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2025-04-16

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Management's Five Major Challenges: The Labor Shortage Issue is the Most Severe

Management's Five Major Challenges: The Labor Shortage Issue is the Most Severe
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After the pandemic, Taipei's tourism and hospitality market has quickly rebounded, and there is optimism about the prospects after 2025. However, it also faces five major challenges: severe labor shortages, high inflation leading to increased costs, intensified competition from new hotels, adaptation to new regulations, and the cooling of cross-strait relations affecting travel willingness. Among these, labor shortages are the biggest challenge. Various hotels are actively seeking solutions, including partnerships with universities, promoting the retention of middle-aged and older employees, and recruiting foreign students for internships. The Formosa International Hotels Corporation emphasizes diversity and inclusion by hiring employees from different ethnic groups and offering flexible working hours. The Shangri-La's Far Eastern Plaza Hotel also has talent retention programs and optimizes the workflow for middle-aged job seekers. With the opening of new hotels, market competition is expected to intensify.

Following the pandemic, the tourism and hospitality market has quickly rebounded, and hotels in Taipei are optimistic about the market outlook after 2025. However, despite high expectations, industry players are also concerned about the challenges they may face. Our survey indicates that Taipei hotels will encounter five major challenges in operations by 2025, including a shortage of human resources, rising costs of ingredients and materials due to inflation, increasing energy costs, intensifying competition from new hotels, pressure to adapt to new regulations, and the cooling of cross-strait relations affecting foreign tourists' willingness to visit Taiwan. Among these, the most challenging issue for businesses remains the lack of manpower. To address the manpower issue, major hotels are continuously recruiting and finding ways to fill the gap.

  • The Famouse Hospitality Group collaborates with colleges and universities to offer specialized courses to provide more vocational education resources, implements a retention policy for middle-aged and elderly employees, attracts new immigrants to join the service team, and opens internship opportunities for foreign students in Taiwan.
  • The Liu Fu Travel Group centers its strategy on "DEI Diversity and Inclusion," which includes hiring multinational employees, adjusting the ratio of young and middle-aged employees to involve different backgrounds, recruiting middle-aged or re-employed women by offering flexible working hours and generous benefits, and also hiring individuals with disabilities to establish a sign language team for one-on-one counseling.
  • The Regent Taipei has launched an attractive talent retention program, simplified the job-seeking process for middle-aged candidates, and supplements manpower through outsourcing, while also training employees in secondary skills for cross-departmental support.

In addition, with the continuous opening of new hotels, the market's supply of guest rooms will increase, leading to intensified price competition.