ASSOSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF TOURISM AND HOTEL

MANAGEMENT
TOURISM EMPLOYMENT AND ITS CHALLENGES IN STAR
RATED HOTELS, IN CASE OF ASSOSA TOWN
SENIOUR ESSAY SUBMITTED TO THE DEPARTMENT OF
TOURISM AND HOTEL MANAGEMENT FOR THE PARTIAL
FULFILLMENT OF BACHLOR OF ARTS DEGREE IN TOURISM
MANAGEMENT

NAME ID
BETHELHEM MIHRET 1391

Advisor: Mr. Kidane

DECEMBER 2016
ASSOSA ETHIOP
Table of Contents
CHAPTER ONE............................................................................................................1
1. INTRODUCTION......................................................................................................1
1.1 Background of the study...................................................................................................1

1.2. Statements of Problem.....................................................................................................2

1.3. Objective of the study......................................................................................................3

1.3.1 General objective.......................................................................................................3

1.3.2 Specific Objectives....................................................................................................3

1.4 Research questions............................................................................................................3

1.5 Significance of the Study..................................................................................................3

1.6. Scope of the study............................................................................................................4

CHAPTER TWO............................................................................................................5
2. REVIEW RELATED LITRATURE...........................................................................5
2.1 The concept of tourism employment................................................................................5

2.2.1. Human resource development challenges in the tourism and hospitality Industry. .7

2.3 The quality of tourism employment..................................................................................9

2.4 The nature of tourism employment.................................................................................10

2.5 Conceptual framework....................................................................................................11

3. Research Methodologies..........................................................................................12
3.1. Description of the area...................................................................................................12

3.1.1 Location...................................................................................................................12

3.1.2 Demography............................................................................................................13

3.2 Research approach and design........................................................................................13

3.3 Target population of the study........................................................................................13

3.4 Sampling technique and sample size..............................................................................13

The target population the study is in Blendana and Banbu hotel employees take.......14
3.5 Source of data.................................................................................................................14

3.6 Data collection instruments............................................................................................15

3.7 Method of data analysis and interpretation.....................................................................15

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List of table and figures
Fig 2.1.Conceptual framework.......................................................................................................20
Figure 2. 2 Map of study area.........................................................................................................21

Acronyms
HRM-Human Resource Management
CSA-Central Statistical Agency

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IRTS- International Recommendations for Tourism Statistics
ILO- International Labor Organization
OECD-Organization for Economic Co-operation and Development
LDC- List Developing Countries

ABSTRACT
The main purpose of the study will to identify tourism employment and its challenges
in some selected hotels. The study will use mixed (qualitative and quantitative)
research approach. The study will use descriptive research design and also used both
probability and non-probability sampling techniques namely purposive and a
stratified sampling technique respectively, to depending on the availability of

III
employee and managers. The collection of data from managers and employee of the
hotels the researcher will use questionnaires and interview. The researcher also used
30 samples. So as to collect data and information the study will use both primary and
secondary sources.

Key words: - Tourism, employment, challenges, tourism employment,

IV
 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the study

The concept of tourism employment refers to employment strictly related to the good
and service acquired by visitors and produced by either tourism industries or other
industries. Hence, tourism employment is a measure of the number of jobs directly a
tribute to tourism demand in tourism and non tourism industries, held by employees,
self employed and contributing family workers (IRTS, 2008).
Employment in tourism sector consists of different occupations in several diverse
subdivisions such as travel agencies, tour operator’s transportation, accommodation,
food and beverage, and attractions to name a few. Furthermore, the industry is
considered to be labor intensive in a way that the personal service attribute of the
delivery of service is so important and irreplaceable(Salihkusuvan,2003).
Wood (2003), literate that there are certain gaps in research about employment within
the tourism sector. who claims that more research exist about hospitality, hotels, gusts
houses and other accommodations as well as restaurants than other tourism
employment within the sector.
A good set of employees could therefore make or break the complete visitor’s expirer
nice. Baum (2006) makes appoint that in service sector like tourism, the level of
human involvement in particularly high when delivering the service or the experience.
Einarsadottr and Stefansodottir (2009) express the same thought when stating that the
human resources are every company's greatest asset, especially, within service
business like tourism. It is therefore puzzle why research of the sector is still
relatively scarce but as pointed out by ladkin (2011), there is a certain lack of reliable
employment data as the sector is hard to define and all empirical research is quite
expensive.

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Furthermore, Employee retention is also a critical component of challenges dealt with
by tourism companies where the economic sector, especially of smaller populations,
can't offer continues employment opportunities on a yearly basis (Baum, 2012).

Tourism has a variety of economic impacts, tourist contribute to sales, profits, gobs,
tax revenues, and income in an area. The most direct effect occurs with the primary
tourism sector, lodging, restaurant, transportation, amusement, and retail trade.
Through the second effects, tourism affects most sectors of the economy. An
economic impact analysis of tourism activities (stynes, 1997).

1.2. Statements of Problem

As the tourism and hospitality industry continues to grow there is evidence that
organization are increasingly competing through the development of human resource
talents. However, the low prestige and status of tourism and hospitality jobs
(Kusluvan, 2010) continue to be challenges for tourism employment when trying to
attract and retain qualified staff. This challenge has compelled management of
organizations to recognize the importance of employment in tourism industry. It is
believed that the key factor for improving both compititivnes and employment
opportunities is to upgrade the human resource of the tourism industry (Freeman,
2012), it is important to note that without an improvement in human resource practice
difficult in attracting employees.
Different researches conducted a study in relation to this proposal that there are a
certain gap's in research about employment within the tourism sector(Wood,2003), no
study was found which examined employment challenges in Assosa town. Therefore,
the researcher will filling the gap and identifies the challenges of tourism
employment.

1.3. Objective of the study

1.3.1 General objective

The General Objective of This Study will to Identify Tourism Employment and It's

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Challenges in star rated Hotels, in Case of ASSOSA Town.

1.3.2 Specific Objectives

1. To assess the nature of employment in tourism sector.
2. To identify the quality of employment in tourism sector in Assosa town.
3. To identify the challenges of tourism employment in Assosa town.

1.4 Research questions

1. What are the natures of employment in tourism sector in Assosa town?
2. What is the quality of employment in tourism sector in Assosa town?
3. What are the challenges of tourism employment in Assosa town?

1.5 Significance of the Study

This study will conduct importantly to identify the challenges of tourism employment
Assosa town. This important to:
 The government's -the government may use this study as a reference to
identify the challenges and use the suggesting solution and recommendation
of the challenges.
 The employer -the employer will know the working conditions and
requirements of the job and that the employee will know the details such as
pay and hours.
 The employee -to increase the working interest and get working skill.
 The employment -this are able to do their tasks without difficulty and
mistake.
 Tourism students -to serve as a guide line study and use to reference among
students.
 The researcher -can also develop good experience from the study to involve
on further research.
Generally this study important to the tourism employment productivity will be
increase if and only if the challenges are minimize and if possible to radically
illuminate. If this is so employment will do any of their tasks confidently.

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1.6. Scope of the study
This study focus on identify the challenges of tourism employment in Assosa town.
Geographically Assosa is acity in Benishangul-gumuz region, Ethiopia. this town has
a latitude and longitude of 10o04’N34o31’E, with an elevation of 1,570 meters above
sea level.The aim of this study will to identify the challenges of tourism employment
in Assosa town.

CHAPTER TWO

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 2. REVIEW RELATED LITRATURE

2.1 The concept of tourism employment

Tourism employment more and more people in the less developed countries.
However, they are mostly employed at the lower performance level, in order to keep
the salaries low. The managerial staff is on the other hand brought with multinational
corporations. Thus the income from tourism is not sufficiently let to grow in the
destinations (Hemmi, 1999) However, it is generally agreed that tourism does create
employment and that this is a beneficial impact.
There are three different types of employment offered by tourism. Direct employment
at tourism facilities resulting from tourist consumption, indirect employment is also a
result of employment in the tourism supply sector. However, not directly resulting
from tourist expenditure, induced employment occurs as additional employment
resulting from tourism multiplier effects to a certain extent (Mathieson, 1992).
The impact of employment and income are related as direct, indirect and induced
effects can be distinguished in both cases. There is also a connection between
increased income and increase employment. Although the pace of growth is not
necessarily of equal standard. The types of tourist activity influence, the effect on
employment, as different types of tourism are labor-intensive at different level', for
example the accommodation facilities employ a large number of labor force at
destinations and thus often require greater amount of capital as well (Mathieson and
Wall,1992).
2.2 Challenge of tourism employment

Low gob satisfaction has been recurring construct in the literature that investigation
employee motivation over that the past several decades (kusluvan, 2000) study's that
hospitality and tourism employees most likely to leave the industry because of low
gob satisfaction.
Job satisfaction in the industry is thought to be influenced by a number of factor
including long hours, night and weekend schedules, stress, demanding super visitors
and duties. Lack of personal time and quality of life, routine, and little opportunity for

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advancement and growth (Pavesic and Brymer, 1990).among these, wage have been
viewed as an important determinant factor for employee job satisfaction and been
shown to influence an employee’s decision to leave the organization (Kaline and
Hairy, 2007).
The tourism industry is one of the sectors where the proportion of women in total
employment is highest (stenos and barrio, 2007).although it offers women better
advantages to reach the top (Skalpe, 2007), in to senior level leadership position is
more difficult because of the prevalent "traditional role" assumptions (Schape,
Stadham, and Tammie's, 2008).
Skalpe (2007) examined CEO compensation in Norwegian tourism firms and found
significant gender differences with females earning less than their male counterparts.
Poor working condition one of the challenges of employment. The factor of poor
condition in working time, the average weekly hours worked in hospitality sector has
fallen over the last few decades. In 1992 those employed in hotels and restaurants
worked for 42.3 hours per week an average, which means that some employed in this
sector worked long hours(O.farrel,2013).
The relatively shorter weekly hours in this sector need to be explained by other longer
term factors, quite strikingly; more than 40 percent of those working in hospitality are
employed on part time basis, compared to 23 percent in the total work force (CSO,
2015). Some scholars argue that longer working hours or either associated with jobs
of higher recruitment costs and higher wages (Kudoh,and Sasaki,2011). In such cases
I'm assume that large proportion of such part time work is not voluntary and those
there has been a spread of under employment in this sector(Parmentier,2010). All the
above factors can be associated with "bad jobs" and result in unfavorable working
conditions experienced by those working in hospitality sector.
The seasonality phenomenon of tourism industry dramatically affects employment in
the industry, causing widespread peak -season employment, under employment in off
-season times Marshali (1999) defines seasonal job as "non-permanent paid job that
will end at specified time or near future, once the seasonal peak has passed". Seasonal

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jobs are common for a number of industries besides tourism. For instance, agriculture
and construction are often a case in off -peak times in tourism destinations, as in non-
season need for construction and renovation of the premises increases.
Krakover (1999) describes tourism industry as an unattractive employer. Seasonal
pattern makes it unstable employment. Therefore, there is a need for human resource
managers to find, result, train and retain the talented workers. For instance, Tsvetan
Rancher, president of the Bulgarian chamber of tourism states a 15 percent drop in
seasonal tourism employment, yet "the sector actually strives to employ skilled staff,
particularly trained and qualified service personnel"(Sofia Echo, 2010).
Business response to seasonality might vary according to the nature of seasonality in
the destination, business specification, general strategies of the firm, and other
internal and external factors. Jolliffe and Fansworth (2003) discuss tow possible
strategies used by business exposed to seasonal pattern of tourism. "Embracing and
challenging"
Embracing seasonality means that company accepts seasonal character of the business
and designs its actions accordingly.
Tour operators which are affected by seasonality in the destination of operation. They
challenge seasonality by extending the reason by lowering the rates on off - season
times or designing off - seasonal packages; also local premises can challenge the
seasonality by lowering the rates. Offering additional service and activities, as well as
subsidizing the employees (Jolliffe and Famsworth, 2003).

2.2.1. Human resource development challenges in the tourism and

hospitality Industry
As to the tourism and hospitality industries continue to grow there is evidence that
organization are increasingly competing through the development of human resource
talents. However, the low prestige and status of tourism and hospitality
jobs(Kuasluvan et Al, 2010) continues to be challenged for human resource(HR)
managers when trying to attract and retain qualified staff. This challenge has
compelled management of organizations to recognize the importance of training in the

7
tourism industry. It is believed that the key factor for improving both competitiveness
and employment opportunities is to upgrade the human resource of the tourism
industries (Freeman, 2012, Tawari, 2011). It is important to note that without an
important in HR practice, the tourism industry will continue to have difficult in
attracting employees.
ILO's 2013 global employment trends report, is loss of jobs and the downgrading of
employment opportunities in the labor market (International labor Organization) this
has led to a mismatch between labor demand and supply at both the low and high ends
of the qualification spectrum. This in turn, can raise the number of over -qualified
works being down -graded to jobs that previously were done by unskilled and low
skill workers. With the result that less qualified staff is losing works. This trend not
only actual employment opportunities but can also have negative consequence for job
satisfaction, workers’ wages and productivity of firms.
The higher education institutions in the country are challenged to deliver high quality
teaching and learning. This institution must be connected to boarder educational goals
and training plans of the industry as well as aware of shifts in the labor market. The
analysis undertaken for this dissertation has indicated that there is a lack of linkage
between education institutions and the tourism industry as well as a paucity of key
information on the labor market (Hind et al, 2011). This result in student graduated
from the institutions despite being ill equipped to tackle the challenges of the real
world. It is evident that many graduates find it difficult to find jobs that fit for their
qualification (Boeha et. el, 2007).
The low status of or low skill levels among the employees of the tourism industry, is
becoming a concern international labor mobility (Berger and Brownies, 2009). The
tourism and hospitality industries employ many of the unskilled and low skilled
workers that migrate to developed countries from LDC. Managers are now challenged
to manage employees from different cultural background clearly (Baum et al, 2007).
Culturally background clearly influences the attitudes and behaviors of workers in the
tourism and hospitality industries (Baum et al, 2007).

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2.3 The quality of tourism employment
The concept of job quality in the social science dates back to the eighteen and
nineteen century, and several well known and leading theories have been preoccupied
with quality of work. According to Marx (1967), employer’s ownership and control of
the means of production implied that almost all jobs were bad. He argued that in
modern industrial production under capitalist conditions the workers become
alienated because they lose control over the nature of the work tasks, and over the
products of their labors (Giddens, 1997).
Measuring job quality is not a simple task as a job is made up of many components.
There is no argued up on definition on the quality of work on no consensus on what
constitutes a good job (Kalleberg et al, 2000). Since important components of job
quality often are measured through the reports of workers, comprehensive measure of
job quality is affected by the potential limitations (e.g., social esteem bias) as well as
the advantages (e.g., firsthand knowledge) of subjective data(Green, 2006).workers
also reduce a rector of the quality associated with different jobs facts to a scalar
quantity(good or bad) when deciding to quit a job(Kalleberg and Vaisty, 2005).
Job security was early on an essential aspect of quality of work (Martel and oupuis,
(2013). Realizing One's potential, such as growth of skill, require time, and job of low
quality of short and uncertain duration. Therefore, normally are of low quality, and the
same are jobs where the work itself is pervaded with uncertainty(Green,2013), job
insecurity is a major source of I'll health and job dissatisfaction, has long lasting
impact on individuals and their households tensions at home (Burchell,1994,Winert,
2002).
Green (2006) examines the following aspects of job quality skills, work effort,
personal discretion over tasks works and participation in work place decisions, pay,
workers' risks and job insecurity, and job satisfaction and affective will-being at work.
Measure of job insecurity include separation rates (the rates at which employees leave
jobs), redundancy rates at which employees are forced to leave their job), job tenure
(time spent in one job), duration of unemployment and impact of job loss on future

9
pay (Green, 2003). Other measure are perceived job insecurity (fear of involuntary job
loss, whether existing wages will be maintained). Access to training, promotion
opportunities and employment of workers labor, Green also include the risk of work
place accidents and diseases in his study of job insecurity.

2.4 The nature of tourism employment

Improving competitiveness should be reflected in improved education levels, and a
better security of contract for those employed in the sector. The requires place to
promote accessible education and training routes (including open and distance
learning, encourage investment and development of sector specific specialists,
segmented tailored course for new entrants and those purchasing continues
professional development. This will improve prospects for all ages of employees in
the industry which often faces challenges in attracting and developing talent to
improve competitiveness, (OECD, 2001).
Linking policy interventions and demonstrating contribution to competitiveness from
initiatives to improve education level in the sector remains a constant challenges,
measure number of jobs in tourism industries defined by age (youth 15-24): prime age
(24-54), old workers (55-64), by education level (low skilled, medium skilled, and
high skilled), and by types of contract (permanent workers, temporary workers),
(OECD, 2001).
This indicators measure the level of education, age and contract tenure of those
employed in tourism, hotels, restaurants and catering employ large number of people,
often on a casual basis and comprising a sizable proportion of young females and
individuals with lower education level compared to the averages for an economy.
Country regions with high tourist activity tend to have lower unemployment rates but
less job stability and high seasonality (OECD, 2001

2.5 Conceptual framework

In below conceptual framework there are different variables which directly and
indirectly affect the tourism employment in such like the dependent variable are poor

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working condition, low job satisfaction, low skill workers and seasonality are
dependent variable. And tourism employment is the independent variable which
change due to this independent variable because the employment challenge rely on
these variable. There is link between the tourism employment and challenges in the
below chart.

Poor working
condition

Tourism Low job

Seasonality Employment satisfactio
challenges n

Low skill worker

(Sources: own complain, 2017)

Fig 2.1.Conceptual framework

CHAPTER THREE

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 3. Research Methodologies

3.1. Description of the area

3.1.1 Location
Assosa is a city in Benishangul-gumuz region, Ethiopia. Part of Asosa zone, it is bordered by
Kurmuk and Komesha in the north, by Menge in the northeast, by Odabuldigilu in the east, by
Bambasi in the southeast, by Mao-komo special woreda in the south and by Sudan in the west. It
located in the Asosa zone, this town has a latitude and longitude of 10 o04’N34o31’E, with an
elevation of 1,570 meters. This woreda is named after its largest settlement, Assosa. Rivers
include the Yabus and its tributary the Buldidine. The six largest ethnic groups reported in this
town were the Oromo (41.19%), the Ahmara (29.93%), the Berta (17.39%), the tigrayan (5.43%),
the Sebat bet gurage (1.35%), and silte (1.29%), all other ethnic groups made upto 3.42% of the
population.

Figure 3.1 Map of study area

Source; Google Maps-2015
Blendana and Banbu hotel is located at Assosa town Benishangul gumz region. The
hotel is location found in the Assosa town.

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 3.1.2 Demography
Based on the 2007 census conducted by the CSA, this town has a total population of
74,879, of whom 39,208 are men and 35,671 women. The majority of the inhabitants
practiced Ethiopian orthodox Christianity with 56.04 percent of the population
reporting that belief, 38.47 percent were Protestants, and 4.16 percent were Musl
(CSA, 2007).

3.2 Research approach and design

The study was used mixed research approach and Descriptive research design will use
employee as it helps to explain and describe the study in detail. According to
Aggarwal (2008), descriptive research is devoted to the gathering of information
about prevailing conditions or situations for the purpose of description interpretation.
This design to describe what the challenges and impacts about Blnedana and Banbu
hotel with regarding about employees challenge to those hotels in the study area,
Assosa town.

3.3 Target population of the study

The subjects of this study was selected from, managers and employees of Ezana and
Tourist Hotels.

3.4 Sampling technique and sample size

The study will use probability and non probability sampling technique to collect
necessary data. In the non probability mainly used purposive, select the sample from
the hotel managers. To know the hotel employees by using the following formula:
n=N/1+N (e)
Given n=sample size
N=Total population
1=Constant number
e=calculation error
n=N/1+N (e)
n=218/1+218(0.10)
n=69

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The target population the study is in Blendana and Banbu hotel employees take

As a sample size to represent the entire population to cover the sample size of n=69, the time and
financial limitation, the researcher was used 30 sample from the sample size of 69,
In order to select sample size from total employee of Blendana and Banbu hotel by
using stratified sampling, because the population is stratified sampling technique.
nH= (Nh/N)*n
nH=sample size of each strata
NH = total population each strata
N=total population both
N=total sample size
nE= (NE/N)*n
nE =(20/200)*30
nE=3
nT=(NT/N)*n
nT= (198/218)*30
nT=27
nE+nT=30
The researcher was take 30 respondents from both Blendana and Banbu hotel
employees by using simple random technique in lottery system.

3.5 Source of data

When conducting this research, to collect information, primary and secondary sources
of data have been used. Primary source of data, the researcher was used hotel
managers and employees. A secondary source of data is collected from published and
unpublished of various books and different types of documents, in addition to, the
researcher have used internet a source of secondary data.

3.6 Data collection instruments

The study will use types of data collection methods that are questionnaires,
observation and interview. The above data collection methods and instruments help to
get concert and useful data from the study subjects.

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3.7 Method of data analysis and interpretation
The study will use both qualitative and quantitative data analyze method. The
qualitative data will be analyze through descriptive method. And the quantitative data
will analyze through frequency, percentage and tabulation.

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