The Role of the Hotel Industry in Driving Growth of the UK Economy

This research paper investigates the role of the hotel industry in the growth of the UK economy. It identifies key factors determining the importance of the hotel industry, its specific contributions to the UK economy, and the challenges it faces. The study employs both primary quantitative data (questionnaires) and secondary qualitative data to analyze the industry's impact. It also explores relevant theories and models within the hospitality sector. The research outlines the aims and objectives, conducts a literature review, and details the methodology used for data collection and analysis, including ethical considerations. The report concludes with recommendations for mitigating growth challenges and identifies limitations and future scope for study. Desklib offers access to this and other solved assignments and past papers for students.

Running head: THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK
ECONOMY
The role of the hotel industry in the growth of the UK economy
Name of the student
Name of the university
Author note

1THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
Acknowledgement
I am thankful to each and every individual who has been my steady support to successfully
complete the research work based on ‘THE ROLE OF HOTEL INDUSTRY IN THE
GROWTH OF UNITED KINGDOM ECONOMY’. I would like to express my thankfulness
and genuine gesture to my professor _________ who has been my constant support and help
during the need. I want to thank my friends who have been shown determination in my work
and believe in me. I discussed with my classmates about the topic, and my classmates were
my pipeline to complete this research along with me. Completion of the research gives me
much pleasure.
Thank You.

2THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
Abstract
The research paper has discussed the importance of the hotel industry in terms of bringing the
economic opportunities in the UK. In the initial stage of the research, the problem has been
identified and depending on the problem the objectives have been introduced. In order to
reach the objectives of this study, both the primary and secondary research has been done.
The following research analyses, the aims and objectives of the study, the literature review
including the theories and models of the hospitality industry contributing to the economic
growth, the importance of the concept along with a detailed methodology which describes
how the research has been done and in what ways the results have been collected and
analysed. In the analysis, the primary quantitative data in the form of questionnaires are being
used while secondary qualitative data is being considered. Not only the importance but also
the paper has discussed the barriers in the hospitality industry.

3THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
Table of contents
1. Introduction............................................................................................................................6
1.1 Organisational background..............................................................................................6
1.2 Aim and objectives...........................................................................................................7
1.3 Research questions...........................................................................................................7
1.4 Importance of study..........................................................................................................7
2. Literature review....................................................................................................................8
2.0 Introduction......................................................................................................................8
2.1 The Concept (the role of the hotel industry in the growth of the UK economy).............8
2.2 Theories and model........................................................................................................11
2.3 Types of Literature Reviews..........................................................................................15
2.4 Importance of the concept..............................................................................................17
2.5 Conceptual framework...................................................................................................18
3. Methodology........................................................................................................................18
3.1 Research onion...............................................................................................................18
3.2 Research philosophy......................................................................................................19
3.3 Research approaches......................................................................................................20
3.4 Research design..............................................................................................................21
3.5 Data collection methods.................................................................................................21
3.6 Data collection techniques and tools..............................................................................22
3.7 Population and Sample size...........................................................................................22

4THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
3.8 Ethical consideration......................................................................................................22
4. Result and discussion.......................................................................................................23
5. Conclusion and recommendation.........................................................................................28
5.1 Conclusion......................................................................................................................28
5.2 Linking with objectives..................................................................................................28
5.3 Recommendation............................................................................................................29
5.4 Limitation of study.........................................................................................................29
5.5 Future scope study..........................................................................................................30
References and bibliography....................................................................................................31
Appendices...............................................................................................................................37

5THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
1. Introduction
1.1 Organisational background
Brotherton (2012) states that the hotel and hospitality industry is one of the most
popular industry sectors both for the career prospects on a global basis and for each of the
country in which the industry is being situated. The overall hospitality industry overall is a set
of industries that belongs to a set of fields regarding the lodging, planning of the event in
different countries including the transportation and communication including rail, water and
air. Brotherton (2012) states that the hospitality industry is one of the major parts of the
tourism industry which is at the stage of booming in the present era. Due to technological
advancement in this sector, the organizations are being able to fulfil the need of the
customers. On the other hand, after highlighting the hotel attributes, it has become easier for
organizations to introduce new ideas in the workplace. In the overall span of time, the
tourism industry is at the peak of all the major industries that are being operated in the
economy of any country. The United Kingdom is one of the developed countries of the world
which specialised in a number of industries for the growth of the economy and to maintain
the position as per the financial status of the country in the global sphere (Hoque 2013). The
overall analysis of the hotel industry is done on the basis of the hospitality industry that is
there in the span of the time, and it includes every spectrum of the hospitality sector which
contributes to the business and profit of the people included in the economy of the nation
(Kandampully, Zhang and Bilgihan 2015).
The following research analysis is done based on the role of the hotel industry for the
country of the United Kingdom which is one of the developed countries of the world. The
following paragraph analyses the aims and objectives of the study, the literature review
including the theories and models of the hospitality industry contributing to the economic

6THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
growth, the importance of the concept along with a detailed methodology which describes
how the research has been done and in what ways the results have been collected and
analysed. The last part of the research deals with the final analysis of the subject along with
the recommendations that to be implemented in the subject.
1.2 Aim and objectives
There are a number of aims and objectives that are said in the research to determine the
issues and means for the conduction of the research. The aims and objectives contributing to
the research which are said in the following ways –
 To identify the factors determining the importance of the hotel industry
 To identify the role of the hotel industry in the growth of the economy of the United
Kingdom
 To identify the challenges of the hotel industry in the growth of the economy of the
United Kingdom
 To identify the probable recommendations for mitigating the growth challenges
regarding the hotel industry in the United Kingdom.
1.3 Research questions
There are a number of research questions that have contributed to the research objectives
of the research which are said in the following –
 What are the factors determining the importance of hotel industry?
 What is the role of the hotel industry in the growth of the economy of the United
Kingdom?
 What are the challenges of the hotel industry in the growth of the economy of the
United Kingdom?

7THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
 What are the probable recommendations for mitigating the growth challenges
regarding the hotel industry in the United Kingdom?
1.4 Importance of the study
The importance of the study is to ensure that the role of the growth of the hotel industry in
the province of the United Kingdom. In addition, the importance of the study is also to ensure
the growth of the hotel and the hospitality sector to have a fair idea about the role of the hotel
industry in the span of the time. The study aims to have a detailed analysis of the importance
of the hotel industry in the growth of the economy of a particular country, say the United
Kingdom in the specific research analysis. The importance of the study lies in the fact that the
analysis will shed light on the hospitality industry which is one of the prime industries of the
time and also to the fact that the study focusses on the challenges and recommendations
which are implied in the industry to mitigate the challenges that are there in the industry. The
overall analysis of the research sheds importance on the fact that the overall analysis will
have ample evidence on the growth of the hotel industries and its importance in establishing
the increase in growth of the economy which is one of the prime factors of the time.
2. Literature review
2.0 Introduction
The concept of the dissertation has been highlighted in this chapter. By using the
relevant theories and models related to the topic, applications of the models in the current
hospitality industry have been discussed. Different journals and articles related to the topic
have been discussed, which has helped the researcher to achieve the objective of this paper.
2.1 The Concept (the role of the hotel industry in the growth of the UK economy)
The hospitality industry has been introduced in the market with larger business
initiatives (Durna, Dedeoglu and Balikçioglu 2015). The British government has introduced

8THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
different policies in case of promoting the standard facilities in the hospitality sector.
Different boards have been developed for managing the entire process of the hospitality
sector in the right manner (Jauhari and Bharwani 2017). As per the record of British
Hospitality Association, it has been identified that hospitality and tourism industry has
contributed 19% on the total income of the nation (Zaitseva, Goncharova and Androsenko
2016). With the increasing job opportunities in this sector, the overall situation of globe has
been influenced. In case of gaining the attention of foreign investors, the hospitality industry
and its rapid growth are playing an essential role. Due to the hospitality industry, UK has
become the leading business area in the international market. With the increasing growth of
this industry, it can be assumed that it can increase the financial status of this country by
introducing different business opportunities.
In the words of Kim, Vogt and Knutson (2015), the hospitality industry has a high
contribution in the UK employment growth. By continuing this Kandampully, Zhang and
Bilgihan (2015) opined that in between the year 2010 to 2014, the contribution of UK
hospitality industry had increased 17% on the employment rate. From the last decades, the
hospitality industry has started getting importance due to the growing tourism industry. In
case of promoting the changing multicultural environmental growth, the role of hospitality
industry is very important. Due to rapid growth in hospitality industry, the global economy is
getting developed. In case of analysing the growth of hospitality industry, it can be said that
from the year 1955, political and economic prospects have influenced the growth trend of UK
hotel industry (Bowie et al. 2016). It has been identified that due to the increasing demands
for tourism industry the occupancy growth in the hotel sector has increased. Due to this
reason, the large hotel chain has been established in the UK. Hotel industry has a higher level
of contribution in terms of bringing the growth in the tourism industry. On the other hand, it
cannot be denied that after the globalization, the hospitality industry has brought various

9THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
employment and commercial opportunities in the global market (Wang, Tsai and Tsai 2014).
With increasing growth in the hotel industry, different business sectors have grown up.
Changing living standard and social preferences of the customers have influenced the growth
of hospitality industry and depending on the hospitality industry transport, event planning,
theme parks and fast food industry have been developed.
It cannot be denied that the hospitality industry has strong economic importance.
However, it is also true that various business challenges have created barriers for the
hospitality industry growth (Zaitseva, Goncharova and Androsenko 2016). It has been
identified that the expectation of the customers towards getting the good quality of products
at lower price from the hospitality industry, has created a tough situation for the growing
economy. However, it is also true that after the technological advancement, it has become
easier for hospitality organizations to grab large numbers of customers' attention. On the
other hand, in the year 2018, the hospitality occupancy growth in London has reached 0.2%
(Huang et al. 2016). It is also true that the growth in hospitality industry is unsustainable as
various political, economic and natural factors impact on its growth. Hospitality brings the
involvement of different communities in the business. It cannot be denied that innovation has
brought the various changes in the hotel attitudes.
In the words of Zaitseva, Goncharova and Androsenko (2016), the importance of
hospitality industry has increased when the large numbers of tourists have been attracted
towards UK. Due to its fastest-growing characteristics, the government and non-government
organizations have contributed a large amount to its development. It has been identified that
after the growth in tourism industry, 3.6% contribution has increased in UK GDP (Wang,
Tsai and Tsai 2014). Several business sectors such as food and beverage, accommodation
service and transportation have got flourished. On the other hand, with the unpredictable
growth in hospitality industry, large numbers of foreign investors have shown their interest in

10THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
the business. In the record of British hospitality association, due to the rapid growth in
hospitality industry, near about 127000 businesses have been introduced, which has
provided 1.6 million employment (Ukhospitality.org.uk 2018). If the total numbers of hotels
are being counted, it will be identified that within past few years 22000 hotels have been
developed in UK. Not only the hotels but also 16000 breakfast restaurants have been
developed. After the introduction of hospitality industry in UK, part-time and full-time
employment types have been introduced in the restaurant industry (Ukhospitality.org.uk
2018).
2.2 Theories and model
The term ‘hospitality’ indicates the wide range of functions. Hospitality management
is being considered as the field in which the commercial, non-commercial and voluntary
enterprises are being involved (Pizam, Shapoval and Ellis 2016). It has been identified that
depending on the current business practices the management theories and business intentions
have been changed. It cannot be denied that due to increasing demands of the customers it
has become tough for the organizations to satisfy the needs of the customers. It is true that
management theories are very important in hospitality industry as these are very important in
terms of delivering the standard quality of services (Ye and Yu 2018). In the case of
analysing the satisfaction level of the customers, Customer Satisfaction Analysis has been
introduced.
Customer Satisfaction Analysis

11THE ROLE OF HOTEL INDUSTRY IN THE GROWTH OF UK ECONOMY
Figure: Customer Satisfaction Analysis
(Source: Blut et al. 2015)
Customer satisfaction analysis is being considered as the practical platform in which
the business entrepreneur gets the chance to develop the marketing strategies depending on
the product or services. However, there are others many factors those influence the customer
satisfaction analysis process those are promotional activities, branding and quality of the
products. It cannot be denied that satisfied customers are the main resource of an organization
(Ali, Amin and Cobanoglu 2016). In the above diagram, customer satisfaction has been
measured into three important components. In other words, these can be considered as the
important key indicators of customer satisfaction analysis model (Kim, Vogt and Knutson
2015). Dissatisfied, satisfied and delighted three types of customers have been highlighted in
the model. It cannot be denied that the modern marketing theories and models are being used
for the commercial settings it has become easier for the hospitality organizations to deal with
the emerging hospitality growth.
Customer satisfaction model