Tourism is booming in US but no hotel jobs

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Published Jun 24, 2017

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Washington - Tourism is thriving in the nation's capital,

with the District of Columbia's visitors bureau declaring a record year for US foot

traffic in 2016. But at Washington's hotels, hiring has been more or less flat

for two decades.

The region's hotel industry employs only about 5 400 more

people today than it did in 1990, a tiny increase for a region the size of the Washington area. When

calculated as a percent of the metropolitan area's total employment base, the

industry's employment footprint here is actually getting smaller.

"We have a very vibrant, financially successful

industry, but it's just not throwing off a lot of employment," said John

Boardman, executive chairman of local hotel union Unite Here Local 25.

According to data maintained by the Bureau of Labour

Statistics and analyzed by economists at the Stephen S. Fuller Institute at George Mason

University, the hotel

industry's share of the local job market has been steadily trending downward

for 17 years. In 1990, about 1.9 percent of the regions gainfully employed

worked at a hotel. Today that number is down to 1.6 percent.

Read also:  R2bn hotel deal promises employment boost 

Industry experts say the slowdown has been caused by shifts

in the way hotels serve customers and run their businesses. The move to more

limited-service options at many hotels means fewer job openings for busboys,

doormen and food runners. Other job functions are being automated out as hotels

rely more on apps and websites.

"There are places where you can walk into and out of a

hotel without ever having to interact with a human being anymore," said

Mark White, an economist at George Mason who studies the local job market.

Despite new competition from Airbnb, hotels are not

struggling financially. Hotels in the Washington

region took in $4.4 billion last year, a 6.6 percent growth rate over 2015,

according to industry data maintained by hospitality data and analytics firm

STR.

STR estimates the industry adds a few hundred rooms every

year as new hotels open in and around the city, such as the new Marriott

International convention centre hotel that opened in DCs Mount Vernon Square neighbourhood

in 2014, or more recently, the Trump International Hotel in Washington.

Each ribbon-cutting ceremony typically comes with an

announcement that hundreds of jobs will be created.

So why is the

industry's labour force growing so slowly?

It could be a result of a drawdown in service in some parts

of the industry. "Limited service" options like at Cambria Suites,

Comfort Inn and Red Roof Inn, as classified by market research firm US Hotel Appraisals,

offer cheaper rooms with abbreviated service offerings. Guests who stay at such

hotels are willing to forego a full room service menu in favour of more

narrowly defined "grab and go" options, lessening the need for a

fully staffed kitchen.

Technological change may also be contributing to the

slowdown. The hotels of the 1950s employed rooms full of switchboard operators

just to enable guests to book rooms and make calls. More recently, robotic

answering services mean hotels need fewer service representatives.

Things like ordering room service, booking a room and even

checking into the hotel are increasingly done through apps and websites rather

than the front desk.

Lackluster hiring "is a common trend we're seeing

industry-wide, and the reason for that is technology," said Solomon Keene

Jr., president and chief executive of the Hotel Association of Washington.

"For services that customers would historically rely on an individual for,

technology can offset that."

Customer service is a long way away from being automated

completely, but that could change as a more smartphone-obsessed generation

comes of age.

The world's biggest hotel companies are already preparing

for that day: At a hotel in Tysons Corner, Virginia, for example, Hilton

Worldwide has been testing guest-greeting robots that could take the place of

doormen.

Still, it's unlikely that hotels will ever be run completely

by robots. Automation "will probably affect the hotel industry in ways we

can't even imagine right now," said Boardman, the hotel union director,

"but hospitality is not only bricks-and-mortar; it's the human

interaction. It's the feeling you get when somebody makes you feel at home."

WASHINGTON POST

 

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