FUTURE TRENDS IN EMPLOYEE REQUIREMENT IN HOTEL AND RESTAURANT SECTOR IN SRI LANKA

Abstract

This paper aims to forecast future employee requirements in the hotel and restaurant sector in Sri Lanka and identify the correlation between different labour categories with tourist arrivals. The literature illustrates the fact that there is a significant shortage of forecasted data on labour in the hotel and restaurant sector, particularly in Sri Lanka. Therefore, this research fulfilled the empirical gap forecasting the future employee requirements in the hotel and restaurant sector in Sri Lanka. Secondary data were used and analyzed using quantitative techniques. Annual data were obtained from annual statistical reports from 2000 to 2018 published by Sri Lanka Tourism Development Authority in Sri Lanka. The linear regression model was used to forecast different employee categories in the hotel and restaurant sector and Karl Pearson’s correlation was used to test the correlation between labour categories (independent variables) and tourist arrivals (dependent variable). Findings indicate that there is a positive and very strong relationship between tourist arrivals and different labour categories since the coefficient of correlation is more than 0.8 in all relationships. The study forecasts that 2.4. million foreign tourists will arrive in Sri Lanka in 2024 and 146105 employees in different categories in the hotel and restaurant sector in Sri Lanka is required. As compared to the required labour force with the existing employees, hotel and restaurant sector in Sri Lanka is required 24898 employees in 2024. Thus, the study provides better insight into future trends of employability requirements of the hotel and restaurant sector which leads to preventing the risk and uncertainties in future manpower planning in the industry.