Challenges ahead for hotel industry as tourism grows

Hotel operators said stricter rules on hiring cheaper foreign manpower will pose some challenges as tourism continues to grow.

The industry will be forced to work more efficiently, and hoteliers said there's plenty of room for productivity gains.Last year, a record 13.2 million tourists visited Singapore and this is likely to grow. Hotel room numbers are forecast to increase 20 per cent over the next four years.

Robert McIntosh, executive director, Asia Pacific, CBRE, said: "Occupancy level last year was around 83 per cent, among the highest we've achieved and the room rates have come up very significantly. The expectation is that tourist arrivals are continuing to grow strongly and occupancy may have slipped a little, but it will still be at levels which will induce room rates to continue to grow."

CBRE expects average room rates to rise by between 5 and 10 per cent next year.However, some operators said the tighter foreign worker quota will pressure the industry.

Capella, located on Sentosa island, hires about 250 staff, of which 55 per cent are Singaporeans. The hotel plans to increase that to 60 per cent by year-end.It is also working with universities to groom its own talent.Capella said stiff competition for talent will force the industry to look at how it rewards performance.

Robert Lagerwey, general manager, Capella Singapore, said: "Too often, we are seen in our industry as not paying well enough. Our salaries have grown by 8 to 10 per cent over a three-year period. When you pay well you can get the right talent and also expect more from that talent."Pan Pacific Hotels has redesigned roles and offered job flexibility.

The group employs 2,000 staff across six properties in Singapore, and about a third of them are foreigners.To help meet demand, it's looking to make greater use of untapped workforce such as women aged between 45 and 65 years old.

Patrick Imbardelli, president and chief executive, Pan Pacific Hotels Group, said: "As an industry we continue to have to train more. We are finding that an employee in the past, for example, in a year used to go between 40 and 60 hours of on-the-job and specific skills training. Now we are saying it is closer to between 90 and 120 hours."

Hotel operators said there's also a need to rebrand the industry and to promote a greater appreciation of the career opportunities that are available in the hospitality sector.

Source - channelnewsasia