Over the last decades demand for tourism services has grown steadily. To meet growing demand employment in the sector had to grow as well.
Despite this growth, the industry’s employment patterns have largely remained stable, as the characteristics of supply and demand have not changed: Demand for tourism services fluctuates over time, i.e., demand — once it arises — must be met instantaneously by labor-intensive, just-in-time production.
Hence, the demand for labor also fluctuates over time, which in turn gives rise to special employment dynamics. Besides finding temporary and seasonal workers, tourism’s biggest personell challenge is compensating for staff departures. Constant growth of the sector growth has complicated matters.
In the last decade, growing demand for labor has been met primarily by employees who are mobile across borders. However, demographic change and competition from other industries will complicate continuing this strategy.
During Corona tourism was the industry most affected by lockdowns. Compared to other sectors of the economy, the decline in employment in tourism (ÖNACE I) was the most severe.
This temporary decline in demand for labor, however, did not necessarily make things easier as retaining core staff members became a major challenge.
As of summer 2022, most restrictions have been relaxed. Demand as well as production of tourism services reverted to the old pre-Corona levels.
Based on the data available so far, Corona can be considered a temporary one-off episode which the sector seems to have weathered well.
As the industry’s underlying demand and supply side conditions have not fundamentally changed, the challenge of adequately meeting the demand for labor will continue. |