Labor shortage threatens tourism boom

Labor shortage threatens tourism boom

03-10-25

According to a recent report presented at the WTTC Global Summit in Rome, the travel and tourism sector is expected to generate approximately 91 million new jobs worldwide by 2035, but at the same time it faces a potential shortfall of nearly 43 million workers if urgent talent planning is not addressed.

In 2024, tourism already supported a record 357 million jobs globally, and by 2025 that figure is expected to rise to 371 million. Even so, projected labor demand by 2035 will exceed available supply by 16%, leaving the industry significantly short of the workforce it requires.

The report, entitled Future of the Travel & Tourism Workforce, was developed with the support of Saudi Arabia’s Ministry of Tourism, Coraggio Group, Miles Partnership, and the Hong Kong Polytechnic University. It is based on research that includes business leader surveys and interviews with WTTC members and tourism stakeholders across 20 key economies.

Within this outlook, the sharpest gap will be seen in the hotel segment, which is forecast to face a shortage of 8.6 million workers, equivalent to 18% of the required staff, particularly in lower-skilled roles that cannot easily be automated.

In absolute terms, countries such as China (shortfall of 16.9 million), India (11 million), and EU member states (6.4 million) lead the list of the largest projected deficits. When looking at proportional imbalance, Japan is expected to face a 29% shortage, Greece 27%, and Germany 26%.

Despite these challenges, the WTTC stresses that tourism remains one of the most powerful forces for job creation and economic growth. Interim WTTC CEO Gloria Guevara warned that while the sector continues to provide massive opportunities, demographic and structural changes are reshaping labor markets worldwide, calling for joint action with governments and education systems to narrow the gap and unlock long-term human potential.

Saudi Arabia’s Minister of Tourism Ahmed Al Khateeb highlighted that by 2035, one in three new jobs will come from the travel and tourism sector—a proportion unmatched by any other industry. He noted that in Saudi Arabia alone, more than 649,000 training opportunities have already been created, with a workforce now composed predominantly of women.

From a strategic standpoint, Sara Meaney, Managing Partner at Coraggio Group, stressed that this report should serve as a catalyst to rethink how the industry attracts and retains talent: designing inspiring jobs, creating evolving career pathways, and building work environments aligned with the values of today’s workforce.

The report underscores that the response must be multifaceted: inspiring young people to consider careers in tourism, aligning training with the industry’s real needs, investing in digital skills, artificial intelligence, and sustainable practices, removing barriers to recruitment, and implementing policies that improve retention.

For the WTTC, collaboration among governments, educational institutions, and tourism stakeholders will be essential. With proactive and coordinated planning, it will be possible not only to reduce the projected gap but also to drive innovation, prosperity, and opportunities for communities worldwide.

Organized in partnership with Italy’s Ministry of Tourism, ENIT, the Municipality of Rome, and the Lazio Region, the WTTC Global Summit placed workforce planning at the center of the global tourism agenda.

This outlook reveals a paradox: while tourism is projected to be a key driver of employment and global growth, without decisive action it risks colliding with a structural shortage of talent. The sector faces a historic crossroads: to reach its full potential, or to be constrained by the absence of the very people it needs to sustain it.

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