Impact of Hospitality Industry on Global Economic Development

This report provides an analysis of the hospitality industry's economic impact and growth. It highlights the industry's contribution to global GDP, employment generation at local, national, and international levels, and the role of international hotel chains like Marriott and Hilton. The report also discusses the importance of both operational and functional departments within organizations, using Radisson Blu as an example. Furthermore, it examines how global expansion through franchising and licensing contributes to economic growth and improves the standard of living. The interrelationships between operational and functional units are explored, along with a broader overview of the contemporary hospitality industry.

Contemporary Hospitality Industry
Now a day hospitality industry is growing very fast which is beneficial for both industry as
well as country. This is so because through it company able to expand its business at
international level and country able to enhance its economy. Nearby 10 % is contributed by
respective industry in GDP of world economy. Along with this, hospitality industry also
generates employment for candidates at local, national and international level. There is
variety of huge hotel, which is operating its business at international level such as Marriott,
Hilton, Radisson Blu and so on. There are approx. 15 % employment is generated by
hospitality industry at worldwide level which help peoples in improving their lifestyle. This
will also help in increasing national income of the country in effective manner. It is possible
because of number of food chain business opening such as Burger King, KFC, McDonald
and many more.
In every organization both operational and functional departments are necessary because they
conduct their work in effective manner which leads to attainment of target and profitability.
Along with this both the departments are interrelated with each other so that they accomplish
work effectively. For example, in Radisson Blu event is going to organized so in this case both
the departments conduct planning and conducting work in effective way through which they
able to attain their goal as well as objective properly.
Contribution of hospitality industry Interrelationships of operational and functional units
Global growth, franchising and licensing contribution in economy growth
When a company its business at international or national level they able to increase its
profitability ratio as well as they also able to expand economy of country by improving standard
of living of population. An organization can expand its business through various methods such
as franchising, licensing and so on. Through these methods company able to generate
employment which leads to enhancement in economy of country in effective manner.