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Hotels and restaurants

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NACE 2002 - 55 Hotels and restaurants

Hotels and restaurants are undergoing a difficult period as they are not achieving success in tackling their long-term problem – i.e. lack of capacity to fully meet demand in high season and insufficient effectiveness of tourism agencies in attracting customers in low season. 

Even so, employment in the travel industry might grow in the following years, although this growth is likely to be only slight. There are several reasons why more robust growth is not likely. Investment is low in the CR (apart from the city of Prague, Karlovy Vary and Brno) and tends to hit below-average levels. This is particularly the result of the aforementioned problems with seasonal fluctuations and a low level of interest in other destinations on the part of foreign tourists. The CR still does not have the capacity of attracting them in large numbers to places other that Prague (and its surroundings) and Karlovy Vary. Moreover, foreign tourists seldom return to the CR.  

Overall, the development of employment in hotels and restaurants will always depend on the intensity of tourism and the attractiveness of the Czech Republic as a holiday destination. As the wealth of Czech citizens increases, the level of investment and employment in hotels and resaurants will also tend to rise. Ongoing projects and development activities implemented by regions should contribute to a gradual elimination of the weaknesses of this industry and boost its further development and secure an increase in employment 

This industry will be strongly affected by the trend of growing consumer demands. Custumers will increasingly seek tailor-made products and services, and it will be necessary to customise the service packages on offer. As with trade, there will be a growing importance of the internet as a tool for provision of information and communication between the customer and the service provider. This will result in a robust stiffening of requirements for ICT skills of operators and customer service workers. Due to more demanding customers there will also be a growing importance of promotion, advertising and communication that will be reflected in the demand for the relevant occupations and skills. Finally, a major improvement in the command of English, German and Russion is another precondition for increasing the interest in longer visits to the CR and its regions on the part of foreign nationals.  

In terms of human resources, the industry currently faces the problem of a higher rate of unemployment among graduates of the “Cook and Waiter/Waitress” study programme. This is partly caused by the mismatch between the programme content and employer requirements. Moreover, the pay level offered by employers often puts off job candidates. Consequently, there is a growing proportion of unskilled and retrained workers and also foreign nationals in the industry. This results in a lower quality of service provision which may threaten the long-term competitiveness of the Czech tourism industry. Growing customer requirements in the following years will lead to an increased demand for workers who will ensure quality improvement in business processes and organisation in tourism-oriented companies. These will include qualified managers, chefs, lower management such as shift managers, and others.   

Along with rising standards of living and the interest in healthier lifestyles on the part of Czechs there is expected to be a further increase in interest in wellness jobs – masseurs, fitness trainers, etc. A change in the demographic structure and population ageing will also have an impact. The proportion of elderly customers in the tourism industry will increase, and service packages will therefore have to be customised and higher comfort levels offered in order to accomodate their condition, e.g. lower mobility.

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