With U.S. immigration and visas in the news, some hoteliers are expressing concern about their sources of labor.
One facet of the U.S. hotel industry's labor picture involves H-2B visas for seasonal workers. Hoteliers say they represent a solution that can be complex yet often productive — and sometimes with no alternative.
The H-2B visa is a nonimmigrant visa that allows foreign nationals to enter the U.S. temporarily and engage in nonagricultural employment. The visa is for temporary work that is seasonal and intermittent; and it is targeted at a peak load need or a one-time occurrence.
Although the program remains in place under the Trump administration, there are concerns that workers might be hesitant to come to the U.S. at this time. Merrick Dresnin, chief people services officer for Cote Hospitality, said the company’s H-2B workers come from places such as Mexico, Jamaica, South Africa, Romania and Barbados, “bringing valuable skills and diverse perspectives,” he added.
“We understand that some workers may be nervous about traveling, especially with what they’re hearing about the current climate in the U.S.,” Dresnin said. “Our sponsor partners advise them to download photos of their important documents onto their phones, ensuring they are ready to present them if questioned at any time.”
Stacy Hiller, senior director of talent acquisition and engagement at Xanterra Travel Collection, which operates a number of national parks lodges, said the company is “very reliant” on seasonal workers, who make up a significant part of the lodges’ workforce. However, H-2B visas are only leveraged at The Grand Hotel at the Grand Canyon while Xanterra prefers to use other visa programs elsewhere that are more reliable for staffing.
Outside observers agree that there are potential issues with the visas. The hospitality industry has been regularly lobbying for a clearer immigration policy, said Nicolas Graf, associate dean of the Tisch Center of Hospitality at New York University. The pathway to citizenship is unclear, he said, and those with H-2B visas are worried about how to behave.
Bjorn Hanson, adjunct professor at the Tisch Center, said there is a continuum of employers who use H-2B visa workers. There are those who:
- Require documentation and confirm the documentation.
- Require documentation, but accept what is provided because they do not have the expertise to confirm the documentation.
- Require documentation, but do not confirm what is provided and accept even questionable documentation.
- Employ workers without documentation because of the unmet need for employees.
- Those who employ workers without documentation to save on payroll and benefits.
Some employers are moving ”down the continuum, because of difficulty finding employees,” Hanson said.
Are the visas useful?
Jay Landfair, a principal with consultancy Omnia Hospitality, said his role for many years has been to ensure that hotel companies acquired their needed J1 and H-2B workers each year. He said these employees did not work directly for him but for hotels in which he placed them. The J1 visa is for foreign citizens who want to participate in an exchange program in the U.S.
Hotels that need H-2B workers typically face staffing shortages that result in putting rooms out of service at some point in their peak season, Landfair said. As of early spring this year, there is one hotel near the Grand Canyon that had 35% of its room inventory out of service — rooms it could have been selling every night during spring break season in Arizona.
The seasonality of the market makes it infeasible to hire enough full-time employees for the summer because the property later has to reduce its staff in the slow months, Landfair said. Seasonal workers are crucial to keeping businesses operating at full capacity in peak seasons.
Ideally, companies are able to rehire former workers from a previous season even though they had returned to their home country, Landfair said. In some cases, H-2B workers that are in-country are able to extend their visa to another hiring company with a different seasonality. For example, in Vermont, a resort’s season could end in March or April, then destinations such as water parks in Wisconsin would have a need for those workers, so they are able to go through the legal process of extending their visas to a new hiring entity.
H-2B visas are a key part of Cote Hospitality’s staffing strategy, Dresnin said.
“They help us bring in skilled workers from around the world,” he said, “filling important roles in culinary, housekeeping, front desk and restaurant operations.”
At Grand View Lodge in Nisswa, Minnesota, the company brings in about 30 H-2B workers each year, and they’ve proven to be a valuable asset.
“While we prioritize domestic hiring, our remote locations mean international recruitment is essential to meet peak demand,” Dresnin said.
Tanque Verde Ranch in Tucson operates on a different rhythm, with domestic seasonal workers needed during the winter months to keep up with the busier season, he said.
The H-2B program has helped Xanterra fulfill specific needs, Hiller said. However, the company has found other programs to be better suited to its business needs. The company plans to continue to leverage the J1 and summer work and travel programs with partner colleges and universities.
Satisfaction with workers
Hotel operators who use the H-2B program appear to be satisfied with the level of employees they recruit. Keeping in mind that the program is based on need and that it fills that need with workers who are willing and able to do the job, “they are usually very happy to have the opportunity to make America-level salaries and support their struggling families back home,” Landfair said.
In the end, the program works, he added.
“Is it a bit bulkier and more complicated than it needs to be? Absolutely. What part of the government is not bulkier and more complicated than it needs to be?” he said.
The U.S. Department of Labor and the Department of Homeland Security have scrutinized visa programs as a shortcut to immigrating legally. If H-2B workers disappear from their positions or fail to leave the U.S. when they are supposed to, they are put on a list and disallowed from ever legally returning to the U.S. The system works but it definitely could be better, Landfair said.
While there is a cost associated with H-2B visas, the return on investment is worth it, Dresnin said. When managed well with the right partners, “H-2B workers are motivated, hardworking and consistently exceed expectations. They come to the U.S. ready to work and make an impact, which is exactly what we need,” he said
Delaware North relies on the U.S. H-2B visa program to help fill positions at its hotels and resorts near national parks, said Scott Socha, group president for parks and resorts, travel and Australia.
“They are an important part of staffing our remote hospitality operations in hard-to-fill positions,” Socha said.
The hiring process for the upcoming summer season is going well and Delaware North continues to focus on its overall staff recruitment, Socha said.
Just as is the case every year, he said, “we anticipate millions of visitors to the national parks and are prepared to deliver exceptional hospitality.”
Finding alternatives
The U.S. hospitality industry would welcome alternatives to the visa program because “there is nothing easy or inexpensive about the H-2B program,” Landfair said.
As determined by the Department of Labor, the prevailing wage required to pay H-2B workers is always higher than what full- time workers in the same position are already earning, Landfair said.
“The legal process of getting these workers is lengthy, expensive and not guaranteed to work,” he added.
Hotel and resort operators are required to solicit American workers when there are jobs available, but “we just don't get any applicants,” Landfair said. Aside from hotels, H-2B workers are also needed at: water parks, golf courses, ski resorts, landscaping companies, restaurants, amusement parks and more.
Cote Hospitality is always looking for ways to grow talent internally, Dresnin said. The company’s focus is on mentorship, leadership development and recruitment from hospitality programs and local schools. While H-2B remains an important tool, “we’re committed to building a sustainable workforce that thrives both from within and outside,” he said.
Socha said Delaware North is not currently considering alternatives to H-2B visas, “but we have a robust recruitment program and are always seeking new sources for staffing.”
Xanterra’s main goal is to fill its roles domestically, but when that is not possible, the company looks at supplemental programs like the Bridge Summer Work Travel Program and international internships, Hiller said.
What’s next?
A perhaps unreported effect of U.S. visa programs is how they factor in to business and development planning for the future — including models that are less employee-intensive and technology applications including artificial intelligence that might ease labor shortages, Hanson said.
“I think there is getting to be a better understanding of the H-2B program,” Landfair added, but opponents claim that the program is “taking jobs away from Americans.” This could not be further from the truth, he said, as these jobs are openly offered to American citizens first as a requirement of the Department of Labor.
Landfair also doesn’t understand why there is a cap on the number of H-2B visas allowed each season of each year. This means every company applying for these visas is competing for relatively few available visas. In a recent year, there were applications for several hundred thousand visas and many hotels did not get the much-needed workers.
Congress has approved a cap of 66,000 H-2B visas for each fiscal year, and the cap is split into 33,000 for each half of the year.
“Raising the cap based on need would make much more sense, and it would strengthen the economy because these seasonal businesses could thrive to meet the demands of the market,” he said.