Retaining talent: The missing link in tourism’s recovery

Sri Lanka's hotel and tourism sector, a vital foreign exchange earner, faces a mounting labour shortage.

- BY SAUMYA AAMARASIRIWARDANE

A new study by the National Human Resource Development Council (NHRDC) warns that unless urgent measures are taken to address skills gaps, worker migration, and gender disparities, the sector’s growth prospects could be undermined.

Key Takeaways

Tourism directly contributes around 4% of GDP and 13% of foreign exchange earnings, employing approximately 450,000 people pre-pandemic.

Labour demand is rising fastest in kitchen (35%), food & beverage (22.8%), and housekeeping (16.6%) departments.

The industry remains male-dominated (76% vs. 24% female), with women underrepresented due to cultural barriers and limited flexibility at work.

Over 60% of staff exits between 2020 and 2023 were due to overseas employment.

Vocational training is heavily concentrated in cookery, with fewer trainees entering guest relations and management, creating a skills mismatch.

Retaining talent has become a key challenge, with high migration, low career progression, and poor working conditions driving staff turnover.

Tourism Recovery Meets Workforce Shortages

The NHRDC’s Labour Market Trends in Sri Lanka — 2024 report places the hotel and tourism industry at the center of the country’s economic recovery. Before the pandemic, tourism directly contributed around 4% to GDP and generated more than one-eighth of foreign exchange earnings. The sector also created significant indirect employment in linked industries such as transport, food production, handicrafts, and entertainment, amplifying its overall impact on the economy.