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Hospitality boom leads to a rush for competent staff

The retail and hotel sectors are struggling to fill vacancies and retain experienced staff, writes Zoran Nedeljkovic

MANAGING HUMAN resources has become a top priority for companies setting up business in Macau. New investments in the hotel, casino and retail sectors have led to a higher demand for staff and employers are scrambling to fill vacancies.

Deborah Matson, managing director of Links Recruitment, which recently opened an office in Macau, said the hospitality industry was playing a pivotal role in the economic boom.

Major international hotel groups that overlooked the region earlier are now paying attention.

Ms Matson said competent staff would be in demand since at least 17 new developments were scheduled to begin operating by 2009.

"Experience in Hong Kong has already shown that, when a new five-star hotel opens, the hiring of staff often causes widespread shifting of people in the industry," she said. "Existing luxury hotels will feel staff-retention pressure."

Retaining experienced employees would, therefore, be crucial, she said.

With competition becoming intense, new hotel and casino complexes are hiring in advance of their scheduled opening dates so that there is enough time to train staff and familiarise them with procedures.

"The growth of the hospitality and casino sectors has created a ripple in the economy, making it difficult to hire junior candidates in other industries.

"Starting salaries for the gaming industry also tend to be higher than those elsewhere," Ms Matson said.

Macau has been steadily evolving from a traditional gambling resort into an entertainment, leisure and shopping centre.

"All the pieces are slowly coming together now. The casinos, hotels, exhibition centres, golf courses and world-class sport facilities are going to completely change the face of tourism," she said.

"We have already heard about the Vegas-style shopping arcades being planned ... [and] many luxury brands are coming to the city."

Tiffany & Co's recent announcement that it would open a store in Wynn Macau resort is an indication of this trend.

"There will be more to do during a visit and people will stay longer," Ms Matson said.

The average length of stay in a Macau hotel is 1.2 days, but that is increasing. The total number of visitors reached an all-time high of 18.71 million last year, up 12.2 per cent from 2004.

Information from the Macau Statistics and Census Service also reveals that the number of visitors from the mainland increased 9.8 per cent last year to about 10.5million. Mainland visitors comprised 55.9per cent of the total number of inbound tourists.

The influx of tourists will get a further boost if the plan to double the capacity of Macau airport - to 12 million passengers a year - is implemented.

The labour force, drawn from a local population of 465,000, is unable to match the demands of the rising number of visitors. For certain jobs, people have traditionally been recruited from the mainland, but this can be a time-consuming process.

Ms Matson said it took several months for a company to get an application and quota for importing labour approved by the Macau government.

"The total time needed to bring a person on board is roughly six months to nine months, even if everything goes smoothly.

"Many businesses, especially those in the retail and service sectors, cannot afford to wait that long. The rate of staff turnover is high, so they need people quickly to start training them," she said.

However, 34,000 non-Macau residents were recruited in the first nine months of last year, up 30 per cent from the corresponding period in 2004.

The number of recruits from Hong Kong is also increasing rapidly, with the official total jumping to about 3,600 last year from 950 in 2004.

With its new office, Links Recruitment is looking forward to a busy year.

The general manager, Alan Chan, is a Macau native with a background in IT. He also has extensive professional experience in handling outsourcing and job placement in the United States and Hong Kong.

The company will use his knowledge of the region to get a foothold in the hotel and casino projects.

"In terms of cultural and business experience, candidates from Hong Kong have definite advantages over others," he said.

"When these major construction projects are nearing completion, many people will look back and realise that they have missed out on some outstanding opportunities. It is time to act now."

MACAU CAREER OPPORTUNITIES

2005