Employers 'completely dependent' on non-EU workers, tourism chiefs say

The tightening labour market and difficulties in hiring staff is one of the biggest challenges facing the hospitality sector, the conference heard.

One in five of the country's workers is a non-Irish citizen, with the economy now "completely dependent" on people from outside the EU to fill jobs, the Irish Hotels Federation conference in Killarney has heard.

This tightening labour market and difficulties in hiring staff is one of the biggest challenges facing the hospitality sector and the economy as a whole, the 400 delegates were told.

AIB chief economist Oliver Mangan told the conference: “One in five workers in Ireland now are non-Irish citizens,” adding that the labour force in hospitality is now driven by workers from outside the EU, such as from Brazil.

“We are completely dependent on them.” 

With rising living standards in countries such as Poland, Mr Mangan said that “eastern Europe has largely dried up” for staff recruitment.

At the same time, young Irish people are emigrating.

“We have a very tight labour market and we are relying on non EU citizens to fill jobs,” he said. “We are completely dependent on them [non-EU workers],”

The housing crisis and high cost of accommodation were also big constraints. 

“You might get the workers but where are they going to live?” he asked.

The conference heard that more than half (54%) of hotels and guesthouses are planning to increase employment levels this year.

However, labour shortages are forcing the hospitality industry to shed its image of one of menial jobs, poor pay and long hours, a forum chaired by Ivan Yates heard.

Bernadette Randles MD of the Dromhall Hotel said, said that flexible working arrangements from a 24-hour to a 50-hour week for chefs were now being offered to help with recruitment.

Career opportunities

Denyse Campbell, president of the IHF, pointed to the lack of understanding of the career opportunities available in hospitality as one of the barriers to recruitment.

Roles in digital marketing, accountancy — right up to chief executive positions — were all possible, she said, but that "influencers" like parents were unaware of this.

She also highlighted the shortage of accommodation, saying it was particularly acute in Dublin. 

“A lot of hotels are looking to see if they can build staff accommodation. Others are renting and buying houses,” she said.

Sligo native Catherine Toolan, MD of Diageo and the Guinness Storehouse — the single biggest visitor attraction in the country — told how she began her career as "jack of all trades".

This included organising the food for the athletes in the Olympic Village in Beijing, she said:

You can work anywhere in the world in any kind of organisation, small or big."

Delegates also heard how the UK market, traditionally Ireland’s largest source of overseas visitors, continues to face “very significant economic headwinds”, and this is having an impact on the outlook and levels of forward bookings.

Research conducted by the IHF showed 60% of hoteliers reporting that forward bookings from Britain remain down on pre-covid levels.

The rest of Europe is also challenging; however the prospects for North America are brighter this year, delegates heard.