The role of hospitality in a global economy
The benefits tourism and hospitality will have on a nation’s economy are endless. The most obvious factor is the employment created as a result of hotels, airlines, travel agencies, and more. One in ten jobs around the world are in tourism.
Foreign investment also increases when a country is on the rise as a tourist destination. Many of its industries will see a boom and much of this interest will come from abroad. India and the UAE are examples of this.
Challenges impacting the hospitality sector
Rising costs – though foreign travel is becoming popular, costs are also rising and this is something organisations across the sector are becoming aware of.
Natural disasters – tragic events are out of our hands, however, they often have a long-lasting impact on a region and can mean tourists stay away for large periods of time.
Changing customer expectations – as competition increases among hotels, restaurants etc. customers expect more and more and this is something business owners must cater to effectively.
Opportunities for the sector
Developing nations – the tourism sector is able to give hope to many developing states and has the power to lift them out of poverty.
Multiplier effect – when one sector booms in a local town, so do others. For example, if a tourist destination is popular, hotels and restaurants nearby will be required. This creates an opportunity for other businesses.
Greater technology – a fast-moving sector such as this should focus on new technologies to create the best experience possible for customers.
Countries that rely on tourism
There are many places around the world that rely on tourism. The majority are islands in the Caribbean and other places such as the Seychelles or Maldives.
Tourism is a sector easily accessible to disadvantaged peoples around the world as it’s made up of lower-skilled jobs.
As we have seen, the hospitality sector has a ripple effect which means plenty of industries benefit from its success, further raising the income of less developed nations.
If this has inspired you to join this lucrative industry, take a look at TSoM’s Diploma in Hospitality and Tourism Management.