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Section 10. Economics of recreation and tourism
DOI: http://dx.doi.org/10.20534/EJEMS-17-2-85-87
Maia Diakonidze, PhD Candidate, Akaki Tsereteli State University Tamila Arnania-Kepuladze, Professor, Doctor of Economics, Doctor of Philosophy Akaki Tsereteli State University, Kutaisi, Georgia E-mail: [email protected]
Peculiarities of Employment in the Tourism Industry
Abstract: Employment is the most important issue of the study of economics. Specific nature of the development of certain branches of the economy, including the tourism industry, has a strong influence on social and labor relations. The paper is aimed to identify peculiarities of employment in the tourism industry.
Keywords: employment; tourism industry; direct employment in the tourism industry; indirect employment in the tourism industry.
Introduction
Employment is one of the most important and often discussed issues of economic science and practice. Employment plays a significant role in creating a stable social and economic environment of society, as well as in improving people's living standards [3, 33-36].
Specific nature of the development of certain branches of the economy has a strong influence on social and labor relations. The given paper dwells on peculiarities of employment in the tourism industry.
Assessment of the tourism industry influence on the labor market, and especially on the sector of employment, can be made on the basis of the quantitative and qualitative approaches.
A quantitative approach to assessment of the tourism industry influence on the labor market.
A quantitative approach is based on the division of the sector of employment in the tourism industry into the direct (primary) and indirect (secondary) segments of employment.
Direct (primary) employment is directly linked to servicing of tourists and it covers employment in hotels and travel agencies, tour operator activities, employment in tourism organizations and resort management.
Indirect (secondary) employment is characteristic of those sectors, which are not directly linked to servicing of tourists, but they are formed by the requirements
arisen in the field of tourist services. The indirect (secondary) employment segment of the tourism industry covers such branches as trade, construction industry, agricultural sector, etc. The number of employed persons in the indirect (secondary) employment segment of the tourism industry is higher than the number of the employed persons in the direct (primary) sector.
The direct (primary) employment sector in the tourism industry includes the following occupations:
Tour operator, whose activities play a crucial role in the tourism industry, on the basis that production of the tourism product is responsible for its sales. Tour operator in the tourism industry is considered to be a natural or legal person, who takes part in shaping the tourism product, sets its prices, advertises it, makes promotion of the tourism product and is intended to manage its sales both wholesale and retail.
Travel agent - the natural or legal person, who sells the tourism product produced by the tour operator.
Guide-interpreter, whose direct function consists in heading the tourist groups that requires the highest professionalism and responsibility.
Sightseeing driver. Sightseeing is considered to be an integral part of the tourism product, and it implies the process of cognition. This activity is impossible without the participation of sightseeing drivers, since they represent the most knowledgeable part of the
Section 10. Economics of recreation and tourism
tourism industry, and they are responsible for making a positive impression among tourists.
Lodging facility manager - a person, who provides proper management of lodging facilities.
Lodgingfacility servants - the persons, who contribute to tourist accommodation. They include concierge, administrator, maid, doorkeeper, chef, laundress, etc.
Food court manager. Food industry is considered to be an organic part of the tourism industry, and therefore the involvement of the professional senior managers is essential.
Food court servants — the persons, who contribute to the functioning of food courts, and include administrators, chefs, waitresses, service managers, laundresses, sommeliers, maids, etc.
Driver of the vehicle, who carries tourists on guided tours.
Animator - a person, who provides entertainment and celebrating events.
MICE manager - an organizer of business meetings and conferences
Resort facility manager - a manager of the vacation spots, on whose managerial decision the development of resort depends.
Mountaineering instructor, who has the duty to prepare and guide the groups during ski tours.
Sports instructor, who is responsible for the provision of training during sports tourist actions in accordance with particular sport.
Tourist and entertainment facility managers - the persons, on whose managerial decision the unimpaired operation of the facility and satisfaction of tourists demands depend.
Full reflection of all occupations of people directly employed in the tourism industry is associated with certain difficulties, since variety of the occupations is derived sometimes from the type and specificity of tourist services. However, the given list of the main occupations and positions of the tourism industry gives a general picture in this regard.
The list of occupations employed indirectly in the tourism industry is varied and covers many economic sectors:
Transport organization managers — the managers of maritime, land, railroad and air transport organizations, whose managerial decisions are associated with the introduction ofa tourism standard, as well as with providing coherent participation of transport in the tourism industry.
Urban road haulage and passenger handling agent — provides organization of transportation of passengers in accordance with types of vehicles.
Transport ticket reservation agent. This implies providing the ticket booking services for various types of transport.
Economists, who take part in in the economic policy formation process in the tourism industry. Also, they ensure economic progress of a particular tourist establishment.
Financier - is the representative of the accounting and finance department of the establishment.
Marketing and sales manager, who is responsible for advertising and sales the tourism products.
Advertising agent - is an executor of advertising campaign.
Head of insurance company. Insurance companies are actively engaged in the tourism industry on the basis that travel insurance is of great importance during tourist trips.
Insurance agent - is an insurance implementer.
Directors of banking and financial institution - are
the heads of banking and financial establishments.
Head of the service department of banking and financial institution - establishes a consumer relations policy, who is skilled in relations with consumers and ensures formation of image of the establishment.
Operator of banking and financial institution - is a specialist of direct communications with consumers, who is oriented toward promptly meeting the needs of consumers, providing them with information about bank products and providing services appropriate to the establishment's policy.
Head of trade institution - the managers of shopping malls, markets and other similar establishments.
Consultant - the consumer services department in trade institutions.
Head waiter - provides services in a hotel or restaurant.
Architect - the author of architectural designs, including for tourist-type infrastructures, which acquires the important function during the process of selling the tourism product, as a prerequisite for creating a positive impression.
Head of the department of infrastructure design and improvements - designing infTastructural projects and organizing their implementation.
The number of persons employed indirectly in the tourism industry is higher than the number of directly employed people. Consequently, the direct influence on employment in the tourism industry is lower than the indicator of the indirect influence. The mentioned phenomenon is reflected in the national reports, and therefore, in 2016, the direct share of the tourism industry 6%
of total employment, but the indirect influence rate was 20,6% [4].
A qualitative approach to assessment of the tourism industry influence on the labor market
A qualitative approach is based on peculiarities of employment in the tourism industry, among them it can be highlighted the following:
variety of types of tourism that allows for employing the differentiated workforce in tourist activities as well as at the peripheral levels;
• automation of tourist sectors is impossible;
• variable demand for labor;
• time and partrial rates work schedules;
• the possibility of recruiting low-skilled personnel, as well as high level of engagement of young people;
• the possibility to work in multiple jobs;
• the increasing demand for the female labor force;
• the possibility of illegal employment;
• labor manoeuvrability.
Variety of types of tourism that allows for employing the differentiated workforce in tourist activities as well as at the peripheral levels. According to the German Travel Association (Deutscher Reiseverband), of those people, who choose a profession in tourism, only 57% remain in this sector until the end, 17% of the em-
ployed people are attracted to the tourism industry from the other sectors, but almost the same, or 16%, leave the tourism industry and are attracted to the other sectors of the economy. About 10% the employed persons in the tourism industry are the temporarily employed people. Maneuvering of workforce from the other economic sectors to the tourism industry and back, provides the basis for employing the differentiated workforce. The tourism industry's multiplier function increases employment opportunities at the peripheral levels. Regarding the number of the employed persons, the emphasis is placed on Europe, where about 4% of the entire population are directly employed in this sector that made up about 14 million people, most of them, or 68%, are employed only in hotel industry [2].
Conclusion
The capacity of the tourism industry to create the indirect effects through direct (primary) employment and employ more people in the related economic sectors, is an important prerequisite for tackling the imbalances existing in the labor market that ultimately may play an important role in promoting economic growth, decreasing the regional asymmetries, creating new jobs and positive external factors, that would impact (directly or indirectly) on the other economic indicators.
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