Global hotel brands with loyalty programs, rigorous brand standards, and beautiful, unique assets are sure to continue to drive visitor numbers to the Kingdom, but the path to success is not without hurdles. In the highly competitive global tourism sector, guests expect the same level of service in Saudi Arabia as in other cities around the world, especially since his ADR reflects established premium and major tourist destinations. To do. However, the hospitality industry continues to compete for talent in the wake of the COVID-19 crisis, with millions of job shortages reported in many major regions.
In Europe, for example, Effat and Hotrec Hospitality Europe stated in a joint declaration in March 2024 that “the sector is now on average 10% to 20% of the workforce in the EU compared to 2019. percentage is missing.” It employs approximately 10 million hospitality professionals within the EU.
In Asia, the Hotel Association of India said in March 2023 that despite recent efforts to alleviate labor shortages, high turnover rates, low skills and negative perceptions of hotels among young professionals remain. As a result, the industry is still facing a 60% labor shortage. industry.
Meanwhile, in the United States, a February 2024 press release from the American Hotel and Lodging Association found that although 82% of hotels surveyed nationwide reported wage increases, 72% were still unable to fill vacant seats. It is said that it has not been completed.
Saudi Arabia has set a goal of creating 1.6 million jobs in the tourism sector through its Vision 2030 strategy. Many of the jobs in the sector have traditionally been low-skilled, but the Kingdom is keen that the job creation will benefit its citizens. Young Saudis are attracted to the growth of the sector, but are not keen to fill positions for new entrants, even though they often lack the necessary skills expected by hotel chains. Roles in the sector are still stigmatized by the perception that they have a low social status. As a result, Saudi Arabia suffers from a shortage of technically qualified labour, especially in key positions such as cooking, kitchen staff, F&B and sales.
The country has long relied on foreign workers from countries such as Pakistan, India, the Philippines, Egypt, Bangladesh and Nepal to fill the gap in new jobs. This trend is unlikely to disappear in the short term. However, Saudiization goals are putting pressure on hoteliers to aggressively pursue hiring Saudi nationals, forcing hotel brands, hospitality asset owners, and managers to carefully design their talent strategies. However, it has proven difficult at times. Given the global shortage of talent and skills, Saudi Arabia is not only focusing on attracting tourists, but also developing a global network that can provide the standard of quality expected by tourists with an almost limitless number of destinations to choose from. We also need to focus on human resources.
To reach 150 million visitors by 2030, Saudi Arabia is now counting in part on the rise of the Chinese and Indian middle classes. To take advantage of the rapidly growing middle classes in these countries, the country will need to tailor its services to their preferences. For example, Saudi Arabia added Mandarin Chinese as a third language in schools following Crown Prince Mohammed bin Salman’s visit to Beijing in 2019. The decision is aimed at bringing the two trading nations closer together. Her Royal Highness Princess Haifa Al Saud, Deputy Minister of Tourism, also said that her ministry is working to send Mandarin-speaking tour guides to the kingdom to welcome Chinese tourists.
Dealing with Chinese tourists is now a staffing challenge for Saudi hoteliers, as they primarily communicate in Arabic and English and cater to more Western standards of hospitality. This may further complicate the consideration. Saudi Arabia is not alone in trying to court Chinese tourists, so there will likely be fierce competition for talent to serve them.
Given the strength of domestic travel and the diverse number of visitors to Saudi Arabia, as well as guests’ increasing expectations for personalized attention, hospitality companies are not only reconsidering their staffing priorities, but also carefully planning visitor travel. You will need to design it and execute it diligently. .
