Hotel users are surging... but staff shortages persist
'Low wages' and 'poor welfare'... urgent calls for improvement
On the 29th of last month, visitors are examining hotel management software and other programs at the '2022 Hotel Fair DIY Space Design Fair' held at COEX in Gangnam-gu, Seoul. / Photo by Yonhap News
[Asia Economy Culture Young Intern Reporter] Domestic hotels, which were hit hard by the COVID-19 pandemic, are now facing a labor shortage. Many workers left the hotel industry due to COVID-19, but this year, with the lifting of 'social distancing' measures and the summer peak season coinciding, the number of hotel guests has noticeably increased.
According to Yonhap News, the hotel industry is currently experiencing a shortage of staff regardless of the size of the hotel as the number of guests has recently increased. In fact, a recent survey by the Korea Hotel Association on the 'staff shortage status by department' at 20 hotels showed that hotels are currently short of about 16.6% of the staff needed on average.
According to the Korea Hotel Association, the number of hotel workers decreased by 17.5% compared to before the spread of COVID-19 in 2020. This year, it has decreased by as much as 20.2%.
By sector, the food and beverage service had the highest staff shortage rate at 25.8%, followed by kitchen staff (20.1%) and room service (16.0%).
On the other hand, domestic luxury hotels are seeing a surge in guests due to the lifting of social distancing and the summer peak season effect. As of July this year, the room reservation rate at major domestic luxury hotels is averaging over 90%.
According to the accommodation sales status for the first half of this year recently announced by hospitality tech company ONDA, domestic accommodation sales in the first half of this year increased by 93% compared to the same period last year. It increased by 161% compared to the first half of 2020, when COVID-19 first spread.
Hotel industry insiders unanimously say that there is a shortage of hotel staff to respond to the increasing demand and manage facilities. The number of hotel workers, which sharply declined after the spread of COVID-19, has not easily increased even after the market recovery.
Jung Oh-seop, Secretary General of the Korea Hotel Association, said, "It is understood that there is a severe shortage of staff in the customer contact (MOT) department, which is directly necessary for hotel operations," adding, "The labor shortage problem appears not only in luxury hotels but also in 1- to 3-star hotels. It can also be seen that the recruitment difficulties are more severe in 1- to 3-star hotels, where brand image and working conditions are relatively poor."
The labor shortage in the hotel industry is interpreted as a result of restructuring and employment instability caused by COVID-19 combined with poor working conditions.
An industry insider cited 'low wages' and 'poor welfare' as reasons why hiring employees is difficult. To solve the labor shortage, there is an urgent need to improve welfare and salary systems. They also analyzed that "the unstable employment conditions confirmed due to the spread of COVID-19 likely acted as a factor causing workers to leave the industry."
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