The Hospitality industry in the U.K
The hospitality is a major employer and is a relevant field the world over. The U.K has made leap and bounds in the hospitality industry and this shows because it is a major contributor in the country’s economy. Like everywhere else in the world, the hospitality industry encompasses several fields within itself. Some of this field include; domestic and foreign tourism, food service and the hotels. The hospitality industry is dependent on several other factors, as a result this makes this industry fluctuate from time to time during an economic year. The hospitality industry can be divided into two parts namely; the entertainment sector and the accommodation sector (Michael, 1991). These divisions can further be divided in smaller subgroups that will be explained in this essay.
One city in the U.K that has made major strides in the hospitality is the city of London. The wealth that is generated from this industry is well spread within the city of London. Consequently, this wealth has enabled the city to provide basic amenities to the inhabitants of the city. Some of the most significant contributions that the hospitality industry has provided in terms of economic support for the city are the provision of employment. Through employment, the inhabitants of the city of London are able to cater for their basic requirements and provide quality lives for themselves and their families. As such, the hospitality industry in London has strengthened the societal cloth of the city.
The hospitality industry in the London is so vital that there are surveys conducted that show that the industry is one of the major drivers of the economy (Susan and Swarbrook, 1996). After the global economic downturn, the hospitality industry is one of the industries that were tasked with the burden of economic recovery and consistent sustainable economic growth.
A recent survey showed that the hospitality industry is responsible for about eight percent of all the employment in the city. This is because it is one of the largest industries in the U.K and lies in the fifth position after business, retail and distribution, health and social work and education based on the number of people that it employs. Another factor that makes the hospitality industry very important to the economic stability of the city is the fact that it incorporates other industries in its running. Other industries like supply, transportation, agriculture, and commerce have a symbiotic relationship with the hospitality industry and because of this relationship is a stronger commercial city.
A common misconception is that the hospitality industry must be made up of big organizations. London has overcome this fallacy and single person organizations are being formed (Darren and Lashey, pg. 4). This is just one instance of how broad the hospitality industry can be. Some countries consider the following to be part of the hospitality industry pubs, clubs, and bars (Bob, 2012, pg. 3). The breadth of the hospitality industry is one of the factors that enable it to be as effective as an economic driver (Mike, 2011) does. This is because of the number of people that are employed in the hospitality industry and other hospitality related industries. This has a positive effect on the economy of the city in a domino like manner; the larger the number of sectors associated with the hospitality industry, the larger the number of people that are employed and consequently the stronger the economy due to taxation.
The hospitality industry is a major contributor of the income of the U.K. to the tune of about 2.5 percent. To an economy as big as the U.K’s this is a lot of income to be generated from one industry. In London, the industry is known to employ a young work force. This has an unlikely economic advantage; first, most of the young people have the energy and the ideas to revitalize the industry and turn it to something that can compete with other industries in neighboring countries therefore creating a competitive marketplace. The age that is hired to serve in the hospitality industry make up the largest number of people in the working sector, this means that hiring them increases the number of people that can be taxed. The city therefore has greater income thanks to the hospitality industry.
London is the perfect city to demonstrate how the hospitality industry can boost an economy. One of the facts that make London perfect is that it hosted the 2012 Olympic Games. In this year, the United Kingdom registered an increase in employment that was almost double the previous years (Michael, 2012). This means that the hospitality industry helped London and the U.K recover from the recession faster than it was approximated. There was an increase of revenues from the hospitality industry more than any other during this period. The best feature of the hospitality industry is the fact that it helps other industries grown and increase the number of employees therefore tackling the issue of unemployment which is notorious in most countries the world over.
The hospitality industry in London as it has in other cities the world over has provided the means by which every group in the financial ladder is catered for. The propensity to spot a gap that is yet to be filled is a confusing task (Darren and Lashey, 2009, pg. 4), but the hospitality industry has found a way. London was named one of the countries that are fastest growing in the luxury hospitality business. On the other hand, there are smaller hospitality businesses and even others are operated by one individual. This means that the price range for the services that are offered by all this entities is different therefore suitable for all kinds of people. This has an advantage to the economy of the city. The ability of the hospitality industry to cater for everyone regardless of the financial standing enables the city to collect more revenue from the industry and in return, offer better services to its citizens.
In the last year alone, the meeting industry, an affiliate of the hospitality industry in the UK was reported to have generated over five billion pounds in revenue and London was a major contributor, providing over 30 percent of the total amount. This means that for the U.K the hospitality industry generates more income than the agriculture industry, which generated a third of the amount that the meeting industry generated.
In conclusion, the hospitality industry is vital for the economic survival and success of any city worldwide. The hospitality industry is one of the industries in London that makes the city stand out more than the rest. It is a great generator of revenue and employment. The city of London has made great strides to improve its hospitality industry; in fact, it is recognized as one of the cities that have made the greatest improvements when it comes to luxury hospitality. The hospitality industry is a dynamic one and if the city is to remain significant, it is to change with the changing trends in the hospitality industry.
Works Cited
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