Employment needs by the size of company and by municipalities

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skillsnet
   Trends and Skill Needs in The tourism
Sector   International Workshop   Bozidar
Šiševic Podgorica, 25.04. 2004.
 
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Background

• Montenegro is a small Mediterranean country. The
  length of the coastline is 293.5 km, of which 117
  km are beaches. Huge variety high rugged
  mountains and deep ravines alternate with
  expansive plains and a fascinating coast.
• Surface 13.812km2
• Population 617.740
• Population per km2 44,72
• population growth 4,5 (2003)
• GDP in millions of Euro 1.328 (2003 estimate)
• GDP per capita (Euro) 2.150 (2003 estimate)
• Annual inflation Approximately 7,8 (2003)
• Number of employed 175.000 (2002 LFS)
• Number of unemployed 70.000 (2002 LFS and
  reg.)
• Rate of unemployed 20 (LFS estimate)
• 30 (estimate registered)

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Structure of the economy importance of the
tourism sector in the economy in 2003 (according
to 2003 Travel and Tourisms Economic impact
data)

• 190,9 mil. Euros total income (direct and
  indirect effect), and it makes 14,4 of GDP.
• 102,8 mil. Euros total income (direct effect)
• Total employment is 22.077 or 14,5 of total
  employed (direct and indirect effect).
• Total employment is 11.892 or 7,8 (direct effect
  only)
• Capital investment is 37,8 mil. Euro (14,3 of
  total investment)
• Government expenditures make 12,5 mil. Euro (or
  2,7 share in total Government expenditure).

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Main characteristics of tourism sector in
Montenegro(estimate is that we are on the 50 of
the level before 90s)

• Tourism industry in the period 1990-2000.
• Total number of beds reduced from 146.379 to
  93.996
• Reduced total number of tourist nights from 10,8
  million to 4,5 million
• Number of beds in hotels increased from 22.400 to
  25.800
• Reduced number of nights in hotels from 3,3
  million to 1,8 million
• Percentage of filling hotels 19,5
• Average price in hotel in tourist arrangements
  25-45 DEM (polupansion)
• Overall state of the sector
• Cheap vacation
• Hotels ruined (only 2000 to 3000 hotel bads
  sutisfied interna. standards)
• Short season (average two months)
• Domination of domestic guests (85 from
  Montenegro and Serbia)
• Less than 10 of foreign tourists from the West
  (fall from 60 to 10 in hotels)
• Lost market
• People untrained
• Limited investment enterprises do not have
  sources to invest in the hotels
• Privatization is moving slowly and with
  difficulties
• No world-famous hotel chains are interested to
  buy or invest in our hotels
• Hotel buyers are mostly domestic or Russians

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 Training providers

• A. Schools.
• Initial training is mostly done in schools in
  school workshops.
• In period 2002-2003 there were 20.811 students in
  VET schools. Out of that in the sector of trade,
  tourism and catering there were 3.854 students or
  18,5. There are 16 VET schools which provide
  education and training for trade, tourism and
  catering.
• Small number of students received additional
  practical training (on-the-job training).

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Shortage of labour and shortage of qualified and
competent labour force

• Characteristics of labour force in tourism
• Manpower and workforce
• There is a shortage of trained and competent
  workforce of all levels and profiles
• Top management,
• Middle management,
• Owners in the private sector,
• Qualified workers cooks,
• Tourist guides,
• Tourist animators,
• Semi qualified and unqualified workers maids,
  servants.
• Reasons
• Low earnings,
• Unfavourable working conditions,
• Seasonal (short) employment.

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• A. Problems of training in schools during 90s
• Schools did not have basic equipment and
  materials,
• Some (but small number) of schools made a
  contract with some hotel or restaurant to provide
  on-the-job training,
• There was not a system of apprenticeship
  training,
• Small influence of business on education and
  training programmes,
• Inadequate education and training programmes
  (small amount of practical training,
• Hotels and other tourist institutions invest
  little in training of their staff.
• B. Hotels and private employers.
• There is a small number of organized training
  programmes
• Low investment in training

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• C. Employment Agency of Montenegro Training
  Centers and International cooperation.
• Employment Agency invests in training of the
  unemployed and employed. Additional training
  programmes are delivered in schools, hotels and
  training centres.
• 1. EU CARDS programme VET Project Montenegro
• 2. Chamber of Commerce Coblinc, Germany
  (equipment for school workshop, teacher training
  and preparation of training programmes)
• 3. Grone school, Libek, Germany
• 4. GTZ, Germany
• 5. Training Center for workforce in Tourism and
  Catering in Herceg Novi.
• Center was established in 2002.
• Cooperation with Grone school from Libek
  (Germany) and GTZ

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Surveys I Employment needs by the size of
company and by municipalities
County-Region- Republic Employers - interwued Employers - interwued Employers - interwued Employers - interwued Employers - interwued Employers - interwued
County-Region- Republic Total One employee Fm 1- 5 workers Fm 5 - 10 workers Fm 10 - 50 workers Over 50 workers
Montenegro 9.749 3.465 4.394 803 737 350

• Interviewed 9.749 employers
• Expressed employment needs 15.223 (mostly
  permanent employment)

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• II Employment Need Analysis for seasonal workers
  in tourism and catering.
• In March 2004 survey was undertaken within
  employers who employed more than 10 seasonal
  workers. Survey undertaken by Employment Agency
  of Montenegro Burreau Herceg Novi.
• In 2003 around 20.000 seasonal workers were
  employed in Montenegro alltogather.
• In 2004, 4.251 employers in turism and catering
  with more then 10 emploees ware interwued.
• Expressed needs for 9450 seasonal workers in the
  sectors of tourism and catering.
• Structure of employment needs for seasonal
  workers in tourism and catering in 2004.
• 2.500 waiters and bartenders,
• 2.000 assistant workers in restaurants,
• 1.500 salesmen,
• 900 maids,
• 600 cooks,
• 500 non-qualified workers,
• 500 cleaning ladies,
• 400 attendants,
• 150 receptionists,
• 100 confectioners,
• 100 grill makers,
• 100 gardeners,
• 100 life-savers and workers on the beach.

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Future perspective new trends and
developmentTourism designated as the sector of
highest priority

• Master plan about development of tourism in
  Montenegro until 2020.
• (prepared by DEG German Investment and
  Development Company for Federal Ministry of
  Economic Operation and Development)
• The most important document on tourism produced
  so far
• Approved by Government in May 2001.
• All ministries have to take it into consideration
  
• Identified potentials for development
• The length of the coastline is 293.5 km, of which
  117 km are beautiful beaches,
• Sandy beaches (very often compared with Majorca)
• Clear, sparkling sea,
• Untouched environment,
• Mild and pleasant climate and sunny weather,
• Clean mountain lakes and rivers (often compared
  with Northern Italy and Switzerland)
• Huge variety high rugged mountains and deep
  ravines alternate with expansive plains and a
  fascinating coast.

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Culture - Nature
Maritime tourism
Cures and health
Mountain hiking
Congresses and incentives
Target groups
Sport and fun
Agro-tourism
Events and adventure
Golf
Bathing tourists
Private lodgings
Hotels
Fewo Camping
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Master Plan -main goals, priorities,
principles and reccommenations

• Tourism sector designated as a first order
  priority,
• Changing structure of the tourist product
  increase of quality of tourist product (service),
• Attracting foreign tourist with higher income and
  higher purchasing power,
• Increasing diversity of services
  standardization and specialization,
• 3 to 5 star hotels main element of increase
  services,
• Upgrading of existing and bulding new hotels,
• Distinctive products,
• Individualized products,
• Promoting private initiative.

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• Short-term, med-term and long-term expetations
  for development
• Short-term perspective next few years to catch
  up with where we were at the end of 1980s
• 2.Master Plan-predictions for 2010.
• Estimated rate of growth of income in tourism
  10,
• Total income 530,6 mil. Euro
• Total number of beds 225.000
• Total number of beds in hotels 50.000
• Total nights 15.675.000
• Total increase of employment in 25.000 (one new
  hotel bed creates one new job, directly (0,3) and
  indirectly (0,7))
• 3. Master plan predictions for 2020.
• Total income 1.151 mil. Euro
• Total number of beds 280.000
• Total number of beds in hotels 100.000
• Total nights 25.850.000
• Total increase of employment around 50 to 70 000
  people, nearly 50 of the total employment.

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Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities Master Plan-Development strategy for bedding capacities
1997 1997 1997 1997 1997 2010 2010 2010 2020 2020 2020
StatisticsA StatisticsA StatisticsA EstimateB EstimateB Target Target Target Target Target Target
Hotel Beds Beds Beds Beds
Total 25.879 100 27,5 25.879 10,1 50.000 100 22,2 100.000 100 35,7
L/5 240 0,8 - 240 2.500 5 1,1 10.000 10
A/4 4.489 17,3 4,8 4.489 1,8 15.000 30 6,7 40.000 40
B/3 20.830 80,5 22,2 20.830 8,6 20.000 40 8,9 40.000 40
C/2 273 1,0 - 273 12.500 25 5,6 10.000 10
D/1 47 0,2 - 47 - - - -
Camping 18.492 19,7 18.492 7,6 15.000 6,7 10.000 3,6
Vac. Dwellings 19.592 20,8 78.434 32,3 50.000 22,2 50.000 17,9
Other 30.033 32,0 30.033 12,4 15.000 6,7 10.000 3,6
Hol. Apart. 90.090 37,1 95.000 42,2 110.000 39,3
Total 93.996 100 242.928 100 225.000 100 280.000 100
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Master Plan-proposals for Labour force in tourism
and catering

• The following specialists will be needed for the
  future development
• Experts in tourism industry, leisure, marketing
• Experts in hotel business and vocational training
• Landscape management and national parks
• Environment, regional planning and transport
• Architecture and interior design
• Building and hotel engineering
• Supply and waste management
• Culture and education
• Economics, labour and social policy
• Law and administration.