More on this topic: https://www.youtube.com/watch?v=24ZQa-7sWF8

EUROPE ─ The Hospitality Industry was one of the most severely affected industries during the height of the COVID-19 pandemic. Since the beginning of the spread of the virus in the first quarter of 2020, the industry saw an unprecedented loss of income and a massive reduction in its workforce. This is due to health protocols and strict lockdowns imposed to curb the spread of the virus; however, industries relying on foot traffic and freedom of movement like the hospitality industry have plunged into doing so.

Saying the industry is unprepared is an understatement. The black swan event in the form of COVID-19 has been a once-in-a-lifetime crisis none of the major economies, including the European continent, has prepared for. A forced shutdown of the industry spanning from months to a year to hard-hit areas in Europe has seen a drastic change in the industry’s landscape. Indeed, a significant shift that echoes to this day.

Industry in a Desperate Condition

For the first half of 2022, we have seen economies worldwide embrace the new normal and have since loosened up their health protocols and opened up their countries for more freedom of movement and foreign visitors. This is especially the case in Europe. However, its hospitality industry is suffering from a massive employee shortage to the point that hotel chains in the continent are now employing students and immigrants with no resume and no prior experience in the industry.

Sebastien Bazin, Chief Executive of ACCP.PA, Europe’s largest Hotelier, mentioned at the recently concluded Qatar Economic Forum that they are currently running trial initiatives to recruit people with no educational background or experience in the industry as the situation grew dire.

“We tried in Lyon and Bordeaux ten days ago, and this weekend we’re having people interviewed with no resume, no prior job experience, and they are hired within 24 hours,” Bazin said.

He added, “It’s students, people coming from North Africa … and [we are] basically closing restaurants for lunch or [opening them] only five days a week. There’s no other solution.” He continued, “the new recruits are given six hours of training and learn on the job.”

The continent’s predicament is the result of the massive workforce layoff it was forced to execute when the economy and the industry ground to a halt in 2020. Most of the original employees chose not to return to the industry as they found better work arrangements and higher pay during the lockdown period in Europe. This left the industry with few of its original workforce and has to fill in the massive gap during the further reopening of the global economy this year.

Reforms That Seek to Address the Issue

In Portugal and Spain, where their tourism industry represents 15% and 13% respectively of their total economic output ─ the industry has introduced reforms to its workforce. Hotels are now offering free accommodation (sometimes in hotel rooms), higher pay, and even health insurance and bonuses to attract applicants with suitable qualifications and experience.

Gabriel Escarrer, CEO of Spanish Hotelier Melia, says, “Many employees have decided to move to other sectors, so we are starting an industry from scratch, and we have to fight for talent.”

On the other hand, Bazin confessed that the pandemic is not the only thing to blame for the staff shortage. “Half of it is we’ve been blind; we’ve been not paying attention to a lot of people and probably underpaying some people for too long as well … so it’s a wake-up call.”