The solutions to the acute staff shortage in hospitality include increasing job satisfaction and salaries and committing to long-term employment of foreigners, some of those involved in the sector have said.

The industry suffered a huge blow when the coronavirus pandemic hit in March 2020. As a result of restrictive measures to control the outbreak, hotels and catering establishments were shut and travel restrictions halted tourism for long months.

Faced with this, many establishments had to lay off staff to cut costs, despite the government wage supplement.

As a result, third-country nationals left – some returned to their countries and others shifted to other sectors such as construction and deliveries.

Figures obtained from the National Statistics Office show that the number of part-timers working in hospitality fell by more than half between March 2019 and March 2020, when the virus pandemic hit, from 8,763, to 4,169.

While there has been a slight increase in the number since, at 5,740 this year, it is still a long way off from the pre-COVID level. Meanwhile, the number of full-timers rose from 14,356 in 2019 to 16,190 in 2020 but has dropped again to 14,676 in 2021.

In a recent opinion article in The Sunday Times of Malta, Claire Zammit Xuereb, director of hospitality at AX Hotels, wrote about the struggle to attract workers following the colossal hit of the pandemic.

She said a lot of foreign workers had made their way home and had not returned.

These were cleaners, waiters, housekeepers, chefs, representatives “and other vital team members from every imaginable layer of our industry”.

She called for a national action plan to address this staff shortage.

A few days later the Malta Hotels and Restaurants Association called for tax exemptions on overtime and part-time income earned by employees.

When hotels and restaurants were shut down, many workers left Malta and did not return. Photo: Matthew Mirabelli

No long-term commitment from employers

Reacting to this proposal, readers commented on low salaries paid by the industry.

Alban Thika from Novaric, a licensed recruitment agency that brings third-country nationals to Malta, said higher salaries would help but there were other issues too.

“At the moment there is a demand for people to work in hospitality, but there is no long-term commitment from employers due to the uncertainty. Third-country nationals working full-time here find it difficult to cope with rent and other expenses.

They left the sector and limited mobility due to the pandemic has made it almost impossible for them to return

“They usually start off on the minimum wage and have to spend about 70 per cent of their salary on rent which is why the agency offers a package,” he says, adding that it takes three to four months to bring a person over from abroad due to travel restrictions and requirements by JobsPlus and Identity Malta.

According to a recent study carried out by the Housing Authority, rent in Malta can range from €500 to €1,050 for a two-bedroom. This can be cut in half in the case of flat sharing.

Matthew Pace, from the Association of Catering Establishments, has seen many businesses struggle to find staff.

“Before the pandemic, staff problems were being addressed by importing third-country nationals. They left the sector and limited mobility around the world due to the pandemic has made it almost impossible for them to return to our local catering industry.”

What do hospitality workers earn?

Pace adds that he strongly disagrees with the statement that the industry underpays staff, saying this is “pathetic”.

“This is a generic statement and with over 4,000 licensed catering establishments… there are those who pay very well, others almost as much while a few might not,” he contended.

Staff wipe down restaurant chairs. Photo: Matthew Mirabelli

Figures obtained from Deloitte for the hotel industry show that salaries range a lot – depending on role, individual experience and star rating.

Whereas a hotel manager could earn between €60,000 and €120,000, an executive sous chef will earn between €45,000 and €50,000. A waiter or bartender will earn in the range of €16,000 and €18,000 while room attendants will earn about €14,000 or €15,000.

According to the most recent figures issued by the National Statistics Office as part of the Regional Statistics Malta 2021 Edition, the average gross annual basic salary for a worker here stands at €19,721.

However, according to Thika from the recruitment agency, most employers start off by offering the minimum wage – that stands at just under €9,500 a year – with workers upping their income by working overtime and earning tips.

But Alan Arrigo, chair of the Tourism Business Section within the Chamber of Commerce, takes the argument a step further.

'Tourism jobs not enticing as they used to be'

Increasing salaries may be part of the solution but the situation is more complex, he says.

Rather than plugging the gap with third-country nationals, many of whom come here for economic reasons, it’s time to address one of the roots of the problem – the dwindling interest in parts of the industry.

“Tourism and hospitality are not as enticing as they used to be as people have to work during social hours and there is no premium in terms of wage to counter that effect,” Arrigo said.

A tour guide leads tourists through Valletta in 2019. The pandemic has turned the capital into a quiet place. Photo: Matthew Mirabelli

“While better salaries would be part of the answer, we need a quality experience mindset.

“It’s about job satisfaction – making the job itself look more interesting and enticing. This comes with time, with improving the product and experience. That will allow employers to charge more for a better product. They earn more and can pay more,” he added.

A deeper dive shows that the lack of interest is mostly in the lower-paying roles – that might come with lower levels of job satisfaction.

Figures obtained from the Institute of Tourism Studies suggest there is a growing interest in the sector. The number of applicants has been increasing year after year and, in 2020, the institute recorded its highest intake to date.

Those attending courses, both full- and part-time increased from 1,472 in the term 2018/2019 to 1,405 the following academic year (a slight dip due to part-time courses being cancelled between March and December because of COVID) and 1,757 this year.

Of these, the minority were local students.

“The demand for ITS students is high, and due to their hands-on experience they gather through their studies, ITS students usually find jobs which are of a higher level and not in the front-end,” a spokesperson said.

'You work like a doctor, but without the salary'

But moving up is not always easy – especially if you are not Maltese. Massimo Manzo, 26, lived and worked here for three years. During his stay he was a bartender and a sommelier.

“During my stay in Malta I learned a lot. However, I have to say that – as happens in other countries – while those working at management level in the catering business are shown a lot of respect and get a good salary, the same does not always apply to other staff,” he said.

“The salary is low compared to rent prices.

“When you work in catering you either love it or hate it. You work the hours of a doctor but don’t get the same salary. You don’t lead a normal life with the long hours.”

Manzo decided to leave as he slowly started realising that he wanted more from life.

As he developed a special interest in wine while in Malta, he decided to upgrade and has now moved back to Italy where he is specialising in wine and working in an enoteca in Milan.

It’s no longer just about having a job... satisfaction matters.