful for the contributions to this research from local government, destination
management organisations, representative bodies, employers and other stakeholders in each
of the case study areas as well as representatives from the Department of Culture, Media
and Sport, UK Hospitality, the Tourism Alliance and the British Beer and Pub Association.
Supplying skills for the local visitor economy 5The national picture
Setting the scene • brings in £22.5 billion spent by overseas
visitors annually
Hospitality and tourism are core and vital • generates c.£7 billion tax to HMRC from
sectors within the British economy, accounting international visitors.
for 9.6 per cent of all employment and 9 per
cent of GDP. Tourism exports more than the Of course, there is considerable overlap
insurance sector and is growing faster than between the tourism and hospitality industries
the digital sector. Latest data3 suggests that as shown in the figure below. One of the
the sector: challenges this poses for the sector is that its
disparate make up means that central and
• provides 3.1 million jobs across the UK local government can often fail to recognise
• generates £126.9 billion and 9 per cent that the sector is the fourth largest employer
of UK GDP annually in the country. Addressing this perception
and acknowledging its role in providing a vast
range of jobs would, in itself, be a significant
step forward.
3 Tourism Sector Deal Bid document
Figure 1. Mapping of tourism and hospitality industries
Ho
i sm
sp
ur
Hotels and
To
it a
accommodation
li t y
Holiday and short Licensed clubs
Travel agency stay accommodation Takeaway
and other Camping grounds food shops
reservation activities Other accommodation Event catering
Cultural activities Restaurants activities
Sporting and Beverage serving In-house catering
recreation activities activities Other food
Convention and service activities
trade show
organisers
6 Supplying skills for the local visitor economyEvery council has a tourism economy, and Brexit and shortages of EU workers
in recent years, tourism beyond London has Against this backdrop, the possible loss
been growing year-on-year at a faster rate of recruits from the EU could have serious
than in the capital. consequences for the sector. Oxford
University’s Migration Observatory has
2017 was a record-breaking year for the UK’s
calculated that 96 per cent of the EU
hospitality and tourism sector4 with growth
nationals working in hospitality would not be
in both domestic tourist expenditure and
able to work in the UK under the existing rules
international visitors. UK holidays enjoyed
for non-EU nationals. According to People
record trading, underpinned by the boom
1st, across hospitality and tourism almost
in overseas leisure travel and the growth of
1 in 4 (24 per cent) of the workforce is made
staycations. According to VisitBritain, growth
up of non-British nationals, with the majority
in spending was the highest since 2013 and
of these coming from outside of the EU.
the second highest since 2006.
Recruitment and perceptions of the sector
Research published by the British Hospitality
Research carried out by Amaris Hospitality7,
Association (BHA)5 and based upon growth draws insights gathered from research
in recent years (2014 – 2016) shows that the
undertaken with leading hospitality experts.
sector has the potential to create a further
More than half of them felt that ’outdated
500,000 new jobs by 2021. This of course,
perceptions’ were preventing people in the UK
puts a premium on labour supply and skills.
from viewing hospitality as a worthwhile career.
Indeed, UK Hospitality has identified the
The roles that do exist are perceived as having
workforce as the biggest uncertainty in the
long hours, poor pay and prospects.
future. It points to ‘an unprecedented range
of factors combining to create this sense of
the unknown – Brexit, the cost of employment,
technological advances, education and
The productivity challenge
training changes and much more. The While the tourism industry represents 10
workforce of the future is going to look very per cent of all businesses in the UK and 9.5
different to how it does today – as all these per cent of the UK workforce, the overriding
issues intertwine over time’. characteristic of the sector is that it is
composed largely of very small businesses.
Nationally, a number of skills challenges
Work by the UK Commission for Employment
have been identified:
and Skills shows that of the 180,000 domestic
Staff retention: employee turnover tourism businesses in the UK, over 70 per
and churn cent are microbusinesses and a further
Gross labour turnover is estimated at around 25 per cent are small and medium-sized
30 per cent per year. With unemployment enterprises (SMEs). In turn, these small
at a 40 year low of 4.4 per cent and the businesses are less likely to engage in
employment rate at an all-time high of 75.1 training. This lack of capacity to retrain
per cent, competition for labour is intense. in order to attract new customers, together
Businesses are finding it increasingly difficult with a wish for stability rather than growth, lie
to fill open and new positions, especially roles behind the productivity problem in the sector.
for chefs, kitchen porters, sommeliers and
housekeeping.6 The sector is characterised by
low wages and a fairly flat employment structure
which can make career progression difficult.
4 ‘Destination UK Driving growth in the UK hospitality and leisure sector’, Barclays
5 ‘The Hospitality Workforce Today’, A report by Ignite Economics and published by the British Hospitality Association (BHA)
6 UK Hospitality Workforce Commission 2030
7 ‘Driving UK Tourism: Sustaining growth in 2017 and beyond’, Amaris Hospitality
Supplying skills for the local visitor economy 7Work Local – a new
approach to delivering skills
The Post 16 Skills Plan 20168 acknowledged wanted to seize the benefits which devolution
that ‘reforming the skills system is one of could bring and there was strong support for
the most important challenges we face as a devolved funding and local commissioning on
country. Getting it right is crucial to our future the grounds that public funds would be better
prosperity, and to the life chances of millions aligned with the needs of employers, the local
of people’. economy, and local people. However Work
Local is not just about joining-up budgets,
Against this backdrop, the LGA has worked it is also about joining-up services to deliver
with local councils to set out a vision for an a more coherent and personalised service
integrated, effective and locally responsive to communities – rooted in place – so that
employment and skills system that can meet local areas lead in defining, designing and
the labour market and skills challenges of delivering the skills services require. In this
the future – a ‘Work Local’ approach. The ‘one stop’ service, skills and employment are
context for its work is the UK’s centralised driven by local needs and opportunities with
employment and skills system, which with the aim of delivering better outcomes at
its top-down approach offers little, if any, a lower cost and better aligning the needs
local flexibility even in devolved areas. The of employers and learners.
system is fragmented, with seventeen funding
streams managed by eight departments or This Work Local approach is only practical
agencies responsible for expenditure of more within a common national framework for the
than £10 billion a year.9 Characterised by devolution of strategy, financing and delivery
constant change, since the early 1980s there with local flexibility and where partnerships
have been: and devolved skills decision-making is a norm.
• 28 major pieces of legislation related to As part of this research our brief was to
vocational, further education and skills explore whether Work Local principles could
training be applied to a sector-based approach to
skills development. The following sections
• six different ministerial departments
set out our key findings.
with overall responsibility for education
• 48 Secretaries of State with relevant
responsibilities.
The underpinning research which made the
case for change to a Work Local approach
showed a system in which national agencies
and programmes were insufficiently
responsive to the needs of local economies
and demonstrated insufficient/ineffective
partnership working. To this end, councils
8 Post-16 Skills Plan, BIS, DoE July 2016
9 LGA/Learning and Work Institute (2017) ‘Work Local: Our Vision for an integrated and devolved employment and skills service’
8 Supplying skills for the local visitor economyKey findings
Although the case study areas were identified Scarborough is still delivered as an in-house
by the LGA to reflect structural difference and council-service.
geographies (metropolitan, urban, rural), this
section summarises the core common themes As a non-statutory service, tourism and
and issues coming out of the research. economic development has been subject
to significant financial cuts, which in many
cases has been the driver for contracted-
1. Challenges in out destination management models. This leads
to a lack of capacity and resources to support
developing a strategic the growth and development of the sector.
response Where there is no tourism officer but just a
Limited local data and evidence destination management organisation (which
The areas were identified because of the in itself does not have a remit for skills) there
importance of tourism and hospitality as is a gap in the leadership of the skills agenda
a driver of local/regional growth. However, in the sector and no real driver for change. In
there is a lack of quantitative and qualitative turn, the lack of data and intelligence on sector
data and intelligence regarding the sector needs means that it is difficult to make the
at a local level, particularly with regards to case to invest limited resources in this area.
employment and skills. Much of the available Tendency for local employment and skills
information is anecdotal. The lack of data and plans to focus on ‘bright new sectors’
intelligence means that the industry’s needs All the local authorities had developed local
are not fed through to strategy. Furthermore, employment and skills plans to support
standard industrial classifications split the local employment provision and enable
tourism and hospitality sector into small sub- local residents’ to access better quality jobs
sectors, which understates the collective ‘clout’ within their locality. Many of these plans
of the ‘visitor economy’. The loss of regional were developed in advance of the formation
information from Visit England further reduces of the local enterprise partnerships (LEP’s)
the intelligence available to local areas. Employment and Skills Boards. Despite
Local leaders hope that the delivery the importance of the sector to the local
of a Tourism Sector Deal will help address economy, it was interesting to note that the
these deficiencies and make the case for majority of plans prepared by LEPs and local
prioritising the sector in local economies. authorities excluded any reference to tourism
and hospitality as a sector worthy of support,
Lack of capacity and resources eg Cornwall and Scarborough. There was a
The research has highlighted the different universal focus on identifying and supporting
models in place at a local level to support niche areas of competitive advantage.
destination development and marketing.
For example, Visit Cornwall operates as Given the importance of tourism and
a community interest company with no hospitality as a foundation sector, its ability
financial support from the council; whereas to create new jobs relatively quickly which
provide accessible opportunities for the
Supplying skills for the local visitor economy 9whole community, together with its projected Lack of a consistent local sector
growth over the next 5-10 years, more weight voice on skills
needs to be given to the strategic value of Businesses recognise the support and
the sector within local employment and skills assistance available but the research
plans. The potential for even small productivity highlighted a lack of a consistent single
gains across such a labour-intensive sector voice to champion the sector and change
has potential to have a significant beneficial attitudes to jobs and careers within tourism
impact on the UK’s overall productivity. and hospitality. This is particularly the case
in areas which have a higher proportion of
Importance of strong partnerships
small and medium sized enterprises and
There is a need for strong and effective
self-employed business owners. These
sectoral partnerships involving a wide range
businesses tend to be the ones that most
of stakeholders including local government,
need help and support, but because of cost
training providers and employers with strong
implications, are least able to engage in skills
local leadership. There is a need to build trust
and training.
to create the right environment to explore
new ways of working and joint ambitions The lack of any clear employer voice means
and with the necessary connections that in many areas there is little coordination
in place to influence strategy development. or collaboration between employers and
providers over skills provision. Whilst there
At the heart of this is the need to raise the
may be a will for collaboration there is no
attractiveness of the sector to new entrants
clear impetus from either side or appetite to
and to embed tourism-related learning into the
take the lead/champion the sector and this is
curriculum. Critically, employers need to take
where the support from local leaders would
the lead to make the sector more attractive.
help empower the main players and bring the
right people together.
2. Recruitment and Local areas with a strong tourism and
retention issues hospitality sector will need to provide clear,
consistent leadership and close alignment
‘Hard-to-fill’ posts with industry priorities to fully benefit from
Throughout all the case study areas, the final UK tourism sector deal.
recruitment difficulties were widely reported
Impact of Brexit
for chefs and all food-related activities, with
Discussions with stakeholders and industry
other difficulties reported in housekeeping,
representatives confirm real concerns about
project management, front-of-house and
Brexit, which would limit significantly the
sales skills. There are concerns about filling
number of EU workers coming to work in
immediate front-line vacancies in areas such
the sector. For example, as many as 80-90
as housekeeping and bar-work with a worry
per cent of staff at the Grand Hotel Brighton
that this situation will be exacerbated by
are foreign nationals, although this figure
Brexit. One issue highlighted by Visit Cornwall
has declined over the last 12-18 months.
was the increasing need for individuals to
Fluctuations in exchange rates and Brexit
have multiple skills sets to meet the needs
means the number of EU workers is already
of businesses, especially small businesses.
declining and the industry is concerned
Digital skills are increasingly needed across
about future recruitment. The high number
the sector.
of independent tourism and hospitality
businesses are the most vulnerable to
challenges arising from the EU exit.
10 Supplying skills for the local visitor economyThe level of uncertainty and scale of the Frameworks/standards were said to be too
challenge seems to be bigger in the south narrowly defined and there is a need for more
of England and larger metropolitan/urban bespoke programmes, eg instead of being
areas mainly due to the high volume of hotels, purely focused on customer service skills
bars and restaurants. employers would prefer individuals with
more rounded skillsets.
Despite the impact of changes to freedom
of movement and labour shortage, there There is a stigma around apprenticeships
seems to be a lack of coordinated actions – even at a higher-level people were said
being undertaken to attract and recruit new to prefer an academic degree than a degree
home-grown talent. apprentice. In areas where the workforce
is well qualified, such asCambridge,
Work environment needs to evolve to
apprenticeships are seen as a programme for
better engage with potential ‘millennial’
poorly qualified young people who are unable
recruits
to pursue an academic pathway/cannot get a
Industry is well aware of the impact of labour
job. Many people in the industry are not there
shortages caused by high employment rates,
for a career so have no interest in undertaking
changes in the population structure and a
12-18 months training.
more restrictive immigration policy. For most
external vacancies, the feeling from local The image of the sector
employers is that the issue is a shortage of There is a general view expressed that
people ‘with the right attitude’ coming forward the level of aptitude and customer service
rather than skills shortages. Employers is higher amongst EU workers, where the
emphasised the primacy of personality hospitality sector is deemed more of a long-
attributes, such as enthusiasm, commitment term career option than it might be in the
and the will to learn. UK. A number of industry representatives
and employers voiced concerns that young
A number of industry representatives
people considered tourism and hospitality
highlighted the difficulty in recruiting
as a short-term job rather than a career.
millennials, who were seen as wanting
different things out of work (work-life balance) The full breadth of the visitor economy and
and are less accepting of fitting in with the jobs and careers prospects it offers are
employers’ needs, having a tendency to ‘job not accurately conveyed to young people,
hop’. If employers are to compete effectively especially in schools. Employers believe
for labour with other sectors then they need this impacts on the numbers and quality
to innovate and adapt to make their jobs and of applicants they receive. More needs to be
careers attractive. done at a local level in order to maintain and
create a skilled workforce within the sector,
specifically to address the local image and
3. Learning and skills profile of the sector as providing quality career
development opportunities and to support independent/
micro businesses address skills needs.
Apprenticeship programme
The seasonal nature of work makes the
apprenticeship model less suitable for the
sector as there is a reluctance or inability
to release staff for one day a week at peak
periods. Some employers had experimented
in shifting training to the end of the season
but found that people would rather find
another job than train at that time.
Supplying skills for the local visitor economy 11Disseminating best practice Addressing non-skill issues which
Many of the major employers and chains impact on recruitment
have developed their own bespoke in-house The case studies highlight a number of
programmes for training and development non-skills related issues, which impact on
to recruit and retain staff, for instance: recruitment and retention particularly in rural
areas. Getting to employment and training is
• Starbucks has announced that it is to often one of the most significant barriers for
provide the cost of university courses local residents including transport at unsocial
taught online by Arizona State University10 hours and cost implications. Employment
to staff without a degree as an employee
in the sector in rural areas is often seasonal,
incentive
temporary or part-time due to the business
• Travelodge has developed a five-step path base in most rural areas and distance means
to help parents back to work, including there is a limited labour pool within easy reach.
careers advice, flexible hours, company
The affordability of housing in some of the
benefits, training and an opportunity
city economies, such as Cambridge, was
to join its management programme
another issue, with recruits having to be
• the ’Hospitality Futures’ programme has drawn from greater and greater distances.
been developed by AccorHotels and Other issues identified included access
The Springboard Charity to provide the to training and FE/higher education (HE)
opportunity for people out of the labour provision, lack of diversity amongst recruits
market to develop a career in hospitality. and childcare issues.
These options are not available to the small A ’one-size-fits-all’ approach is not working
independents which dominate the sector but One of the self-evident findings from the
there may be opportunities to adapt some of research is the great diversity of socio-
the principles of these initiatives for smaller economic characteristics between each
enterprises working collaboratively. case study area which means they face
very different contexts for action. For instance,
unemployment in Blackpool (6.7 per cent)
4. The importance of place and the Royal Borough of Greenwich (6.3
per cent) is more than twice as high as
Relationship between skills and workforce
unemployment in Cambridge (2.8 per cent)
development and destination development/
and Cornwall (2.9 per cent).11
marketing
The working age population also differs
A successful and thriving tourism and
markedly in terms of its qualification profile.
hospitality sector will contribute to place-
In Blackpool (30 per cent) and Scarborough
making, profile and image as welcoming
(32 per cent), almost 1 in 3 of the working
destinations. Local initiatives, such as the
age population, are qualified to below Level
Blackpool Tourism Academy, have been
2 – the level which is commonly used as the
designed to deliver a coordinated and
benchmark for employment. This contrasts
enhanced training provision across several
with Brighton and Hove where just 12 per cent
leading employers, acting as industry leaders
of the workforce are qualified to this level.
to encourage SMEs to upskill their employees.
In Blackpool there has been recognition that Employers’ recruitment difficulties therefore
all parts of the visitor economy ecosystem vary according to their context. In some
impact on the visitor experience and there places such as Cambridge with virtually
is value in joint planning of training across full employment there is a sheer lack of
different sub-sectors. domestic applicants and increased reliance
10 www.bbc.co.uk/news/education-47773592
11 Annual Population Survey, December 2017
12 Supplying skills for the local visitor economyon international recruitment. In other areas, in
a sector where a high proportion of demand
is for entry level jobs and pay is low relative
to the average for all industries, the high
skill level of the population means that the
industry is unable to compete effectively for
labour. However, each local authority area is
limited to the same policy levers rather than
being able to flex the funding and system to
suit their particular needs and circumstances.
Supplying skills for the local visitor economy 13Recommendations
Although the current system has limited local and give consideration to how local areas
flexibilities, the research and case studies might access this information in the future.
have identified a number of areas where there
are opportunities to develop solutions driven 3. A place based and coordinated
by local needs, summarised below. approach to tackle non-skills issues
Issues such as transport and housing
affordability impact on recruitment and
For local leaders retention not just in tourism and hospitality
but in other areas of the foundation
1. Strong local leadership is needed economy such as health and social care and
to bring partners together construction. Against a backdrop of a tight
If localism is to work on a sectoral basis, then labour market it is imperative that local action
tourism and hospitality needs to be supported is taken to develop non-skill solutions which
with strong local leadership. Local leaders will help boost the availability of local labour.
should take on a facilitating role, encouraging
others, whether it is key employers or training
providers, to support the skills agenda. For Government
Partnership working needs to be founded on
1. Delivering the Tourism Sector Deal
an understanding of where the responsibility
Sectors with lower productivity are in danger of
for skills and employment lies, which may
being left behind as the Government prioritises
differ from area to area. There are examples
the more innovative sectors for sector deals.
of good practice amongst major employers,
The Tourism Sector Deal has the potential to
and employer or provider-led partnerships
be a game-changing milestone for the industry,
have real potential to better align local
ensuring that tourism and hospitality has a
provision to meet local needs.
voice that is heard. It is recommended that the
2. Work with the sector to address Government delivers on the proposed sector
the data and intelligence gaps deal which will drive forward a sea-change in
Evidence on employer skills needs is the how the sector is perceived.
foundation of any local strategic response
There are a number of positive government
and implementation of any sector deal
initiatives taking place with the potential to
which could flounder on the lack of labour
impact on the tourism and hospitality sectors.
market information. It is recommended that
However, these are not coordinated and not
in developing local industrial strategies the
always accessible by the small and medium
opportunity is taken to gather the information
sized enterprises that make up the majority of
needed on the challenges the sector faces
the industry. The Department for Digital, Culture,
and to develop appropriate responses, which
Media and Sport (DCMS) should work with
include addressing issues such as image,
other government departments to feedback
awareness of opportunities, skills gaps and
access issues for the sector and futureproof
training. Visit England should examine the
accessibility for these growing sectors.
impact of removing its regional data collection
14 Supplying skills for the local visitor economy2. Recognising the key role of local leaders
It is critical that Visit Britain and Visit England,
For the tourism sector
alongside industry partners, recognise 1. Making careers more attractive
and involve local leaders in shaping and The proposed sector deal is already helping
delivering the skills element of the deal to raise the profile of the visitor economy and
and the resources needed to achieve that. to convey the importance of the sector to
There is a need to strike a balance between local economies. With employment at an all-
opportunities and needs so that it is not just time high and a perceived change in the work
those areas which have the capacity/resource demands of millennials, it is recommended
which benefit. that employers play a greater role in attracting
new entrants into tourism and hospitality
3. Consider trialling a Work Local approach
and developing a response to the potential
Although the forthcoming devolution of
implications of leaving the EU. If employers
the Adult Education Budget heralds a step
are to compete effectively for labour with
towards local budgeting and commissioning,
other sectors then they need to innovate and
it appears that the scope for action will be
invest in staff training to make their jobs and
limited due to requirements to spend on
careers attractive, following the lead of some
statutory learning entitlements and literacy
of the major employers.
and numeracy.
2. Changing perceptions: champions and
There is an appetite amongst local leaders to
ambassadors
have more influence on the employment and
The industry needs champions and
skills agenda, for instance careers advice
ambassadors to showcase the breadth of
and guidance, which is fragmented and
career pathways in the sector and provide
lacks local relevance, as well as the 16-19
positive role models. It is vital that the
training budget, apprenticeships and back
industry works closely with the Careers and
to work support. The Apprenticeship Levy
Enterprise Company and schools to ensure
needs to be reformed, should be more closely
that information, advice and guidance is
linked and aligned with the place and sector
current and provides a clear line of sight to
based elements of the industrial strategy, and
progression opportunities. This can only be
employers encouraged to work together more
done at a local level by talking to councils and
collaboratively around the transfer of funds,
local enterprise partnerships.
including through pooling. New initiatives
like the National Retraining Scheme should
recognise the value of retraining within the
tourism sector. Without coordination at a local
For learning
level, all of these initiatives and programmes 1. Responding to the priorities of industry
risk being stand alone and less effective. The introduction of ‘T levels’ and the
National Retraining Scheme will provide new
The LGA believes a more place based and
opportunities for learning providers to broker
integrated approach to policy and funding is
links with industry for work placements, taster
needed to coordinate the range of national
days and mentoring. Close links should
and local initiatives and has set out how this
be developed with local Employment and
could be achieved through ‘Work Local’. The
Skills Boards to develop skills compacts to
Government should enable this approach to
formalise relationships and create dynamic
be trialled, where additional powers could be
partnerships between businesses and skills
devolved.
providers through which employers, schools,
The issue of seasonal working and colleges and training providers can work
apprenticeships needs to be addressed. together and align careers advice, learning
and preparation for work. This can happen
at a local level without any drive from the
national skills agenda, providing the right
Supplying skills for the local visitor economy 15partnerships are in place to ensure that liaison is efficient and effective. 2. Maximising opportunities for skills development The devolution of the Adult Education Budget to mayoral combined authorities provides an opportunity for learning providers and it is recommended that they work collaboratively with local leaders to develop non-accredited learning to boost the skills of current and prospective employees for the sector. 16 Supplying skills for the local visitor economy
The case studies
Supplying skills for the local visitor economy 17Blackpool
Tourism and Hospitality
Profile: Blackpool
Employment in Tourism & Hospitality
25,000
full time equivalent
1 5 in
of the workforce
job
City life on the beach
£1.5 billion
total visitor spend
18 million 14.6 million
visitors per year day trips
3.4 million 1 million
total number of more tourist
staying trips visits since
2015
Key Assets
• Blackpool Pleasure Beach
• Blackpool Tower
• The trams
• Blackpool Winter Gardens
• The Zoo
• The illuminations
18 Supplying skills for the local visitor economyContext and leadership abilities to support staff
progression and the growth of the industry
Well known for its attractions such as the more generally.
Pleasure Beach, trams, the Tower and
Several times during the consultation work
illuminations, Blackpool attracts 18 million
undertaken for this study, the scarcity of public
visitors per year and generates £1.5 billion
transport services outside conventional working
in visitor spend. Following a decline in its
hours was highlighted as an issue affecting
visitor numbers, the town began to reverse
employment opportunities in the sector and
its fortunes from 2014 onwards through a
exacerbating the difficulty of filling vacancies.
sustained programme of investment. Recent
years have seen significant levels of public
and private investment and key assets such
as the Winter Gardens and Tower taken The local response
into public ownership. The importance of A new Tourism Academy has been
the tourism and hospitality sector to the established, chaired by the private sector
Lancashire economy and especially to and led by Blackpool and The Fylde College.
Blackpool, is recognised in the council’s Through this model, employers and the
and the local enterprise partnerships (LEP) college are building on their experience
strategic planning and funding bids. to work directly together to tackle key skills
issues facing the industry with the support
of the council, but without its mediation.
Issues and challenges
Key success factors in tackling its skills
At a strategic level it is recognised that skills challenges include:
issues including recruitment challenges and
high staff turnover are preventing the visitor • a strategic drive and acknowledgement
economy from achieving its potential. The of the importance of the sector at local
industry is seen as low pay, low skilled with authority and LEP levels
limited career progression opportunities and • a willingness to apply for all available
employers report that the full breadth of jobs funding to support growth
and careers in the sector is not accurately
• strong partnership working between the
conveyed to young people. More generally,
council, employers and the main training
employers remarked on the need for:
provider which in turn has led to continuity
• customer service skills and the emergence of trusted relationships
• work readiness skills amongst young • a willingness on the part of the Blackpool
recruits, with comments about a lack of and The Fylde College to drive forward the
work ethic – prospective recruits lack soft skills agenda for the sector and to respond
skills and are not seen as ‘work ready’ creatively and flexibly to local needs
• good supervisory and management skills • the presence of a number of major
– there is a lack of relevant qualifications in employers who can collectively provide
this area to be able to make a judgement a voice for the sector and deliver the scale
of competence of demand needed to develop bespoke
training courses
• a rising demand for digital skills in a whole
range of roles such as front of house, • the engagement and commitment of major
kitchen staff and HR. local employers to ‘own’ the skills agenda.
As well as recruitment and retention
issues employers see a need to address
the prevalence of skills gaps across the
sector and to develop better managerial
Supplying skills for the local visitor economy 19Brighton and Hove
Tourism and Hospitality
Profile: Brighton and Hove
Employment in Tourism & Hospitality (2016)
18,100
people working in
13%
of all jobs
the sector
-7%
2011 - 2016
Businesses Tourism & Hospitality (2016)
1,620 10%
businesses across of all businesses
Brighton & Hove
£886 million +15%
Total visitor spend increase in businesses
(2012-17)
10,856,000 9,400,000
visitors per year day trips
1,456,000 4,363
total number of rooms, total
staying trips serviced bed-
stock
Key Assets
• The Royal Pavilion
• The Palace Pier
• British Airways i360
• South Downs National Park
• Brighton Beach
• Brighton & Hove Albion
20 Supplying skills for the local visitor economyContext • retention of staff, with higher turnover
than other sectors
The visitor economy is a key component • skills shortages and lack of educational
of the economy of Brighton and Hove and pathways in areas such as catering.
continues to be an important driver. The
sector supports around 1 in 5 jobs in the city Discussions with industry confirm concerns
and generates visitor expenditure of around about the uncertainty around Brexit, which
£886 million. A vibrant city centre and good could impact the number of EU workers
rail and road links makes Brighton an easy coming to the city. A number of industry
day trip destination from London. Conference representatives also highlighted the difficulty
tourism and day visitors account for the in recruiting millennials, who were seen as
strong performance of tourism in Brighton wanting different things out of work and are
and Hove. The visitor economy is identified less accepting of fitting in with employers’
by the Coast to Capital Local Enterprise needs, having a tendency to ‘job hop’.
Partnership (LEP) as a priority sector, which
will generate jobs and growth, with Brighton
and Hove highlighted as a local area with The local response
core specialisations in the sector. There
is a clear recognition that the growth and The consensus is that more needs to be
development of the sector will be dependent done at a local level in order to maintain and
on the availability of a quality workforce. At a create a skilled workforce within the sector,
local level, Visit Brighton is the official tourism specifically to:
organisation responsible for promoting • address the local image and profile of
and developing the sector in the city. Visit the sector as providing quality career
Brighton is an in-house service and income is opportunities
generated through membership schemes and
operation of the Brighton Centre, the major • raise the visibility of and access to career
conference venue in the city. insights and specialist support for young
people encouraging more people to
choose the sector as a career path
Issues and challenges • support independent/micro businesses
address skills needs
The city’s labour force is characterised by
strong qualification levels; half of working age • promote graduate recruitment and facilitate
residents have a degree level qualification, graduate retention in the city.
compared to 38 per cent nationally.
More local action is needed to support
Discussions with industry and stakeholders
small and medium sized enterprises (SMEs),
highlight the challenges facing the sector with
particularly independent enterprises, to
regards to recruitment and retention and the
improve retention and career development
potential impact of Brexit. Specific barriers
and raise awareness of existing skills
to growth in the sector include:
pathways, including forthcoming ‘T levels’.
• employer concerns about filling
Capacity and lack of resources are
immediate frontline vacancies
challenges to the Brighton & Hove City
• perception of tourism as a short-term Council in terms of shaping new interventions
job rather than a career, underestimating to maintain and strengthen growth. Building
opportunities available locally and globally strong strategic partnerships with the LEP,
industry, education and training providers
• challenges presented by the seasonal
is key to tackle the skills issues facing the city.
context
Supplying skills for the local visitor economy 21Cambridge
Tourism and Hospitality
Profile: Cambridge
Employment in Tourism & Hospitality
7,853
full time
22%
of employment
employment
Tourism is forecast to have the second highest rate of
jobs growth between 2016 and 2045 in the Cambridge
and Peterborough Combined Authority area.
Both the volume and value of tourism has
increased dramatically in recent years with
visitors up from 5.4m in 2013, an increase of
50% in four years.
8.1 million 7.1 million
visitors per year day visits
0.9 million 80% of annual
total number of visitors stay for a
staying trips few hours and at
best a day.
Key Assets
• Cambridge colleges
• Imperial War Museum Duxford
• American War Cemetery
• River Cam/punting
• Ely CathedralContext • young people’s expectations have
changed with the ‘gig’ economy and
Cambridge has a strong international profile there is an expectation for greater flexibility
aided by easy access from London. Its in working hours
tourism and hospitality sectors have been • changing demographics with fewer young
growing strongly in recent years with visitors people and an ageing workforce.
having increased by 50 per cent since 2013.
The vast majority of its 8.1 million visitors The workforce in Cambridge is well-qualified
are day visitors and the priority is to change and the perception is that vocational
the perception of the city as a day trip routes are second class, including the
destination, whilst increasing the value that apprenticeship route. Employer discussions
the city and the surrounding area derives acknowledged that there is an issue with
from tourism. the competitiveness of wages. The absence
of major employers, coupled with the lack of
Visit Cambridge and Beyond is the official strategic impetus and limited funding means
destination management organisation (DMO) that no organisation is leading the drive
for Cambridge and the surrounding area. It is to tackle the skills issues the sector faces.
almost entirely self-funding and receives less
than 4 per cent of its annual earned income Not all recruitment difficulties are skills
from the public sector. This funding model related, other issues which impact on
poses real challenges for Visit Cambridge recruitment and retention include a lack
and Beyond. There is no residual tourism of affordable housing and transport issues.
function within Cambridge City Council.
Although it has considerable growth potential,
tourism and hospitality is not recognised as a
The local response
strategic priority by the Cambridgeshire and There are no skills initiatives specific
Peterborough Combined Authority. to the visitor economy but the new Skills and
Apprenticeship Hub being developed by the
combined authority will streamline employer/
Issues and challenges learner engagement for work experience,
work trials, career support and so on. The aim
Whilst “recruitment and retention are a is to put more onus on employers to engage
constant issue” the shortages are fairly in training and apprenticeships through
universal, including bar staff, cleaners, a skills pledge.
chefs, waiters, gallery attendants, kitchen
porters and housekeeping staff. Very high Skills devolution is seen as important for
employment rates locally mean that there is Cambridgeshire and Peterborough since
an absolute shortage of labour. Prospective the Mayor and the combined authority only
young recruits are considered to lack have responsibility for the very modest adult
communication skills, which are vital in the education budget with little or no traction
sector’s customer-facing roles. on the 16 to 19 training budget or the
apprenticeship system.
As well as recruitment, retention is a
significant issue. Current difficulties are The Sector Deal is seen as an important
becoming more acutely driven by: lever to put pressure on local areas
to acknowledge the potential of the
• the loss of international employees – tourism and hospitality sector.
employers are already feeling the impact
of workers returning to their home countries
with some employers relying on international
staff for 60-70 per cent of their workforce
Supplying skills for the local visitor economy 23Cornwall
Tourism and Hospitality
Profile: Cornwall
Employment 36,191
in Tourism & direct
Hospitality (2016)
10,305
54,185 indirect
total estimated 7,689
actual jobs (2017) induced
Businesses Tourism & Hospitality (2015)
£730 million
Total business turnover
£1,951,266,000
Total visitor spend
19,440,000 14,656,000
visitors per year day trips
4,784,000
total number of
staying trips
Key Assets
• 300 miles of coastline including top quality beaches
• Tate St Ives
• Eden Project
• Geevor Tin Mine
• Tintagel Castle
• St Michael’s Mount
24 Supplying skills for the local visitor economyContext Industry feedback highlights the continued
challenges in attracting and retaining talent
Tourism is the biggest sector in Cornwall, and recognises the importance of developing
supporting one in five jobs and is projected a range of opportunities and quality work
to grow at 3.8 per cent each year through practices.
to 2025. As the leading domestic brand,
Getting to employment and training is often
the area attracts over four million UK tourism
one of the most significant barriers for local
trips every year. Cornwall continues to
residents including transport time and cost
experience growth in inbound tourism, with
implications. Employment in the sector in
a 5 per cent increase in the number of trips
rural areas is often seasonal, temporary or
made to Cornwall and 10 per cent increase
part-time due to the business base in most
in spend. Cornwall is particularly well-known
rural areas. Other issues relate to access
for its high quality natural, historic and marine
to training and further education/higher
environments, its beaches, resorts such as
education provision, lack of diversity and
Newquay and iconic attractions like the Eden
childcare issues.
Project, the Maritime Museum and St Ives.
Since 2015, Visit Cornwall, incorporated There is recognition of the importance
as a community interest company, has taken of tourism and hospitality, although no
over responsibility from the county council sector- specific actions are identified.
for marketing, promoting and developing The Employment and Skills Plan has a
the visitor economy in Cornwall. focus on identifying and supporting niche
areas of competitive advantage, ie smart
specialisation sectors.
Issues and challenges
Cornwall’s geography, dispersed population
and lack of a significant industry base have all
The local response
impacted on the economic growth prospects of Cornwall has one of the most recognised
the county. The area’s GDP is less than 70 per cent and comprehensive visitor offerings in the
of the national average, with a high proportion UK, making it one of the top UK tourist
of employment being low paid and seasonal. destinations. With a key, growing contribution
to the Cornwall economy, the visitor economy
Tourism is identified as an opportunity
sectors need to plan for the skills needed now
sector, with the focus on maintaining existing
and in the future.
markets and building new ones. An important
opportunity area is to increase the number On the ground there are a number of
of international visitors through improving successful examples of programmes and
and diversifying the tourism offer. Despite its initiatives to support skills and workforce
contribution and projected growth, the sector development including an active FE sector
faces a number of challenges: leading on a range of initiatives to foster
culinary talent. There is a recognition that
• dominated by small and medium
more needs to be done to bring together
sized enterprises (and self-employed
demand with supply and a focus on ensuring
entrepreneurs) which typically do not
that there is a strong employer voice on skills
have an HR function and are least able to
for Cornwall. The consensus is that more needs
engage with skills and training programmes
to be done at a local level in order to maintain
• a reducing pool of labour, particularly and create a skilled workforce within the
in light of Brexit uncertainty sector, specifically to address the image and
• low productivity, particularly low pay profile of the sector as providing quality career
and low output opportunities and to support independent/micro
businesses address skills needs.
• a number of ‘hard to fill’ posts, particularly
in catering.
Supplying skills for the local visitor economy 25Royal Borough of Greenwich
Tourism and Hospitality
Profile: Royal Borough of
Greenwich
Employment in Tourism & Hospitality
16,000
jobs
3.9%
forecast jobs
growth by 2023
£1.4 million
total visitor spend (2017)
19.4 million 1.2%
visitors in 2017 increase in visitors
(2017 vs 2016)
1 million 9.1%
total number of increase (2017
staying trips vs 2016)
Key Assets
• Maritime Greenwich World Heritage Site
• Greenwich Peninsula
• Woolwich
• O2 Arena
• Rest of borough – for hidden gems,
parks, open spaces
26 Supplying skills for the local visitor economyContext • a lack of quality and diversity amongst
applicants
The Royal Borough of Greenwich has a rich • careers in the sector are undervalued
heritage, with a unique place in maritime and it was said that local schools do not
history and a global profile through the promote tourism as a career
Greenwich meridian. 2018 was a record
year for visitor numbers, when the borough • there is a significant gap in ‘in work
received 19 million visits made up of a mix progression’ and upskilling – there is limited
of London, UK and international visitors. Visit adult information, advice and guidance and
Greenwich has acknowledged the importance learner loans are too expensive
of spreading the benefits of tourism across Brexit is causing particular concern
the whole borough and to this end, there has with possible skills shortages predicted
been approval for significant investment of if a portion of the current workforce were
£31.59 million in arts and culture in Woolwich to leave as a result of leaving the EU.
which is due to be completed by 2020.
The Employment and Skills Action Plan for
London 2018 sets out a vision for a series The local response
of sub-regional, business-led London jobs
The council is committed to using the adult
and skills boards. These will bring employer
education budget for flexible non-accredited
groups and sector representative bodies
employment and skills development to boost
together with education and skills providers
people’s employability skills.
and London government representatives on
a regular basis. The plan notes that sectors It has a robust planning policy and makes
such as hospitality, which are most affected extensive use of S106 agreements to secure
by restrictive immigration policies, could be local recruitment and pre-employment
a particular focus for action. training. The borough has also made use
of its ownership of key buildings to let
Locally, Visit Greenwich has responsibility
buildings at below market value on the
for promoting and developing the tourism
basis that under the terms of the lease, the
and hospitality sector in the borough, with
tenant will be required to attract visitors, as
financial support from the council.
well as creating employment and training
opportunities and the delivery of a range of
educational programmes. The new service
Issues and challenges level agreement between the council and Visit
There is little data specific to Greenwich but in Greenwich includes a specific reference to
London, evidence suggests that tourism and supporting employment and skills.
hospitality is not seen as a viable, long-term Partnerships at the right scale and geography
career. This is causing high staff turnover, are seen as essential to building the skills
lower productivity and higher recruitment pipeline and the borough benefits from a
and training costs. Twenty-six per cent of the strong local offer through the University of
workforce are EU nationals and the annual Greenwich and London South East College
workforce attrition rate is 30 per cent. which make a significant contribution to skills
Key issues identified in Greenwich include: development in the sector.
• improving transport links mean that
outward commuting for higher wages has
become easier which has exacerbated
retention issues for those employers who
find difficulty paying the London Living
Wage
Supplying skills for the local visitor economy 27Scarborough
Tourism and Hospitality
Profile: Scarborough
Total estimated actual jobs (2015)
17,356
people working in tourism and hospitality
Businesses (2015)
£730 million
total business turnover
£524 million
total visitor spend
7,137,000 5,604,000
visitors per year day trips
1,533,000
total number of
staying trips
Key Assets
• Whitby Abbey
• Scarborough Castle
• Scarborough Spa
• North Yorkshire Moors Railway
• Rotunda Museum of Geology
• Scarborough Sea Life Sanctuary
• Peasholm Park
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