Despite having faced complex challenges over the past years as a direct consequence of Covid-19, the tourism, hospitality and events industries are major contributors to the UK economy, with the travel and tourism industry alone generating £237.1bn towards UK’s GDP in 2022.
The UK event industry is estimated to be worth £42bn – and provides an estimated 775,000 jobs to the economy. The industry is considered the UK’s third largest employer, accounting for 3.5m jobs directly in 2022 and a further 3m jobs indirectly. As these industries are gradually recovering, they are now burdened by a sustained recruitment crisis, with increased vacancy rates being recorded across the board as a result of staff and skills shortages that are reportedly exacerbated by Brexit and long-term effects of the post-Covid-19 “great resignation”.
Traditionally, universities were considered a reliable educational pipeline, constantly delivering a workforce to the industries – but things are changing.
Headwinds
The tourism, hospitality, and events (THE) management education sector faces numerous challenges, including recruitment, progression, retention, and employability issues. These challenges are exacerbated by fluctuating government policies affecting funding, enrolment, progression pathways, and graduate outcomes.
One significant challenge is a decline in student numbers, especially from the home market. This issue, while seemingly straightforward, is a complex interplay of various factors, with government policies and funding playing a pivotal role. Despite these challenges, there are opportunities for THE management education to collaborate with industry bodies, employers, policymakers, and the wider community. These partnerships could focus on shifting perceptions, aligning teaching and learning strategies with industry needs, attracting diverse students, and shaping the future generation of industry professionals.
The UK government’s policies have a profound impact on the enrolment of home students in THE management education. A case in point is the government’s plan to defund level 3 travel and tourism qualifications by 2025. This decision, while seemingly a budgetary measure, has far-reaching implications. It effectively limits the pathways for young students towards THE higher education routes, potentially leading to a decline in student numbers.
Adding to this is the shifting landscape of immigration policies and the lingering effects of Brexit. Brexit, in particular, has had a significant impact on student recruitment from European Union countries, as these students are now categorised as international students for fees and have university sponsorship for a student visa. A sharp 40 per cent decline in undergraduate applications from EU countries in 2021–2022, and a further 50 per cent decline in acceptances, has posed major challenges.
Changes in immigration policy, such as the UK government’s policy to restrict international students from bringing dependants with them from January 2024, are expected to limit international student intake. This policy change is likely to have a further negative impact on both undergraduate and postgraduate programmes, particularly on those that have been strongly reliant on international markets. The cost-of-living crisis is another factor that is adding additional layers of pressure both on THE industries and education providers. This crisis is impacting the ability of further and higher education institutions to attract students.
Government action and inaction
Despite the significant contribution of THE industries to the UK economy, there is a perceived lack of government recognition and support for THE education. This lack of support is evident in the government’s reluctance to acknowledge the value of THE management education and its substantial contribution to the UK economy.
This lack of recognition extends to the absence of THE occupations in the Skilled Worker Visa shortage occupation list. This omission forces employers to rely fully on the home market, exacerbating the recruitment crisis in THE industries. To address this decline, there is a need for increased government involvement and stronger collaboration among stakeholders. We call on the government to recognise the value of THE education and its significant contribution to the UK economy.
Moreover, we ask the next government to consider revising the Office for Students (OfS) graduate outcomes thresholds to reflect the complexity and diversity of managerial roles available in THE industry. This revision could include adjusting job roles and salary brackets to reflect the reality of pay rates in these industries.
There also needs to be consideration to revising apprenticeship standards for tourism, hospitality, and events to enhance opportunities for employers and students to access subject-specific education up to degree level. This revision could help bridge the skills gap, enhancing employability and graduate outcomes.
A greater recognition of the discipline could also involve QAA benchmark statements being updated, to reflect industry developments and align skills development with industry requirements.
A better approach
A recent white paper commissioned by the three subject associations – Council for Hospitality Management Education (CHME), the Association of Tourism in Higher Education (ATHE) and the Association for Event Management Education (AEME) – proposes a three-dimensional approach for action to determine the future of THE management education: collaboration, involvement, recognition. This approach involves increased industry and government involvement, stronger collaboration among stakeholders, and broader recognition of THE education’s value, its substantial contribution to the UK economy, and the vast career opportunities available for students and graduates.
The decline in student numbers in THE management education requires a comprehensive approach. It is high time the government recognised the value of THE education and took proactive steps to support it. Only then can we hope to reverse the decline and ensure a robust future for THE management education in the UK.
By investing in education, we invest in the future, ensuring the THE industries enduring significance as a pillar of the UK’s economy and cultural heritage for generations to come. The time for collective action is now – a rallying cry to academia, industry and the government to unite in shaping a resilient, skilled and thriving THE workforce and industry.
