European hotels, restaurants and cafés continue to face workforce shortages and skills gaps, according to a new report from HOTREC, the trade association representing hospitality businesses across Europe.
Published in mid-January, the paper finds that the sector remains around 10% short of the staff it needs, despite gradual recovery since the pandemic, raising concerns about long-term capacity and competitiveness.
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The report, Skills and labour shortages in hospitality – a roadmap for action, focuses on structural pressures affecting recruitment, retention and training across the European hospitality industry, which employs millions of workers and is dominated by small and medium-sized enterprises.
Persistent labour shortages across the hospitality sector
According to HOTREC, labour shortages remain widespread across Europe, with shortages particularly visible during peak tourism periods and in customer-facing roles.
While employment levels have improved in some markets, the report notes that demographic trends, including ageing populations and reduced labour mobility, continue to limit the available workforce.
The hospitality sector is also competing with other industries for workers, many of whom left hospitality during the pandemic and have not returned.
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By GlobalDataThis has left hotels and restaurants struggling to maintain service levels, expand operations or respond flexibly to demand, especially in tourism-dependent regions.
Growing skills gaps in a changing industry
Beyond staff numbers, the report highlights skills shortages as a growing concern for European hospitality businesses. Employers report increasing difficulty in finding workers with the right mix of operational, digital and interpersonal skills.
Digital literacy, sustainability knowledge and customer communication skills are becoming more important as hotels and restaurants adapt to new technologies, environmental requirements and evolving guest expectations.
HOTREC warns that without stronger links between education systems and industry needs, these skills gaps could widen further, limiting productivity and innovation.
Roadmap calls for coordinated policy action
To address these challenges, HOTREC sets out a four-part roadmap covering education and training, labour market measures, labour mobility and funding.
The association calls for improved vocational training, wider access to upskilling and reskilling programmes, and measures to make hospitality careers more attractive over the long term.
The roadmap also points to the importance of labour mobility within and beyond the EU, including faster work permit processes and better access to affordable housing for workers.
Financial support from national governments and EU institutions is identified as critical, particularly to help small hospitality businesses invest in training and workforce development.
HOTREC concludes that without coordinated action from policymakers, educators and industry stakeholders, workforce shortages and skills mismatches are likely to persist, constraining growth across Europe’s hotel and restaurant sector.
