Report: Analysis of Legal and Legislative Risks in Hotel Industry

This report provides a detailed analysis of the legal and legislative risks inherent in the hotel industry. It explores critical areas such as data protection, referencing the Data Protection Act 2018 and GDPR, and emphasizes the importance of gaining customer trust through transparent data handlin...Read More

BUSINESS SKILLS

Table of Contents
INTRODUCTION.......................................................................................................................................3
Overview of the Industry.........................................................................................................................3
MAIN BODY..............................................................................................................................................3
Discussion of the importance..................................................................................................................3
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................6

INTRODUCTION
Overview of the Industry
Hotel industry is a part of Hospitality industry which is one of the most oldest and developed
industry in UK.
Legal risk refers to the losses that are bear by the company due to some regulatory or legal
actions. It can be in the form of financial loss or legal loss or reputational loss. This Report will highlight
the evaluation of legal legislative risk which can be face by the manager or employees of the hotel
industry.
MAIN BODY
Discussion of the importance
DATA PROTECTION
There are various kinds of data such as employees’ data, customers’ data, market data
and hotel data etc. These data help industry to work properly. Due to change in technologies and
working styles of the hotels, these data are getting leaked which lead companies and industry to
face a lot of losses. In order to prevent from these kinds of losses from industry, UK government
came up with an act which deals with the security and privacy of the data. This act is known as
Data Protection Act, 2018. Along with data protection act, Hotel industry follows one more
regulation which is known as General Data Protection Regulation (GDPR) (Adeyinka-Ojo,
2018). According to the data protection act and GDPR, it is the responsibility of hotels to make
aware of their customers regarding their rights given in the act and regulation. Industry has to use
the customers’ data transparency, fairly and legally with the accurate purpose. Industry and
companies must have to give training to their customers regarding the data privacy and tell them
in which conditions or activities, breach of the act can happen so that they can be aware of that
conditions or activities. It is considered to be crucial for the company because it helps hotels to
gain trust of the customers which is the most important factor of the success of the industry.
HEALTH AND SAFETY
For the running of the hotels successfully, Industry requires a lot of employees and guests
in order to get support from them so that industry can achieve their objectives. Thus, it is the
major responsibility of the industry to take care of their health and safety at the workplace
(hotels). Thus, for the proper take care, UK government has imposed Health & Safety at work
etc. act 1974. According to this act, Employers of the Hotels working under the hospitality

industry has to look upon the various aspects which are related to the employees. These aspects
are such as – Employers has to give training to the employees regarding the safety equipments
and their way of using style. Employers are the one who is responsible for the health and safety
of the employees but for that employees have to do work in a safety manner without risking
anyone. Employers of the hotels must provide their employees and guests an adequate lighting,
heating, water, washrooms, first aids and eating facilities. Also, employers must take care of the
working environment of the hotels so that it can’t impact the health of the employees and other
staffs of the organization. It is an important legal legislative act which must be implement by the
various industry and sectors’ companies in order to maintain the health and safety of the
employees who work for the organization in order to make the firm and industry successful
(Armstrong and Matters, 2016).
FOOD HYGIENE
A food and beverage service is an important part of the hospitality industry. There are
various units working under this industry earn so much profits by serving varieties of food and
drinks to their customers without providing accommodation services. A few years ago, some
hospitality companies started providing low quality food and drinks to their customers at low
price which lead them to earn so much profitability but due to low quality, it started hamper the
health of the customers which lead government to do frame one more policy for hospitality
industry and that policy impose as a regulation which is known as The Food Hygiene
Regulations 2006. According to this regulation, all the hospitality units must have to carry their
food related activities in a hygienic way and prevent customers from any kind of unhygienic
food which can be harmful for the health of the human. This regulation also gives guidelines
regarding the premises of the place where food is served. The premises should be clean, safe,
good designed and have proper drinking, heating and hand wash facilities (Augustine and et.al.,
2017). Also, it states that chefs of the hotel must be in proper and clean uniform, their nails, hair
and hands must be clean. Their gloves must be change time to time.
RISK MANAGEMENT
There are various risks involves in the hospitality industry. These risks are highly
dangerous for the companies, their managers and employees. Thus, for the smoothly running of
the business, Companies are required to managing the risks under the industry. There are various
major risks mentioning below. Along with that, how can a company manages those risks are also
mentioning below.
Property Risk – Due to expansion of business into other countries, large size of the hospitality
units has to face property risk. There are various detonation sources in hotels. In order to prevent
from such risks, company must install fire alarm system in their business for the purpose of
management of such risk.

Premises Risk – Due to a lot of environmental factors or long time period factor, Company has to
face premise related risk which involves damage or tearing of the premises etc. Due to usage of
the rooms by so many guests, some room aspects such as door lock, taps, lights or bulb, Air
conditioning and fans etc, can also be damage. In order to prevent and management of such risks,
Company must repair the premises and its related aspects immediately. Also, company should
give housekeeper the responsibilities to look upon such things (Sin and Poluan, 2018).
For the risk management, Hospitality industry can hire risk management team This team
can look upon the insurance facilities provided by the insurance companies working under the
United Kingdom for the hotel and its related aspects such as – Property coverage, construction
all risk, surety facilities, workers’ compensation and environmental liability etc.
Risk management is an important for the hospitality industry as it is directly related to the
human life too. Due to various external and internal factors, companies and guests has to face a
lot of issues. In order to reduce the issues, Hospitality industry is using risk management
technique which helps companies to deals with the risks without harming their guests.
LICENSING
Licensing refers to the process of taking allowance of running business or something
from the higher government authority. For the licensing procedure, Hospitality industry has to
follow Licensing Act 1872. According to this act, Hospitality units have to take various kinds of
official permission from the authorized governmental body. According to this act, Company
requires to take license for building new premise of hotels, installation of fire safety in the
organization, sell of alcohol in the organization, business registration to the register house and
for opening bar under the name of company or new name etc. It is an important act to follow by
the hospitality industry in order to bring transparency in the operations of the organization, gain
the customers’ trust and tell the public that the business is for the purpose of earning profits but
in a legally manner not by fraud or some illegal manner. In case any company who is running its
business without license, has to pay heavy penalty along with imprisonment (Biga, Spott and
Spott, 2015).
HOTEL PROPRIETORS
Hotel Proprietors refers to the owner of the hotel business and he/she can hold the hotel
property. UK government has imposed the Hotels Proprietors Act 1956 which replace the
Innkeepers Liability Act 1863. It basically deals with the accommodation services, guests who
are using the accommodation services offered by the hospitality industry and parking of the
vehicles in the parking lot of hotel premise. According to this act, there are various duties of
hotel proprietor against the guests, their comfort and their usage of services offered by the
organization. There are various rights and liabilities given under the act to the guests as well as to
the hotel proprietor, which must be acknowledge and carry out by them respectively in order to

prevent themselves from any kinds of legal actions in the future (Pappas, 2015). This act is also
deals with the luggage and belongings of the guests and loss of or damage to guests too.
CONCLUSION
From the above study, it has been summarized that there are various legal legislative risk
which can be mitigate by following particular legal regulations or legal policies. Following of
these regulations and policies can be benefits or drawbacks for the companies depend upon the
nature of the company or project or product or services offered by the company. It helps
company to work under the proper legal framework but sometimes it can be costly for the
company to follow these legal regulations and policies.

REFERENCES
Books and Journals
Adeyinka-Ojo, S., 2018. A strategic framework for analysing employability skills deficits in
rural hospitality and tourism destinations. Tourism management perspectives. 27.
pp.47-54.
Armstrong, R. and Matters, R.T., 2016. Modern slavery: risks for the UK hospitality
industry. Progress in Responsible Tourism. 5(1). pp.67-78.
Augustine, J., and et.al., 2017. Identification of key business and management skills needed for
pharmacy graduates. American journal of pharmaceutical education. p.ajpe6364.
Biga, K., Spott, P. and Spott, E., 2015. Smart hiring in the hospitality industry: Legal and
business perspectives. American Journal of Management. 15(4). p.115.
Pappas, N., 2015. Marketing hospitality industry in an era of crisis. Tourism Planning &
Development. 12(3). pp.333-349.
Sin, L.G. and Poluan, S.J., 2018, December. Analyzing the Application of The Global Virtual
Team (GVT) Model in Developing International Business Skills in Indonesia
Higher Education. In Journal of International Conference Proceedings. (Vol. 1,
No. 2).