International Hospitality Analysis Essay Example | Topics and Well Written Essays - 2000 words

International Hospitality Analysis - Essay Example The sector has been through several upheavals. When the economic performs well the consumer confidence is high and people are keen to spend their disposable incomes on holidays and easting out. As the same time, the sector is also sensitive to unforeseen events beyond its control – like threats of terrorist attacks, foot or mouth crisis and the bird-flu outbreak (LSC 2006). In addition, there are other drivers of change which include minimum wage and holiday entitlement, health and safety, no-smoking legislation. The economy becomes affected due to changes in legislation, changing market forces, and periods of recession and inflation (Wilson et al. 1997). In fact everything from the impact of globalization to consumer savings can impact this sector. Hospitality is the fastest growing industry and exhibits tremendous diversity both with respect to the types of job available and the workers. As far as the human resource is concerned, there is a huge demand in the sector but the availability of staff is difficult. This sector is characterized by low rates of pay, high staff turnover, low levels of training, low skills levels, unsocial hours, seasonal nature of work, predominance of casual staff, and the non-professional image of the industry (LSC 2006). This sector traditionally recruits a young workforce yet the biggest challenge that this sector faces is that of skills shortages. The local people are reluctant to enter this sector because of low wages and job uncertainties. The hospitality sector in the developed countries is facing labor shortages and can expect to face even greater shortages in the future (Choi et al. 2000). As per the economic law of supply and demand, this means that the sector needs to offer higher wages to attract skilled staff as there is short supply of staff. If the sector offers higher wages, the profitability is affected specially during economic downturn. As such the hospitality managers need to prepare themselves for the future. In