Russia’s tourism boom creates 400,000 job openings—but no one’s applying
Job postings in Russia's tourism and hospitality sector surged by 40% in September 2023, despite a 17% drop in job applications. Industry experts call for tax incentives and vocational training to tackle the growing labor shortage.
The Ministry of Economic Development revealed that Russia currently has one million hotel rooms, with an additional 238,000 planned. This expansion, coupled with government plans to double domestic tourism by 2030, is driving demand for more employees.
However, the sector is facing a staffing crisis. There are now only three applicants per vacancy, down from the usual five to six. The hospitality sector is expected to need around 400,000 new employees by 2030 to meet growing demand.
Industry representatives advocate for new tax incentives to ease hiring challenges. These include tax subsidies for labor costs and incentives for paying the unified social tax. They also propose establishing a system of short-term vocational training with practical hotel internships.
Salaries in the sector are not keeping pace with job seekers' expectations. In September 2023, the average salary was 39,900 rubles, while job seekers expected around 50,000 rubles. Moscow, Yamal-Nenets, and St. Petersburg offer the highest salaries, but they still fall short of expectations.
The hospitality industry is facing a significant staffing challenge as it expands to meet growing demand. While job postings have increased, applications have fallen, and salaries are not meeting job seekers' expectations. Industry representatives and the Ministry of Economic Development are calling for tax incentives and vocational training to address this issue.
