A Comprehensive Report on the Hospitality Industry's Economic Impact

This report analyzes the economic impact of the hospitality industry, focusing on its contribution to local, national, and international economies. It highlights the industry's role in generating employment opportunities and driving economic growth, particularly in the UK. The report discusses how the hospitality sector, including fast-food chains, influences the economy through increased spending and market share expansion. It also examines how changes in customer demand affect the industry's structure and its overall positive and negative impacts on the economy. The report emphasizes the importance of customer satisfaction and its direct effect on local economies, encouraging further spending and improved experiences.

Contemporary Hospitality Industry
P3 The contribution of hospitality industry to local, national and
international economies
The major aim of every organisation in hospitality industry is to
increase its market share and to attract more and more customer's.
Changes in the working structure of hotel are made according to the
current situation and demand of potential customer's. The growth and
productivity of hospitality industry directly impacts the local,
international and regional economy. Its major positive and negative
impact are mentioned below-
Local economy- If the need and demand of customers are
satisfied than local economy will have a direct and positive impact. The
hospitality industry of UK aims at encouraging and convincing the
customers to spend more, so that their overall experience its increased.
The impact of this type of industry is very much high and positive on
local economy (Henrichs and et. al., 2010).
International economy- There are many organisations which are offering its
business in various parts of the world. The travellers and visitors of UK has
directly resulted in 10 percent growth at the national and international level. This is
also lead to increase in employment opportunities and living standard of
individuals. This industry has also led positive impact at the international level.
National level- Hospitality industry is the third largest growing industry at
the national level. This industry is able to provide various kinds of employment
opportunities to the individuals of UK. As per the report approximately 3 million
job opportunities are offered by the hospitality industry of UK. Due to this
economy of UK is growing at the rapid stage.
With the increase in growth and demand of hospitality industry many food chain
companies’ such as Mc Donald's, Pizza Hut, etc. are continuously focusing on
establishing their outlets by using licensing and franchising facility. These fast food
chain organisations has also increased the chances of employment in various parts
of UK (Issa, Chang and Issa, 2010).