The Scale and Diversity of the Hospitality Industry Andreea Melinda Mirza Unit 1. – P1
By definition, the hospitality industry is industry is a service industry. It is much broader than most other industries and it applies to nearly any company that is focused on customer satisfaction and meeting leisurely needs rather than basic ones. It is a multi-billion euro industry that depends on the availability of leisure time and disposable income. Hospitality is a boar board d and and vari varied ed indu industr stry y rangi ranging ng from from singl single-p e-pers erson on orga organi niza zatio tions ns to world worldwi wide de corporations. People do a total of over 8 different !obs in these industry. Sectors of the hospitality industry
Hospitality and tourism is one of the "#$s most diverse sectors, comprising a range of different different industries, industries, but all with their roots in the service sector. %egardles %egardlesss of the size of an organization, these similarities mean that they face similar challenges. &he hospitality industry represents more than hotels and restaurants, it includes a total of '( different sectors as it follows) • • • • • • • • • • • •
hospitality services* pubs, bars and night clubs* gambling* contract catering* membership clubs* hostels* holiday par+s* self-catering* visitor attractions* tourist services* travel services* events*
The nu!er of !usinesses in the U"#s hospitality industry
In ' there were '8', individual business sites operating across the hospitality industry. s measured by the number of employees, the hospitality sector is predominately made up of small businesses '. &able ' &he number of businesses by sector /ector
0umber of businesses
1
%estaurants
2,3
(1
Pubs, Bars and 0ight 4lubs
,
51
6ood
7,3
''1
management Hotels
',(
21
ambling
'',3
31
/elf-catering
7,8
1
par+s and hostels 9vents
7,
1
&ourists services
',(
'1
;'1
'8',
'1
and
accommodations,
:isitor ttractions &otal
service
holidays
Hospitality#s iportance in the econoy
&he hospitality industry ma+es a ma!or contribution to the "# economy and employs a large percentage of people. In some parts of the "# the industry is the main source of income and employment. It is a great industry for those who want to set up their own business, as well as for people who want to progress in their career in a multinational corporation. It is well +nown that while most businesses in the sector are small, larger businesses employ the greatest proportion of staff. 6or e
1 STATE OF THE NATION REPORT 2013, An analysis of market trends, skills, ed!ation and trainin" #it$in t$e %& $os'itality and torism indstries( Hos'itality )ild 2012 in asso!iation #it$ %&SP
In recent years, the sector has performed considerably better than the economy as a whole in spite of the recession, increasing its contribution by '7 percent between ' and '', compared to the overall economy. $or%force
&he hospitality and tourism sector continues to be a ma!or "# employer and is playing a critical role in helping people into !obs. ccording to the /tate of &he 0ation %eport '7, the latest figures from '' show that the wor+force currently stands at ,23,* an increase of .2 percent on the previous year. &his increase is higher than the average across the economy as a whole =. percent> and demonstrates the resilience of the sector in the face of the economic downturn. &he sector has always employed a high proportion of part-time wor+ers, enabling businesses to respond to fluctuations in customer demand. 0early half of the hospitality and tourism wor+force is employed on a part-time basis =(8 percent>. &he sector$s wor+force has traditionally been much younger than across the economy as a whole, with more than ( percent of employees currently under 7. In the sector most wor+ers are women, most wor+ers are aged 7 to with over a third of staff being under . &he sector$s managers are also comparatively young =see table '3>, underlining the opportunities for career progression in the sector. s the hospitality industry continues to grow and other sectors contract, its relative importance to the "# economy is increasing. &he low barriers to entry mean that people can start wor+ing in the sector with little e
2 STATE OF THE NATION REPORT 2013, An analysis of market trends, skills, ed!ation and trainin" #it$in t$e %& $os'itality and torism indstries( Hos'itality )ild 2012 in asso!iation #it$ %&SP 3 STATE OF THE NATION REPORT 2013, An analysis of market trends, skills, ed!ation and trainin" #it$in t$e %& $os'itality and torism indstries( Hos'itality )ild 2012 in asso!iation #it$ %&SP
Turnover
In ' the hospitality$s industry turnover in the "# was of ?5 billion and is worth ?(3 billion to the "# economy in wage and profits, and directly contributes .(( million !obs, and over '. million !obs through multiplier effects =the sum of indirect and induced employment>.( 0early half million people are employed in restaurants, (. wor+ in the service sector of the industry. @ith .(( million direct !obs representing !ust below 81 of total employment these ma+es the hospitality economy the "#$s th biggest industry in terms of employment. &onclusion
s it can be seen, the scale and diversity of hospitality industry are large and comple< and its importance for the "# economy is growing by the year. &he multitude of !obs it creates and the diversity of these business ma+es it attractive to the available wor+force and creates opportunities for everyone interested in the sector.
* O+FOR E-ONO.I-S, E!onomi! -ontri/tion of %& $os'itality indstry, Final re'ort Se'tem/er 2010
