Contribution of Tourism, Hospitality, and Events Sectors to the UK Economy

This report discusses the contribution of the tourism, hospitality, and events sectors to the UK economy. It explores the importance of hotels, advantages and disadvantages of the hospitality industry, and the overall impact on employment, GDP, and economic stability. The report highlights the significant role these sectors play in the country's economy and emphasizes the need for proper market research and government monitoring.

DISCUSS HOW TOURISM,
HOSPITALITY OR EVENTS
SECTORS CONTRIBUTE
TOWARDS THE UK
ECONOMY

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY..................................................................................................................................3
Importance of Hotels.......................................................................................................................3
Advantages of the hospitality industry sector-.................................................................................4
Disadvantages- ................................................................................................................................4
Contribution to UK’s economy........................................................................................................5
CONCLUSION....................................................................................................................................6

INTRODUCTION
Hospitality industry has changed periodically and is rising at rapid level across the globe.
This sector provides a huge contribution to country’s economy and stability which results in higher
growth as well as development. Crowne Plaza, a multinational chain of hotel headquartered in UK.
IHS are their parent organisation of the firm & are expanding the business at rapid scale. Firm
provides ample numbers of services and goods to its customers targeting low, middle and premium
customers. This strategy of targeting all the end users has leads to more profitability and increased
the goodwill of hotel at wider level. This report includes how the hospitality industry contributes to
UK economy. Crowne Plaza hotel has many competitors such as Hyatt Corporation, Coast Hotels &
Resorts etc. With rise in competition, service industry is also expanding.
MAIN BODY
In business sector, service industry stimulates market to grow at faster rate. In relation with
Crowne Plaza, they are well established hotels in UK and because of their goodwill they are able to
acquire the resources and market in effective manner. It has been founded that this industry sector
gives a boost to the development of market & business. Other than this, rate of unemployment is
getting reduced with more establishment of hotel in country. Hence it gives opportunity to others for
being employed. Crowne Plaza is well known hotel for its services and hospitality (Jones, 2016).
Importance of Hotels
In this dynamic world of business, hotels play important role in market because they are the
source through which people get accommodation amenities, meetings, entertainment, resorts and
spa etc. In relevance with Crowne Plaza, they provide all the facilities which satisfy the customer at
wider level.
Further, they assist in using resources of country in proper manner and which results in
delivering of goods as well as services in appropriate manner. Through this, waste management is
also maintained and managed properly (Jones, 2016).
In UK, hotels are spreading and providing jobs to ample numbers of people and which
results in improvement in country’s economy as well as trade. This is because goods and services
are also being traded in different countries.
Also, it gives other business to merge up with hotels to expand their hospitality business at
wider scale. This makes it bigger and gives chance to other organisation to join partner with such
sectors.
After overview of above paragraph, it is analysed that without service industry, it is not

possible for country to grow as well as develop effectively. Further, hospitality industry needs to be
responsible towards the customers so that everything is done in proper manner.
Advantages of the hospitality industry sector-
This industry provides accommodation services to customers and clients 24 hours a day.
This makes relationship between customers and firm. In relation with Crowne Plaza, they are
available at any time and provide effective amenities to customers.
Moreover, they provide employment to the people in country and helps them to grow and
develop in proper manner. With rise in employment, economy of country rises too and which reluats
in higher growth. Thus, main benefit of this sector is that it provides jobs to ample numbers of
people.
Further, weddings, events, launch events, promotion and advertising is also done via hotel
industry. Besides this, in such events it gives chance to meet with rich celebrities, entrepreneur etc.
Hence, other than goods and services such type of amenities is also provided by hotels.
Besides this, they also deliver all type of services to its clients so that expectations of
customers are fulfilled in appropriate manner. Through this, industry is also able to increase their
network chain at wider scale (Dogru, 2019).
Disadvantages-
As this sector is growing faster and rapidly, availability of hotel is increasing and it makes
difficult for customers to select appropriate alternative. In relation with Crowne Plaza, they have
ample number of branches and with different prices which makes end users confuse and it took time
to choose the right one.
Further, in hospitality industry competition is tough and due to rivalries sometime it might
have negative impact on country’s economy. Also, excess use of resources are making environment
affected (Roblek, 2016).
Due to low wages and salaries rate of employment is converting into unemployment and
slowing down the growth of economy. This also creates a negative impact on society about the
industry. Yes, it is big and growing industry but it also has negative impact on society as well as
country.
After a brief analysis of above matter it is examined that hospitality industry is benefits as
well as affect the country. So, when going through this sector it is essential to conduct for a market

research so that issues do not arises in near future.
Setting up hospitality industry is not easy and requires huge capital, thus when new business
or firm wish to start the business it took time and effort for establishment.
Contribution to UK’s economy
In UK, business sector is growing rapidly and making country’s economy more stable and
developed. In the country, mixed economy is being followed by everyone in proper manner. With
growing rate of hospitality industry, employment and market is developing though contribution of
hospitality industry. Further, new products & services are being introduced by this sector which
makes customers satisfaction scale high and enhance the goodwill of country as well as firm.
(Birinci, 2018).
This growing industry is providing 3.2 million jobs in the country and still rising. Moreover,
it contributes to UK economy with 57 billion euro of UK GDP. This equals the 4 per cent of Total
GDP. Also around 9 % of the workforce is in hospitality industry and giving opportunities to expand
further. Hence, it can be considered that this sector is the reason for growing stable economy of UK.
GVA of economy has also increased up to 5 % by establishment of hospitality industry.
Also, this gives opportunity to implement and develop more industries in related sector so that
manpower is used in efficient manner. In relation with Crowne Plaza, it has many branches all over
the UK and which significantly provide contribution with good numbers. Moreover, through this
industry relationship with people as well as other countries also developed and mutual relationship
takes place (Bica, 2019).
After a brief analysis of above matter it is stated that establishment of hospitality industry in
UK has contributed at larger scale as compared to other industries and business. Thus, it is
important to analyse that importance and more leverage need to be given to the business by country
which provides benefits to the economy and people. With changing time and perception of
customers, business also changing accordingly which is making is making it difficult for hospitality
industry to operate their business activities and functions in proper manner.

CONCLUSION
After a brief analysis of above report, it is concluded that business is the sources through
which country’s economy get improved and enhanced. In this essay, importance, advantages,
disadvantages, analysis of contribution to hospitality industry in country economy is specified. With
proper market research and high level of skills as well as knowledge is used in the present report.
With rise in competition and entry of new businesses contribution are enhancing more and more
which results in growth & overall development of country. UK’s economy is mixed economy which
allows every business to run the functions as well as operations in appropriate manner. It is also
responsibility of the government to track and monitor the percentage of contribution given by
hospitality industry so that decision making regarding such sector is taken accordingly.

REFERENCES
Books & Journal:
Jones, 2016. Sustainability in the hospitality industry.International Journal of Contemporary
Hospitality Management,28(1), pp.36-67.
Dogru, 2019. Employee earnings growth in the leisure and hospitality industry.Tourism
Management,74, pp.1-11.
Roblek, 2016. Complexity of a sharing economy for tourism and hospitality. InFaculty of Tourism
and Hospitality Management in Opatija. Biennial International Congress. Tourism &
Hospitality Industry(p. 374). University of Rijeka, Faculty of Tourism & Hospitality
Management.
Bica, 2019. Contributions towards the adoption of circular economy in the hospitality industry:
consumer awareness and preferences. In4th Regional Helix Conference(pp. 86-93). Instituto
Politécnico do Porto, Escola Superior de Tecnologia e Gestão.
Birinci, 2018. Comparing customer perceptions of hotel and peer-to-peer accommodation
advantages and disadvantages.International Journal of Contemporary Hospitality
Management.
Martin-Rios, 2019. Hospitality innovation strategies: An analysis of success factors and
challenges.Tourism Management, 70, pp.218-229.
Nikolskaya, 2020. formulation of development strategy for tourism and hospitality
industry.International Journal of Management (IJM),11(3).
Sun, 2018. Effects of franchising on industry competition: The moderating role of the hospitality
industry.International Journal of Hospitality Management,68, pp.80-88.
Rosamond, 2019. Brexit and the politics of UK growth models.New political economy,24(3),
pp.408-421.
Smith, 2019. Service industries in the rural economy: The role and potential contributions.
InEconomic Adaptation(pp. 105-126). Routledge.
Dhingra, 2016. The consequences of Brexit for UK trade and living standards.
Reddaway, 2016. Problems and Prospects for the UK Economy.Economic Record,59(3), pp.220-
231.
Tyler, 2017. Financial Services: contribution to the UK economy.Economic Policy and Statistics
Section, House of Commons Library, Briefing Paper, (619331).

Kirby, S., Barrell, R. and Foley-Fisher, N., 2010. Prospects for the UK economy.National Institute
Economic Review,212(1), pp.108-131.