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Home / Business / Companies / Tourism

Tourism Industry Aotearoa survey shows more than half of businesses not confident of finding staff

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
27 Jul, 2022 08:00 PM4 mins to read

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Tourists are coming back but the sector is struggling to find workers. Photo / Getty Images

Tourists are coming back but the sector is struggling to find workers. Photo / Getty Images

Tourism businesses are offering incentives from spa access to free speedway tickets to attract scarce recruits - but nearly a third of those recently surveyed say they face capping capacity or reducing services because of staff shortages.

A Tourism Industry Aotearoa (TIA) survey finds 75 per cent of businesses are recruiting but 86 per cent rate applicants as average or poor quality.

The biggest challenges when recruiting were a lack of suitably skilled staff, reluctance to work flexible hours, and the competitiveness of wages.

The TIA survey of 360 members and non-members found 70 per cent of respondents pay at least the Living Wage, ($23.65 an hour from September 1) 63 per cent offer flexible working arrangements, 33 per cent offer meals and 22 per cent offer accommodation.

One said they offered free gym membership, aquatic access (including spa, sauna.) discount on cafe and retail, discount of activities, free speedway tickets ''and more''.

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More than 13 per cent of those surveyed said they offered paid volunteer days off.

Tourism businesses were among the hardest hit by Covid lockdowns and border closures, particularly those with an international focus and now a staff shortage is putting the brakes on recovery. More than half - 52 per cent - say they are not confident they can attract sufficient staff.

When asked what actions would need to be taken if the required workforce was not attracted, 27 per cent would have to cap occupancy or passenger numbers and 29 per cent would have to reduce services/offerings. A common comment from those surveyed was that they would have to take on the extra work themselves, increasing the already major concern of burnout.

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Confidence levels are hit by uncertainty about visitor numbers and therefore workforce requirements. Inquiry levels and interest in visiting New Zealand is high, however until this is converted to confirmed bookings, it is difficult for employers to plan staffing levels, a report from the survey says.

Businesses are aware that many Working Holiday Visa (WHV) holders will not arrive, nor be ready to work until closer to summer, so are exploring other recruitment options to reduce the reliance on incoming WHV holders.

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In verbatim comments, business owners said:

''We know there is lots of demand, but airlines don't have the capacity right now and it is making it extremely difficult for overseas travellers to plan. The cost of operations, and how visitors might perceive the cost. Ensuring (newly recruited) staff have enough work.''

In response to a question about the biggest challenges, businesses said was a pure lack of applicants for the majority of roles. Inexperienced applicants were also a major feature and the challenge of finding time for appropriate training.

Seasonality and the inability to offer full-time hours were common and the constant wage battles with many companies offering unsustainably high wage rates that others cannot compete with.

Tourism Industry Aotearoa chief executive Rebecca Ingram.  Photo / Supplied
Tourism Industry Aotearoa chief executive Rebecca Ingram. Photo / Supplied

Comments included:

• Not enough people wanting to do the jobs. People seem to have lost confidence in tourism/hospo as a stable career choice - seen as risky.

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• There are simply no people left in Queenstown looking for hospitality work.

• Have been lucky to this point but talent pool is getting empty. Issue we have seen is attracting people to our sector that was worst hit by Covid/lockdowns and the worry it might occur again.

In spite of some gloomy survey findings, TIA chief executive Rebecca Ingram says the industry is optimistic summer will help bring businesses back from losses and help the country stave off recession.

She said it was encouraging so many tourism businesses were hiring.

"What we need now is great people to join us at this defining time,

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