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Local-hire rules drain labour pool

Prudence Lui

Macau's visitor arrivals have shown double-digit growth approaching 30million this year with a wave of hotels slated to open in the next few years. Considering the 543,000-strong population which presents a small pool of labour, the tiny former Portuguese enclave has been challenged with manpower issues due to a government initiative which forces companies to hire a set quota of local residents to stimulate the economy.

As of the first quarter, the city's Statistics and Census Service indicated culture, recreation and gambling as the biggest employer with 79,800 people, followed by hotels and restaurants (40,600), construction (36,900) and wholesale and retail (36,400).

Manpower has been an ongoing issue in the enclave. The tourism industry started feeling the pinch with the lead-up to the five integrated resorts that opened in the past 25 months. Wynn Macau, for instance, employs more than 7,000 people, and the entry of the mammoth 3,000-room Venetian Macao casino last year was a particular concern because of the scale of development that demanded a headcount of 12,000.

Hotels that are up and running already have their labour pool, but a skilled-labour shortage is still an issue for tourism development as more new hotels are due to be completed in the next few years.

The 600-room Wynn Macau has hired all it needs to run its existing operations. 'Periodically we advertise job vacancies,' a spokesperson for the hotel said. 'We don't expect huge recruitment needs for the next 12 months until we are ready to recruit for our next project. Encore at Wynn Macau [previously known as Wynn Diamond Suites] will add about 400 suites and four villas along with restaurants, additional retail and gaming space. We started construction of Encore in 2007, and expect the property to open in early 2010.

'It can be a challenge to fill certain skilled positions, but we have worked hard to create a positive and rewarding work environment to ensure we attract and retain the very best,' she added.

Institute for Tourism Studies professor of management, Cheng Soo-may, said the situation may be even worse as the government had announced a tightening on work permits.

'All sectors are affected, and now professional and managerial grades are being rejected,' said Dr Cheng. 'There is the belief that locals should be given priority for managerial jobs, despite the fact that statistics show a lack of locals in terms of numbers and skills. These statistics are pretty much ignored.

'On the other hand, those establishments that are not doing so well in the current global slowdown and tightening of the individual visit scheme are shedding workers, so there is a bit of musical chairs among local employees. Foreign workers may not be so lucky - they have to leave Macau if they can't get new sponsors.'

The situation is worse on the burgeoning meetings, incentives, conventions and exhibitions (MICE) front. The 100,000 square metre convention and exhibition facility at the Venetian Macao has taken the city's MICE development to the next level, with more international and large business groups.

However, event planners are struggling to find the skilled manpower to meet the growth.

'About 5,000 staff, if not counting the hotels, are needed to cope with the demand,' said C&E Conference and Exhibition Management general manager Clemson Lo Kam-sing.

Mr Lo urged the government to relax restrictions on the importation of skilled or semi-skilled workers. 'In the tour business the biggest shortage is coach drivers. There are many coaches with no coach drivers - the drivers are getting better salaries and working hours with the casino coaches.'

Meanwhile, the 'big boys' and traditional hotel flags such as Florinda Hotels International, which owns the landmark property Hotel Lisboa among others, hold a different view.

Florinda Hotels executive director, Alan Ho said: 'The labour crunch problem has eased up, not because the Venetian has opened, but because the Macau Government eased up a bit on the labour import quotas about six months ago. The main problem now is in getting skilled personnel. The pool for these is in Hong Kong, and with the fast development of the whole region, the pool for such skills is being drawn very thin.'

He said finding unskilled labour in China may be more difficult than before, but it was still 'easy' compared to other countries.

'The problem is getting the quotas from the Macau Government which has to balance our needs with the wishes of the local unions which, understandably, would like to see a labour shortage to boost salaries offered by desperate employers. Since the two needs are necessarily mutually exclusive, the government will always be treading a thin line, pleasing no one but hoping to keep both parties in line.'

To deliver top service and retain staff, international hotels are offering the best working environments, fringe benefits and tailor-made facilities for staff. For example, Wynn Macau was the first company in Macau to build a recruitment centre and receive applicants like guests, while the Wynn Academy provides learning and advancement opportunities for all employees.

The Venetian Macao offers part-time jobs for students, and the hotel works closely with academic institutions such as the University of Macau.

The Macao Tourism and Casino Career Centre provides tailored training courses for those who wish to seek employment in the tourism and gaming industry and the work force of Macau in general.

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