Exclusive Feature: According to the World Travel & Tourism Council (WTTC), the travel and Tourism contribution to the Global Economy in 2024 was in the range of US$11 trillion, with the sector generating one in every ten dollars worldwide and creating 348 million jobs globally.

By 2024, the industry was expected to provide 450 million jobs, which is nearly 12.2% of the workforce, with an impressive $1 trillion in contributions to the Global economy.

One does not need to be a genius to understand that these achievements and forecasts come with enormous demands for new destinations, new hotels and yes, millions of additional hotel employees.

Looking only at the Australian hospitality industry, the ever-present conversation is about how the shortage of employees is impacting businesses and will continue to do so. How are the present and future Hospitality Leaders thinking to reach those massive growth targets in terms of employees? Investors are clamouring across the globe to develop hotels and resorts.

Operators are equally clamouring to sign up agreements to manage those assets (in various models) as fast as those assets are available. But are these operators building sufficient resources with realistic investments in human capital? The ever-present conversation is about how the shortage of employees is impacting businesses and will continue to do so.

Hotel owners, operators and hotel management all know only too well, it is difficult to retain good employees if job security, work pressure, proper compensation, and a positive and safe work environment are not adequately aligned. Of course, the topic of "Work Life Balance" never fails to add to the dynamics. As the philosopher Alain de Botton famously quoted, "There is no such thing as work-life balance. Everything worth fighting for unbalances your life".

This is so true for the hospitality industry. The harder you work to get up the ladder and the money, the more your life becomes difficult. It is a harsh industry. Unlike previous generations, such as the Builders and the Baby Boomers, younger generations understandably lack the patience and passion to endure the trauma and drama that come with working in hospitality.

In response to increasing expenses and unpredictable demands, numerous hotel operators rushed to prioritise immediate operational cost-cutting measures. This approach has resulted in several issues:

• Heavy dependence on outsourced low-skilled labour impacting quality.
• Reduced funding for internal training and development initiatives
• A decline in structured succession planning. ( i.e, After the GM, there is no R.M or E.A.M, thus not having potential GM candidates in the pipeline)
• Erosion of mentorship culture within management teams.

Funding cuts for essential Capital funds compromising the safety, quality and welfare of employees and guests ( i.e, constantly broken lifts)

As a hotel General Manager operating in Australia, my constant struggles over the past seven years of managing hospitality assets since relocating from overseas have been primarily in Retention, Recruitment, Talent Development (including investment and resources), and Capital Improvement (investment by owners to upkeep infrastructure).

The stress across the industry often stems from a shortage of staff, inadequate maintenance and capital improvements, pressure on profit margins, implementation of cost-cutting measures, resulting in complaints and conflicts, creating unpleasant work environments. Senior staff members face extra pressure from training the constant flow of new recruits, in addition to their already stressful environment. As shortages become acute, promotions and increments are awarded, often without proper preparation for those to assume higher responsibilities, adding more issues for the business. (a catch-22 situation).

With the continual turnover, recruitment becomes challenging and costly. As owners and operators often struggle with managing their margins, employee development, and capital investment costs get compromised, adding yet another layer of complexity that further impacts work pressure and leading to employee turnover.

In the rush to present a Politically Correct image, some organisations have quickly appointed leaders who are unprepared and lack essential attributes such as emotional intelligence, business acumen, and effective leadership skills. This undermines brand integrity and business success while also leading to employee dissatisfaction and fostering toxic workplace environments.

Retention is not necessarily an issue solely associated with money, but rather with how people feel about the workplace. There is sufficient evidence and horror stories even, of unsafe work environments, broken equipment, and elevators that are not replaced due to a lack of funds, as well as skimpy maintenance contracts, even in essential areas like hygiene and pest control.

Younger professionals are increasingly doubting the hospitality sector's ability to offer long-term growth and appealing lifestyles.

Stressful conditions, demanding hours, and slow advancement are leading many to consider other alternatives, the imperative question is: how are Australian hospitality operators gearing up for the next decade to cultivate not just titles, but strong leaders who will effectively nurture, retain, and build exceptional teams for the future? It is undeniable that there are considerable gaps in the quality of products and services within the Australian hospitality industry, especially in comparison to hotels, resorts, and venues in Asia, China, and the Middle East.

A hotel lacking effective leadership is just a structure without the spirit of hospitality. Management encompasses more than daily operations; it involves shaping the company culture, enhancing guest experiences, and ensuring sustainable long-term success. If the industry fails to make necessary adjustments, the future of numerous properties could be at risk, not because of market demand, but due to the lack of capable leaders who can fulfil that potential.

Michael Thomas is an accomplished global hotel professional with extensive management experience across the Middle East, Asia, China, and Australia. He has worked with prominent hotel groups, including IHG, The Peninsula Group, Shangri-La, Banyan Tree, Accor, and Hilton. Notably, he managed the largest DoubleTree by Hilton in the World, in Shanghai, which featured 850 rooms.

Michael holds an MBA in International Hospitality and Service Industries Management from the prestigious Glion Institute of Higher Education in Switzerland.