ITS CEO Pierre Fenech laments continued loss of hospitality graduates to other industries

Institute of Tourism Studies (ITS) CEO Pierre Fenech has expressed his concern at the fact that every year, the hospitality industry is losing new graduates to other industries due to a myriad of factors, including working hours and pay.

His comments came during a recent event by the Malta Hotels and Restaurants Association (MHRA).

At one point, Mr Fenech was asked by MHRA CEO Andrew Agius Muscat for an update on the results that ITS, Malta’s main tourism and hospitality industry education institution, is achieving.

Mr Fenech remarked that over the past few years, ITS has attracted approximately the same number of students on an annual basis. He said that this is being done after a decision taken in 2015 to open up and start attracting foreign students to ITS.

Prior to the COVID-19 pandemic, foreigners made up around 25 per cent of students at ITS, a figure that went down during the pandemic, yet is now back up to 25 per cent.

“We know Malta needs workers, but if we are to get workers from abroad, we need to make sure that we get quality workers who can lead to improved productivity,” he stated.

Mr Fenech said that ITS has agreements for students to study two years in their own country and then two years to finish their degree in Malta, working in the country at the same time. He remarked that the aim is to have at least some of the students remain in Malta following their studies to work here.

“We have around 35 per cent of our foreign students working here [in Malta],” he added.

Mr Muscat then said that there is a common perception that a substantial number of individuals study at ITS and then decide to go to work in another industry.

Mr Fenech pointed out that 94 per cent of graduates at ITS start working in the tourism and hospitality industry when they graduate. He remarked that out of local students, there are approximately 15 per cent who go to work abroad.

“If young students go abroad to experience working in a different country, then I don’t see anything wrong, as long as they return to Malta,” he continued. He remarked that every student costs Maltese taxpayers thousands of euros per year, and so it is crucial for Malta to retain them.

“But the most worrying thing is that year after year, we are losing these people to other industries in Malta,” Mr Fenech said.

Following the pandemic, Malta’s tourism industry has experienced substantial growth, with record tourist arrivals. However, this has also led to massive personnel challenges in the hospitality industry, as hotels struggle with a shortage of local talent due to opportunities in other industries.

Mr Fenech commented that there are many reasons behind this tendency for workers to shift to other industries, including the relatively irregular and tough working hours that the hospitality industry requires. New graduates may find it difficult to get accustomed to working long hours on weekends.

He also called on hotels to make sure that they employ the right people, pay the right salary, and provide good working conditions.

Mr Fenech also said that hotels need to start employing young students, even some who may not have prior experience or education in the hospitality industry. He remarked that there is the possibility that some of these teenagers, although not yet sure of whether they will pursue a career in tourism, could end up working in the industry.

“The solution is a multi-factored approach and we need to work together to make sure that our industry is attractive. I believe that if we invest in quality workers and technology, we will increase productivity,” Mr Fenech said.

“Yes, we will pay more [for quality workers], but we will also get more. It’s a long-term vision and isn’t something that will change overnight, but we need to start somewhere,” he continued.

This push for quality workers is in line with the aims of the recently introduced skills pass scheme, led by ITS, which seeks to ensure that the workforce of Malta’s hospitality and tourism sectors have the necessary skills to provide a quality service. Last May, it came into effect for workers who are getting a work permit for the first time. From the start of 2025 those currently in Malta will need to obtain the skills pass upon renewal of their work permit.

During the MHRA event, Mr Fenech noted that a significant number of applicants have already failed the skills pass tests “because they are not up to standard.”

“If I had been running a hotel or a catering company, and these individuals came for an interview, they would not have spent two minutes in front of me. I know that the situation during the pandemic was desperate, but we cannot continue like that, especially if we want to push for quality tourism,” he said.

The scheme has been strongly criticised by many hospitality industry leaders, with some highlighting the €475 fee for non-EU nationals coming to Malta, describing it as “exorbitant,” while others have said that the questions asked are too difficult.