Once again this year, staff shortages are at the top of the list of issues facing the country’s tourism industry. In 2022, one in five hotel positions remained unfilled. In absolute terms, staff shortages—based on data from “Insete”— , amounted to 60,225 out of the 262,981 total positions projected in hotel organizational charts. For 2023, across the entire tourism sector—including travel agencies, airline services, car rentals, etc., staff shortages will reach or even exceed 100,000, with all that this entails for their smooth operation.
SETE President: The pandemic and the economic crisis of 2013–2019 changed the landscape of the tourism sector’s labor market
In his remarks to the Athens-Macedonian News Agency-MPA, Yiannis Retsos, president of the Association of Greek Tourism Enterprises, noted that the shortage of staff in the tourism sector is a major issue, but also in other sectors of the economy. Since tourism is a service industry, the inability to find qualified workers has an impact on the quality of the product offered, he notes. There are many factors behind this phenomenon, which is not unique to Greece. However, according to Mr. Retsos, there are two main ones. One factor is linked to the pandemic, which “abruptly” shut down the global tourism industry, forcing workers into other sectors. The other factor relates to the period from 2013 to 2019, when the tourism economy was growing and most other sectors of the economy were in recession. During that period, workers flocked to tourism, while from 2020 to 2022, the exact opposite occurred. These two factors, combined with the seasonal nature of the tourism industry, exacerbate the problem, notes Mr. Retsos.
A telling example is that of Patmos, where—despite a 2.5-month tourist season—the locals have turned their backs on tourism businesses, as noted by island representatives at a recent event in Athens. Obviously, in tourist areas where the season lasts more than 6 months, the situation is different, but even so, the seasonal nature of the industry acts as a disincentive to permanent employment.
Conscientious businesspeople don't run into problems.
At the same time, staffing needs have increased, mainly due to hotel renovations, which now require more staff, Michalis Vamiedakis, president of Allsun Hotels in Greece and development consultant for Danaos Travel, told the Athens-Macedonian News Agency (ANA-MPA). Mr. Vamiedakis, who cites a shortage of 100,000 people in the tourism sector, notes that hotels that had good relationships with their staff are not facing serious problems. From the above, it is clear that a healthy work environment is a factor that prospective employees take seriously. There are countless examples of employees leaving higher-paying jobs for companies known for their good work environments, Michalis Vamiedakis told the Athens-Macedonian News Agency (ANA-MPA). “You can’t invest 50 million euros in Mykonos and have employees living in shipping containers,” added Mr. Vamiedakis.
“In hotels, the minimum wage is higher than the general minimum wage.”
Regarding the wage system for tourism workers, the president of SETE points out that “the hotel sector, which employs 150,000 workers in the country, has a mandatory sector-wide collective bargaining agreement, which means that everyone must comply with it. Therefore, the resulting wages—even the lowest ones—are much higher than those under the general collective bargaining agreement for workers. The minimum wage is higher than the general minimum wage, while there is no cap on high salaries, as this is determined by the market. ”When there is demand and a limited supply of workers, wages rise,” adds Mr. Retsos.
Labor Shortages by Geographic Region and the Importation of Foreign Workers
According to the 2022 “Insete” survey, of all the positions provided for in the organizational chart, 27% correspond to jobs in hotels located in the South Aegean region, followed by Crete with 20%, the Ionian Islands with 12%, and Central Macedonia with 10%. In all other regions, the share is less than 10% of the total. 24% of the total job vacancies (14,346 open positions) were recorded in the South Aegean, 18% (10,808 positions) in Crete, 10% (5,891 positions) in Central Macedonia, and 14% (8,378 positions) in the Ionian Islands.
In Crete, the problem is being addressed by bringing in workers from abroad
Focusing on Crete, Nikos Chalkiadakis, president of the Heraklion Hoteliers Association, told the Athens-Macedonian News Agency (ANA-MPA) that this year the problem will be addressed by bringing in foreign workers. In fact, he pointed out that specialized agencies from abroad, which until recently brought in student interns from tourism schools, will this year supply Greek hotels with European workers. Addressing concerns that this might alter the character of Greek hospitality, Mr. Chalkiadakis emphasized that this is not a concern, since the positions being filled are for services that are not on the front lines of the hotel chain.
Greek Workers Are in High Demand in Foreign Markets
At this point, special mention should be made of Greek workers in the tourism industry, who are in high demand at Swiss resorts during the winter. Dozens of Greeks work at these resorts during the winter, thanks to their good reputation and work ethic, as Mr. Vamiedakis notes. In the same vein, Theodoros Terzopoulos, a senior executive at major tourism companies and currently general manager and CEO of Patmos Aktis, told the Athens-Macedonian News Agency-MPE that the excellence of Greek workers extends beyond Greece’s borders.
Staffing needs by hotel category
The 4- and 5-star categories account for 58% of the total number of positions according to the organizational chart (73,462 and 78,333, respectively). In absolute terms, the largest staff shortages were observed in 4-star hotels (16,381 or 27% of the total shortages) and in 3-star hotels (15,361 or 26%). Five-star hotels had the fewest staff shortages (15%) relative to their needs. Two- and three-star hotels had the most shortages (31% and 28%, respectively) relative to their needs.
K. Chalkiadakis
