The sustainability of employing third-country nationals in the Maltese tourism industry in the long run

Abstract

The purpose of this qualitative study is to analyse the sustainability of employing Third Country Nationals (TCNs) in the Maltese tourism sector from the point of view of HR and union representatives. The author discusses the increasing need to employ TCNs in the tourism sector, driven by demographic trends such as declining birth rates, an ageing population, and the lack of interest among locals and EU nationals in the sector. Additionally, the author explores the long-term sustainability of this employment approach, through qualitative research methods, semi-structured interviews with six HR representatives and three union representatives were analysed using Braun and Clarke's Thematic Analysis approach (2013, 2022). This study indicates that the Maltese tourism sector is heavily relying on TCNs to operate and address the current workforce shortages. Demographic factors have led to a decrease in the local labour force, pushing hotels to employ foreign workers to fill in vacancies. Furthermore, this study suggests that the challenges of attracting locals and EU nationals are primarily due to low remuneration and challenging working conditions. TCNs contribute positively to Malta’s economy through tax payment, social security contributions and rent payments. However, participants suggested that low wages in the sector and the high cost of living, amongst other issues might increase turnover rates, which raised participants' concerns about the long-term sustainability of their employment. Further issues identified by participants include increased administrative burdens, recurring training needs, language barriers, skill mismatches, and a lack of familiarity with Maltese culture, which might negatively impact the tourism sector and raise financial costs for hotels. The employment of TCNs contributes s positively to Malta’s economy and plays a key role in addressing labour shortages. However, it could be concluded that the high turnover rates, training costs, and the administrative workload they create are negatively perceived by participants. Participants expressed mixed opinions on the employment of TCNs, while several emphasised the economic advantages and contributions of TCNs to the workforce, the majority raised concerns regarding high turnover rates and the costs associated with their employment. The findings suggest that policies by the Maltese government should be developed to improve wages and working conditions in the sector. Furthermore, the Single permit process should be simplified to reduce the administrative workload.