Hospitality, leisure, travel and tourism

The UK’s hospitality, leisure, travel and tourism sector has a turnover of more than £135 billion a year, employs a workforce of around 1.9 million people, and is responsible for 4% of gross domestic product (GDP). It contributes £22 billion in taxes in the UK, with thousands of new jobs being created each year in accommodation and wet (drinks) and dry (food) service in more than 180,000 establishments, one-third of which are pubs, bars or nightclubs and another third being restaurants. It is now difficult to distinguish between pubs, clubs, restaurants and hotels, offering similar services with different brands, themes, decors and chains. People 1st, the Sector Skills Council, covers the following 14 sectors:

1. contract food service providers
2. events
3. gambling
4. holiday parks
5. hospitality services
6. hostels
7. hotels
8. membership clubs
9. pubs, bars and nightclubs
10. restaurants
11. self-catering accommodation.
12. tourist services
13. travel services
14. visitor attractions.

Salaries in hospitality are increasing faster than in many other sectors and, with large skills shortages leading to the use of significant numbers of foreign workers, there are opportunities for high-calibre people to progress. Movement between one job and another is usual and managers tend to work their way up through different departments. The sector is dominated by small businesses, with 81% employing between 1 and 49 employees. However, they account for only 42% of the workforce. Businesses with over 250 staff account for 0.2% of businesses, but represent 45% of the workforce. The government spends an estimated £250 million a year on training provision for the hospitality, leisure, travel and tourism sector in England.

Staff turnover is 30%, with 600,000 people moving every year, costing the sector £886 million. By the London Olympics, on current figures, the sector will have lost more than 4 million people, costing over £6 billion. Replacement recruitment and training costs average £1,500 a person. Some other employment realities are:

• France has nearly double the level of labour productivity of the sector in the UK
• 11% of the workforce are from ethnic minorities – higher than average across the whole economy; 56% are full-time staff, while 7% are self-employed
• 40% of vacancies are hard to fill
• 64% of employers report that applicants lack communication skills, 56% believe they lack team-working skills and 52% think they lack customer-handling skills
• 70% of recruitment is to replace existing staff, which reinforces the vicious circle of recruitment and retention
• 16% of hotel and accommodation managers, and 14% of publicans and managers of licensed premises, have no qualifications at all; at the skilled trade level, 14% of chefs have no qualifications
• in a survey of owner-operators with no staff, two-thirds of them indicated that they had no experience of the sector before setting up their business, while 83% had sought no advice before setting up their business or subsequently
• over the last year, 72,000 workers from the EU Accession States have entered the sector, over 60% from Poland; they are highly rated for hard work and their customer service; there is a lack of skills in younger British workers
• 43,000 more hospitality workers will be required in London by 2012
• one-third of the sector’s workforce is under 25
• 61% of vacancies for managers in the sector are proving hard to fill
• students continue to be an important source of labour, with estimates suggesting that half of bar staff and three-quarters of waiting staff are full-time students.

A manager operates the premises as an employee of a company, as with most high-profile town-centre chains, large family eating pubs and many community restaurants, locals and hotels. Tenants are self-employed people who lease the premises from a company or other landlord for a short-term lease. Lessees take out a long-term lease up to 30 years or purchase an assigned lease, which can be expensive. Independent/free house owners and landlords own their premises (either outright or through a mortgage) and run it themselves or through a manager.

Under the Licensing Act 2003, all licensed premises come under the control of the Local Authority, giving licensees greater control of their businesses, and bringing the industry into line with the rest of Europe. All premises that sell alcohol or offer any other form of licensable activity, like entertainment, need a Premises Licence. The holder of this licence can open whatever hours best suit the business and the market, while the authorities may object or review an application that compromises one of the four licensing objectives:

1. prevention of crime and disorder
2. prevention of public nuisance
3. public safety
4. protection of children from harm.

The industry has strict legislation. Any outlet must operate within a framework covering licensing law, food hygiene, employment, and health and safety of staff and customers.

Hospitality and catering in the Services

Each Service has its dedicated hospitality and catering staff, with cooks producing food of an enormous variety, often under very difficult conditions. Some work in the houses of very senior officers, and all are trained to very high standards.

Forces caterers often work with contracted services. In a garrison or station, uniformed staff work alongside their civilian counterparts. They can gain professional qualifications in hospitality and licensed retailing while in the Forces, through distance learning and even online.

Personal qualities

It is important to want to help people and to enjoy working with others. First-class customer care skills are essential, as is sound business management. Good customer service also depends on good teamwork. The pressures can be considerable; everyone needs energy and enthusiasm and the support of colleagues to produce their best. Hospitality has always been a popular second career choice for Service leavers, but it is very demanding because it is open all day, every day, and it affects family life.

Management requires the ability to think quickly and use personal initiative. Rules about health, safety and hygiene are critical aspects of the operation; the laws on alcohol are strict and security is necessary with the presence of money and valuable stocks, as well as the property and personal safety of guests. New situations, changing customer requirements and developments in equipment and work procedures require a constant willingness to learn and adapt.

Careers

Careers in hospitality and catering depend very much on the individual. The enthusiast who wants to get on and does well can move from a lowly, badly paid position quickly into management. Many companies promote from within, although talented new blood is welcome. Training in some organisations is excellent. There are currently three main development routes:

1. going straight into the industry
2. training programme run by a local college or training company
3. full-time college or university programme.

National Occupational Standards

There are more than 400 different qualifications available now, and others in the pipeline. NOSs provide a common standard for the whole UK hospitality industry, describing what is done in the workplace and agreeing minimum best practice. Each NOS is split into separate areas, or units, of competence.

People 1st is also:

• working with employers and colleges to develop more practical, nationally recognised qualifications, which can be delivered in college and so attract government funding
• rationalising the number of courses to develop the skills employers need
• ensuring consistency in the qualifications strategy to go along with NOSs
• implementing development pathways and a new skills passport
• developing the new Diplomas in Hospitality & Catering and Travel & Tourism (as well as 12 others) for young people aged from 14 to 19 at Levels 1 to 3
• attracting funding for the right courses that address current and future needs.

Given the diversity and differing needs of the sector, its skills strategy will focus on specific job roles across the following areas:

• customer service
• management and leadership
• gambling
• licensed retailing
• travel and tourism services
• events
• food preparation and cooking
• food and drink service
• housekeeping
• front office
• health and safety
• food safety.

Qualifications and training in the licensed trade

The National Licensee’s Certificate (NLC) is the most commonly accepted basic qualification in the trade, and is accepted by most magistrates as fulfilling the requirement for training because it covers law and social responsibilities.

The Certificate can be taken after a one-day course, but industry entrants may also complete the British Institute of Innkeeping (bii) three-day Induction Certificate or its National Certificate for Licensed Retailing (a two-part qualification). Both include the NLC, together with further learning modules bringing the beginner up to a higher baseline knowledge. There is also a range of Advanced Qualifications, with other certificates available.

Salaries

For people working in large companies, typical salaries might be:

• waiter/bar person £11,000 (spread of 10,000 to £12,000)
• trainee/assistant manager £15,000 (spread of £13,000 to £18,000)
• manager£30,000 (spread of £19,000 to £40,000).

Overtime, bonuses and benefits can considerably increase the value of these basic packages.

Contact details

Sector Skills Council – People 1st, Second Floor, Armstrong House, 38 Market Square, Uxbridge, Middlesex UB8 1LH Tel: 0870 060 2550 Website: www.people1st.co.uk

Licensed trade – British Institute of Innkeeping, Wessex House, 80 Park Street, Camberley, Surrey GU15 3PT Tel: 01276 684449 Website: www.bii.org

Hospitality training – Springboard UK, 3 Denmark Street, LondonWC2H 8LP Tel: 020 7497 8654 Website: www.springboarduk.org.uk