Visitor Economy Skills Workshop

Tourism Skills Crunch

The visitor economy in Cambridgeshire and Peterborough, encompassing tourism, hospitality, culture, and leisure, is a vital driver of local growth. Yet it grapples with acute skills shortages that have worsened since the COVID-19 pandemic. The Local Skills Improvement Plan (LSIP), led by the Cambridgeshire Chamber of Commerce, identifies persistent gaps in roles like chefs, managers, and front-line staff. These shortages stem from a mass exodus during lockdowns, compounded by Brexit-related immigration changes that restricted EU worker inflows. In early 2026, with unemployment at 5.2% and youth joblessness surging to 16.1%, the sector's recovery hangs in the balance.

Recent developments have sharpened the focus. The government's bold new Jobs and Skills Plan, approved in November 2025, allocates over £1.5 billion for employment support and apprenticeship reforms. This follows the January 2026 launch of Skills England's national roadmap, which mandates regions to tailor skills strategies. For Cambridgeshire, this means aligning training with employer needs, as evidenced by the 2025 LSIP progress report showing low apprenticeship rates—45 per 10,000 working-age residents versus England's 54. A January 2026 tender for a Visitor Economy Destination Management Plan aims to bolster resilience through business growth and skills addressing, targeting regenerative tourism practices.

Impacts ripple across stakeholders. Local businesses face 78% recruitment struggles, leading to shortened hours or closures—mirroring UK-wide trends where 73,000 hospitality positions remain vacant. This translates to lost revenue: the sector's projected £16 trillion global contribution by 2034 could bypass regions like Cambridgeshire if unaddressed. Workers, especially young ones, miss entry-level opportunities, exacerbating economic inequality. Tourists encounter subpar services, denting the area's international appeal, built on assets like Cambridge's heritage.

Non-obvious tensions emerge in balancing priorities. Green skills for sustainability—reducing waste and energy use—clash with immediate operational needs amid rising costs. Digital competencies, like AI tools and cybersecurity, demand investment, but small enterprises hesitate due to funding risks. Immigration policies create friction: calls to add chefs to the Shortage Occupation List conflict with domestic training pushes. Surprisingly, cross-sector links offer upside—pairing tourism with agri-tech or life sciences via LSIP could foster hybrid skills, but bureaucratic hurdles slow progress. Deadlines loom: LSIP updates due mid-2026, with consequences like productivity dips (0.6% fall in Q4 2025) if ignored.