Background - Humber LEP€¦ · Web viewIn 2016, the ONS estimated tourism for Yorkshire as a whole was worth 6% of the GVA and VHEY calculated the sector employed 18,257 across the

Tender Ref: HCUK/ESF/2017.SD08

Skills Support for the WorkforceSkills Gap Report

Report Detailing Employer Skills Requirements up to 2022

Sector: Visitor Economy

Index

Background...........................................................................................................................3

Market Intelligence.................................................................................................................5

National Overview..............................................................................................................5

Regional Overview.............................................................................................................5

The Impact of Hull as the City of Culture...........................................................................6

Developments and Employment........................................................................................7

Research Methods ................................................................................................................9

Summary of Findings...........................................................................................................10

Recruitment......................................................................................................................10

Skills and training.............................................................................................................11

Skills Requirement Report Findings and Recommendations...............................................13

Sector Summary..............................................................................................................13

Skills and Training Requirements....................................................................................13

Challenges.......................................................................................................................18

Recommendations...........................................................................................................22

References and Contributors to the Report.........................................................................25

Legacy.................................................................................................................................26

Appendices..........................................................................................................................27

Appendix 1: Current SSW Delivery to the Visitor Economy sector..................................27

1 | P a g e SSW Skills Gap Report: Visitor Economy

Key Contacts

Skills Requirement Sector Visitor Economy

Company/Organisation conducting the research

East Riding College

Key Contact for the Project

Name/Email/Telephone

Kate HardingHead of Curriculum, Business and the Leisure EconomyEast Riding CollegeDirect Dial: 01482 390917Switchboard: 0345 120 [email protected]

Report Produced by East Riding College

Additional research and writing support: HCUK Training

Company/Organisation Address

East Riding CollegeFlemingate Centre,Armstrong Way, Beverley, East Riding of Yorkshire, HU17 0GH

Company/Organisation Tel Number

0345 120 0044

Company/Organisation Key Contact Email Address

[email protected]

Any Other Contact Information

Ian Mills. 07885 118 555

[email protected]


mailto:[email protected]

mailto:[email protected]

Background

In August 2017, East Riding College was commissioned by HCUK Training to carry out a review of the visitor economy across the Humber Local Enterprise Partnership (LEP) region.

The review was part of the ESF-funded Skills Support for the Workforce (SSW) programme and focused specifically on the region’s small to medium-sized enterprises (SMEs), although information on larger companies was also gathered. It included an analysis of:

Current and emerging skills gaps and training needs across the sector up to 2022.

How aware Humber’s SMEs are of the skills needed to drive sector growth.

The willingness of SMEs to invest in developing the skills of their workforce.

The visitor economy is one of the key business sectors in the Humber region as identified by the Humber LEP. It provides employment and upskilling opportunities, improves and protects the built and natural environments, and creates demand for high quality businesses and services. It is a major employer in the region and has shown consistent growth over the past five years. Due to the nature of the businesses working within the visitor economy, there is an overlap with other sector definitions including tourism and hospitality.

This report covers the entire Humber LEP region including Hull, the East Riding of Yorkshire, North Lincolnshire and North East Lincolnshire. However, in parts, it includes figures that cover both the Humber and Yorkshire areas as this is how the data is reported. These figures predominately come from the Visit Hull and East Yorkshire (VHEY) and Destination Management Organisation (DMO) data, and all sources are referenced.

HCUK training have carried out additional research to enhance the initial findings, including desk top research, focused surveys and in depth interviews. HCUK have also contributed additional writing support to the report, alongside supplemental evidence.

This report is designed to provide a snapshot of the sector within the Humber, showcasing some illustrative and current developments as context for the skills gaps and challenges it faces. It is not intended to, nor would it be possible to, provide an exhaustive record of the many successful events, business and developments within the visitor economy in this report alone. Further details of the events and developments referenced, and many more that cannot be covered within the scope of this report, can be explored through the links provided in the resources section.

Process

Work for this report took place between February and December 2018 and included a combination of:

Desktop research

16 face-to-face executive interviews

1 focus group


47 telephone and self-completion questionnaires.

It focused on the following sectors:

Guest houses / bed & breakfasts (B&Bs)

Hotels

Restaurants

Retail

Bars / pubs

Coffee shops / cafés

Visitor attractions

Caravan / camping sites

Transport

And engaged with the key sector organisations including:

VHEY

The Hull & East Yorkshire Hospitality Association (HEYHA)

Make it York (Visit York)

York Hoteliers Association

Bridlington Guest House Association

Welcome to Yorkshire

East Riding of Yorkshire Council

East Riding College

York College

Hull City Council

Humber LEP

North Lincolnshire Council Tourism Team

Discover North East Lincolnshire (DiscoverNEL)

The desktop research was undertaken with reference to previous reports including the Deloitte Tourism: Jobs and Growth report and the VHEY strategy. This strategy covers 2015 to 2018 and, as such, is currently being renewed; unfortunately, the new strategy is not yet available. DiscoverNEL are also currently updating their growth plan. A full list of all sources used in writing this report can be found in the References and Contributors to this Report section at the end of the document.


Market Intelligence

National Overview

According to Visit Britain, since 2010, tourism has been the fastest growing sector in the UK in employment terms. By 2025 it is forecast to be worth over £257 billion, accounting for just under 10% of the country’s gross domestic product (GDP) and supporting almost 3.8 million jobs (approximately 11% of the total workforce).

The sector is predicted to grow at an annual rate of 3.8% over the next seven years, significantly faster than the UK economy overall (which is expected to grow at just under 3% per annum), and much faster than sectors such as manufacturing, construction, and retail.

The Office for National Statistics’ (ONS) report on Productivity in the Tourism Industries, which included both accommodation services and serving of food and beverages, showed productivity for the accommodation services sector was 111% in 2010 but fell back to 99% in 2013. It rose from 100% in 2008 for the food and beverage sector to 116% in 2013.

In 2013, Deloitte estimated the tourism GVA (gross value added) multiplier to be 2.8, meaning for every £1,000 generated in direct visitor GVA there is a further £1,800 generated elsewhere in the economy through the supply chain and consumer spending.

Regional Overview

In 2016, the ONS estimated tourism for Yorkshire as a whole was worth 6% of the GVA and VHEY calculated the sector employed 18,257 across the region, an increase of approximately 15% over a five-year period and evidence of strong growth in the visitor economy.

2012 2013 2014 2015 2016

Jobs in Tourism (FTEs) 15,442 16,581 16,890 17,442 18,257

With the impact of City of Culture in 2017, it is reasonable to assume the number of people employed in the sector has now increased to approximately 20,000. VHEY also produced the following data in 2016:

Accommodation and food services employed 172,000 people in Yorkshire and Humber, representing 6.3 % of the workforce (compared with 9.6% nationally).

The visitor economy made up 3% of employment in Hull (compared with 9.6% nationally).

Leisure and other services employed 12,111 people in the East Riding of Yorkshire, representing 9.2% of the workforce (compared with 9.6 % nationally).

VHEY also estimated employment in the leisure and travel sector across Yorkshire and the Humber would increase by 4% between 2012 and 2022, meaning an additional 27,000 jobs would be created and increased revenue for the sector, as shown in the table below.


2016 2015 2014

Value of Tourism £550 million £522 million £506 million

Increase on previous financial year +5% +3%

In North East Lincolnshire the visitor economy generates an income of approximately £589 million per annum and, in North Lincolnshire, tourism contributes approximately £167 million a year to the local economy. (Sources: DiscoverNEL / Invest North East Lincolnshire / North Lincolnshire Council)

The visitor economy’s place within the local economy is calculated using the Location Quotient (LQ) score. A score of more than 1 means the sector has a higher degree of specialisation than the overall UK economy (known as the reference economy). For the Humber region the LQ for food services and accommodation is 0.8. For East Riding, it is close to 1.0, meaning it is almost identical to the national picture.

The Impact of Hull as the City of Culture

In March 2018, the University of Hull published its Evaluation of the Impact of the City of Culture on the local area. The main findings were:

Visitor numbers rose from 4.7 million in 2013 to 6.0 million in 2017.

Tourism in 2017 brought £300 million into the local economy.

Hotel occupancy rose by an average of 10.5%.

There was an investment of £219.5 million in the cultural and visitor economy because of the City of Culture Year.

800 new jobs have been created in the visitor economy since 2013.

The City of Culture had a major impact on employment. In addition to the direct impact on the visitor economy, it has created employment through several key construction projects including the £12 million redevelopment of the New Theatre and the £13 million reconstruction of the city centre landscape. There has also been redevelopment of the old fruit market that has led to at least four new restaurants being opened. The new Bonus Arena will create some 500 primary and secondary jobs. Alongside this there is the major redevelopment of the University of Hull’s campus.

There are expected to be longer-term benefits to the city and surrounding areas as a result of Hull being the City of Culture, something which has been seen in other cities after their year of culture. For example, the renaissance in the City of Liverpool, especially its visitor economy, is widely regarded as a result of it being City of Culture as it led to a renewed sense of confidence in the city, its people and its businesses, resulting in enhanced investment.

The same now appears to be happening in Hull and the Humber region. Last year it benefited from the highest number of foreign direct investment (FDI) projects in almost twenty years. This surge in investments throughout 2016 was led by manufacturing projects, including the expansion of Siemen Gamesa’s turbine plant at Green Port Hull, new


warehousing for DPD in Goole, a new state-of-the-art factory for laser technology firm Rofin Sinar in Hessle, and Solar 21’s biomass power plant in Tansterne, East Riding of Yorkshire.

This growth is reflected in housing completions of 1,500 exceeding a target of 620, again with consequential employment, net inward migration and the fastest job seekers allowance fall of any UK city. The GVA for Hull City in 2016 was higher than the national average and 2017 is predicted to be higher still.

Developments and Employment

Locally, the impact of growth in manufacturing is being demonstrated through major redevelopments influencing the visitor economy, and generating additional jobs. The opening of the Hilton Double Tree Hotel in Hull creating around 100 jobs. Its 1,000-seat conference centre will generate more employment in the local economy in restaurants, bars, coffee shops, taxis, and retail outlets plus the supply chain. This opening followed the recent opening of the Hilton at Humberside Airport. The Premier Inn chain has successfully opened a hotel in Bridlington.

Other major developments are also delivering growth in the area. In North East Lincolnshire the council has been very successful in securing funding for regeneration projects in Grimsby and Cleethorpes, e.g. they received over £3 million from the coast communities fund to improve the public realm, and introduce public art at key arrival sites, promenades and within the historic town centre. They also received government funding for Grimsby to become the first town deal. The town deal will regenerate the town, improve the night time economy, and attract visitors by enhancing historic buildings and improving the public realm. The council have plans to apply for additional funding to continue their work of improving the visitor economy, including developing a cultural offer in Immingham and developing the existing infrastructure of Grimsby.

In North East Lincolnshire, the visitor economy supports over 6,959 jobs (Source: DiscoverNEL). In total it is estimated that 22% of the population work in distribution, hotels and restaurants across the region (Source: North East Lincolnshire Data Observatory). In 2015, the Premier Inn also opened an 80-bed hotel in Cleethorpes, which includes a 190-cover restaurant. In 2017 a major leisure complex was opened in Grimsby, bringing more jobs to the region, and other new bars and restaurants have also opened. New events continue to be planned, including the inaugural Festival of the Skies in Cleethorpes, planned for September 2019, which will see hot air balloon, kite and light and water displays.

In North Lincolnshire, more than 4,000 people are employed in tourism; this accounts for approximately 5% of the working population. The visitor economy is considered a growth area in towns such as Scunthorpe, where a recent project to improve the town centre led to the development of jobs in the cultural quarter and an entertainment / leisure zone. The plan is to transform the market by creating a food court with street food and a café culture feel to it. The success of the continental food market in the town has demonstrated how this can draw in new visitors and it is hoped to replicate this ambience in the new facility. Leisure and tourism are also key sectors for Brigg and Epworth. (Sources: LMI Humber / Greater Lincolnshire LEP / North Lincolnshire Council).

In East Riding and South Humber, the business base is largely characterised by micro-businesses (up to eight employees). There are also a range of key visitor initiatives /


businesses run by larger or national organisational structures, such as the North Lincolnshire Council run Waters’ Edge Country Park and Visitor Centre in Barton on Humber, and the RSPB Visitor Centre at Bempton Cliffs. ‘Lifestyle’ visitor economy businesses also form a large part of the sector, for example Langland’s garden centre at Shiptonthorpe with over 40 staff and Drewton’s Farm Shop at South Cave, with a similar staff number. Family and adventure based attractions have also seen an increase, including William’s Den in East Riding, Let Loose near Beverley and a Go Ape at Normanby Hall near Scunthorpe. Tourism is a major East Riding employer with over 12,000 jobs, including Bridlington which attracts most of its visitors from West Yorkshire (60% are from Leeds).

The coastal regions within the area represent significant value to the visitor economy as a whole, and have also benefitted from substantial investment. In addition to the £3 million coastal communities funding delivering renovation in Cleethorpes, the East Riding of Yorkshire is benefitting from several significant projects. For example, the Bridlington Renaissance Partnership is delivering large scale developments that include £10 million investment in transportation improvements funded by East Riding of Yorkshire Council and the Humber LEP, and £3.8 million investment in redeveloping the seafront area.

The growth in employment in the local visitor economy reflects national trends. In 2017, a study for the British Hospitality Association estimated that from 2019 onwards the industry will have a cumulative shortfall of 60,000 workers year-on-year and the ONS estimates there is a need to recruit 135,000 staff into the tourism and visitor economy sector to meet the demand created by the predicted growth in visitor numbers. According to the National Skills Survey (2015), the highest number of vacancies were in service-based industries, including hotels and restaurants and entertainment, recreation and other service activities.

There may be an increased shortfall in skilled workers because of Brexit as the future of EU nationals is unclear. At present EU nationals make up about 10% of the UK workforce (Source: Department for Exiting the EU). Nationally, 24% of UK hotel workers are EU nationals. The figure for Yorkshire and the Humber is much lower at 7.9% but still significant. Should EU nationals not be allowed to remain in the UK, or continue the trend of voluntary repatriation, a gap of up to one million vacancies in the hospitality and catering industry could arise.

Many of the vacancies across the Humber are within smaller businesses e.g. many Bridlington and Cleethorpes opportunities are seasonal, and often on a zero hour contract. These businesses tend to advertise the opportunities through local press, adverts in windows and websites if needed. Due to the seasonal nature of business, owners tend to take on inexperienced staff who require in house training within a short space of time. The lack of suitable candidates and continual upskilling of staff is often compounded by a high turnover. Workers with previous hotel or hospitality experience are more inclined to apply for work with larger national hotel chains as they offer permanent work and better salaries.

Despite its economic success and the number of potential job opportunities, the visitor economy is not as attractive to job seekers as other sectors, meaning they are less likely to apply for vacancies. There is a misconception that all the jobs in the visitor economy are low-skilled and low paid, which is not the case. In fact, there are many higher-paid jobs and roles offering career progression in a global arena. These need to be highlighted to create a more balanced view of the sector, address any misconceptions people may have about working in the visitor economy, and make them more likely to apply for vacancies when advertised.


Research Methods

For this report, we engaged with a wide range of employers through face-to-face interviews and networking groups including:

VHEY: approximately 900 members

Bridlington Guest House Association: approximately 100 members

Hull Humber and East Yorkshire Hospitality Association: approximately 35 members

Make it York: approximately 800 members (consulted for benchmarking but not included in the results outlined below).

DiscoverNEL: Created by VESR to promote North East Lincolnshire as a place to work, stay and play to tourists, business visitors and residents.

50% of those that answered our survey were part of a network group.

We also carried out research into the sector by reviewing reports and data released by other sector bodies and local authorities including:

VESR, a private sector-led group created by North East Lincolnshire Council to champion the sector. VSER’s first achievement was delivery of DiscoverNEL as a brand (see below). They are now applying to be an accredited DMO for the area.

Invest in North East Lincolnshire (InvestNEL) who work in partnership with businesses across the region and the local authority to support local businesses and inward investment.

Invest in North Lincolnshire, who work in partnership with local businesses to support inward investment and economic growth.

LMI Humber, a resource for the region that provides detailed information about priority sectors and growth areas.

North Lincolnshire Council, who have a tourism team dedicated to promoting the local region and the visitor economy.

We received 47 completed surveys from companies representing the following sub-sectors of the visitor economy. (Some businesses fall across multiple categories as their company offers more than one service e.g. restaurant and hotel)


Most companies who responded to our survey had over 20 employees.

Summary of Findings

Below, we have summarised the key findings of our research which have influenced our recommendations for future actions to strengthen the sector.

Recruitment

Over 90% of the businesses surveyed reported that they had recruited staff over the past year. The majority were to either recruit temporary staff or replace staff leaving although 25% were new permanent staff.

Reason for recruitment Number of Staff Recruited per Reason

To replace staff leaving 24

To replace staff retiring 5

New permanent staff 10

Temporary/seasonal staff 26


Caravan/camping site

Bar/Pub

Other

Visitor attraction

Guest House / B&B

Hotel

Restaurant

Coffee Shop / Cafe

Retail

3%8%8%

13%19%

21%23%23%

30%

What does your organisation do in the visitor economy?

0 1-5 6-10 11-20 More than 20 - please state

0%15% 13%

21%

51%

How many people work in the business, full and part time and including yourself. If seasonal, please state

maximum per year

Nearly 50% of those surveyed stated that staff retention is a problem, largely reported as due to low wages, unsociable hours, zero hour contracts and seasonal contracts.

A third of businesses expect their workforce to grow.

Expectation % of respondents

Will grow 33.3%

Stay the same 56.4%

Will reduce 10.3%

Skills and training

37% of businesses surveyed reported skills gaps and shortages. This was across all sector areas and business sizes

34% reported having problems finding staff with the right skills and qualifications.

28% said they thought their business would need different skills in the future e.g. social media marketing.

46% reported that their employees had current training needs.


28%

72%

Do you think your business will need differ-ent skills in the future compared to those of

today?

Yes No

37%

63%

Are there currently any skills gaps or shortages within your organisation?

Yes

No

In terms of how respondents intend to address these training needs, they stated:

Intention % of respondents

In house 88.2%

Training provider 41.2%

Other 5.9%

52% of respondents said they needed to formally train new staff to equip them with the required skills. Only 10% said they felt there were barriers to them accessing the necessary training for staff.

Over 25% said they had accessed funding for training with everybody saying it was either effective or very effective.

A quarter of businesses (24.2%) said they had a training budget although these were, perhaps unsurprisingly, larger businesses.

A little over 10% said there were certain types of training / skills development which they will need their staff to undertake that they currently cannot access e.g. web development, and social media marketing.

Finally, most businesses said they felt they were prepared to some extent for the future.


46%54%

Do you have any current training needs for your employees?

Yes No

27%

70%

3%

How prepared do you feel for the future in terms of skills and workforce development?

Very prepared

Quite prepared

Not at all prepared


Skills Requirement Report Findings and Recommendations

Sector Summary

The visitor economy sector across the Humber LEP region is a growth area, with over a third of businesses expecting to increase their workforce in the next year. The region has been given a significant boost thanks to Hull being the 2017 City of Culture, something which it looks set to build on in coming years. As City of Culture, the region experienced a marked increase in visitor numbers and new jobs within the sector. Further jobs are expected because of manufacturing investment in the region, which has already led to new hotels being built (or planned) and restaurants and cafés opening.

The city delivered a programme of more than 2,800 events, exhibitions, installations and other cultural activities over 365 days. Events were delivered across Hull and the East Riding of Yorkshire with 90% of residents taking part in at least one cultural activity.

Over 6 million people visited Hull as a result of it being City of Culture in 2017, and overall, the city saw an increase of 1.3 million annual visitors between 2013 and 2016. During the same period, 800 new jobs were created, and £22 million was added to GVA. In addition, more than £48 million of new funding for major capital projects in the city was raised including enhancement and major developments of the Ferens Art Gallery and Hull New Theatre (Source: University of Hull).

North East Lincolnshire has over 10 million visitors a year and the council has identified the visitor economy as a priority area. They are looking to develop their tourism offer across the whole region with a particular focus on the areas of Grimsby, Immingham, Cleethorpes and the Lincolnshire Wolds. To support their growth plans, the council created sector skill groups for each priority area. The sector skills group for the visitor economy is known as VESR (Visitor Economy, Services and Retail) and includes representation from hotels, accommodation providers, restaurants and retail. Recent STEAM reports for the region show a 6% year-on-year increase in visitor numbers, showing VESR’s work is proving effective. (STEAM is a tourism economic impact modelling process which approaches the measurement of tourism from the bottom up)

Skills and Training Requirements

Qualification Levels

According to both local and national figures, young people aged 16 to 24 make up the largest percentage of workers at 26.4%. However, this means 73.6% of the workforce is over 25, making the perception that is a young person’s sector inaccurate. (Sources: VHEY / ONS).

Locally, VHEY figures as of 2012 show workers in the leisure, tourism and visitor economy in Hull and East Yorkshire held the following qualifications levels:

QCF 1 and 2: 48%

QCF 3: 27%

QCF 4: 10%


QCF 5: 10%

QCF 6: 7%

QCF 7 and 8: 3 %

No qualification: 8%

These figures are not currently available for the Humber region as a whole. National statistics also suggest that staff qualification levels may be higher in tourism than in leisure, tourism and the visitor economy as a whole; ONS data show nationally 30% of tourism workers have achieved a qualification level of degree, higher education or equivalents. The majority (78.9%) have a qualification level above GCSE grades A*-C (or equivalent). The ONS data shows qualification levels for the whole of the Yorkshire and Humber as 24% having a degree or higher education, and 66% having a qualification level above GCSE grades A* - C or equivalent.

There are a large number of roles within the sector that do not require higher level qualifications, for example in the Food and Beverage sector and Accommodation sectors comprise largely of entry level roles, and this is not forecasted to change significantly between 2017and 2022. The biggest anticipated change is an increase in demand for roles at a higher level, e.g. Hotel Management and Social Media Marketing.

Local Skills Gaps

Most businesses who responded to our survey said that there were skills gaps or shortages within their organisation, though this varied dependent on the type of establishment as the table below shows.

Establishment % Yes there is a skills gap/ shortage

Guest House / B&B 68%

Hotel 63%

Restaurant 44%

Retail 42%

Bar / Pub 33%

Café / coffee Shop 56%

Visitor attraction 40%

Caravan Camping -

A mix of skills gaps were identified from generic and relevant to all sub-sectors, e.g. customer skills and specific, relevant to only some sub-sectors, e.g. Barista. Most SMEs recognise they need to become both IT literate and increase their use of IT and that this is a skill set they will need staff to have in the future.


In the hotel sector the national budget chain hotels are leading on this but VHEY noted that many guest houses do not have websites and are equally not proficient in the use of social media, suggesting that training courses in web design and development and social media would have a positive impact on local businesses within the visitor economy. Similar training needs have been identified in North East Lincolnshire.

“Gaining a better understanding and knowledge of accessible training across the Humber would greatly improve my staff force“.

“The skills gap we face as a business is customer service skills and the certification of Food Safety and Hygiene. It would be help if the Food Safety and Hygiene accreditation was funded as we feel the lack of accessible training is restricting our business growth and recommend more funding to be available for employers with regards to these courses”.

Courses on web design and social media are already offered locally and are currently available and funded for eligible SMEs through projects such as Skills Support for the Workforce. The need for these skills was recognised by hotels of all sizes, as the general manager of a major hotel noted:

“With regard to recruitment we use the on-line job centre portal but by far the main way is social media - Facebook is so important. However, for it to be effective one must be on it ALL the time. There are so many different social media sites. It requires a massive effort.”

General business skills and support are also recognised as a need within the sector. For example, North East Lincolnshire Council provide dedicated business support for the sector, delivered by E-Factor. E-Factor have been working with businesses in Cleethorpes to understand gaps in both skills and knowledge. They have held a series of workshops and recently held a Seaside Summit which included representation from many local, independent, businesses. One of the needs identified are generic business skills. Many local businesses have grown organically, with staff holding multiple responsibilities, e.g. marketing, that they may not have been trained in. Other potential gaps within this area include finance and accounting, advertising and human resources / people management. Gaps identified through survey and interviews for this report included:

Training/Skills Needs IdentifiedCustomer ServicesSocial MediaMarketingAdvertisingHealth & SafetyFire SafetyFood Safety and HygieneCoaching & MentoringWebsite development and maintenanceBusiness Management

There are very significant skills gaps identified at a national level that are reflected, or at least matched, at local level with 34% of employers saying they struggled to find staff with


the correct skills and qualifications. In North East Lincolnshire, there is an identified gap for higher skilled staff. The National Skills Audit carried out by UKCES (2010) identifies the hospitality industry as suffering from large skills gaps, and 26% of hotels and catering businesses reported skills gaps within their staff. It stated that the most significant gaps are in customer services, literacy / numeracy, team working and customer engagement – all critical skills for the industry.

“If I was able to provide training across my business from bar staff, cleaners, waiters/waitresses this would significantly impact upon the business and would improve the hotel’s standing locally and reputation. This is an absolute requirement for all small hotels in Bridlington due to the larger chains establishing themselves within the area”.

These skills should be built into qualifications and training to reduce the skills gap. These are also skills which are transferable, and the sector may want to consider targeting people looking for a career change as well as younger people and new graduates.

Current Training Delivery

It is positive to note that most companies surveyed recognise the importance of training, though with over 80% of businesses saying that the training offered was in-house, much of this was not accessed through local colleges, funded initiatives or specialist training providers. In-house training is most often used by large national companies who use eLearning to reduce time away from work and deliver messages on company systems and products:

“We have streamlined our workforce in recent years and the benefit of on-line training courses is very effective for us, as it limits the need for time away from the business for staff and the need to cover a shift. It is also effective in ensuring we meet the current guidelines / legislation required.”

Training is seen as essential because “the visitor economy is fundamentally about people and service”, and needed for new and existing staff. This upskilling supports career progression and allowing for more junior roles to open up as people move through an organisation.

“We understand and embrace how critical excellent training and development is to our business and for the retention of an excellent team. We currently manage this challenge (particularly with a predominantly young workforce) in house as we are fortunate that a few of our management team have a training background.”

Employers noted that they found some of the current training available did not always meet their needs, providing a range of feedback on general training, full-time programmes offered to 16 to 18 year old students, and the links between the sector and training providers. This included:

Lack of flexibility: Employers said that the training available lacked flexibility when it came to when, where and how courses were delivered. Many of the businesses interviewed have staff with family commitments and are unable to attend full day courses or courses that are outside of their normal working hours. There was a definite


interest expressed in eLearning, which makes up much of in-house training already for larger employers.

Lack of industry knowledge: It was felt that training did not reflect the world of work and on developing vocational skills. Instead, available courses were often full-time and focused on qualifications.

Catering training: Not enough young people are going into catering training, with a particular lack of trainee chefs (as detailed below). Companies such as Hilton hotels are trying to address this by setting up their own chef academies.

Lack of resources: Employers felt that due to funding cuts in recent years, there has been a reduction in staff numbers and colleges and training providers have struggled with a lack of resources, potentially impacting the quality of training provision.

Lack of engagement with schools: Employers feel there is a need to engage with schools and young people more to make them aware of, and excited about, the opportunities within the sector. This would be most effective if done in tandem between employers and training providers.

Apprenticeships can offer pathways to training but are not a universal solution: Some respondents noted that, when trying to research suitable apprenticeship options, even where the course was available their choice of candidates was limited by both apprentice wages and transport links.

Industry role: Many respondents to the survey felt that they had a responsibility to improve training with the sector, stating that the industry itself could work more closely with colleges, training providers and schools to help them develop the right training for the staff they need.

Funding

The importance of funding to assist in accessing training was an important factor for smaller businesses especially where there is a high turnover of staff and seasonal roles.

‘If this training could be supplemented and enhanced through external funding or subsidised training options, then this would make a big difference to us both in the way we train and recruit staff in the future.”

In the survey, 25% said they had accessed funding to help with training.

Establishment % Yes I have accessed funded training

All 25%

Guest House / B&B Nil

Hotel 25%

Restaurant 33%

Retail 33%

Bar / Pub nil


Establishment % Yes I have accessed funded training

Café / coffee Shop 55%

Visitor attraction 40%

Caravan Camping -

It was not stated where this training had taken place, however, we do know that 129 SMEs in the sector accessed funded training for hospitality related courses through the Skills Support for the Workforce project between 2016 - 2018.

While funding is seen as important, companies asked for more clarity when it came to the types of training available, and how this could be accessed, e.g. what paperwork was needed and what were the requirements for employees to access training. Employers also asked that paperwork for accessing funding was realistic and that entry requirements are proportionate. Overall, they wanted a process that was easy to understand and easy to follow.

Challenges

Recruitment and retention of the right staff with the right skills includes exacerbating challenges. The positive growth within the sector is increasing the impact of these, which is reflected in the survey findings, but are by no means insurmountable, with both respondents and organisations across the region generally expressing confidence in the sector and its growth potential.

Sector Image

Despite its importance to the local and national economy and the number of potential job opportunities it presents, the visitor economy suffers from what many businesses surveyed / spoken to describe as an ‘image problem’. VHEY, for example, noted it is seen as a low wage sector, a national problem for the sector but one that is reflected locally. However this is not necessarily a reflection on the true situation, and within the sector there are significant variations. For example, recruitment site Neuvoo estimates the median average UK salary for tourism is £28,000 per annum or £14.36 per hour; entry level positions start at £16,351 per annum. This data was extracted from 999 salaries posted on their site and shows salaries are broadly in line with the 2018 national median full time salary of £29,588 (Annual Survey of Hours and Earnings 2018), considering that the Neuvoo data incorporates part time salaries.

Job website CV-Library has found an increase of over 6% in hospitality sector salaries in the first half of 2018, much higher than the 1.3% increase experienced in manufacturing, 0.5% for catering and 0.5% across the country as a whole. However, the median salary for the hospitality sector on Neuvoo (including Hotel, Concierge, Travel and Guest Services) is £19,801 based on 27,575 salaries, only 66.9% of the national average. This indicates that, despite growth in number of jobs, there is significant discrepancy in salary expectation within the sector itself. This is likely to be exacerbated by the seasonal nature of many roles within the industry.


“Zero hour contracts and part time staff are a constant challenge, this takes time to manage and maintain to ensure that each service is manned appropriately, unfortunately due to the nature of these types of contracts, turnover can be quite high which means that training is always required“.

Outside of tourism, many sub-sectors of the visitor economy are unknown or misunderstood, meaning there are issues attracting younger workers or those with transferable skills looking to move industries. One solution to this is promoting the idea, which is already prevalent in countries such as France, that working within the visitor economy is a profession, not just a job, and that it involves many different functions including:

Working in a diverse range of locations and areas that attract visitors including the natural environment, heritage and culture, iconic buildings, retail, sport, leisure and cultural facilities, food, gardens, events, and scenery.

Supporting the infrastructure that helps to reinforce and shape the sense of place and make it an easy place to visit, e.g. signage, transportation, parking and orientation, interpretation, and care of public spaces and amenities.

Delivering services and catering for the needs of visitors that create economic and social activity and increase spending including the hotels and bars, pubs and restaurants, galleries, everyday events and day-to-day services that make a place clean, safe and welcoming.

This emphasis on profession and variety can be achieved by explaining the type of work available across the sector and the opportunities it presents, which include international travel, career progression and high salaries (top chefs and hotel managers can potentially earn six-figure salaries). The process to achieve this has already begun; Humber LEP’s strategic economic plan states that the City of Culture is a platform to change outdated perceptions and its commitment to growing the visitor economy significantly by strengthening the regions appeal to investors and job seekers.

Actions within the region demonstrate that image issues can be addressed. DiscoverNEL felt there was a perception problem when it came to attracting visitors to towns such as Grimsby, which has lost its identity since it lost its fishing industry, and Immingham, which is lacking cultural attractions to draw visitors in. Changing these perceptions are central to DiscoverNEL’s mission. VESR created DiscoverNEL to develop a ‘quality of life’ offer, selling the region as a place to visit and to move to. They have also created sub-groups focused on developing the visitor economy in specific regions, e.g. CoastNEL which looks at Cleethorpes and the surrounding area. Examples of work done to improve people’s perception of the region include:

Working with other towns, e.g. Portsmouth, to include Immingham in the 400 year anniversary of the Mayflower sailing to America with the Pilgrim Fathers in 2020. The town are looking to attract Dutch and American visitors as part of a heritage trail / itinerary.

Securing the first ‘Town Deal’, which is similar to the existing City Deals, as part of a government pilot. The project focuses on regenerating the town centre and waterfront and creating areas of interest which will attract both local visitor and those from further afield. This might include a cultural centre, built around The Kasbash and including artisan food and creative industries.


Developing an action plan focused on attracting more people to Cleethorpes through regeneration and marketing the area as more than a seaside town but, rather, a place where people can participate in water sports and visit areas of natural beauty. To date, over £332,000 has been spent on marketing the area, attracting new visitors and extending the tourist season.

Worker Shortages

As noted above, locally and nationally there is a predicted shortfall of workers needed for the visitor economy, including workers with the skills needed within roles. This is a shortfall which could increase as the sector continues to grow. Within interviews and survey responses for this report, key vacancies identified included:

Staff Role ShortagesChefsKitchen assistantsBar staffCleanersWaiting staffTemporary v PermanentSocial mediaWebsitesFront of house

Brexit will have an impact here, if there is a continued migration of labour back to mainland Europe. VHEY state:

“The loss of EU nationals to the sector has already begun and acute labour shortages are now apparent in many regions and in several sectors most notably food production, food service and housekeeping.”

In North East Lincolnshire there is a lack of highly-skilled employees and an identified issue around keeping young talent in the area. DiscoverNEL is working to address this, and is working well in sectors such as operations and maintenance. In other sectors, many young people leave the area for university or because they want to live in larger cities such as Manchester because they feel they will have more opportunities, and don’t return to the area.

It is important, therefore, that the sector begins actively looking to attract workers to the area, or encouraging them to stay, and understands that – in some cases – this will mean providing training to ensure staff have the skills necessarily to successfully fulfil their roles.

Although a range of sub-sectors are reporting challenges, many of these issues are focussed on similar areas or roles. This indicates that the sector could benefit from focussing on key job families or roles. For example, there is a universally recognised problem in recruiting, training and employing chefs, though this seems to be a result of the success of the sector, which has led to a lack of trained, and trainee, chefs.

“We have had a shortage of Chefs over the past few years, although we have taken on two this last year who we have trained from scratch as there seemed to be no one coming out of college. I believe this is because there are now so


many restaurants popping up and not enough chefs to fill the void. Trainee chefs should easily find work without the need to take apprenticeship rates of pay as there are so many vacancies throughout the country.”

Changing the image people have of working in kitchens and as chefs will help here, promoting the benefits of the work, including creativity, the chance to travel and the opportunity to earn high salaries. The sector may need to think about a targeted recruitment campaign, one which not only convinces job seekers that a job as a chef is just as attractive as a job in IT or engineering for example, but that the Humber region is a place they want to work as recruiting chefs is seen as a real problem across the Humber.

This could begin to be addressed by the sector, for example through established networking organisations, working with other organisations with a mission to promote the area. For example, Bondholders for example, who have already produced a range of materials designed to attract people to the area. Their Your Life brochure looks at relocation to the Humber and all the benefits that come with it from a higher standard of living compared to cities such as Manchester to the pace of life. Recruitment campaigns could emphasise how vibrant the region and sector are, emphasising the positives such as the region’s vibrant independent restaurant scene. Similar marketing is done by organisations such as DiscoverNEL who promote the benefits of North East Lincolnshire including affordable housing, career opportunities with major companies, short commutes, and easy access to both town and country.

Transport

The Humber region is a mix of urban and rural areas, ranging from the City of Hull to large towns like Grimsby through to smaller market towns and villages. Because of the level and type of industry in the area and its links to Europe through its ports, it has a generally good transport network with routes that are seen of both national and international importance.

One of the issues the area does face is that, while the River Humber is a great source of income for the regional economy, it is also a barrier for people living and working in different parts of the region as it is the single point of crossing from one side to the other quickly. The issue was addressed to a degree in 2012, when the toll price was lowered as it created an economic barrier, but increased use of public transport would also help (Source: North Lincolnshire Council).

In East Riding, a predominantly rural economy, transport was seen as a real issue to some businesses which was a restrictive factor for the number of job applicants who can access the business due to limited transport links in less populated rural areas. For example in North Lincolnshire, employers working in or near Humberside airport stated they had a limited choice of candidates because of poor transport links as the Humber Flyer does not start early enough for early shifts or late enough for late shifts.

Minimum Wage

Several businesses noted problems caused by the minimum wage that reduced the wage differential in young new staff. This was a specific problem for trainee chefs as it was possible to earn the same as a dish washer as a trainee chef. It can also have other implications, e.g. staff prefer to be in town centre locations where transport costs are reduced.


Recommendations

The visitor economy is a large and growing sector, nationally and across the Humber region. It is a major employer for the region, accounting directly for some 20,000 jobs and maybe double this throughout the supply chain which, as much of it is food, is not just processing and distribution but also food production on the farm.

It covers a wide spectrum of sub-sectors: hotels, guest houses / B&Bs, retail, restaurants, cafés, pubs, coffee shops, visitor attractions and transport, and a broad range of careers from chefs and baristas to front of house staff, marketing, sales and management.

While much of its success reflects growth in visitor and tourist numbers in the region, this growth is a consequence of investment in manufacturing and other key sectors, e.g. energy / renewables.

Its employment is based very much on people and vocational skills. It is a major employer of young people and as such it creates many students for the region’s colleges and training providers. Many of its jobs and skills create life long, worldwide, career opportunities.

Image

Despite the size, growth and success of the sector, to many jobseekers it is not as attractive as other industries. There is a lack of understanding as to what has caused the sector’s image problem and, as a result, a lack of focus when it comes to addressing the issue. The sector doesn’t always do enough to publicise its successes or raise awareness of the career opportunities it can offer.

We recommend forming a sector-wide group with representation including VHEY, HEYHA, DiscoverNEL, Discover Lincolnshire, Bondholders, local authorities and local businesses to develop a coherent and region-wide strategy for promoting the visitor economy as a place to work. This would include promoting the wide range of job opportunities available as well as salary ranges (comparing them to the national average where they are favourable) and career progression. This could be hosted on the new resourcing area of Bridging The Gap.

This would help attract a new generation of workers to the visitor economy and help address potential issues related to Brexit, which has seen many workers from Eastern Europe leave the region.

Training

There seems to be disconnect between the training offered by colleges and training providers and the training needed by employers. There are also a lack of students applying for catering courses, or to train as a chef; this is a national as well as local problem. By developing a suitably trained workforce, we can help address the skills shortages in the sector.

We recommend that the sector does more to engage with schools and young people, raising awareness of the potential careers within the sector and promoting the visitor economy as an attractive place to work with good salaries and opportunities to progress professionally.


General business skills have been identified as a need, and we would recommend that as well as training providers building these into new courses, businesses make use of existing business support in the area. This includes the support available through the Growth Hub, including new and upcoming training on general business skills within the new Growth Programme. We also recommend that smaller businesses make use of the opportunities to access training presented by eLearning which larger businesses are already doing, and that training providers promote this.

We also recommend that further education providers work closely with businesses to develop training courses that offer the real life work skills people need when entering the catering profession, especially when they become trainee chefs.

Where work is seasonal e.g. B&B’s and visitor attractions businesses could work with local colleges, universities and jobcentres to attract staff prior to the start of season and provide basic training i.e. food safety, customer service and front of house.

Some of this may happen organically, e.g. with the introduction of new T-Level qualifications, but practical work also needs to be done. For example, local training providers could look at developing ways to work with the private sector to develop alternative routes to colleges, e.g. through chef academies that offer apprenticeships. A similar scheme has worked successfully in the logistics industry (see www.novusuk.com).

Growth

As noted earlier, this sector will experience growth greater than the UK economy over the next few years. It will create a major opportunity to grow the sector with several employment opportunities in the region as well as investment in new businesses.

We recommend the sector works with groups and organisations such as Bondholders, DiscoverNEL, Discover Lincolnshire and Welcome to Yorkshire to promote the area as a place to visit and one with great attractions, bars, and restaurants, enhancing the image of the region and presenting it in a positive way.

Developing a sector-wide group with representation for across the visitor economy as mentioned earlier will also support this growth. The group can work together to develop a growth strategy that looks at the sector as a whole, not just individual sub-sectors, and can create a cohesive approach to how to develop appropriate training, promote the sector to a new generation of job seekers, and support the creation of new SMEs.

As well as the work needed on improving the sector’s image and addressing gaps in training provision, the group might look at how to improve transport links, and at future trends in order to be able to take full advantage of any opportunities that might present themselves.


http://www.novusuk.com/

References and Contributors to the Report

The following reports were referenced as part of this report:

LMI Humber (www.lmihumber.co.uk)

UK Government Tourism Policy (Department for Digital, Culture, Media and Sport) DCMS (2011)

UK Tourism Action Plan (2016)

Visit England Strategic Framework for Tourism 2010-2020. (2010)

World Travel and Tourism “The Economic Impact of the Tourism Economy on the UK economy” (2017)

Office for National Statistics (ONS) “Tourism Satellite account productivity measures 2008-2013”

British Hospitality Association Survey by KPMG 2017

UKCES (UK Commission for Employment and Skills) National Employment Skills Survey (2015 and 2018 update)

Parliamentary DCMS (Department for Digital, Culture, Media and Sport) Select Committee “Tourism and the creative and digital economies” (January 2018)

Welcome to Yorkshire

Visit Hull and East Yorkshire Strategic Plan 2015-2018 (2013)

University of Hull “Evaluation of the impact of the City of Culture 2017” March 2018

Office of National Statistics “Productivity in the tourism industries 2008 -2013” (2014)

National Skills Audit UKCES (UK Commission for Employment and Skills) (2016)

House of Commons Briefing paper 06113 “The apprenticeship scheme in England” (January 2018).

People 1st “The apprenticeship scheme one year on” March 2018.

Neuvoo salary data (https://www.neuvoo.co.uk/)

Tourism Jobs and Growth: “The economic contribution of the tourist economy in the UK”. Deloitte/Oxford Economics (2013)

North Lincolnshire Skills and Employability Plan 2017 – 2022

Office for National Statistics (ONS) Annual Survey of Hours and Earnings 2018

CoastalNEL Action Plan

CoastalNEL Economic Plan


http://www.lmihumber.co.uk/

Legacy

The focus group created for this report could potentially form the basis of a skills sector network. The support that has been received towards the research element of this SSW project demonstrates that the sector is keen to respond and to see change and there is a clear appetite to develop the recommendations contained within this report from those surveyed.

There is a clear opportunity to establish a network of like-minded employers within the area to develop support and advice for local educational establishments and work with them to drive progress. There seems to be a desire for a local voice to represent the sector and to push for change, to work with the LEP for support and representation to Government Office to secure additional funding.

The support received from local employers for this project has shown that there is a significant opportunity for a public/private sector partnership to drive the visitor economy agenda within the region, ensuring continued growth and future success.

While no new regulated qualifications or curriculum or new ways of working have been developed for the sector through SSW, there have been various bespoke training courses created and accessed by local businesses which seem to meet current and potential future needs, e.g. web design and Food Wastage. Further training development is needed, e.g. around promoting hospitality businesses via social media.


Appendices

Appendix 1: Current SSW Delivery to the Visitor Economy sector

The following courses have been delivered using Skills Support for the Workforce funding to this sector.

Accredited Programmes

QCF: Qualifications and Credit Framework

NQF: National Quality Framework

Award in Interpersonal Skills

Award in Volunteer Management (QCF)

Non-regulated Adult skills formula funded provision, Level 3, Business Management

Diploma in Team Leading (RQF)

Non-regulated Adult skills formula funded provision, Entry Level, Marketing and Sales

Non-regulated SFA formula funded provision, Level 2, Administration

Award in Health and Safety in the Workplace (QCF)

Award in Food Safety in Catering (QCF)

Award in Health and Safety within the Workplace (RQF)

Award in Education and Training (RQF)

Non-regulated Adult skills formula funded provision, Level 2, Business Management

Award in Food Allergen Management for Caterers (QCF)

Non-regulated Adult skills formula funded provision, Entry Level, Hospitality and Catering

Non-regulated Adult skills formula funded provision, Level 2, Hospitality and Catering

NVQ Certificate in Road Passenger Vehicle Driving (Taxi and Private Hire) (QCF)

Diploma in Customer Service (RQF)

Foundation Certificate in Accounting - Level 2

Award in Food Safety for Manufacturing (QCF)

Certificate in Principles of Business and Administration (RQF)

Certificate in Introduction to the Role of the Professional Taxi and Private Hire Driver (RQF)

Non-regulated SFA formula funded provision, Level 2, Service Enterprises

NVQ Certificate in Customer Service (RQF)

Non-regulated Adult skills formula funded provision, Level 2, Agriculture

Non-regulated Adult skills formula funded provision, Level 2, ICT for Users


Bespoke SSW Training

Telephone Etiquette

Becoming food ready

Autism awareness

Managing Volunteering

Wellbeing at work

Hull Cultural awareness

Intro to Business Management within VCE

Presentation Skills for charitable organisations

Allergen and Safety Management for SMEs within Catering

How to raise prices with existing customers

LGBT Awareness

An Introduction to Mindfulness

Hospitality Sector video

Creating and Managing a Website with WordPress

Developing a Website with PHP

The Art of verbal self-defence

Use by and Best Before versus Food Wastage in the UK and the Global Economy

Kitchen compliance and due-diligence

Supported Volunteering


Documents

Background - Humber LEP€¦ · Web viewIn 2016, the ONS estimated tourism for Yorkshire as a whole was worth 6% of the GVA and VHEY calculated the sector employed 18,257 across the