Analysis of Global Environmental Issues in UK Hospitality

This report provides a comprehensive analysis of the UK hospitality industry, exploring the impact of global environmental issues. It delves into the challenges faced, such as economic fluctuations, political structures, customer expectations, and the COVID-19 pandemic. The report examines issues like currency devaluation, increased competition, and investment difficulties. It also highlights opportunities for the industry, including strategies to mitigate currency risks, leverage local talent, and utilize joint ventures for market entry. Furthermore, the report discusses how businesses can capitalize on market shifts caused by the pandemic, with financial support from the government. The conclusion summarizes the key findings, emphasizing the importance of adapting to global changes and seizing opportunities for growth and competitive advantage within the UK hospitality sector. The report uses case studies, references, and online resources to support its findings.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Issues on the global environment to the Hospitality industry......................................................3
Challenges link with the opportunities........................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Factors present in the global environment affect the companies operational activities and
create challenges for them. Hospitality, event or aviation or tourism are of one the biggest
industry of UK who are operating their business on the global level and facing challenges from
the global environment.
The UK hospitality industry is largely represented by the countries Pubs, restaurants and
leisure companies and produce 4% to the UK GDP. There are various organization who are
operating their business on the global level, it can include Hilton, Marriott etc who get effect the
global issues.
This report will cover case study of UK Hospitality industry which is one of the largest
industry. It will explain how UK Hospitality in industry is affecting from the global issues and it
will conclude what challenges organizations are facing. In the end of this report will link the
issues with the opportunities how Hospitality Industry can take benefits of the opportunities.
MAIN BODY
Issues on the global environment to the Hospitality industry.
The Hospitality Industry of the Uk has become dynamic with respect to the investment
volumes recorded during the study period, Owing to the uncertainty that surrounded by the
Brexit Challenges faced by the UK Hospitality Industry post brexit. (2019). This industry
covered everything from the Shops, Coffee, Bars, Hotels, Visitors attractions and other Leisure
venue (Bharwani and Butt., 2018). The sector is a major contributor to the UK economy,
employing 2.9 million people and generating £130bn in economic activity, while paying £38bn
in taxation to fund important local and national services. Hospitality is the 3rd largest private
sector employer in the UK.
Companies within this industry are operating their business on the global level and facing
issues like Economic issues, political structure, customers expectations, social and labour related
issues etc. one of the biggest issues faced by the Companies within this industry are operating
their business on the global level and facing issues like Economic issues, political structure,
customers expectations, social and labour related issues etc. on the global level every country
have their own currency and increase and decease the value of the currency affect the whole
industry and companies. Recency value measures on the Dollar rates and when dollar rates does
down then the margin of the companies decrease, and they cannot make the profits highly

(Duncan., 2017). These issues force them to increase the prices and that directly affect on the
company's customer satisfaction. Revenue generated by the companies within the Hospitality
industry on the global level covered their currency into the home country and some part of the
revenue also go to the Economy of the country which mean the revenue of the government also
goes down.
Current issues that Hospitality industry on UK is facing on the Global level is huge
competition. Competition on the global level is high that increase the chances of the failure and
force the companies within the Hospitality industry UK to close their business operations on the
global level. Small organization like Coffee shops, Restraints who want to expand their business
on the global level mostly get failed because competition on the global level higher, and they
also can face the issues like the investment (Filimonau and Mika., 2019). Mostly companies
within the UK Hospitality industry do not take entry dues to the higher investment and higher
risk of getting failed in the business that stop them to start their business on the global level.
Current global issues that affect the whole Hospitality industry of the UK is COVID- 19
Crises which is an global issues and it is affecting the whole industry and force the organizations
to close their business and many Hotels, restaurants and small bar are suffering from the huge
losses due to the lock-down in the UK and after government open the country still organizations
are facing the issues and their business is getting affected from the COVID. In the year 2019 The
Hospitality sector give their contribution to the UK economy which was £59.3 billion. And also
incrse the jobs in 2020 around 2.38 million which is 6.9 percent of the Uk employees. Limitation
on commercialism have importantly impacted hospitality enterprise turnover. Economic
production in the hospitality industry goes down to the 92% in April 2020 compared to February
2020. Till the December 59 percent of the Uk Hospitality business were trading as compared to
the 84 percent across all the industry.
There were around 6 percent of the total job losses have been seen within the UK
Hospitality industry which means around 147000 people lose their jobs, however the COVID
pandemic not yet result in the increase in the unemployment but still small business were get
affected who were on the rent (Janta., 2019). Companies who were not able to pay their rent was
shut down by the owners because they were not able to pay their rend and also the salaries to
their employees who were working for them.

Challenges link with the opportunities
UK Hospitality industry is facing various challenges on the global level but it can also
create some opportunities for the industry that can provide the companies within the industry to
take competitive advantages, and they give more contribution to the UK GDP and helps to grow
their economy and business can earn higher review.
Issue like decrease in the rates of currency exchange can have negative impact on the
UK Hospitality industry but on the other side criticize in the rates of dollar can have huge
benefits to the whole industry and the country as well (Jones, Hillier and Comfort., 2018). Rates
of the currency cannot be control by the government but the companies within the UK
Hospitality industry can work on the insurance basis where they can fix the currency for the
fixed price so company will not the extra profits, nor they will get face the losses. This is how
the can create opportunity for their business and take competitive advantages within the UK
industry.
Another issues are higher competition on the global level and investment to expand
business on the global level. UK Hospitality industry on the global level can over come the
issues of high price of the labour by recruiting the local people from the country. It will help this
industry reduce the effectiveness of the global factors. Companies within the sector can recruit
the local people and spend money on their training and development, so they will able to
perform the activities within the Hospitality firm. On the other side they also able to satisfy the
customers needs and their demand because local people are aware of needs of the customers, and
they can communicate in the local language which means the barrier will be removed. Similarly,
the investment issue can also be solves and create opportunist ties by the UK Hospitality industry
on the global level. Investment on the global level is higher and companies have to spend huge
amount to take every in on the global level. Small Business like Restraints, Hostels etc can take
entry of the global level by using the appropriate market entry method (Pirani and Arafat.,
2017). The Best method that can help the companies within the UK Hospitality industry is joint
venture. Companies can collaborate with the other companies within the local country so both te
company will invest equality and company will be financially string, and they will easily take
entry ion the new market and if they get failed on the global level then both the companies have
to pay their losses equality so firm will bale to save some losses.

Another biggest current issues on the global business environment that faced by the UK
Hospitality industry is COVID – 19. It is and global economic issues that is affecting the whole
industry but it can also create opportunities for the business who are surviving. Competition
within the market is high but after the CIOVID crises most of the companies shut down their
business. It can be opportunities for other business to take their share from the market by
surviving the Pandemic. On the other side government is also helping financially to the SME's
within the Hospitality industry thorough the loans, and advertisement scams to help the small
business to start their business again, and they can over come from the Global issues (Singh and
Dutta., 2020). Small companies within the UK Hospitality industry have opportunity to start their
business again by using the opportunity.
CONCLUSION
As per the report has been covered case study of the UK Hospitality industry and
discussed about the Global challenges and issues faced by the industry. It has been explained the
issues like COVID Situation which is an global issue, currency fluctuation, market entry
investment, competition. This report also has been interlined the challenges into the opportunities
UK Hospitality industry can gain and take competitive advantages. There are various
opportunities that can be coved by the organizations within the industry and show their presence
on the global level and achieve the goals and objectives of their business as well.

REFERENCES
Books and journal
Bharwani, S. and Butt, N., 2018. Challenges for the global hospitality industry: an HR
perspective. Worldwide hospitality and tourism themes.
Duncan, T., 2017. Current issues in the global hospitality industry. Tourism and Hospitality
Research.5(4). pp.359-366.
Filimonau, V. and Mika, M., 2019. Return labour migration: an exploratory study of Polish
migrant workers from the UK hospitality industry. Current Issues in Tourism.22(3).
pp.357-378.
Janta, H., 2019. Polish migrant workers in the UK hospitality industry. International Journal of
Contemporary Hospitality Management.
Jones, P., Hillier, D. and Comfort, D., 2018. Sustainability in the global hotel
industry. International Journal of Contemporary Hospitality Management.
Pirani, S. I. and Arafat, H. A., 2017. Solid waste management in the hospitality industry: A
review. Journal of environmental management.146. pp.320-336.
Singh, A. and Dutta, K., 2020. Hospitality internship placements: analysis for United Kingdom
and India. Journal of Services Research.10(1). p.85.
Online
Challenges faced by the UK Hospitality Industry post brexit. (2019) online available
thorough<https://www.instituteofhospitality.org/challenges-faced-by-the-uk-hospitality-
industry-post-brexit/>