In recent years, global tourism has been operating under constant pressure — from geopolitical crises and rising fuel prices to problems in the aviation industry, inflation and increasingly expensive operational costs. Today, the tourism sector is no longer fighting only for guests, but for the sustainability of the entire system on which the industry depends.
While European destinations attempt to stabilize the market after several turbulent seasons, the hospitality industry is facing another challenge that is increasingly turning into a global structural crisis — labor shortages. International media outlets such as Reuters, Financial Times and Bloomberg have long been warning that tourism is entering a period in which growing demand is no longer matched by workforce growth. Hoteliers across Europe, particularly in Mediterranean countries, are finding it increasingly difficult to recruit chefs, waiters, receptionists, housekeeping staff and seasonal workers, while operational costs and guest expectations continue to rise simultaneously.
An industry dependent on people is now facing a paradox: tourism is growing, but the human capacity needed to sustain that growth is becoming increasingly limited. Analyses by leading global hospitality companies show that tourism and hospitality are in a paradoxical situation: the sector is expanding, yet labor market stability has never been more fragile. Labor costs are rising, employee turnover has become one of the industry’s greatest challenges, while changing workforce expectations and stricter immigration policies further complicate the situation. Experts warn that the issue is no longer simply a shortage of workers, but a question of the long-term sustainability of the entire tourism business model. The pressure is now directly reflected in service quality, team organization and the overall guest experience. More and more experts argue that the future of tourism will depend not only on investments in hotels, infrastructure or technology, but above all on investments in people. The hospitality industry has traditionally reflected broader economic and social changes. Today, that process is more visible than ever. Although many countries are recording record employment levels in tourism, employee burnout, labor market instability and difficulties in retaining qualified staff are simultaneously increasing. Particular attention is also being placed on migrant labor, which has for years formed the backbone of hospitality and tourism across much of Europe and the United States. Without these workers, analysts warn, many tourist destinations simply would not be able to function today.
And while technology and automation will undoubtedly reshape business operations in the years ahead, leading figures within the industry agree that the key to tourism’s survival remains unchanged: skilled people, education, stable teams and a work culture built on trust and mutual respect. Because despite all technological advances, tourism remains an industry built on human experience.
The pandemic accelerated changes that had already been present in the tourism industry. Over the past several years, a large number of employees have left hospitality and tourism, while the expectations of younger generations regarding working conditions have significantly changed.
Today, especially in seasonal destinations, tourism faces challenges such as: high employee turnover, lack of long-term security, high living costs in tourist centers, and increasing competition from other industries for qualified workers.
The Financial Times has reported in recent years that European hotels are increasingly raising wages, providing employee accommodation and opening their labor markets to international workers in an attempt to address staffing shortages. Back in 2022, Reuters published an almost symbolic headline: “No experience, no resume, you’re hired”, describing a situation in which European hotels were hiring workers without prior experience simply to open properties and keep operations running ahead of the tourist season.
One of the key reasons why the tourism sector worldwide is struggling to attract workers lies in wages that, despite recent increases, still fail in many countries to match the cost of living and the intensity of work within the industry.
Although salaries in tourism began rising faster after the pandemic, the sector still faces high employee turnover, seasonal employment patterns and the issue of affordable housing in tourist destinations. Wage growth alone has not solved the labor shortage problem. On the contrary, in many destinations, housing costs, inflation and the seasonal nature of tourism jobs continue to make the industry one of the most unstable sectors in the labor market.
Reuters recently reported that the Spanish hotel chain Meliá had started purchasing properties to provide accommodation for employees in the Balearic Islands, because seasonal workers could no longer afford rental housing in tourist zones. This perhaps best illustrates how much the tourism industry has changed — today, even a decent salary is no longer enough. Employers must also offer housing, more flexible working conditions and greater long-term security.
At the same time, hospitality is now directly competing with other industries for labor, especially when it comes to younger generations increasingly seeking better work-life balance and more flexible employment models.
In Spain, Greece, Croatia, Italy and Portugal, the problem has become so serious that tourism increasingly depends on imported labor.
Seasonal work in tourism was once one of the main sources of employment for domestic workers in Mediterranean countries. Today, many hotels and restaurants rely heavily on workers from Asia, Africa and Eastern Europe.
In many tourist centers, local residents can no longer afford to live in cities that survive on tourism, while younger generations are increasingly choosing more stable and flexible jobs outside the sector. As a result, workforce issues are no longer just a seasonal concern — they have become a question of the long-term sustainability of the tourism model itself.
Although there has long been discussion about technology replacing many jobs in hospitality, reality paints a different picture. Digital check-ins, AI concierge systems and automated booking platforms have certainly transformed parts of the business, but tourism still remains an industry deeply dependent on human contact and experience. Guests may book hotels through apps, but the quality of a destination still depends on people — receptionists, chefs, waiters, guides, concierge staff and everyone involved in creating the guest experience. The paradox of modern tourism is becoming increasingly obvious: the more luxury and premium tourism grow, the greater the need for highly skilled staff. Today, the luxury industry no longer sells only accommodation — it sells emotion, personalization and experience. And these are precisely the aspects that are most difficult to automate.
Montenegro has been facing this issue for years, but the global labor crisis is now making the situation even more complicated. The region already depends heavily on seasonal workers from Asia, Turkey and neighboring countries, while domestic workers increasingly choose employment abroad or move into other industries. At the same time, the ambitions of Montenegrin tourism continue to grow — luxury resorts, marinas, premium hotels, fine dining and the development of year-round tourism all require increasingly qualified staff. But luxury tourism cannot exist without quality people. That is why the key question for the future is no longer simply how many tourists can arrive, but whether there will be anyone to welcome them. It is clear that people must not — and cannot — be viewed merely as labor, but as the very heart of the tourism and hospitality experience.
Today, major global companies are trying to build more sustainable long-term employee development models — from internal education programs and mentorship initiatives to clearly defined career paths within companies. The goal is no longer simply to find workers for a season, but to retain people and rebuild tourism as a profession that younger generations once again see as attractive.
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