Hospitality Sector Issues - PDF
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Added on 2020-05-11
Hospitality Sector Issues - PDF
Added on 2020-05-11
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Running head: ISSUES IN AUSTRALIAN HOSPITALITY SECTOR1Issues in Australian Hospitality SectorNameInstitutional Affiliation
ISSUES IN AUSTRALIAN HOSPITALITY SECTOR2Issues in Australian Hospitality SectorThe Australian Hospitality sector is made up of over 4,500 guesthouses, motels, andhotels. In addition to this, there are over 220, 000 rooms in serviced apartments minus thepremises with under 14 rooms. Many of the properties are not so large and make up for most ofAustralia’s unbranded business. Most industries are susceptible to different factors and thehospitality industry faces many issues in Australia. From the changes in technology to thedynamics in the government, all these elements bring about a variety of impacts on the sector.Apart from this, demographic and economic conditions heavily affect the hospitality sector inmany ways. According to Hsu (2015), the hospitality sector saw great improvements in 2016 becausejobs were added to the entire world including Australia. According to an analysis by Ramphal(2016), 2017 is projected to be a good year for the hospitality industry because the jobs createdwill improve the industry. However, there are many things which have brought about majorissues to the Australian hospitality sector in the last three years. Innovation in terms oftechnology, political and legal issues, social and cultural factors, economic conditions anddemographics. In a study conducted by Legrand, Sloan and Chen (2016), many emergingchanges in the industry’s environment have been observed in the past 2 years and there is aprojection that the current changes will affect the hospitality sector in the years to come. Political and legal issues are the major factors which have impacted the Australianhospitality industry. From the changes in the regimes of governments to terrorism threats, theindustry is often the faced by the issues directly. Political stability is very important for thehospitality industry. What is critical is that tourism as the major role of the Australian hospitalitysector flourishes in an environment which is peaceful (Ingram Tabari & Watthanakhomprathip,
ISSUES IN AUSTRALIAN HOSPITALITY SECTOR32013). Therefore meaning that it cannot survive in an environment which is full of terror andconflict. Political issues are very important in ensuring that a significant influence is made on theprofits and revenue in the future of an organization. Even one terrorist act can bring about thereduction of tourists for a long period of time.Many sociocultural issues influence hospitality in terms of tourist behaviour and theentire tourism business. The factors in this element include education level, income, gender, age,culture, religion, social class and customs. In the hospitality sector, all these factors have a majoreffect to both the tourist destination and the source of the market (Ozturk et al., 2015). Marketersof tourism should have a clear understanding of the many different impacts this single factor canhave on the hospitality industry so that they can have the ability to have an effective managementof the issues when it comes to the interaction between the hosts and the guests. Customs aremainly seen in terms of lifestyle and the traditions of one’s culture. Culture affects hospitalitydirectly because in its own sense, tourism entails travels in cross-cultural scenarios. Legal issues are seen where the tourism industry is complicated due to the fact that publicand labor security are a major concern. Away from this, other laws are present to bring about aninfluence to the sector regardless of the fact that the major concerns are the labor laws and thepublic safety. Tourism brands should always have a focus on risk management because of there abig challenges in the laws governing the tourism environment. To prevent issues, the training ofstaff is very important. Economic conditions are also the major issues behind the increasing demand in theAustralian hospitality sector in 2016. The labor market has seen continuous growth in theconsumer spending and in addition to this, there has been a continuous rise in the labor market aswell as the spending by the consumers. Apart from this, another economic factor is the rise of
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