Contribution of Hospitality Industry to Local, National, and International Economies

nd Functional unit
Contemporary Hospitality Industry
Hospitality organisations are very important for economy because they provide different kind of
facilities or opportunities to local individuals so that they can take growth or sustainability in
marketplace. In current scenario, Hospitality industry can be considered as one of the fastest growing
sector because it not only builds wealth of nation but also provide job employment opportunities to
the large number of individuals which automatically defines positive impact of hospitality industry at
local, national or international economy. Detailed description of positive impact on several kind of
economies are given as below:
Local economy: Hospitality organisations operates their business operations at each level.
Hospitality firms provides several job opportunities to local individuals in form of guides, artificial
crafts or designs etc. so that their living standard can be improved. Hospitality industry also satisfies
the needs and wants of travellers and local customers so that it can be said that this industry is
impacting positively on the local economy and its people.
National economy: Hospitality sector in United Kingdom is rapidly growing due to which it is
positively influencing on the national economy. Hospitality sector is also known as third largest
sector in terms of employment provider across the UK. As a result of it, this industry is not only
providing job opportunities throughout the UK nation but also providing support in national
economy in terms of providing tax duties. According to a report, around 37.9 million visitors have
visited UK in 2018 and an amount of 22.9 billion was spend by them for experiencing leisure
facilities during travel (Britain's visitor economy facts, 2018). Therefore, it can be said that this
industry is impacting positively on the national economy.
International economy: There are several multinational organisations are existing in UK which are
operating their business functions in several nations due to which they are contributing in growth and
development of global economy. According the report of Online statistical data, UK Hospitality
industry have surpassed the mark of £100b in 2018 that defines huge positive impact of this sector
on international economy
Key factors driving growth
Expansion of international hotel chains and brand identity: Entry of multinational hospitality
organisations provides growth at local or international because their brand image supports them in
attracting large number of customers. Multinational hospitality organisations having good brand
image among customers due to which most of the customers prefers to stay and take services in
these hotels. It impacts positively on local economy as employment opportunities are provided by
these firms to the local people. Growth of these organisations positively impacts on national and
international economies as it not only supports in wealth of nation but also increase attraction of
visitors from different nation towards offerings of these organisations.
The growth of franchising and licensing agreements: Franchising and licensing agreements are
becoming popular in nowadays within the hospitality industry because it requires low cost and
provide better results. Several multinational organisations are using these agreements as it helps
them in making good brand image in a new market area with a specific margin of profit. This will
automatically lead positive impacts on local and national economy as it provides employment
opportunities to the several individuals who are living in nation. Due to growth of hospitality
industry, several fast food chains like McDonald, Pizza-hut, Burger King etc. have used these
agreements for entering in market of UK.
The contribution of the hospitality industry