4 steps to handle the sudden influx of tourists

 

From Daniel Chong

Research by the World Travel and Tourism Council forecasts a strong recovery in 2022 if governments continue to open up and remove travel restrictions.

The council also predicted that the global tourism industry could generate more than 58 million jobs and revenue of US$8.6 trillion during this recovery period.

Tourism is one of the largest industries in Malaysia, contributing 5.9% to our gross domestic product (GDP) and employing close to a quarter of the total workforce.

While the reopening of borders augurs well for the economy, tourism players might see challenges resulting from labour shortages and raw ingredient prices.

Airport operators, airlines, hotels, and restaurants downsized their workforce in 2020 across the world and now face labour shortages. Some have had to increase pay, reduce operating hours, reduce offerings, and simplify services to remain profitable.

Furthermore, general inflation is affecting all segments of retail, commodities, and day-to-day costs.

Travel and hospitality operators may choose to cut overheads or adjust prices to offset rising expenses, which will ultimately affect customer experience.

The hope now is for the easing of recruitment for foreign labour to alleviate the labour shortage.

Travel and hospitality operators can overcome the challenges by pivoting to new ways of working in 2022.

Some strategies that the industry could consider are:

More employee benefits

The days of “McJob” are over. Companies which are willing to create more conducive work environments for their employees, such as expanding benefits for further education, time off, competitive salaries and wages, and career development schemes will be able to stay in business.

Good communications

The endemic phase will encourage in-person dining on a larger and more consistent scale although online delivery and takeaways are here to stay. Restaurant owners could consider rationing out their distribution with consideration of their workforce limitations to meet customer expectations.

Good communications on restrictions or routine closures of online delivery and takeaway services can also prevent having unhappy customers which usually leads to customer attrition.

Invest in automation

Automation can help employees become more efficient and to focus on what they do best – serving guests in greater detail to maximise the experience instead of performing repetitive, mundane tasks.

Hospitality robots are also viewed as a solution with a market value of US$290 million in 2020. Athletes staying at the Beijing Olympic Village were served by robots who brought breakfast, salads, and even cocktails.

Self-checkout, self-service, autonomous stores, and DIY are how the retail industry is preparing for a future with fewer human workers.

Hospitality-related retail such as convenience stores, hotel and theme park in-house merchandise stores, and airport lounges can install interactive signages, smart price tags, and remote checkout systems to facilitate and enable a new level of self-service experience.

For a pleasant self-service experience, systems could focus on both user-friendly customisations aided by hybrid chatbots.

Localising the supply chain

Businesses could start prioritising the use of more local ingredients and suppliers, reducing their reliance on costly global supply chains and transport. This helps businesses both strengthen their financial position, and establish a good reputation for supporting “green hospitality” experiences while supporting the local economy.

According to United Nations World Tourism Organization (UNWTO) projections, international tourist arrivals could increase by 30% to 78% in 2022 compared with 2021. However, the surge in oil prices, increase in inflation, a potential rise in interest rates, high debt volumes, and continued disruption in supply chains may put additional strain on the effective recovery of international tourism.

It is time to fortify our foundations and structures before the floodgates open. - FMT

Daniel Chong is an associate professor at Sunway University and an FMT reader.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.