TOURISM HUMAN RESOURCE DEVELOPMENT IN KOREA

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1 TOURISM HUMAN RESOURCE DEVELOPMENT IN KOREA

2 Contents 1. Korea s Tourism Industry 2. Tourism Human Resource Development 3. Job Creation in Tourism 4. Policy Implementation 5. Case Studies

3 1. Korea s Tourism Industry (2012) Int l tourist arrivals surpassed the 10M mark (2015) Inbound 13.2M, Outbound 19.31M Tourism balance of payments* continues to show deficits *Tourism revenues minus tourism expenditures 25,000 출국자수 방한외래관광객수 20,000 15,000 10,000 5,000 [Unit: 1000 persons]

4 1. Korea s Tourism Industry Korea placed 29 th (out of 141) on Tourism Competitiveness * Source: World Economic Forum, The Travel & Tourism competitiveness Reports 2015 Enabling Environment Business Environment Safety and Security Health and Hygiene Human Resources and Labor Market ICT Readiness T & T Policy and Enabling Conditions 69 Prioritization of Travel & Tourism 61 International Openness 16 Price Competitivenes s 40 Environmental Sustainability 82 Infrastructure 40 Natural and Cultural Resources 71 Air Transport Infrastructure 53 Ground and Port Infrastructure 109 Tourist Service Infrastructure Natural Resources Cultural Resources and Business Travel 70 12

5 1. Korea s Tourism Industry Tourism Industry s contribution to economy Contribution Classification World Average OECD Average Korea China France Spain GDP Employment Investments Government expenditure [Unit: %] * Source: WTTC(2015), WTTC Travel & Tourism Economic Impact 2015

6 2. Tourism Human Resource Development (Education & Training) - High school, junior college, and senior college-level - A total 16,473 graduates per year - High school (60 schools, approx students), junior college (69 schools, 5,800 students), senior college (46 schools, 3,673 students) Tourism Training & Education Institutes in Korea Classification No. of Schools Max. Student Quota Total No. of Graduates High school 60-7,000 Junior College 69 7,200 5,800 Senior College 46 5,550 3,673 Total ,750 16,473 Source: Ministry of Culture, Sports and Tourism (2015)

7 2. Tourism Human Resource Development (Certification of Tourism Specialists) - To promote tourism s service quality and credibility by certifying tourism human resources with a certain level of expertise and qualification - Certification holders account for 213,759 persons Tourand Travel Business Hotel Business Classification Certified No. of Persons Established Year QualificationType Domestic Travel Guide 84, Interpretation Tour Guide 25, Hotel BusinessManagement Hotel Management 4, HotelService 98, InternationalConference Business Convention Planning 1, Source: Ministry of Culture, Sports and Tourism Tourism Service Certification in Korea: Issuance Total 213,759 NationalProfessional Qualification National Technical Qualification

8 2. Tourism Human Resource Development Training Institute KoreaTourism Organization KoreaCulture & Tourism Institute Korea Tourism Central Association Korea Association of Travel Agents KoreaTourist Guide Association (Retraining) - Several retraining courses are provided to tourism employees at 8 organizations/institutes Subject medical tourism employee, interpretationtourguide,s Local government official in charge of regionaltourism Tourguides,interpretationtourguides,hotel&resort Internationaltourguides &employeesof memberagencies Retraining Provided by Organizations/Institutes No. of Persons Budget (Unit: million KRW) Training Institute Korea MICE Association Korea Hotel Association KAAPA Subject MICE industry employees & job seekers Hotelemployees, Tourism high school students Businessowner,safetyofficer safety guards, gov.officials No. of Persons Budget (Unit: million KRW) 1, Korea Casino Association Casino employees Certifiedtourguidesand applicantsto acquirecertificate 1, Total 4,851 2,687

9 3. Job Creation in Tourism A total of 230,334 persons are employed in 20,769 registered businesses under the Tourism Promotion Act (as of 2014) Most tourism companies are small-scale and have limits in hiring quality human resources - 74% of the companies make less than 0.5 billion KRW Sales volume (0.1 billion KRW) Classification Less than billion ~ billion ~ Over 1 billion Total billion KRW billion KRW 1 billion KRW KRW No. of Companies 8,244 7,104 2,689 2,732 20,769 (%)

10 3. Job Creation in Tourism Employment rate of tourism majors: junior college 52.7%, senior college 49.4% Employment concordance rate of tourism majors: junior college 69%, senior college 53.0% - National average employment rate: junior college 60.8%, senior college 56.2%(as of 2012) TrainingInstitute Employment rate Employment of tourism majors (Major concordance rate) Junior/TechnicalCollege Senior College Source: Plan to Systematically Train Tourism Industry Human Resources (2013)

11 4. Policy Implementation Systematic limitation: disagreements between the industry requirements and the training system/institutions After the implementation of Recommendation of qualification of tourism industry employee ( 99), reduce of demand to acquire related licenses/certificates Only interpretation tour guides are required a license for employment Work performance limitations of education and training: lack of specialization on subject and work level Human resources have low international competitiveness, tourism major graduates have low employment rates Hard to employ quality human resources due to low payment: Approx. 74% of companies in tourism are small-scale (less than 0.5 million KRW in sales)

12 4. Policy Implementation Government - Identify market change of the tourism industry and signal the private sector - Establish the necessary institutional framework (Short-term) Restructure the tourism education system to train specialized tourism human resources with hands-on/practical training and meet the needs of the private sector (Long-term) Create quality jobs through sustainable growth and development of the tourism industry Call for a new perspective: sustainable development and expansion of the tourism industry

13 4. Policy Implementation Training Institute - Establish a consumer oriented training foundation, based on the information provided by the government on market change Tourism industrial field - Shift perspectives from strengthening school-industry linkage to a cooperative stance, contribute to building a virtuous cycle in the labor market

14 5. Case Studies Restructure to train tourism specialists with focus on practical training Establishment of a integrated management system on tourism education/training - Tourism Human Resources Development Council 18 organizations including MCST, KTO, etc., share and solve issues, establish a cooperation network - Tourism Human Resources Web Portal (KwanKwangIn) Provide one-stop information service on tourism education/training, certification, employment (Opened in Mar. 2016) - Tourism Industry Job Fair specialized only for the tourism industry (2014~)

15 5. Case Studies International Capacity Building of Tourism Human Resources - Dispatch Young Experts to Int l Organizations (UNWTO, UNEP, etc.) & provide internships for University students as ODA interns

16 5. Case Studies Creating quality jobs by expanding and developing the tourism industry Creative Tourism Project - A tourism venture start-up project started in 2011 based on linking the tourism industry with creativity, innovativeness, openness, technology Year Start-upcompanies Ful-l0timeeEmployment TemporaryEmployment=nt Total

17 5. Case Studies KwanKwang Dure - A project for the local residents to self-support themselves by running the local tourism business (accommodation, F&B, tour arrangements, transportation, etc.) - Discovered a total of 104 local communities nationwide through projects in Project implementation in 24 regions (as of 2014)

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19 Thank you

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