International Conference of the Czech EU Presidency

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International Conference of the Czech EU
Presidency Trends in tourism employment and
labour market 

• WILL TOURISM REMAIN A DRIVER OF EMPLOYMENT IN
  DEVELOPED COUNTRIES?

Prof. Peter Keller Director, Institute for
Tourism, Business and Economic Faculty (HEC),
University of Lausanne (Switzerland)
Prag (Czech Republic), 10 June 2009
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Tourism is an experience economy whose part on
total employment is higher than its part at the
GDP
21th century 4th sector Experience economy
20th century 3rd sector Service economy Service economy
19th century 2nd sector Industrial revolution Industrial revolution Industrial revolution
18th century 1st sector Prevailing primary production Prevailing primary production Prevailing primary production Prevailing primary production
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The employment of the hotel and catering business
has developed similar to the employment of the
industry
Source Swiss Federal Office of Statistics, 2009
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The employment potential differs between tourism
related industries

• Tourism relevant full time equivalent of
  employment in

Source TSA Switzerland 2008
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The below average productivity of the incoming
sector reduces its competitiveness on the
markets
Personalisation Quality competition
Cost disease Shrinking productivity and loss
of competitiveness

Incoming sector
Outgoing sector
SMEs of destinations
International travel industry
Standardisation
Price competition
Low margins
Increasing productivity by cutting labour costs
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(No Transcript)
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Foreign employees compensate the lack of personal
in the more or less regulated hotel and
restaurant labour market
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The increase of labour productivity leads to more
attractive and better remunerated jobs
Prices these services can command in a open
economy by their uniqueness and their
quality (monetary aspect)
Efficiency with which inputs of human capital
and natural resources are used for developing
services (physical aspect)
Service vs. self-service economy
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The increase of labour productivity does not only
depend on education level
Determinants of labour economy
Structures
Markets
Investment
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Summing up Balance of factors which stimulate
or reduce tourism employment in developed
countries

• Factors that stimulate employment in tourism
• Rise of the experience economy
• Tourisms growth potential
• Factors that reduce employment in tourism
• Dependence on economy-wide fluctuations and
  crises
• Productivity gap and trend to self-service
  economy
• Positive but moderate growth of employment