Oct. 13–A booming economy and growing tourism industry have left St. Augustine in an enviable position but also with a labor shortage in the hospitality industry.
The businesses that serve the estimated 6 million tourists who visit St. Johns County every year are having trouble finding and keeping workers. There is no scarcity of jobs as the county's unemployment has hovered around 3 percent recently. And even the state as a whole is seeing nearly full employment with a jobless rate of 3.7 percent in August.
Despite the disruption of hurricanes each of the last few years, tourism continues to grow statewide with an estimated 65.5 million visitors in the first half of 2018 — a record pace.
That means competition for labor is fierce in nearly every market in the state.
On top of that, workers in many fields are having trouble finding housing they can afford in this county, where home prices are steadily increasing. And home prices here are already the highest in Northeast Florida.
"I think we're all concerned about the lack of employees," said Patti McRoberts, general manager for TRYP by Wyndham Sebastian Hotel on U.S. 1. "I think it's definitely going to get worse.
"The housing market&##39;s not going to get any better in the next three to five years — or maybe if it does it's going to be five years. We're all in for a challenge."
McRoberts was one of several local business leaders who spoke about hiring in the hospitality industry at a St. Johns County Chamber of Commerce event Friday in downtown St. Augustine.
St. Johns County's popularity seems to be growing equally with visitors and residents, and while it creates opportunities for business, it also puts a lot of pressure on managers to hire quality workers.
"The economy is doing so well right now that people have more options," said Brian Funk, owner of 44 Spanish Street Inn. "In the last two years, we've really had to start pushing wages up higher, which is a great thing but also can pose a challenge."
A business that doesn't offer competitive wages is likely to find itself without employees in this environment.
"Anybody can walk in and walk out and go from job to job to job, especially in the restaurant business," said Cindy Stavely, executive director for the Colonial Quarter and St. Augustine Pirate & Treasure Museum.
"There are so many new restaurants now, too, that the competition for good, especially back of the house workers, in the restaurant field is pretty big."
The Colonial Quarter has three restaurants and along with the Pirate Museum has about 120 employees. Stavely said it's easier to hire and retain tour guides and those kinds of positions than line cooks and dishwashers.
One of the keys for keeping employees, she said, is to create a better work environment than the competition. Stavely said every hospitality business is challenged by turnover, but the Colonial Quarter bears it better than other places because of the "good working culture."
"To not have to deal with the turnover, you have to do that, you have to create a great work environment and hold people accountable," Stavely said.
Richard Goldman, president and CEO of the county visitors and convention bureau, said what St. Johns County is facing is exactly what other tourist destinations are facing. In fact, he said St. Augustine is in better shape because it is a "mature market" that appeals to hospitality professionals.
But with several new hotels planned for St. Augustine, the need for workers will only increase. Competition and lack of affordable housing are definitely putting a strain on businesses here just like the rest of the state.
As an anecdote, Goldman said he recently took a trip to South Florida and noticed three different companies transporting workers between Miami-Dade and Monroe County. He said it just illustrates how tough it is staff businesses in tourist-friendly locations.
"Some folks are saying we are looking at three to five years to a crisis in staffing (statewide) driven by a lack of affordable housing, especially in the more urban and successful high cost-of-living markets," Goldman said. "It's something we need to be mindful of."
