CHI Report: Analysis of the Hospitality Industry and Skills Shortage

This report provides a comprehensive analysis of the hospitality industry, focusing on its contributions to local, national, and international economies. It examines the positive and negative impacts, including job creation and foreign exchange earnings, while also addressing the skills shortage within the sector. The report delves into the impact of social and legislative factors, alongside a SWOT analysis of a hospitality business (Thistle Hotel Group), informing decision-making processes. Furthermore, it explores potential trends, such as leveraging technology and adopting green practices, providing specific examples like personalized services. The report highlights the importance of addressing skill gaps and adapting to evolving customer needs to ensure the industry's continued growth and success. The report also includes references to the sources used for research.

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Discussing the contribution of the hospitality industry to local, national and international
economies....................................................................................................................................1
P2 Examine the skills shortage in hospitality industry...............................................................1
P3 Analysing the impact of social and legislative factors that affect the developments of
organisations operating...............................................................................................................2
P4 SWOT analysis for a hospitality business and reviewing how it can inform the decisions
making process............................................................................................................................2
P5 Explaining the implications of potential trends with a range of specific example................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Hospitality sector is the largest sector who highly contributed in the national or international
economies. Present study based on the hospitality sector for that report will be taking Thistle
Hotel Group into action. Study will be covering the contribution of hospitality sector in different
range of styles and how much this sector required fresh and skilled talent.
MAIN BODY
P1 Discussing the contribution of the hospitality industry to local, national and international
economies.
Hospitality sector contribute both positive as well negative impact on the economy, society,
culture and overall environment (Borio, Disyatat and Juselius, 2016). Towards local economy it
plays the most significant role in the process of their development in terms of providing the job
opportunity. Such as in UK Thistle Hotel Group has provides several job opportunities for the
people who are passionate and creative to serve their skills and knowledge for the guests. On the
same side, hospitality industry also provides opportunity for small businesses to earn money
from travellers.
In relate to national economy hospitality industry is highly contributed towards its. such as it
contributes to creates employment opportunity such as tour planners, hotel and travel consultant,
employee in restaurants and resorts etc. On the other hand, Hospitality industry also helps in to
boosts other local industries for instance in the agriculture and food production sector. In retail
industry and so on (de Correia, Lengler and Mohsin, 2019). The main contribution of this sector
is to generate foreign exchange earnings for the overall economic growth.
Contribution towards international economies of hospitality sector is increasing the rate of
GDP. Besides, it given both positive and negative contribution to the international economy such
as awareness of other historical places and make country more popular to enhance the tourism
rate.
P2 Examine the skills shortage in hospitality industry.
Human resource is the most crucial source for all kinds of industry or sector without
companies cannot move their businesses upwards. As per the present competitive world need of
new talent is most required in order to introduce new change in within the industry. Skill
shortage is the most common and serious concern in hospitality sector. As per the statistical data
UK will required to recruit approx. 843,000 staff by 2020, which is the most difficult task to be
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performed (Change needed to tackle hospitality skills shortage, 2014). In order to analyse the
situation due to highly diverse culture company facing shortage of skilled employees. UK
hospitality industry productivity growth is less than France and US due to which they facing skill
shortage and skill gaps for managers which is the major concern for the companies.
P3 Analysing the impact of social and legislative factors that affect the developments of
organisations operating
Political: political forces can affect the hospitality sector and their positioning in the
market due to changes in demographic decision, modification of interest rates etc.
Economic: the nature of the competition that hospitality sector faced can affect the company
financial department and also affect the company activities (Mbaiwa, 2017).
Social: social factors affect the hospitality industry due to change customer needs, trend in
the way people live, work and think.
Technological: This social impact has been directly affected the company function. This
factor affects in positive manner.
Legal: Legislative factors is most essential to follows such as hospitality companies should
adopt tourism hospitality policies and take serious concern towards government decision.
Otherwise it affects in most higher manner.
P4 SWOT analysis for a hospitality business and reviewing how it can inform the decisions
making process.
SWOT analysis
Strength: Thistle is one of the most known and leading chain situated in UK. This is the
advantage for the company to attract number of customers and make profitable decision-making
approach. The most positive quality of hotel is they given the best experience to their visitors
that help them to take decision of expansion because of having good reputation.
Weaknesses: Being as five-star hotel it is the threat for the company to compete with 7-
star hotel.
Opportunity: Thistle Hotel Group have opportunity to grow and open new hotels to other
countries as well. That helps to meet the customer satisfaction and long range of development.
Threat: Threat for Thistle Hotel Group is uncertain environment and policies imposed by
government.
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P5 Explaining the implications of potential trends with a range of specific example.
The potential trend in hospitality sector is leveraging technology to improve guest
experience, that helps to keep the business at the higher level (Subramanian, Gunasekaran and
Gao, 2016). Thistle Hotel Group also need to adopt the green practices to grab buyers interest
and reputation growth. Personalised services for travellers etc. these are the new trend that
company could adopt for more enhancement.
For example: some instant travellers fail to book the hotel which is the most common
concern. So that, Thistle Hotel Group can give this flexibility to them and take last minute
bookings to make them happy and satisfied.
CONCLUSION
As per the above report it has been discussed about the hospitality sector and also describes
what are the contribution that this industry given to national, international level. Study also
described the shortage of skill in hospitality sector. Assignment also explained the potential
trends with some range of examples.
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REFERENCES
Books & Journals
Borio, C., Disyatat, P. and Juselius, M., 2016. Rethinking potential output: Embedding
information about the financial cycle. Oxford Economic Papers. 69(3). pp.655-677.
de Correia, R. J., Lengler, J. and Mohsin, A., 2019. Entrepreneurial approaches to the
internationalisation of Portugal’s hotel industry. International Journal of Contemporary
Hospitality Management.
Mbaiwa, J. E., 2017. Poverty or riches: who benefits from the booming tourism industry in
Botswana?. Journal of Contemporary African Studies. 35(1). pp.93-112.
Subramanian, N., Gunasekaran, A. and Gao, Y., 2016. Innovative service satisfaction and
customer promotion behaviour in the Chinese budget hotel: an empirical
study. International Journal of Production Economics. 171. pp.201-210.
Online
Change needed to tackle hospitality skills shortage. 2014. [Online]. Available through :<
https://www.bighospitality.co.uk/Article/2014/07/11/Change-needed-to-tackle-hospitality-skills-
shortage >.
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