Skills Shortage in Hospitality and Tourism Industry

Blog

Hospitality and tourism are among the largest industries worldwide, employing millions of people and contributing significantly to national economies. In Australia alone, more than 10% of the workforce is employed by food service, accommodation or tourism businesses. These industries play a vital role not only in employment, but also in cultural exchange, international trade and regional development.

A Growing Skills Gap

Despite their size and importance, hospitality and tourism face ongoing challenges with workforce shortages. The National Skills Shortages List highlights roles where demand significantly exceeds the number of qualified workers. In 2025, this list includes hotel managers, chefs, tour guides and tourist information officers.

These shortages have real-world impacts. Restaurants may operate with reduced menus; hotels may struggle to maintain service standards and tour operators may be forced to scale back offerings. For customers, this can mean longer wait times and lower-quality experiences. For businesses, it can mean lost revenue, reduced customer satisfaction and increased stress on existing staff.

Recruitment and Retention Challenges

However, it’s not only about finding qualified people. It’s also about keeping them! Many businesses report high staff turnover. Skilled staff may leave for better pay, improved working conditions or more stable hours. This creates a cycle where employers often need to bring in less experienced workers, invest time and money into training them, then face the challenge of replacing them again if they move on.

Factors contributing to turnover in the hospitality and tourism sectors include:

  • Long or irregular working hours,
  • Physically demanding tasks,
  • Seasonal fluctuations in employment, and
  • Limited career progression in some workplaces.

These issues will not be resolved by pushing for increased recruitment. Businesses need to consider long-term strategies to improve staff retention such as better training, career development opportunities and improved workplace culture.

Opportunities for Skilled Professionals

While the shortages create challenges for employers, they also create opportunities for individuals considering a career in hospitality or tourism. Skilled workers are in high demand and those with the right qualifications and practical experience can often find strong job security and career advancement without having to look too far.

From chefs and hotel managers to tour guides and event coordinators, there is a wide variety of career pathways across these sectors. Such careers also offer the chance to work in dynamic, exciting and people-focused environments, often with the added benefit of travel and cultural exchange.

Building a Pathway into Hospitality and Tourism

If you are considering entering this sector, or if you already work in it and want to expand your career options, building the right skills is essential. Employers value a blend of practical knowledge, adaptability and formal training as this demonstrates commitment to the industry.

ACS offers flexible online courses in areas such as hospitality management, event management, food and beverage and tourism studies. These can provide a foundation for those starting out or provide opportunities for professional development for those seeking to move into more specialised or senior roles.

Explore our courses here

Or contact us contact us directly at admin@acs.edu.au.