In many states, the role that the hospitality industry plays cannot be ignored. This is because the hospitality industry can be a major foreign earner for any particular country. according to Hotcourses p. (2008). The hospitality industry can also play a big role in employing the local people of the destination area, and this may go a long way in ensuring that the economy of a particular destination can be stabilized. Additionally, the hospitality industry can be a major player in ensuring the popularity of the country or a city. According to steadfast statistical data from a wide range of sources, the hospitality industry in the United Kingdom is a major growth industry that employed more than 2 million people in 1994. In 1988-2000, the hospitality industry recorded higher numbers of unoccupied positions than other businesses. In the United Kingdom, many cities have exploited the chance of maximizing the numbers of tourist services and entertainment that is as a result of the hospitality industry. London is such a city. London and partners (2012).
Norris et al (2003, p. 352) conclude that in order to comprehend the role that the hospitality industry in London plays, it is vital to categorize the sectors of the business that are available in London. In London, the hospitality industry is made up of entertainment, tourist commercial activities and sports related activities. In entertainment, areas such as theme parks, the London eye- which is a major tourism attraction, clubs and bars. Accommodation also plays a big role in these hospitality establishments and can be in the form of hotel resorts, public houses, hostels, campgrounds, inns and serviced apartments. The tourist support commercials may include the travel agents in London, the cabin crew staff and the members who work on travel technology in the form of applied information technology. Sports tourism is also a major contributor to the economy of London. Hadjivassiliou p. (1996) notes that, in London, there are major football clubs and sporting events that attract many tourists. These occasions comprise the London marathon and the recently held Olympics in 2012. All of these sectors of the hospitality industry can support the economy of the city in that they are a major employer to the locals and are also a major source of revenue to the city. Candela and Figini, p. (2012).
According to an article 'In focus: Hospitality' (2013, p. 6), the hospitality industry in London plays a big part in the development of the economy of the city. This may be in many sections. However, almost all of the parts are linked together, and the development of one area in the hospitality industry creates a chain like reaction, and this spurs other areas to develop also. An example is the expansion of the sporting industry in London. When visitors come to watch or participate in these events, many other hospitality establishments such as hotels and restaurants get business. Hotels are booked for accommodation and restaurants for food.
According to Federation of British industries et al (1965), the hospitality industry is also dependent on the number of meetings that visitors and locals have in hotels. In a recent survey conducted by London &Partners, it has been estimated that the revenue that arise from the meetings in London are approximately 5.6 billion pounds. These are generally from business meetings, and when contrasted to the other main cities in the United Kingdom, this amount comprises of around 30% of the overall meetings held in England. This figure also represents its superiority when compared to other sectors that impact on the economy of London such as agriculture, broadcasting and legal services industries. This is a major proof that if properly exploited, the hospitality industry in London can support the economy of London.
In the fast food industry in London, according to Williams et al 2006, fast food restaurants in London now employ an optimal number of people whose main job is to provide the required customer service. These fast foods and restaurants also play a big role in ensuring that other sectors of the economy such as agriculture also get business. Hospitality establishments purchase raw materials from farmers, and this ensures that many people are involved. The hospitality industry also plays a big part in the sectors of the economy of London such as the construction companies that are contracted to build big hospitality attractions such as the London eye and the Olympic stadium.
The hospitality industry does not only support the economy of London positively, but it also has some negative effects on the economy due to the fluctuation nature of the industry. The hospitality industry also has another disadvantage in that it is difficult to ascertain the future of the tourists visiting the area. It is thus difficult to ensure that employees on the hospitality industry have consistent pay. According to Gerrard (2012, p.6),around one-third of hospitality businesses in London say they will not increase pay - or even try to cut wages. With the increase in costs of around 7-8% - primarily due to rising food and energy prices -employers cannot afford to raise wages, as well. This shows that the minimum wage that has been set by the government affects the economy of London in that the amount of money that is available to the employees in these hospitality establishments are higher and thus they have extra disposable income that can be used to boost the economy.
The hospitality industry stakeholders in London have to come up with programs and strategies to ensure that the fluctuation nature of the hospitality industry is stabilized through the creation of a more stabilized and effective government support systems in the tourism and hospitality industry. Additionally, it is vital for the local authorities in to invest in extra hospitality establishments in the city of London. This will ensure that there are more visitors and more sources of revenue. The other policies and strategies that may be implemented may include the simplification plans for the hospitality related establishment licensing and ensuring that for and individual to start a hospitality establishment, he or she has to encounter minimal obstacles. Fortnight (1970). For London to maximize on the total employment of its people, the local authorities should also maximize the potential that arises from the prospects of the hospitality industry. With proactive partnerships and education, the local authorities can also ensure that competition amongst the hospitality establishments in London can generate enough revenue to sustain the economy of London. It is thus optimistic to point out that the hospitality industry in London has proven to be a major cog in the economy of London.
Bibliography
'In focus: Hospitality' 2013, Event, p. 21, Business Source Premier, EBSCOhost, viewed 21 April 2014.
GERRARD, N 2012, 'One-third of London's hospitality businesses won't increase pay in 2012', Caterer & Hotelkeeper, 202, 4712, p. 6, Business Source Premier, EBSCOhost, viewed 21 April 2014.
Hadjivassiliou, K, & Hospitality Training Foundation, L 1996, 'Catering and Hospitality Industry--Key Facts and Figures. Research Report. Second Edition', ERIC, EBSCOhost, viewed 21 April 2014.
CANDELA, G., & FIGINI, P. (2012). The Economics of Tourism Destinations. Berlin, Springer.
Norris, G, Williams, S, & Adam-Smith, D 2003, 'The Implications of the National Minimum Wage for Training Practices and Skill Utilization in the United Kingdom Hospitality Industry', Journal Of Vocational Education And Training, 55, 3, pp. 351-367, ERIC, EBSCOhost, viewed 21 April 2014.
Williams, R, Yarrow, K, & Learning and Skills Development, A 2006, 'An Investigation of Vocational Progression Pathways for Young People and Adults in Building Crafts and Hospitality CoVEs. A London Case Study', Learning And Skills Development Agency, ERIC, EBSCOhost, viewed 21 April 2014.
LONDON & PARTNERS (2014) Meeting industry generates £5.6 billion for London economy, MEDIA CENTER, Available from http://www.londonandpartners.com/media- centre/press-releases/2013/130710-meeting-industry-generates-56-billion-for-london- economy accessed 21 April 2014.
HOTCOURSES (FIRM). (2008). Postgraduate UK study and funding guide. 2008/09. 2008/09. London, Hotcourses.
(1970). Fortnight. Belfast, Fortnight Publications
FEDERATION OF BRITISH INDUSTRIES, BRITISH EMPLOYERS' CONFEDERATION, NATIONAL ASSOCIATION OF BRITISH MANUFACTURERS, & CONFEDERATION OF BRITISH INDUSTRY. (1965). British industry.
