European tourism industry at risk over 1.2m job shortfall

The post-pandemic recovery of the European travel and tourism industry could be put at serious risk if almost 1.2 million jobs remain unfilled across the EU, a new study has said.

Th difficulties in the labour market have been revealed by the World Travel and Tourism Council in its latest analysis of the sector.

  • In 2020, when the pandemic was at its peak, the sector suffered the loss of almost 1.7 million jobs (direct employment).
  • In 2021, when governments began to ease travel restrictions the sector recovered 571,000 jobs.

A serious number of vacancies are likely to remain unfilled during the busy summer period, with the worst-hit sectors including:

  • Travel agency – 30% shortfall
  • Air transport – 21% shortfall
  • Accommodation – 22% shortfall

The WTTC together with the European Travel Commission have identified six measures that governments and the private sector can implement to address this urgent issue:

  • Facilitate labour mobility within countries and across borders
  • Enable flexible and remote working where feasible
  • Ensure decent work, provide social safety nets and highlight career growth opportunities
  • Upskill and reskill talent and offer comprehensive training as well as create
  • Create and promote education and apprenticeships
  • Seek out technological and digital solutions

A new era

One of the big takeaways from the last couple of years has been the diverging experience of workers who can work flexibly from home and those that can't. Many travel jobs fall in the later category.

As Cristina Siza Vieira, executive vice-president of the Portuguese Hoteliers Association, told the Financial Times: "The era of fast, frequent and cheap holidays is over," adding that workers “are often finding they can earn more in jobs that leave their evenings and weekends free.” 

A rare winner

In the airline sector, the likes of EasyJet and British Airways have struggled to fulfill their schedules partly because of staff shortages. Ryanair on the other hand has fared better. On a recent earnings call CEO Michael O'Leary put it down to one thing: "The decision to minimize job losses and keep crew current through COVID has been vindicated," he said.

What they said

Julia Simpson, WTTC President & CEO said: “Europe showed one of the strongest recoveries in 2021, ahead of the global average. However, current shortages of labour can delay this trend and put additional pressure on an already embattled sector.

“Governments and the private sector need to come together to provide the best opportunities for people looking for the great career opportunities that the travel sector offers.”

Luis Araujo, ETC president said: “Europe, as the leading and most competitive tourism destination in the world, is committed to becoming the most sustainable one. But the goal of the twin transition (green and digital) will only be achieved if we succeed in attracting and retaining talent for this sector. This is one of the biggest challenges for the sector and needs coordinated, multi-layered and joint (public and private) solutions.”