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Study shows hospitality industry is a viable job engine
Saturday, July 05, 2008
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A recent 197-page study of Napa County’s hospitality and tourism industry shows it’s not all minimum wage and dead-end jobs.

The Napa County Workforce Investment Board’s countywide study shows the industry employs thousands of people, provides entry level jobs with opportunities to advance into management and wages that are rising as competition heats up for quality employees.
There are about 466 Napa County businesses employing nearly 16,000 full- and part-time employees. And, tourism and hospitality jobs are not careers going nowhere.

One of the more surprising tidbits of the study is that about 86 percent of those employees live in Napa County.
That was one of the statistics, unveiled to the Napa City Council recently by the Napa County Workforce Investment Board’s executive director Bruce Wilson — that seems to run against what was generally believed.

“Yes, this does run counter to what others think ... maybe it is worth looking at further,” Wilson said. “It surprised us. I think it is worth looking at more.”
As hospitality and tourism grows, it is estimated that 700 new jobs will be created in the next two years, the study showed.

It comes down to basic supply and demand. There is a limited pool of potential employees at a time when hospitality and tourism is growing in Napa County.

“That means wages should go up ... wages reflect the competitive labor market,” Wilson said.

Some of the hot careers right now are for food service managers, concierges and desk clerks.

For example, pay is up 49 percent since 2005 for food service managers from $19.30 to $28.81 per hour; concierges wages climbed to $20.20 per hour for a 32 percent increase from $15.33; and desk clerks went from $8.88 in 2005 to $11.09 in 2007 for a 25 percent bump.

“As competition (for employees) goes up, I think it is reasonable to expect there to be a reaction,” Wilson said. “There is strong correlation between supply and demand.”

While hospitality and tourism offers entry level jobs, “once in that industry, we show there are career ladders,” Wilson said. “I think the basic truth is if an employer is happy (with an employee) they are going to give him or her more opportunities within that organization.”

Westin Verasa general manager and regional vice president Don Shindle, knows first hand how to go from an entry level job and move up the ladder into management.

Shindle began his career in hospitality as a dishwasher. Currently, he is overseeing the grand opening of his third Westin property.

“There is a tremendous opportunity for career growth,” said Shindle, who has been in the hospitality industry for about 30 years.

Westin Verasa recently held a job fair at the Napa Valley Opera House for several hundred people. Napa’s newest high-end hotel plans to open on Sept. 18. “We will definitely be hiring people from the job fair,” Shindle said. “We were very pleased with the turn out. There was a good quality of people looking for jobs.”

Shindle, who admits he is new to the area, is not surprised that 86 percent of the people working in hospitality and tourism live in Napa County.

He believes that makes it easier to recruit employees. “There is a community base here, it is not transit as is a resort setting. This area has a hospitality base and hospitality culture that is already here,” Shindle said.

Like other high-end hotels, Shindle said the Westin offers a pay structure that is competitive with other hotels of their caliber. “We offer a fantastic training program, and there are huge opportunities to move up,” Shindle said.

He said the Westin offers strategic career development and other perks to keep happy employees.

Job opportunities

Napa Mayor Jill Techel said she was surprised at the large number of hospitality and tourism employees who live in Napa.

These people must be taking advantage of the affordable housing opportunities that are available to them, she added.

“I think part of this (study) is to see what reality is verses the perception ... and that it is different from what we thought,” Techel said.

Techel sees the tourism and hospitality industry as an opportunity. It can also provide summer jobs for high school or college students or someone looking for a part-time second job. “It’s great to have those opportunities.

“The feeling that these are low-paying, dead-end jobs is not what the report found,” Techel said. “You may have to start at the bottom and work your way up ... and that is something that is not common any more.”

Techel believes by offering training and promotions, a hotel, restaurant or wine tasting facility will have a loyal employee.The influx of jobs is a good thing. “Competition can be a good thing. If you are a good employee, you will be in demand,” Techel said.

With the addition of the Ritz and Westin Verasa, Techel believes the bar will be raised when these two hotels open. That will likely include not only paying top dollar for quality employees, but offering career and job training.

As a result, Techel sees no need for the city to pursue a living wage ordinance.

Harvest Inn’s general manager Jack Burkam said that all 60 employees of the tony 74-room St. Helena hotel live in the Napa Valley.

“I think there is no question our industry when combined with wine is a huge economic driver in the valley,” Burkam said,” adding that having a plethora of Zagat-rated restaurants, “the valley is even more unique.”

Burkam does not believe hospitality is a dead-end career.

“If someone learns and gains skills ... there is a lot of room to grow in this industry. There are larger properties outside this area. Tons of people make this a career.”

Burkam would not discuss wages — but said the Harvest Inn does not have a high turnover rate of employees. “We believe we offer a good working environment and pay very fair wages.”

Steve Andrews, of Villagio Inn and Spa and the Vintage Inn in Yountville said, “I think this is a career with tremendous opportunities. You can come in at an entry level position and quickly work your way up into middle and upper level management positions.”

Mary Crowe, Villagio’s general manager, said the service sector industry is the fastest growing industry.

“If someone has leadership potential, they can get into management faster than in many other industries,” Crowe said.
5 comment(s)

hoozcryinow wrote on Jul 5, 2008 4:03 PM:

" Our Mayor thinks "These people must be taking advantage of the affordable housing opportunities that are available to them" ?OMG, if I wasn't so offended by that statement I'd almost be amused by it. WHAT affordable housing opportunities? Is she refering to the low-middle income rentals she voted to allow to be converted to condo's? The ones that are only still rentals because the bottom has fallen out of the housing market. What a true politician she is, never one to miss an opportunity to sound like she is in touch with us minions. What does that say about the prevailing attitude about whether or not the hospitality industry in Napa pays a viable wage that they would need "affordable" housing. A given organization like Westin or Sheraton will likely only employ one Food Service Manager and maybe one or two concierges. The rest of the hospitality staff will still need two incomes at least to be able to afford a two bedroom rental in Napa. "

John Richards wrote on Jul 5, 2008 10:45 PM:

" So, which higher paying position will that $11.00 per hour desk qualify for?
What's the upward mobility path for the ladies who clean the hotel rooms? "

amazed wrote on Jul 6, 2008 8:26 AM:

" The only upward mobility I see for the women cleaning hotel rooms is if they can pick up extra shifts. "

edujunkie wrote on Jul 6, 2008 12:17 PM:

" Please remember that these type reports generated by government entities are statistical driven. Any statistical analysis is only as good as its samples sources, which are usually selected by the preparer of the report based on what outcome may be desired by the persons who hired them. Given the recent criticism of the City leader’s decisions to promote and approve projects related to this field, this information is a good attempt to add a positive spin to the recent actions of Napa’s governmental bodies. Personally, I feel Napa is putting “all their eggs in one basket”, and what happens to the eggs when that basket falls? And as far as affordable housing in Napa, it takes at least 3 incomes from a” hotel/tourist job to even consider living (and eating) in the affordable housing available in Napa. The only exception would be if someone was one of the very RARE employees who worked their way up to a reasonable wage position. But it takes more than a reasonable wage to live in Napa. "

tired wrote on Jul 8, 2008 1:18 AM:

" What a silly propaganda piece. There will always be the same number of dishwashers making poor wages even if one of them moves up. The mayor's comment is ridiculous - there's a really really long wait-list for affordable housing. And if we follow the laws of supply and demand to their conclusion, and we actually believe that people aren't commuting from Vallejo (doubtful!) we have to conclude that more people will move to Napa to fill the demand for labor! And then where will they live? Once again we see how out of touch and lacking in common sense our elected leaders are. I wish I made as much money as they do, seeing how the mayor went out of her way to discourage a living wage! I hope the union puts a living wage on the ballot too, so we get some real democracy in this city. It seems like everyone in this article is part of some secret that none of us regular folk know about. "

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