Hospitality Industry: Size, Scope, and Impact on Economy

This report provides an overview of the hospitality industry, including its size, scope, and impact on the economy. It discusses the different sectors within the industry, the range of products and services they provide, and the positive and negative effects on the environment. The report also offers recommendations for sustainable growth and development in the industry.

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................3
Findings...........................................................................................................................................4
Scale of industry..............................................................................................................................4
Size of industry:...........................................................................................................................4
Value of industry..........................................................................................................................4
Number of people employed........................................................................................................4
Scope and diversity of industry.......................................................................................................5
Different sectors of industry........................................................................................................5
Range of products they provide...................................................................................................6
Industry structure.........................................................................................................................6
Positive and negative impact of chosen industry.............................................................................7
Recommendations............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................10

INTRODUCTION
Background of study
In the current world, visitor economy is considered as crucial part of overall economy of
a country as it gives significant contribution in enhancing GDP and growth rate of a nation. In
visitor economy, there should be higher quality of experiences need to provide to visitors in
order to convert them in frequent tourist (Dube, Nhamo and Chikodzi, 2020). Visitor economy
includes tourism, travel and a wide range of products and services to both staying as well non-
staying guest. In addition, it also comprises business events, hotels, restaurants and other services
which are meant to provide better experiences to individuals. The report includes size, scope of
respective industry along with the positive as well as negative aspects of industry.
Background of industry
In the current report, hospitality industry is taken into consideration that significantly
contributes in overall economic growth of a country. It includes different kind of business such
as hotel, restaurants and more. Main aim of hospitality industry is to provide better experience to
customers by meeting with their needs and requirements in an efficient manner. Major services
which fall under hospitality industry are food & beverages, lodging, recreation, travel & tourism.
Hospitality industry is considered as one the major employer in UK as it gives significant
contribution in generating new employment opportunities. It is stated that hospitality sector
contributed generated £ 72 billion in overall economy of country. So, hospitality industry of UK
is growing rapidly that is helpful in generating growth opportunities for betterment of country.
Aim: “To acknowledge the detailed concept of hospitality industry in terms of size, scope,
different sector and positive as well as negative impacts of industry over economy”.
Objectives:
 To identify size of hospitality industry along with its value and contribution in GDP of
country.
 To ascertain different sectors of hospitality industry and range of product & services they
offer to customers.

 To evaluate positive as well as negative impact of hospitality industry.
Findings
Scale of industry
Size of industry:
It is analyzed that size of hospitality industry is enlarging day by day due to increasing
number of customers. The overall industry has value of nearly $ 570 billion at global level with
nearly 7,00,000 hotels & resorts. In addition, there is nearly 16.4 million hotel room worldwide
in order to meet with requirements of customers in an efficient manner. In addition, hospitality
sector in UK represents a broad category covering ample of services such as hotel, restaurants,
bars, coffee shops and more. There are a lot of luxurious and five start hotels are present within
country. It is analyzed that this sector gives significant contribution in generation of employment
in nation. It gave significant contribution in economic growth by employing 2.9 million people
and generating revenue of £ 130 billion through economic activities within country (Pirani and
Arafat, 2016).
Value of industry
In hospitality industry, there are a lot of services are offered to people to meet with their
needs and requirements in an efficient manner. There are different sectors such as hotels, food
and beverages, lodging and more are included in hospitality industry. In addition, this sector is
helpful in providing better experience to visitor. If, passengers visit to country and stay for
particular period of time, it is the responsibility of hospitality industry to provide better
experiences to visitors. In addition, tourism as well as hospitality sector have strong association
with each other. Tourists are more likely to stay with country for longer duration thus hospitality
sector needs to arrange necessary services to generate higher level of satisfaction. It is sated that
hospitality sector of UK is able to generate higher turnover. In 2018, it has generated turnover of
nearly 20.7 billion pounds. In addition, rate of turnover significantly rise from 72.5 to 74.9 from
2017 to 2018 that depicts the growth of industry. Further, hospitality industry within UK
produces 4 % of overall GDP of country. It also gives significant contribution in overall value

and GDO of nation by generating a lot of employment opportunities within country (Leung, Wen
and Jiang, 2018).
Number of people employed
It is stated that hospitality industry is one of the major employer in UK. It is considered as 3rd
largest employer within nation. There are different sectors such as hotel, food & beverages,
lodging and more included within industry. Each and every sector has a lot of employment
opportunities so that people can meet with their basic needs & requirements. It is analyzed that
hospitality industry also plays a significant role in overall economic development by generating
ample of job opportunities. A particular group of people of country are completely depends over
hospitality sector to earn their livelihood. As per survey, one in every twelve people of work
force of UK is employed in hospitality industry. It is analyzed that nearly 2,302,000 people are
employed in respective sector the number of employed people within industry is increasing
rapidly. So, 9.3 % of total UK employment is com from hospitality industry. Therefore, country
is considered as one of the largest employer as a lot people of UK are working within the
industry (Ram, 2018).
Scope and diversity of industry
Different sectors of industry
There are different sectors are included within industry which give significant
contribution in overall growth and success of industry. Here, the major sectors which are
included within hospitality sector are given as under:
Food & beverages: It is considered as one of the largest segment of industry that provides all the
food and beverages related facilities to visitors. It comprises preparation of meals, beverages,
snacks for immediate consumption of customers. Here, restaurants can be a part of hotel services
and can be operate individually to meet with different need and requirements of customers
(Filimonau and Naumova, 2020).
Travel and tourism: This sector deals with movement of people from one place to
another. While, customers visit from one place to another, it is the responsibility of tour & travel

industry to provide necessary buses, cars and cabs facilities. Main aim of this sector is to
encourage more and more people to travel and provide the m better travelling experiences.
Lodging: It is regarded as a facility to stay at a particular place for one or more nights.
There are a lot of hotel that provide this facility to travelers. There are different charges as well
as facilities available as per the time period of stay.
Recreation: It is related to entertainment which is often done for fun, relaxation as well as
enjoyment. Main aim of recreation is to relax the mind of customers and provide them a lot of
activities to enjoy. For this purpose, there are several resorts, theaters; museums have been
started so that people can relax their body as well as mind (Pirani and Arafat, 2016).
Range of products they provide
Food and beverage sector: There is range of products such as meals, snacks, cuisines,
beverages are provided by food sector. In UK, food and beverage sector offers different verities
such as dairy products, meat, seafood and more to meet with requirements of visitor in an
efficient manner.
Travel and Tourism: It is considered as one of the crucial part of hospitality industry that
provides facilities of cabs, buses to travelers so that they can easily travel from one place to
another. Sometimes, tour and travel operators also arrange accommodation facilities for tourist.
Lodging: In this, different services such as room service, food and beverage, WI- Fi
facility, and all the essentials which are required for an individual to stay at a place are provided
by hotels. In addition, they also ensure higher comfort as well as satisfaction of guest (Ling, Liu
and Wu, 2017).
Recreation: There are a lot of services such as horse riding, diving, fishing, hiking and
more are provided by recreation sector of country. These services are offered by resorts, sports
organization to give time of relaxation to visitors.
Industry structure:
In hospitality industry, different sectors are included such as hotels, restaurants, resorts
and more. Hotels are crucial aspect of hospitality industry of UK due to presence of several

luxurious and five star hotels to fulfill different kind of choices of customers. Most of the hotels
are owned by single owners who initiate business with an aim to earn higher profit margin.
Further, there are a lot of international hotels in UK such as Hilton, intercontinental hotel group.
In this regards, Premier Inn is the biggest hotel brand within UK that is owned by British
hospitality group named as Whitbread. It is considered as one of the leading hotel chain within
nation. On other side, restaurants also considered as crucial part of hospitality industry which
provides food & beverage facilities to customers. There are a lot of coffee shops, restaurants
present within UK. Most of them are owned by single business owners. Here, some restaurants
also owned by large groups. Some, renowned restaurants are owned by ample of investor who
are liable to take all relevant decisions. Therefore, majority of the hotels, restaurants, recreation
centers are owned single business owners within country.
Positive and negative impact of chosen industry
Positive impact:’
 Hospitality industry is considered as a great source of employment as there are a lot of
sectors such as hotels, food & beverage and more where people can work and earn their
livelihood. In addition, hospitality industry of UK is regarded as 4th largest employment
generating sector within nation.
It is stated that hospitality industry also plays a crucial role in growth and development of
economy by promoting tourism within country. It will help to generate new source of income for
nation that will help in enhancement of overall GDP of country. So, the industry significantly
contributes in economic growth and development (Joo-Ee, 2016)
 .
Negative impact
However, hospitality industry is crucial in terms of economic growth but it also put
negative impact on environment. Here, hospitality administration uses a lot of economical
resources for fulfillment of different activities within industry. In addition, enhancement in travel
& tourism also put negative impact over environment by enhancing pollution and other

environmental issues. In addition, waste generation is also higher in hospitality industry which
may create environmental misbalance within country.
Recommendations
 Hospitality industry needs to develop ample of employment opportunities for betterment
of society. Due to COVID 19 hospitality industry get adversely affected where several
people have lost their jobs. So, it is essential for administration to support their
employees in the hard time by giving them an opportunity to earn their livelihood.
 Further, it is analyzed that hospitality industry put negative impact over environment.
There is huge waste is generated from hotels, restaurants which is not good from
environmental prospective. So, there is requirement to maintain some predefined
guidelines that need to follow by all sector covered in the industry. There should be
norms related to waste management, environmental pollution which need to strictly
followed by hotels and restaurants in prescribed manner.
 With above discussion, it is stated that there is lower intervention of government in
hospitality industry of UK. Majority of hotels, restaurants are either owned by single
business owners or hotel group. Here, it is vital to enhance the intervention of
government authorities within hospitality industry for ensuring betterment of overall
society.

CONCLUSION
It is summarized that visitor economy includes a lot of industries to provide better
experiences to visitors. Main aim of this economy is to ensure positive as well as overwhelming
experiences to customers so that they visit to country again. In addition, hospitality industry is
regarded as crucial part of visitor and experience economy. Discussion has been carried out in
terms of size, scope, turnover of respective industry. It is concluded that there are a lot of people
are employers within the industry. Further, it puts positive as well as negative impact over
economy which need to examine in an efficient manner.

REFERNCES
Books and Journals
Dube, K., Nhamo, G. and Chikodzi, D., 2020. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism, pp.1-4.
Filimonau, V. and Naumova, E., 2020. The blockchain technology and the scope of its
application in hospitality operations. International Journal of Hospitality
Management, 87, p.102383.
Joo-Ee, G., 2016. Minimum wage and the hospitality industry in Malaysia: An analysis of
employee perceptions. Journal of Human Resources in Hospitality & Tourism, 15(1),
pp.29-44.
Leung, X.Y., Wen, H. and Jiang, L., 2018. What do hospitality undergraduates learn in different
countries? An international comparison of curriculum. Journal of Hospitality, Leisure,
Sport & Tourism Education, 22, pp.31-41.
Ling, Q., Liu, F. and Wu, X., 2017. Servant versus authentic leadership: Assessing effectiveness
in China’s hospitality industry. Cornell Hospitality Quarterly, 58(1), pp.53-68.
Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production, 132, pp.129-145.
Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production, 132, pp.129-145.
Ram, Y., 2018. Hostility or hospitality? A review on violence, bullying and sexual harassment in
the tourism and hospitality industry. Current Issues in Tourism, 21(7), pp.760-774.