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Skills & Training Needs 2013Victorian Accommodation and Food Services Industry

Published by HESG Department of Education and Early Childhood Development

Melbourne May 2014

©State of Victoria (Department of Education and Early Childhood Development) 2014

The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.

An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an

institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution.

Authorised by the Department of Education and Early Childhood Development 2 Treasury Place, East Melbourne, Victoria, 3002. ISBN 978-0-7594-0763-3

This document is also available on the internet at http://www.education.vic.gov.au/training/employers/industry/Pages/accommodation.aspx

Contents IntroductionIndustry and data scope

Products and services 3

Data 3Accommodation and Food Services trends and issues

Economic contribution 8

Employer profile 9

Labour productivity 12Accommodation and Food Services workforce and skills

Key messages, issues and challenges 13

Employment 14

Skills composition 15

Job vacancies 16

Labour market characteristics 17

Occupations in demand 18

Specialised and in-shortage occupations 20

Workforce skills needs 22Accommodation and Food Services vocational training provision

Key messages, issues and challenges 24

Training activity 25

Courses 27

Enrolments by occupation 28

Training providers 29

Funding patterns 29

Regional training activity 30

Student characteristics 32Appendix A

1Introduction

In the context of Victoria’s dynamic economy, a demand-led approach is the best way to ensure a responsive vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the Victorian Training Guarantee, which has achieved positive outcomes for both students and the economy.

The Refocusing Vocational Training in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government is ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria.

Through Refocusing Vocational Training, there is a role for Government in monitoring, providing information and responding to the performance of the vocational training system. A key mechanism by which the Government exercises this role is through the Industry Participation Model. The Industry Participation Model is based on a new partnership approach between Government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with Government.

An aim of the Industry Participation Model is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve alignment between industry needs and training delivery. A suite of information products and tools are being developed, of which this report is one, to support this aim and an overview of these is provided overleaf.

This report describes training and economic activity and developments related to Victoria’s Accommodation and Food Services industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and Government have to address these challenges. Key metrics used in this report include enrolments by sub-industry, qualification level, occupation, courses, age group, gender, learners facing barriers, provider type, reason for study and completions. The report also covers apprentices and trainees, and an analysis of the alignment between training delivery and specific industry skills needs. The report produces industry, sub-industry and region-specific findings and, wherever possible, presents comparisons to developments at the State level.

The purpose of this report is:

1. To provide a basis for understanding the Accommodation and Food Services sector in relation to employment levels, skills shortage occupations, current alignment and responsiveness of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future.

2. To give detailed information around vocational training enrolments by occupation, location, qualification levels and student characteristics, as it relates to the Accommodation and Food Services sector in order to gauge current trends in vocational training delivery.

3. To summarise the context of the Accommodation and Food Services sector in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing.

Introduction

2 Skills & Training Needs 2013 – Victorian Accommodation and Food Services industry

Suite of Information Products & Tools

Victorian Quarterly Training Market ReportsOn-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needs http://www.education.vic.gov.au/training/providers/market/Pages/reports.aspx

Vocational Training: Victoria’s Regional ReportAnnual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building a picture of the relationship between the local training system and regional skills needs, training market performance and responsivenesshttp://www.education.vic.gov.au/training/providers/market/Pages/regionaltrends.aspx

Vocational Training: Victoria’s Industry ReportPublished annually, this report combines industry intelligence and economic analysis with training data to build a more complete picture of the relationship between industry skills needs, employment opportunities and skills training. Each of the 19 industry training profiles provide economic context and a summary of training challenges and highlights from IPM initiativeshttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry Sub-sector summary reports & Industry Factsheets46 sub-sector industry summary reports produced annually highlight industry labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional levelA series of factsheets are also available for 19 industrieshttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Business Toolkit and Case StudiesToolkit for employers providing information on how to get government-subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognition of Prior Learning; and a range of interesting employer and training provider case studieshttp://www.education.vic.gov.au/training/employers/workforce/Pages/marketfacilitation.aspx

Portfolio Industry ReportsThese reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports; detailed reports representing the focus industries for the Department in 2013, and summary reports covering other industry sectors http://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Industry BlogA forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activitieshttp://skillsblogvic.wordpress.com/

Industry Skills Update - e-AlertsRegular email update featuring the latest news about IPM activities; market facilitation and related government initiatives; reports; and training performance informationTo subscribe contact: Department of Education & Early Childhood Development, [email protected]

Web Pages – Industry Training Market Information19 webpages with information about the skills and training market for industry sectors. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports and factsheets along with more detailed reporting for each industry sub-sector. Information is updated regularlyhttp://www.education.vic.gov.au/training/employers/industry/Pages/marketinfo.aspx

Rate Your TrainingRatings tool for industry and employers which is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employershttp://rateyourtraining.com.au/

E-Marketplace (in development)Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers

Victorian Skills GatewayOne-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purpose-built smartphone interface http://www.education.vic.gov.au/victorianskillsgateway/Pages/home.aspx

3

This section summarises the scope of the Accommodation and Food Services industry1 as well as key data sources.

Products and servicesThe Accommodation and Food Services industry includes businesses engaged in providing short-term accommodation for visitors and/or meals, snacks, and beverages for consumption by customers both on and off-site. The industry includes businesses providing accommodation, food, beverage, and hospitality services.

Excluded from this industry are gambling institutions (casinos); amusement and recreation parks; long-term (residential) caravan parks; theatre restaurants; sporting clubs; and other recreation or entertainment facilities which provide food, beverage, and accommodation services.

Figure 1.1: Accommodation and Food Services ANZSIC breakdown

ANZSIC code ANZSIC industry

44 Accommodation

45 Food and Beverage Services

451 Cafes, Restaurants and Takeaway Food Services

4511 Cafes and Restaurants

4512 Takeaway Food Services

4513 Catering Services

452 Pubs, Taverns and Bars

453 Clubs (Hospitality)

Data The main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS).

The report presents findings for the time period from 2008 to 2013, with an in depth analysis of developments and patterns in the 2013 calendar year. Data was extracted from SVTS as at March 2014 and subject to revision.

This report includes government subsidised vocational training enrolments only. Data on completions contain all government subsidised and fee for service enrolments at any course level by all providers.

Training data shown in the tables are rounded to the nearest 100 when the figures are greater than 1,000; to the nearest 50 when they are between 100 and 1,000; and to the nearest 10 when they are less than 100. Any percentages are calculated based on the original, unrounded data.

Industry and data scope

Industry and data scope

1 As defined by the Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006.


This section focuses on the Accommodation and Food Services industry as a whole. It covers: key issues and challenges including economic conditions, new regulations, demographic changes, changing social attitudes, new technology/processes, changing consumer tastes, environmental sustainability and the direction of industry restructuring.

Key messages, issues and challenges• Although hard-hit by the economic downturn, Australia’s

Accommodation sub-sector has rebounded, with growth in the hotels and resorts segment fuelled by an influx of Chinese and Asian tourists and improved domestic demand, which accounts for around 43 per cent of industry revenue. Victoria has mainly missed out on the ‘fly-in, fly-out’ trend that has supported industry growth across the mining regions.

• Demand for serviced apartments and rented houses/apartments is expected to remain strong, with increases in the number of enterprises forecast across the rented house/apartment segment. Caravan parks and camp sites are also doing well, and although there has been some consolidation across this sector, sites are offering a wide range of facilities catering for the trend towards more recreational vehicle travel (especially amongst retirees), as well as additional units and cabins.

• The restaurant and fast food segments are also experiencing favourable conditions, as a result of the rise in disposable incomes and greater urbanisation of a growing population. Business models are increasingly catering for a health conscious nation and the integration of technology linking wait staff with kitchen orders has raised efficiency and turnaround in the sector.

• Australia’s coffee culture continues to drive success across cafés and coffee shops. Although there has been an increase in the number of franchises and global chains now operating in this segment, it remains primarily the principality of small specialty businesses.

• Australia’s pubs, taverns and bars have experienced moderate growth over the past five years, with levels of alcohol consumption declining and heightened competition from other leisure activities for discretionary spend. Some urban operators are under pressure due to rising property prices making them the target of property developers. However, more flexible and accommodating liquor licensing laws have spurred a renaissance of the inner-city bar scene. Successful operators are now capitalising on changing consumer tastes away from traditional beers towards higher value craft beers, ciders, wines and cocktails, and refined food offerings.

• Drive-through bottle shops attached to bars and pubs have continued to grow as the larger retailers get on the scene, but some operators with large gambling facilities face uncertainty over the proposed poker machine regulations (currently delayed until 2016).

• Across Victoria, the Accommodation and Food Services industry is estimated to be worth around $9.5 billion to the State economy, with a workforce of approximately 181,200 workers, representing 6 per cent of Victorian employment.

• Future growth in output is expected to be slightly below the average for all Victorian industries, and is currently forecast at 12 per cent over the five years to 2017-18 (compared to an ‘all industry’ average of 14 per cent over the same period).

• At the end of June 2012, it was estimated that there were 22,069 businesses in the sector operating in Victoria. Almost three-quarters of Accommodation and Food Services business establishments are either takeaway food services outlets or cafés and restaurants.

• One in five businesses in the industry are located in Melbourne CBD, while other concentrations are scattered throughout the Melbourne metropolitan area, with strip shopping centres home to a large number of outlets. The Dandenong Ranges, Yarra Valley and Mornington Peninsula are also host to a large number of establishments, driven by tourism in these areas. Across regional Victoria, business is concentrated in the main regional population centres and major tourist destinations such as Halls Gap, Bright, Bairnsdale and the Surf Coast.

Accommodation and Food Services trends and issues

5Accommodation and Food Services trends and issues

Industry trends and outlookThe following tables outline the trends and drivers for the main areas of activity within the Accommodation and Food Services sector.

Accommodation

• Certain elements of the Accommodation sub-sector were particularly hard hit during the global financial crisis (GFC) and demand weakened from both the corporate and tourist segments. Many hotel and resort operators reacted by cutting room rates and offering additional perks and services as part of packaged deals. However, since then a resurgence in tourism numbers and recovering consumer and business confidence means that the hotels and resorts segment is expected to increase revenue by an annualised 3 per cent over the five years to 2013-14, and while average takings per room remain low by historic standards, the industry’s occupancy rate across capital cities remains high at around 80 per cent (although occupancy rates in rural regions are much lower).

• The high Australian dollar has also affected domestic demand, as international trips became cheaper, but the market from Asia and China has fuelled growth in the sector. Visitors from China are expected to double in the next five years (2015-2020) to 14 per cent, and have already overtaken the UK as Australia’s most valuable inbound market.

• Given around 43 per cent of the hotels and resort segment’s revenue is derived from the domestic tourist market, factors such as real household discretionary income and consumer sentiment have traditionally had the greatest effect on the amount of domestic tourism undertaken. Both of these indicators were shaken in the aftermath of the GFC, but have since rebounded.

• As the dollar’s exchange rate declines from its peak, domestic and other international tourism levels will improve and the hotels and resorts segment is forecasting growth of 2 per cent per year on average through to 2018-19.

• In line with global hotel trends, major operators are exiting hotel ownership models to concentrate on management-only services, with hotels increasingly owned by superannuation funds, fund managers and property trusts. This trend is expected to continue over the next five years.

• The hotel and resorts segment faces competition from serviced apartments, and this competing segment is forecast to display solid growth in profit and investment in the next five years, in line with changing consumer preferences for this style of accommodation. However, the hotels and resorts segment is expected to benefit from improved takings per occupied room due to a limited supply of new rooms coming onto the market.

• While backpacker and bed and breakfast accommodation have both suffered from historically weak tourism markets, demand for rented houses and apartments has been strong, and has benefited from the rising use of internet sites to book this style of accommodation. Looking forwards, this segment is expected to remain highly profitable, and enterprise numbers are expect to grow at an annualised 1 per cent over the five years to 2018-19.

• The caravan parks and camping grounds segment has worked at reinventing itself over the past ten years, moving away from its traditional core services and offering more premium accommodation, improved facilities for families (which represent the industry’s major market) and a greater number of self-contained cabins and units. The industry now accounts for a significant component of total tourist accommodation in Australia and competes fiercely with other forms of budget accommodation such as motels and backpacker hostels. Industry growth however, has been constrained by a large number of caravan park and camping ground closures over the past five years.

• Investment by property funds in caravan park properties is also expected to increase industry consolidation, but despite these closures, a number of other factors have had a positive influence on the industry. In particular, the trend towards RV (recreational vehicle) journeys, especially among the growing number of retirees, has meant that camping ground operators have invested heavily in upgrading park facilities as the industry becomes more competitive and campers’ expectations rise.


Cafés, Restaurants and Takeaway Food Services

• Declining household income during the GFC, rising unemployment and low consumer sentiment caused demand in the restaurant segment to plummet during the downturn, as consumers became more vigilant in their spending by reducing the frequency of restaurant visits and lowering spending on high-margin menu items, such as expensive wines and desserts.

• However, demand has since returned and is expected to be strong over the next five years, driven by the trend of longer working hours, rising workforce participation, and increasing urbanisation. Strong immigration growth will stimulate demand for ethnic restaurants and the ongoing rise in health consciousness presents both a risk and opportunity for restaurateurs. These trends will provide industry players with opportunities to sell premium products in niche markets. However, significant competition from takeaways, pubs and cafés will challenge operators to remain efficient and responsive to changes in customer demand.

• The influence of celebrity chefs and TV cooking programs is expected to continue to be felt, while the use of web and mobile-based review sites will increase.

• It is essential for restaurant operators to take advantage of technologies and systems designed to boost profit margins by improving business processes and minimising labour costs and food waste. This has led to redesigning kitchen layouts and ordering systems to reduce food preparation times. It has also led to greater efficiencies in front-of-house operations via the use of electronic ordering systems linking wait staff to the kitchen as orders are taken. This has increased the service level of industry players by helping them to simultaneously satisfy existing patrons and improve sales because meals and drinks are delivered to the consumer more efficiently, leading to a higher turnaround.

• Australia’s cafés and coffee shops segment has experienced annualised growth of 3 per cent over the past five years, and growth is to continue at a similar rate. The industry owes its success to the nation’s love for quality gourmet coffee, and the extent to which this is entrenched in the daily routine of many consumers. Coffee is considered a necessity, and a daily ritual and Australians’ obsession with high-quality coffee has fuelled competition and wage growth for cafés as they opt to employ highly skilled and expensive baristas to cater to customer tastes.

• While the presence of international players and coffee shop franchises is expected to grow, the prevalence of small specialty operators will remain the underlying driver of the industry’s success. However, rising global demand for coffee has resulted in increased coffee prices, compounded by shortages as a result of poor weather conditions affecting growing.

• Growing consumer interest in environmental issues and the provenance of foodstuffs should support sales of fair trade and organic coffee, but there is expected to be a decline in the demand for cakes and pastries as health awareness increases. As a result, cafés with gourmet breakfast and lunch menus featuring fresh, premium ingredients and diversified menus should perform well.

• Driven by heightened health awareness, the fast food industry has also undergone a health kick, resulting in annualised growth of 3 per cent through the five years to 2013-14. With this change has come an influx of new fast-food retailers with healthier eating options ranging from salad and juice bars to grilled chicken shops and sushi retailers.

• New partnerships have arisen between major fast-food outlets, weight-loss companies and health organisations in an effort to change the public image of fast food. These trends have also fuelled competition in the industry. As a result, there has been an increase in revenue across healthier food segments, and a decline in traditional fast food product segments such as hamburgers and pizza.

7Accommodation and Food Services trends and issues

Cafés, Restaurants and Takeaway Food Services (continued from previous page)

• This industry also faces competition from supermarkets, which are stocking similar products; for example, home-meal replacements and heat-and-serve products such as pizza, stir-through sauces and pre-packaged mini-meals.

• Growth to 2018-19 is expected at an annualised rate of 2 per cent per year, driven by demand for nutritious food. The increasing use of internet and mobile-based ordering applications and food trucks are also expected to take off over the next five years, providing competition for existing players. Food trucks are able to serve food in convenient locations such as the beach or near major events, operate late at night, have lower rental expenses and are expected to expand their use of social media and tracking websites to spread news of their locations and create hype.

Pubs, Taverns and Bars

• Over the past five years to 2013-14, the Pubs, Taverns and Bars sub-sector has grown at an annualised 2 per cent. Growth has been modest for the industry as the GFC resulted in the collapse of some pub operators while consumers reigned in spending.

• However, while some urban pubs and clubs are under pressure due to rising property prices, making them the target of property developers; more flexible and accommodating liquor licensing laws in Melbourne have spurred a renaissance of the inner-city bar scene. Small bars with refined food and beverage offerings have excelled at the expense of traditional pubs. Drive-through bottle shops attached to bars and pubs have also continued to grow as the large supermarket retailers get in on the scene. Nevertheless, almost all enterprises in the industry operate at low profit margins.

• Over the next five years, growth is again expected to be moderate, forecasting an annualised 2 per cent per year to 2018-19. Constraining factors include changing attitudes towards alcohol, with an increasingly health conscious population reducing consumption, and spending more time on other leisure activities. The taste for beer is also declining, although craft beers and ciders are now becoming more popular. There are opportunities to capitalise on changing consumer trends towards these, and other higher value alcoholic beverages such as wine and cocktails.

• Elements of the industry with significant gambling operations remain under threat from the proposed pre-commitment poker machine regulation, currently delayed until 2016, which will set bet limits on games, increase hours of shut-down and propose that ATMs are located further away from gaming areas.

Sources: various IBISWorld reports, 2013


Economic contributionVictoria’s Accommodation and Food Services industry contributed approximately $9.5 billion to the state economy in 2012-13, around 3 per cent of total output. The industry directly employs approximately 181,200 workers, representing 6 per cent of Victorian employment, the seventh largest sector by employment size.

Looking forward, output growth of 12 per cent is anticipated in the five years to 2017-18, to around $10.6 billion. This is slightly lower than the anticipated state growth rate of 14 per cent across all Victorian industries. Food and Beverage Services accounts for the highest proportion of industry output, 85 per cent of the total. This is expected to remain consistent through to 2017-18.

A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich society.

Figure 2.1: Accommodation and Food Services output ($ million), Victoria, 2012-13 and 2017-18

Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2013

12,000

2012-3 2017-8

10,000

8,000

6,000

4,000

2,000

0

1,408

8,043

1,591

9,035

Accommodation Food and beverage services

9

Employer profileAt the end of June 2012, it was estimated that there were 22,069 businesses in the Victorian Accommodation and Food Services sector. The distribution of Accommodation and Food Services businesses by employment level is skewed towards small sized employing businesses (between 1 and 19 employees). Fifty-seven per cent of all Accommodation and Food Services businesses employ between 1 to 19 employees compared with an all-industry average of 35 per cent. Non-employing businesses comprise a much smaller proportion of Accommodation and Food Services businesses when compared with the all-industry average (30 per cent compared with 61 per cent).

Figure 2.2: Share of businesses by employment, Victoria, 2012

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012


10%

20%

30%

40%

50%

60%

70%

Non Employing 1 to 19 20 to 199 200+

0%

30%

61%

57%

35%

13%

4%1% 0.3%

Accommodation and Food services All industries


With regards to turnover, Victoria’s Accommodation and Food Services businesses are less likely to be in the low / medium turnover ranges ($0 to less than $200,000), and more likely than average to have a large annual turnover of $200,000 to $2 million.

Figure 2.3: Share of businesses by turnover size, Victoria, 2012

Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012

Almost three-quarters of Accommodation and Food Services business establishments are either takeaway food services outlets or cafés and restaurants. With the exception of the large concentration of establishments in Melbourne City (one in five of all establishments), Accommodation and Food Services establishments are scattered throughout the metropolitan area. Large suburban shopping centres (e.g. Chadstone, Southland and Doncaster) and strip shopping centres are home to large numbers of cafés, restaurants and take away outlets.

There are also business establishment concentrations in tourist areas such as the Dandenong Ranges, the Yarra Valley and Mornington Peninsula.

Thirty per cent of all Victorian Food and Accommodation business are located in regional Victoria. Business establishments tend to be located in major regional population centres such as Geelong, Ballarat, Bendigo as well as regional Victoria’s major tourist destinations, including Halls Gap, Mansfield and Bright, Lakes Entrance and Bairnsdale. Business establishment numbers increased in Mt Alexander, the Surf Coast area surrounding Geelong, Bendigo, Ballarat, Kyneton, Warburton and Traralgon over the past decade.

10%

20%

30%

40%

50%

60%

Zero to less than $50k $50k to less than $200k $200k to less than $2m $2m or more

0%

12%

28%30%

35%

6% 6%

52%

31%

Accommodation and Food services All industries

11

Figure 2.4: Location of Accommodation and Food Services establishments in metropolitan and regional Victoria, 2010-11

Source: Department of State Development, Business and Innovation, Accommodation and Food Services Industry. Business location in Victoria: A decade of change, October 2012 (based on data from WorkSafe Victoria)



Labour productivityLabour productivity is defined as real gross value added per hour worked. The figure below shows the average annual compound rate of growth in labour productivity for the Accommodation and Food Services industry over the period 2003 to 2013. Nationally the average compound annual growth rate of labour productivity for Accommodation and Food Services was 0.4 per cent, while the all-industry average was 1.3 per cent.

Upskilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A well-trained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in the State’s economy.

Figure 2.5: Labour productivity measure by gross value added (GVA) per hour worked, average annual growth, Australia, 2003-2013

Source: Australian Bureau of Statistics (ABS), Australian System of National Accounts, 5204.0

0.0%

Accommodationand Food Services

All Industries

0.5% 1.0% 1.5%

0.4%

1.3%

13

This section focuses on the Accommodation and Food Services industry workforce. It covers employment levels and trends, as well as workforce characteristics such as age and skill level.

Key messages, issues and challenges• Approximately 181,200 people were employed in Victoria’s

Accommodation and Food Services industry in 2012-13. Employment has been growing in recent years, and this trend is forecast to continue albeit at a reduced rate of growth. The industry has seen employment grow by 19 per cent over the last five years; over the next five years employment is forecast to grow by around 7 per cent.

• The industry’s workforce is heavily skewed towards the younger age groups, with 36 per cent in the youth cohort of 15-24 years old.

• The Accommodation and Food Services industry employs a higher proportion of women (55 per cent) than men (45 per cent).

• A very large proportion of the Accommodation and Food Services workforce (60 per cent) has no post school qualifications, much higher than the all industry average of 40 per cent.

• The industry experiences a very high rate of job vacancies, reflecting high turnover rates for some occupations. Research commissioned by the Department of Resources, Energy and Tourism supports industry claims of significant labour and skills issues afflicting the industry and estimating a vacancy rate of nine per cent across tourism-related industries, compared to an economy-wide average of two per cent.

• Six occupations in the Accommodation and Food Services industry – Café and Restaurant Managers, Retail Managers, Bakers, Pastrycooks, Chefs and Cooks – are considered to be experiencing skills shortages in Victoria.

• A quality, highly-skilled workforce is identified as critical to the success of businesses in the Accommodation and Food Services industry, and the industry continues to face significant challenges in meeting its workforce needs.

• The traditional skills required of the Accommodation and Food Services workforce remain paramount: customer service, a positive attitude, a desire to help and good communication skills, alongside strong management and leadership skills.

• As customers increasingly move online to book and review the services of the sector, a heightened demand for ICT skills is coming to the fore, with the need at both managerial and operational level to develop and maintain a proactive online presence, not only via interactive websites, but increasingly via the use of social media.

• A very high proportion of staff have been with their employer in the industry for less than a year, and this, combined with a much younger than average workforce age profile, means that staff retention and the development of career pathways is not only important in reducing turnover for employers, but also in retaining skills within businesses and in improving customer perceptions and experience.

• A growing number of businesses in the industry are defining and marketing themselves as environmentally responsible, in response to changing consumer preferences. This brings with it new skills needs and development requirements, alongside those skills needed to maintain adherence to regulatory requirements (e.g. food handling, food safety standards and the responsible service of alcohol).

• Australia is progressively attracting an increasing number of high revenue visitors from China and Asia, and these visitors are overtaking the traditional tourism markets from the English-speaking world. Those businesses in the sector that offer some understanding of culture, language and translation services will do better than those that do not. Increasing numbers of requests to providers for the inclusion of basic Mandarin in training provision, for example, are now being made.

Accommodation and Food Services workforce and skills



EmploymentApproximately 181,200 people are employed in Victoria’s Accommodation and Food Services industry. The industry has seen employment grow by 19 per cent over the last five years, equating to approximately 29,000 employees. The outlook over the next five years is for employment to increase approximately 7 per cent, to 194,000 workers.

Food and Beverage Services is the largest sub-sector in terms of employment, accounting for 87 per cent of jobs in the this industry.

Figure 3.1: Accommodation and Food Services employment, Victoria, 2012-13 and 2017-18

Source: Monash Centre of Policy Studies Employment Forecasts, June 2013

200,000

2012-3 2017-8

150,000

100,000

50,000

-

23,100

158,100

24,700

169,300

Accommodation Food and beverage services

15

Skills composition Compared to the majority of sectors, the pattern in Accommodation and Food Services is different in that there are a greater proportion of lower skilled roles than higher skilled roles.

The Accommodation and Food Services industry’s skill levels show a relatively stable pattern into the future. Highly skilled roles as a percentage of the overall workforce are projected to remain at approximately 19 per cent of the workforce through to 2020-21, a similar level to 2004-05. Medium skill roles are expected to account for the highest proportion of industry employment into the future, 42 per cent of employment in 2020-21 (compared with 41 per cent in 2012-13). The proportion of lower skill roles in the industry is expected to fall slightly, from 40 per cent to 39 per cent over the same period.

Figure 3.2: Accommodation and Food Services industry skill levels, Victoria, 2004-05 to 2020-21


Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and administrative workers, sales workers, machinery operators, drivers and labourers


40%

50%

10%

Forecast 2013-21

0%

2004-5

2005-6

2006-7

2007-8

2008-9

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-2

0

2020-21

20%

30%

High skill Medium skill Low skill


Job vacanciesFigure 3.3 below highlights the number of vacancies posted online in Victoria over the last two years for selected key Accommodation and Food Services occupations. The number of online job advertisements across Accommodation and Food Services occupations has fluctuated over the period and generally tracks the decreasing trend seen in the national Internet Vacancy Index.2

There were approximately 1,500 newly lodged vacancies in key Accommodation and Food Services occupational groupings in June 2013. Chefs and Waiters were the largest occupations in terms of vacancies, followed by Kitchenhands and Cooks.

Figure 3.3: Number of newly lodged online vacancies in key Accommodation and Food Services occupations, Victoria, 2011-13

Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to fluctuation from month to month.

Research conducted on behalf of the Department of Resources, Energy and Tourism has supported industry claims of significant labour and skills issues afflicting the industry quoting that “nearly half of all tourism businesses surveyed indicated they are experiencing a recruitment, retention and/or skills deficiency.”

Overall, it is estimated that there is currently a vacancy rate of nine per cent across tourism-related industries, compared to an economy-wide average of two per cent.3 The sectoral definition of ‘tourism’ is wider than the Accommodation and Food Services sector, but this sector forms a substantial amount of the tourism industry.

2 Department of Education, Employment and Workplace Relations, DEEWR Vacancy Report, February 2013

3 Deloitte Access Economics on behalf of the Department of Resources, Energy and Tourism, Australian Tourism Labour Force Report, 2011

900

800

700

600

500

400

300

200

100

0

Jan 11

Mar 11

May 11

Jul 11

Sep 11

Nov 11

Jan 12

Mar 12

May 12

Jul 12

Sep 12

Nov 12

Jan 13

Mar 13

May 13

Cooks

Chefs

Waiters

Kitchenhands

Cafe and Restaurant Managers

Bakers and Pastrycooks

Caretakers

Caravan Park and Camping Ground Managers

17

Labour market characteristicsEmployment by age

A high proportion of the Accommodation and Food Services industry workforce is within the youth age cohort of 15-24 years – at 38 per cent, more than double the proportion across all Victorian industries (15 per cent). Consequently, the proportion of the workforce falling within all other age cohorts is lower than the average across all industries.

Figure 3.4: Proportion of employment by age, Victoria, 2012-13


Employment by gender

The Accommodation and Food Services industry employs a higher proportion of women (55 per cent) than men (45 per cent). The all-industry average is 54 per cent male compared with 46 per cent female.

Figure 3.5: Proportion of employment by gender, Victoria, 2012-13



Accommodation andFood Services

All industries

0%

36%

15% 24% 23% 21% 17%

21% 15% 15% 13%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15-24 25-34 35-44 45-54 55+

Administrativeand Support

Services

All industries

0%

45%

54% 46%

55%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Male Female


Employment by qualification level

A very large proportion of the Accommodation and Food Services industry workforce (60 per cent) has no post school qualifications, with a smaller proportion of higher education qualified workers than the ‘all industries’ average.

Figure 3.6: Proportion of employment by qualification level, Victoria, 2012-13


Occupations in demandTable 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of Occupations) that align to the Accommodation and Food Services industry. Note that while some occupations also align to other industries, the figures shown are specific to the Accommodation and Food Services industry.

Forecasts presented in the table estimate the employment growth and replacement demand in terms of the average number of jobs required for each occupation annually up to 2017-18.

Employment growth is the net number of new jobs that the occupation is currently forecasting within the industry. Replacement demand is the number of existing workers that are forecast to leave each occupation through retirement, moving on etc. that require replacing to meet existing employment needs.

Across all occupations in the Accommodation and Food Services industry (including office support occupations such as book-keepers, receptionists etc.) projected average annual employment needs between 2012-13 and 2017-18 are for around 12,800 workers per year to satisfy employment growth and replacement demand.

Accommodation andFood Services

All industries

0%

60%

40% 3% 18% 11% 29%

4% 17% 8% 11%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

No post-school qualifications Certificate I-II Certificate III-IV Diploma+ Higher education

19

Table 3.1: Estimated annual employment growth + replacement demand for occupations in the Accommodation and Food Services sector, Victoria

Occupation 2012-13 employment total

Average annual employment needs

Overall employment growth to 2017-18

Waiters 28,970 2,410 2,860

Sales Assistants (General) 18,920 1,200 1,050

Kitchenhands 18,430 1,070 630

Chefs 16,930 1,390 3,100

Bar Attendants and Baristas 13,070 1,280 1,240

Café and Restaurant Managers 11,820 660 1,500

Fast Food Cooks 10,650 1,300 1,240

Retail Managers 7,070 280 540

Hotel and Motel Managers 5,290 180 -190

Cooks 5,260 360 310

Cafe Workers 4,030 220 230

Commercial Cleaners 3,680 160 250

Housekeepers 3,450 190 540

Checkout Operators and Office Cashiers 3,130 290 270

Vending Machine Attendants 1,920 110 60

Receptionists 1,870 90 130

Other Accommodation and Hospitality Managers 1,640 190 120

Caravan Park and Camping Ground Managers 1,390 90 -

Delivery Drivers 1,240 40 10

Licensed Club Managers 1,100 150 130

VET occupations highlighted in green



Key messages at the occupational level are that there is currently forecast to be substantial employment growth and replacement demand to 2017-18 in:

• Waiters: average annual employment needs of +2,410, and an estimated overall employment growth of around 2,860 workers between 2012-13 and 2017-18.

• Kitchenhands: average annual employment needs of +1,070, and an estimated overall employment growth of around 630 workers between 2012-13 and 2017-18.

• Chefs: +1,390 on average annually, and an estimated overall employment growth of around 3,100 workers between 2012-13 and 2017-18, the largest in the industry.

• Café and Restaurant Managers: +660 annually and an estimated overall employment growth of around 1,500 workers between 2012-13 and 2017-18

• Retail Managers: average annual employment needs of +280 workers annually.• Cooks: average annual employment needs of +360 annually.

There are also some occupations where overall employment is expected to decline:

• Hotel and Motel Managers: this occupation has a projected decline in employment of 190 worker between 2012-13 and 2017-18. Projected average annual employment needs over this period are for 180 workers to replace those leaving the industry.

Specialised and in-shortage occupations This section focuses on current skills shortages in specific occupations related to the Accommodation and Food Services industry as well as those occupations that are specialised.4 The Department’s analysis of skill shortages considers both quantitative evidence and intelligence gathered through industry consultation.

Highlighted below are the occupations within the Accommodation and Food Services industry that are deemed to be specialised and/or in-shortage. Table 3.2 then provides a summary of key Accommodation and Food Services occupations by specialised and in-shortage status.

Chefs are a large employing occupation with a low growth rate. Indicators appear to suggest that an existing skills deficit may be in decline. Both employment and replacement growth are slowing, and while vacancies are above average they are declining from previous highs. With industry intelligence continuing to suggest that this is in-shortage, however (the Industry Skills Council flag Chefs as the highest shortage occupation through to 20155), the deficit appears to remain for now.

The Café and Restaurant Managers occupation is showing indicators that are contradictory. While it is a large occupation, there are signs of slowing growth; replacement demand is on the increase however. Vacancies are below average (and declining), but graduate absorption is above average. Industry intelligence suggests this occupation is in-shortage6 – considered in-shortage, in the short term, as pressures may be easing.

Chefs Skills Shortage Specialised Occupation

4 6

Café and Restaurant Managers

Skills Shortage Specialised Occupation

4 6

4 DEECD uses the Australian Workforce and Productivity Agency Specialised Occupations List 2013. These occupations have a long lead-time for training, high economic value and a significant match between training and employment.5 Service Skills Australia, Environmental Scan 20136 Service Skills Australia, Environmental Scan 2013; Deloitte Access Economics, 2012 ITAB Market Effectiveness Report

21

7 Service Skills Australia, Environmental Scan 2013; Department of Education, Skill Shortage List Victoria 2013.

Retail Managers are identified as an occupation in-shortage. Retail Managers make up a large occupational group and have been growing in size in recent years.

Cooks are an average-sized occupation with a declining growth rate. With high graduate absorption, vacancies and skilled migration, this occupation would appear to be in skills deficit. As with Chefs, however, the deficit appears to be in decline – employment growth is declining, as is replacement demand, and vacancies are falling from previous levels. Both the Industry Skills Council and the Department of Employment consider Cooks to be a shortage occupation.7

Bakers and Pastrycooks are a large employing occupation group with a high growth rate. Indicators appear to suggest a skills deficit for both occupations – while vacancies are average, both employment and replacement demand are high and growing and graduate absorption is also high. Industry intelligence has previously flagged this as shortage, and current indicators do not suggest that this has changed.

Table 3.2: Occupations ‘in-shortage’ or ‘specialised’

Occupation In-shortage Specialised

Waiters No No

Kitchenhands No No

Chefs Yes No

Bar Attendants and Baristas No No

Cafe and Restaurant Managers Yes No

Fast Food Cooks No No

Retail Managers Yes No

Hotel and Motel Managers No No

Cooks Yes No

Bakers and Pastrycooks Yes No


Retail Managers Skills Shortage Specialised Occupation

4 6

Cooks Skills Shortage Specialised Occupation

4 6

Bakers and Pastrycooks

Skills Shortage Specialised Occupation

4 6


Workforce skills needs• Education levels in the Accommodation and Food Services

workforce are low (as shown by Figure 3.6), being dominated by young workers on low wages. Many of these are undertaking formal education for future careers in other industries; Accommodation and Food Services offers useful employment while studying. However, many employees will remain within the industry longer term, and will need appropriate skills development and training to support them on their career path.

• A number of new workforce development and skills requirements are coming to the fore as technology advances and consumers become more internet savvy. However, the basic levels of service still remain of utmost importance to the industry: customer service, a positive attitude, a desire to help and good communication, alongside strong management and leadership skills. The industry also has a number of regulatory drivers which require skills development in the workforce; for example, food handling, food safety standards and the responsible service of alcohol.

• Retention of staff with the same employer may be a challenge for some parts of the industry, although retention of staff within the industry itself is less of an issue. The Australian Bureau of Statistics8 reports that 32 per cent of the Accommodation and Food Services workforce in Australia has been with their employer for less than one year, compared to an average across all industries of 18 per cent. However, 52 per cent worked in the same industry, as the previous year (compared to an average of 47 per cent across all industries). Although there is evidence provided by the sector of older workers returning to the industry, 38 per cent of the workforce is aged 24 or under, and 59 per cent is aged 34 or under. For employers, working with staff to provide better articulated career pathways linked to training could have the added benefit of reducing turnover, but also retaining and developing skills within the existing workforce. This would also benefit customer perceptions of the industry, which can sometimes be viewed as being staffed by a transient workforce.

• Despite the growing trend towards online booking, many businesses, especially in the Food Services sub-sector, have still not created an online presence. While the introduction of the necessary infrastructure is a key part of shifting business online, the skills to capitalise on these opportunities are also required at both the managerial and operational levels.

o For managers, an understanding of ICT is required in order to strategically implement ICT solutions into business processes. For example, an increasing number of hotels are using mobile technology to modernise their services and reduce costs, as well as restaurants utilising iPads for menus and ordering. Furthermore, there is the potential for ICT solutions to assist in meeting the needs of foreign language visitors.

o Frontline staff will require digital literacy skills development in order to effectively engage with these innovative processes. Skills to conduct website maintenance and maintain content management systems will also be required, as well as professional follow-up of customer postings on ratings websites.

• A related trend is the rise in social media. Businesses are increasingly marketing their brands by developing a ‘profile’ on popular social media websites. This allows businesses to simultaneously advertise, communicate with and profile their customer base, as well as creating an ‘identity’ for the brand. In 2009, 40 per cent of Australians engaged with a business or organisation through social media. The communication aspect of social media is crucial and requires specialised and unique skills.

• A growing number of businesses are now defining and marketing themselves as environmentally responsible in response to consumer preferences. This has led to the launch of industry-led initiatives such as the First Star rating system, which acknowledges environmentally sustainable practices within hotels. A similar certification program, Green Table, has been implemented for restaurants, cafés and catering businesses. A key way for businesses to undergo a ‘green’ transformation is by ensuring that their staff have the requisite skill sets, with training packages now containing sustainability units of competency.

8 Australian Bureau of Statistics, 6209.0 – Labour Mobility, Australia, Aug-2013.

23

• As highlighted in the previous section, Australia is attracting an increasing number of visitors from China and Asia, and successful businesses in the sector will need to better cater for and understand the needs of this high-value revenue stream. This will include developing cultural awareness, language skills and services to meet Asian expectations, as much of Australia’s tourism industry remains focused on serving its traditional markets. Capitalising on the fast-emerging independent travel segment in Asia will require a shift in current business models and practices.



This section focuses on training provided for the Accommodation and Food Services industry. It covers training activity including a regional analysis, courses, providers and student characteristics.

Key messages, issues and challenges• Government subsidised enrolments in Accommodation and

Food Services courses have increased over the five years between 2008 and 2013, up by 20 per cent to approximately 30,300 enrolments.

• A relatively high proportion of Accommodation and Food Services enrolments are traineeships – 19 per cent of industry enrolments in 2013, compared with an average across all industries of 13 per cent.

• Apprenticeship enrolments accounted for 10 per cent of training delivery in this industry in 2013.

• Cooks, Café or Restaurant Managers and Kitchenhands were the largest occupational groupings, collectively representing two thirds of all enrolments across the industry in 2013. The most popular courses are the Certificates IV and III in Hospitality, with 5,800 and 5,700 enrolments respectively.

• The majority of training is with private training providers, who accounted for around 70 per cent of industry enrolments in 2013. This has increased from 53 per cent in 2012.

• In 2013, the largest region in terms of Accommodation and Food Services training delivery was Western Metropolitan Melbourne, accounting for 43 per cent of industry enrolments.

• Culturally and Linguistically Diverse (CALD) students represented 25 per cent of all Accommodation and Food Services students in 2013. Six per cent of 2012 enrolments were by students reporting a disability, and 1 per cent were by students from an Indigenous background.

• The age profile of Accommodation and Food Services students is younger than the average student age profile across all industry training. Thirty-four per cent of students in this industry are aged 25 or older compared with an all-industry average of 56 per cent.

• Consultations with industry stakeholders have identified the importance employers place on training. Given the degree of practical work demanded by the industry there are opportunities to develop an approach that provides a sequencing of placements, so students go to different businesses at different stages of their development. This would allow students to increase their capability as well as to experience various aspects of the industry, enabling them to pick an area in which they would like to specialise.

• There are opportunities to work with the sector in training those people who are likely to be managing staff to further develop their skills in this area. For example, Chefs are not necessarily always trained to be people managers, but may be managing a number apprentices/trainees. Improving management skills overall is also a key area of need for the industry, especially across smaller businesses.

• The inclusion of language skills and cultural awareness in training delivery is likely to be of growing significance. Given the importance of Asia to Australia’s tourism industry, and therefore to Accommodation and Food Services businesses, there is commercial benefit for businesses to develop their ‘Asia readiness’. It is becoming increasingly common for training providers to be asked to include basic Mandarin in training provision, and this is an area that could be further developed.

• As reported in the previous section, the demand for ICT and digital literacy skills is becoming increasingly important for Accommodation and Food Services operators. This presents both challenges and opportunities for training providers to work with employers to enhance skills in these areas.

• Extreme weather events have highlighted the need for the tourism-related industries to develop crisis management skills, in addition to media and public relations skills, in order to offset the negative portrayal of disaster-struck regions. As a result, the latest tourism, travel and hospitality training package (SIT12) includes three units of competency related to this field. A unit, ‘Develop and implement crisis management processes’ has been imported and two cross-sector units have been developed to address defined industry needs, ‘Respond to a customer in crisis’ and ‘Manage a business continuity crisis.’

Accommodation and Food Services vocational training provision

25Accommodation and Food Services vocational training provision

Training activityTable 4.1 below gives a summary of training activity for the Accommodation and Food Services industry over the period 2008 to 2013.

Enrolments

Government subsidised enrolments in Accommodation and Food Services courses have increased between 2008 and 2013, up 20 per cent to around 30,300 from 2008.

Between 2012 and 2013, government subsidised enrolments in Accommodation and Food Services declined by 32 per cent. This shift reflects the realignment of training under the Refocusing Vocational Training (RVT) in Victoria reform package in May 2012. Under RVT, government subsidies have been rebalanced to direct public investment in training to where it is most needed.9

In 2013, Accommodation and Food Services was the fifth largest ANZSIC industry in terms of government subsidised training delivery.

Apprentices and trainees

There were approximately 8,600 apprentice and trainee enrolments in courses aligned to Accommodation and Food Services in 2013, 29 per cent of all enrolments in this industry. Traineeships represented a majority of these enrolments (65 per cent in 2013), with enrolments aligned to the occupation Waiter accounting for the highest proportion.

Compared to the average across all industries, traineeships represent a relatively high proportion of enrolments in Accommodation and Food Services – 19 per cent of training delivery compared with an all-industry average of 13 per cent. Apprenticeships accounted for 10 per cent of training delivery in 2013, in line with all-industry averages.

Specialised and in-shortage occupations

Approximately 36 per cent of Accommodation and Food Services industry enrolments are linked to specialised occupations or those considered to be in-shortage in Victoria. This has increased from 2012, when 26 per cent of enrolments were aligned to specialised or in-shortage occupations.

Qualification level

A high proportion of Accommodation and Food Services enrolments are at the Certificate III–IV level (78 per cent). This is slightly higher than the all-industry average (75 per cent).

Completed qualifications

In 2013, Accommodation and Food Services sector completions declined by 33 per cent when compared with 2012, to 9,700 in total.

9 The highest subsidy levels are allocated to courses where their contribution to the economy is assessed as high, and where government subsidy is seen as essential to enable delivery of and participation in training. Lower subsidy levels may indicate evidence of over-supply, or that less government support is required to promote training in these areas. For example, diplomas often attract lower subsidy rates in recognition of the greater private benefits flowing to students from completing these qualifications and because students can access financial support through VET FEE-HELP to meet upfront costs.


Table 4.1: Key training activity in the Accommodation and Food Services industry, 2008-2013

Government subsidised enrolments

Industry sub-sector 2008 2009 2010 2011 2012 2013

Accommodation 150 250 150 100 150 250

Food and Beverage Services 9,900 9,500 8,700 9,800 10,200 16,800

Accommodation and Food Services nfd 15,100 20,100 20,200 25,600 34,300 13,200

Total 25,200 29,900 29,000 35,500 44,600 30,300

nfd = not further defined

Apprentice or trainee

2008 2009 2010 2011 2012 2013

Apprentice 3,100 2,800 2,800 2,600 2,700 3,000

Trainee 8,000 7,900 8,500 10,100 10,700 5,600

Total 11,100 10,600 11,300 12,700 13,400 8,600

Specialised or in-shortage


Food and Beverage Services 500 900 1,300 1,700 2,600 4,500


Total 2,900 6,000 5,800 8,000 11,800 10,900


Qualification levels – 2013

Enrolments % total

Certificate I-II 5,800 19%

Certificate III-IV 23,700 78%

Diploma + 800 3%

Total 30,300 100%

Completed qualifications


Accommodation 200 500 150 100 100 30

Food and Beverage Services 2,800 2,600 2,600 2,700 3,200 3,700


Total 9,300 9,500 9,800 11,800 15,000 9,700


27

Courses The top ten courses in Accommodation and Food Services accounted for 91 per cent of enrolments in 2013. The Certificate IV in Hospitality attracted the most enrolments, representing approximately 20 per cent of all industry enrolments.

Table 4.2: Accommodation and Food Services qualifications ranked by 2013 enrolments, government subsidised, 2008-2013

Course name 2008 2009 2010 2011 2012 2013

Certificate IV in Hospitality - 500 1,500 2,500 5,900 5,800

Certificate III in Hospitality - 5,000 8,400 12,400 18,500 5,700

Certificate III in Hospitality (Commercial Cookery)

4,600 3,700 4,000 4,100 4,500 5,100

Certificate II in Hospitality (Kitchen Operations)

3,300 4,300 3,000 3,400 2,300 4,400

Certificate IV in Hospitality (Commercial Cookery)

150 550 700 850 1,300 2,700

Certificate III in Hospitality (Catering Operations)

350 150 30 20 250 1,000

Certificate II in Hospitality 10 4,300 6,400 6,600 6,400 900

Certificate IV in Hospitality (Patisserie) 200 150 200 350 750 750

Certificate III in Hospitality (Patisserie) 150 150 400 500 550 600

Certificate IV in Catering Operations - - - - - 350

Note: course totals include equivalent superseded courses.



Enrolments by occupationA relatively small number of occupations make up enrolments aligned to the Accommodation and Food Services industry. The largest occupation in terms of 2013 training delivery was Cook, which accounted for 25 per cent of industry enrolments and which showed strong growth over the period 2012-2013 (increasing by 46 per cent).

Café or Restaurant Manager and Kitchenhand were the second and third largest occupations, with around 6,500 and 5,800 enrolments respectively in 2013. These three occupations accounted for two thirds of training delivery aligned to the Accommodation and Food Services industry in 2013.

Table 4.3: Accommodation and Food Services occupations ranked by 2013 enrolments, government subsidised, 2008-2013

Occupation 2008 2009 2010 2011 2012 2013

Cook 5,000 3,800 4,100 4,500 5,200 7,600

Café or Restaurant Manager 2,400 5,200 4,500 6,300 9,200 6,500

Kitchenhand 9,900 11,000 9,900 10,400 9,000 5,800

Waiter 7,200 8,700 9,000 12,400 18,500 5,700

Chef 150 550 700 850 1,300 2,900

Pastrycook 350 300 600 800 1,300 1,500

Caravan Park and Camping Ground Manager 10 40 20 40 70 200

Caretaker 150 200 150 80 70 70

Please see Appendix A for occupations and associated qualifications with funding bands (available for 2012 and 2013).

29

Training providers A total of 137 training providers delivered government subsidised Accommodation and Food Services training in 2013, however only 53 providers delivered more than 100 enrolments.

The number of providers delivering government subsidised training has increased from 123 in 2008.

The majority of training is with private training providers, who accounted for around 70 per cent of industry enrolments in 2013. This has increased from 22 per cent in 2008 and 53 per cent in 2012.

Table 4.4: Proportion of enrolments by provider type, government subsidised, 2008-2013

Provider type 2008 2009 2010 2011 2012 2013

Private 22% 26% 36% 53% 53% 70%

TAFE 65% 64% 35% 38% 27% 24%

Learn Local 13% 11% 9% 9% 17% 6%

Funding patternsFrom July 2012 funding bands for government subsidised training were introduced. The allocation of funding within these bands is designed to better target areas of greatest public benefit and future jobs growth. Where there is not a strong need for Government support the training subsidies are lower.

Enrolments by funding band

Twenty five per cent of enrolments in Accommodation and Food Services courses in 2013 were in subsidy Band A. A further 31 per cent were in Band B.

See Appendix A for a list of courses and associated subsidy bands.

Figure 4.1: Enrolments by subsidy band, government subsidised, 2013


Accommodationand Food Services

All industries

25%

19% 34% 30% 8% 9%

31% 20% 3% 22%

Band A Band B Band C Band D Band E


Regional training activityIn 2013, the largest region in terms of Accommodation and Food Services training delivery was Western Metropolitan (which includes Melbourne CBD), accounting for 43 per cent of industry enrolments. Southern Metropolitan is the next largest region with 16 per cent. Barwon South West was the largest regional area, accounting for 6 per cent of industry enrolments in 2013.

Table 4.5: Victorian regions ranked by 2013 enrolments, government subsidised, 2008-2013

Region 2008 2009 2010 2011 2012 2013

Western Metropolitan 6,500 7,000 8,800 12,300 14,200 13,100

Southern Metropolitan 3,100 3,200 5,500 6,700 7,900 4,900

Northern Metropolitan 1,600 3,800 3,000 3,900 6,800 4,500

Barwon South West 2,200 1,900 2,500 3,900 7,800 1,800

Eastern Metropolitan 2,600 4,000 2,800 2,800 2,400 1,700

Hume 2,400 1,900 1,300 1,500 1,600 1,400

Loddon Mallee 2,500 4,700 2,100 2,100 1,400 1,100

Grampians 700 750 700 650 550 800

Gippsland 1,900 1,900 2,000 1,100 950 700

Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more than one region

31

Figure 4.2: Accommodation and Food Services training providers and enrolments, 2013



Student characteristicsStudents from diverse backgrounds engage in vocational training in Accommodation and Food Services fields. Students from a Culturally and Linguistically Diverse (CALD) background represent 25 per cent of the student base in this industry, while unemployed students account for 21 per cent of the total. Six per cent of students flagged that they had a disability, while 1 per cent were from an Indigenous background.

The age profile of Accommodation and Food Services students is relatively young when compared with the average student age profile across all industry training. Thirty-four per cent of students in this industry are aged 25 or older compared with an all-industry average of 56 per cent.

Table 4.6: Learners Facing Barriers (student numbers), government subsidised, 2008-2013

Learner Groups 2008 2009 2010 2011 2012 2013

Indigenous 450 450 400 450 400 300

Disability 2,000 1,800 2,300 2,700 2,600 1,700

CALD 3,900 6,000 5,100 7,100 8,900 7,400

Unemployed 3,400 3,400 4,900 7,200 9,600 6,300

Aged 25+ 9,800 14,500 11,900 14,200 15,900 10,200

At the time of enrolment, students enrolling in Accommodation and Food Services courses were more likely than the average across all industries to have completed Year 12 or Certificate II but less likely to have completed Certificate III or higher.

Within the industry, 13 per cent of enrolments were by students with a highest prior qualification of Certificate III or above, compared with an average 23 per cent across all industries (see Figure 4.3).

33Accommodation and Food Services vocational training provision

Figure 4.3: Enrolments by highest prior qualification, government subsidised, 2013

The main reasons students were enrolling in vocational training related to Accommodation and Food Services were ‘To Get Work’ (31 per cent), ‘Job Skills’ (20 per cent) and ‘Job Requirement’ (16 per cent). ‘Interest’ was also important at 12 per cent.

Figure 4.4: Enrolments by reason for study, government subsidised, 2013

Note: ‘Other’ includes To get a better job or promotion, To try for a different career, To start my own business, To develop my existing business, To get into another course of study.

Bachelor Degree or Higher Degree level

Advanced Diploma, Diploma or Associate Degree

Certificate III-IV

Year 12 or Certificate II

Certificate I

Year 11 or below

1%1%

1%1%

2%1%

20%11%

42%45%

35%41%

Accommodation and Food Services All industries

To get a job

I wanted extra skills for my job

It was a requirement of my job

For personal interest or self-development

Other

21%

12%

16% 20%

31%


Appendix A

Table 5.1: Enrolments by occupation, course and subsidy band, 2012-2013

Occupation Course name Funding band 2012 2013

Cafe or Restaurant Manager

Advanced Diploma of Hospitality Band D 1,400 350

Advanced Diploma of Hospitality Management Band D <10 -

Certificate IV in Hospitality Band C 5,900 5,800

Diploma of Hospitality Band D 1,900 350

Total 9,200 6,500

Caravan Park and Camping Ground Manager

Certificate IV in Holiday Parks and Resorts Band C 50 70

Diploma of Holiday Parks and Resorts Band D 20 100

Total 70 200

Caretaker

Certificate II in Holiday Parks and Resorts Band C 10 <10

Certificate III in Caravan Park Operations Band C <10 -

Certificate III in Holiday Parks and Resorts Band C 60 60

Total 70 70

Chef Certificate IV in Commercial Cookery Band A - 250

Certificate IV in Hospitality (Commercial Cookery) Band A 1,300 2,700

Total 1,300 2,900

Cook

Certificate III in Catering Operations Band B - 300

Certificate III in Commercial Cookery Band B - 150

Certificate III in Hospitality (Asian Cookery) Band B 200 100

Certificate III in Hospitality (Catering Operations) Band B 250 1,000

Certificate III in Hospitality (Commercial Cookery) Band B 4,500 5,100

Certificate IV in Catering Operations Band B - 350

Certificate IV in Hospitality (Asian Cookery) Band B 250 250

Certificate IV in Hospitality (Catering Operations) Band B 100 250

Total 5,200 7,600

35Appendix A

Occupation Course name Funding band 2012 2013

Kitchenhand

Certificate I in Hospitality Band E 150 80

Certificate I in Hospitality (Kitchen Operations) Band B 100 90

Certificate II in Hospitality Band E 6,400 900

Certificate II in Hospitality (Kitchen Operations) Band B 2,300 4,400

Certificate II in Hospitality (Operations) Band D <10 <10

Certificate II in Kitchen Operations Band B - 250

Total 9,000 5,800

Pastrycook

Certificate III in Hospitality (Patisserie) Band A 550 600

Certificate III in Patisserie Band A - 100

Certificate IV in Hospitality (Patisserie) Band A 750 750

Certificate IV in Patisserie Band A - <10

Total 1,300 1,500

Waiter

Certificate III in Hospitality Band E 18,500 5,700

Certificate III in Hospitality (Operations) Band C <10 -

Total 18,500 5,700

37Appendix A

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