Employee Turnover Rate In Tourism And Hospitality Industry Tourism Essay

According to the World Travel and Tourism Council (WTTC), the tourism and hospitality industry represents one of the most important sectors of the global economy, which contributes a US $6 trillion business that employs over 230 million people and a significant portion of the world’s workforce. In other word, human resource considered one of the most important resources of the contemporary tourism and hospitality industry. The labour supporting a wide range of jobs in many different service sectors, for instance hotels and restaurants line, theme park and entertainment attractions. Personal service is essential to delivering products and service to satisfy customers especially those served in front line, for example waiters, chiefs, receptionists, etc. Since the business scope is emphasis the customers contact all over the time, the lack of manpower may lead the industry in trouble.

2.2 The research problems

In fact, the contemporary tourism and hospitality industry is facing a HR crisis where the labor turnover rate is relatively higher than other industry. ‘The bulk of service jobs tend to be temporary, held by the people with no career aspirations in tourism and no commitment to the industry.’ () That is no doubt that the contemporary tourism and hospitality industry offers job opportunities for the youth, women and less advantaged groups in society. Other than recruitment problems, employee turnover may cause by employee retirement, death, illness or disability, resignation, organization downsizing or termination. The reasons why employees resign may be avoidable where they may experienced unfair treatment, poor leadership, or lack of challenge. Otherwise they leave from an organization with unavoidable reasons, for example immigrate to another state or country, return to university as well as serious illness. () Employees may also leave an organization because of dissatisfaction to the working conditions, pay and benefit, training and development, the workforce diversity issues, and other potential issue. Consequently, a detailed turnover analysis of why employees leave a hospitality organization is meaningful to arrive at benchmark practices on dealing with the operational and administrative challenges the high level of staff turnover. This research information would represent the factors that influence staffs’ retention or leave from their job in this industry. Moreover, it helps hospitality trade organizations generate strategies to minimize staff turnover rate yet increase staffs’ retention by the means of enhancing recruitment policy, job satisfaction, organizational commitment and finally quality of service.


What cause employees leave the organizations within tourism and hospitality industry?

What are the consequences of high staff turnover to the related service sector organizations?

What corrective action should be taken to tackle high employees’ turnover rate in specify sector?


The aim of this study is to identify the reasons of high staffs’ turnover in tourism and hospitality industry. Further, this study seeks to examine the impacts of high employee turnover to the organizations in the industry and how organizations tackle this challenge.


To examine the reasons of high employee turnover rate in tourism and hospitality sector

To evaluate the consequences of high employee turnover in an tourism and hospitality organization

To evaluate how organizations satisfy the employees in order to solve the problem of high employee turnover in tourism and hospitality sector



Each method, tool or technique has its unique strength and weakness. () To ensure the validity and reliable of this study, descriptive research design is used since the research problems is not a new issue and had been sought by previous researchers. () Descriptive research is designed to describe characteristics of a population or a phenomenon, where in this research, is to describe the characteristics of the labor turnover within the tourism and hospitality industry. Further, it may help to examine the ways that may reduce such phenomenon.

Therefore, this research will be based on quantitative methods. Quantitative method will be undertaken by distribute survey questionnaires to a large number of respondents in order to obtain accurate information and improving decision making.() Deductive research is the logical process of deriving a conclusion from a known general premise. () Deductive research has been used in this research to test hypothesizes whether certain factors may influence labors’ resignation and whether high turnover rate would lead tourism or hospitality organization into certain dilemmas. Cross sectional studies method also will be used to conduct this study because the duration to conduct the research is limited.


The population selected to conduct this study will be the employees who engaged in the tourism and hospitality organizations that is high labor turnover rate, for example tourism attractions like Genting Highlands and certain hotels as well as restaurants in Malaysia.



To conduct this research, the selected sample size will be 200 employees within the tourism and hospitality in Malaysia.


Since it is difficult to seek the people who experience high labor turnover rate even resignation in the tourism and hospitality organizations, the research are undertaken by snowball sample. Snowball sample is one of the non-probability samples that selects the initial respondents by probability sample and then obtained the additional respondents by referral from initial respondents. The advantages of using snowball sample are economical and make convenience to the researcher as well as respondents. With this approach, this study can conducted by makes initial interview with the small group and then use these to establish contacts with other relevant employees to answer the designed questionnaires.


Secondary data such as journals, textbook, newspapers and website articles also will be utilized when carry through this research. In broad terms, the questionnaires for survey purpose are designed with closed and open-ended questions. The questions designed expect to deliver the reasons of high employee turnover rate together with its consequences to the organizations within tourism and hospitality industry.


The data obtained from survey methods will be analyzed by using SPSS VS.18.0 per window. It is used to obtain the descriptive statistic like frequencies, mean and standard deviations that reveals the outcome of the research problem.



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January 2011

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Chapter 1: Introduction

1.1 Research Questions

1.2 Research Objectives

Rationale of the research chosen

Chapter 2: Literature Review

Chapter 3: Research Methods

3.1 Secondary data

3.2 Focus group

3.3 Case studies

3.4 Survey questionnaires

Chapter 4: Data Analysis and Findings

Chapter 5: Conclusion and Discussion

Binding of Dissertation

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