Japan is set to be the most impacted by global labor shortages in the tourism and service sector, with a 29% shortfall anticipated in the country in 2035, according to a new report by the World Travel & Tourism Council (WTTC).
“In relative terms, Japan is projected to face the largest shortfall by 2035,” said the Future of the Travel & Tourism Workforce report released on Sept. 30, followed by other tourist destinations Greece (27%) and Germany (26%).
The research, conducted by Hong Kong Polytechnic University, maps the impact of labor within the tourism industry across 20 countries.
While tourism is a job creator, filling the jobs is not always easy. Globally, there will be a shortfall in the tourism industry of 43.1 million people, 16% short of required levels.
Retaining and attracting talent was identified as the biggest challenge for the tourism industry as a whole.
“After the onset of COVID-19, many highly skilled staff and professionals working in middle management left the sector, as tourism jobs at the time were insecure,” the report said, noting that there was a lack of skills and an increased need for training in the aftermath.
“The urgency to address these issues is clear, as failure to attract and retain talent risks eroding service quality, a cornerstone of the sector’s success,” according to WTTC.
Japan’s government has set a target of 60 million annual foreign visitors by 2030, but many businesses involved with tourism are already struggling with shortages of skilled workers.
Hotels in Japan have sought foreign workers, rolled out automation or, in some cases, limited their services as they struggle to keep up with demand. The government has expanded specified skilled worker visas for the tourism sector, including for hotels and restaurants, but the industry is still struggling.
The Asia Pacific Institute of Research has found that workers in the accommodation and food service industries will decrease by 1.9% by 2030 from 2024, but tourism demand is expected to increase 15.6%, echoing labor shortage worries and suggesting that the pace of tourism should be slowed.
In August, foreign visitors to Japan reached 3.43 million, up 16.9% compared with the same period the year before.
Last year, the Japan Federation of Service & Tourism Industries Workers’ Unions found that 85% of travel and hospitality business operators had limited their hours due to a lack of labor.
AloJapan.com