Bridging the skill gap in hospitality industry with continuous learning and innovation

The study estimated that 5.7 million youth could be trained to meet an expected incremental labour demand of three million workers between 2025 and 2028. However, challenges such as low wages and long working hours deterred youth from continuing in the industry.

The Tourism and Hospitality Skill Sector Council (THSC) report on the Demand And Skill Gap, was launched at the Annual Industry Partners Meet 2024 conducted under the theme of “Navigating the Future: Bridging Skill Gaps for the Tourism and Hospitality Industry.”

As demand for hospitality services surges, the sector grapples with a shortage of qualified talent. In this article, we explore the intricacies of the skills gap in the hospitality industry, shedding light on the lack of hospitality industry training courses and potential remedies.

The State of Hospitality 2022 report indicates a potential 13-14 million talent gap over the next five years. Skill shortages and gaps are identified as the primary culprits, exacerbated by a high turnover of skilled staff.

In an era marked by rapid globalization and evolving consumer demands, the tourism and hospitality sector stands at a critical juncture. India’s tourism and hospitality sector has demonstrated extraordinary resilience following the Covid-19 pandemic and is poised for further growth.

It currently contributes 7.5% to India’s GDP, amounting to $3420 billion, making it a significant contributor within the services sector. In 2022, the industry employed 39 million people, equivalent to 8% of India’s total employment, with $22 million in forex earnings from January to October 2023 and 1.7 billion domestic tourist visits.

A demand and skill gap study was deemed necessary due to the ever evolving consumer preferences, government focus on niche sectors and advancements in technology. The study aimed to address changing customer preferences such as adventure tourism, eco/sustainable tourism, wellness and medical tourism, and entrepreneurial aspirations. Additionally, it considered the government’s emphasis on niche sub-sectors like cruise tourism, rural tourism, and religious tourism, along with the impact of advancing technologies like big data, artificial intelligence and automation.

According to Rajan Bahadur, CEO, Tourism and Hospitality Skill Council, “We aim to develop and deliver educational programs focusing on practical skills to empower young individuals to excel in the global hospitality industry. Our commitment extends beyond mere training; we aspire to cultivate a workforce equipped not only with technical expertise but also with the adaptability and creativity necessary to thrive in an ever-evolving landscape. With a vision to bridge the existing skill gaps, our efforts are geared towards fostering a culture of continuous learning and innovation within the sector, ensuring its sustained growth and competitiveness on the global stage.”

Meanwhile, Atul Kumar Tiwari, Secretary, Ministry of Skill Development and Entrepreneurship, said “Our efforts also extend to bridging skill gaps through comprehensive sector-wide studies. Together, we aim to elevate India’s tourism appeal and promote a skilled workforce, ultimately contributing to the nation’s prosperity.”

Key findings indicated that 51% of surveyed youth preferred working in hotels, 31% in tours & travels, and the remainder in facility management. Some youth from specific states expressed interest in relocating for better job prospects. Additionally, there was a notable interest in gig work among youth, but concerns were raised regarding its lack of structure and limited career advancement opportunities.

Employers highlighted the need for skills such as problem-solving, communication, literacy, and team management, with one-third providing training facilities. However, cost constraints and high employee attrition hindered training efforts. The industry’s technological adoption was low, but there was an intention to increase it, particularly in digital reservation and payment technologies.

Emerging jobs included chef entrepreneurs, airline hospitality, and tech-friendly tour guides, and skills like data analysis, revenue management and socio-emotional skills.

The study estimated that 5.7 million youth could be trained to meet an expected incremental labour demand of three million workers between 2025 and 2028. However, challenges such as low wages and long working hours deterred youth from continuing in the industry.

The Skill Gap report launch was followed by an Industry Partner meet on “Navigating the Future: Bridging Skill Gaps for the Tourism and Hospitality Industry.”

The agenda encompassed a series of pertinent discussions and presentations aimed at addressing key challenges and opportunities within the sector. Scheduled sessions revolved around insightful presentations on the implementation of the Direct Benefit Transfer (DBT) framework under the National Apprenticeship Promotion Scheme (NAPS); a panel discussion focussed on the multifaceted challenges and issues encountered by the industry, particularly concerning the demand-supply gap and the efficacy of the recruit, train and deploy model, as well as deliberations on the Recognition of Prior Learning (RPL) and the significance of Corporate Social Responsibility initiatives.