Issues in Hospitality Industry
Current issues in the hospitality industry
Introduction:
What are the main issues in hospitality industry? The issues were discussed at the last meeting of International Society __________(ISSC). Asking from the guest their shortage, they gave some problems necessary for them.
Main part: Capital available, Emerging market, Technology, Travel permit residence.
Capital available: Capital provides asset liquidity and enables the development of new hotels. Increasing institutional investment into the hotel sector is enhancing asset values and consequently lowering returns. Expectations of revenue and profitability growth are stimulating capital availability for new development. This environment is expected to continue as long as the hotel industry’s cyclical expansion continues. Signs of a cyclical plateau are starting to appear, and the implications of capital availability will be profound.
Many factors affect the amount, timing, and availability of capital. In the US the fractured economic conditions that existed after 2001 eroded operating results and values over the ensuing few years, but this in turn set the stage for the current cyclical upturn. Modest potential for new supply, together with the industry’s high degree of operating leverage, have now made hotels highly attractive relative to other commercial asset classes. As a consequence, a large migration of institutional capital to the hotel sector was not long in coming. Investors have bid up hotel prices and bid down required yields to relatively low levels. The momentum of the hotel investment market has been enhanced by significant liquidity in the mortgage markets.
Emerging market: The World Tourism Organization estimates that global tourism visitation (as measured by arrivals) has increased from 770 million in 2005 to 983 million in 2011 and is expected to continue to increase reaching 1,561 million by 2020. China alone is expected to generate 100 million outbound tourists by 2020 up
Introduction:
What are the main issues in hospitality industry? The issues were discussed at the last meeting of International Society __________(ISSC). Asking from the guest their shortage, they gave some problems necessary for them.
Main part: Capital available, Emerging market, Technology, Travel permit residence.
Capital available: Capital provides asset liquidity and enables the development of new hotels. Increasing institutional investment into the hotel sector is enhancing asset values and consequently lowering returns. Expectations of revenue and profitability growth are stimulating capital availability for new development. This environment is expected to continue as long as the hotel industry’s cyclical expansion continues. Signs of a cyclical plateau are starting to appear, and the implications of capital availability will be profound.
Many factors affect the amount, timing, and availability of capital. In the US the fractured economic conditions that existed after 2001 eroded operating results and values over the ensuing few years, but this in turn set the stage for the current cyclical upturn. Modest potential for new supply, together with the industry’s high degree of operating leverage, have now made hotels highly attractive relative to other commercial asset classes. As a consequence, a large migration of institutional capital to the hotel sector was not long in coming. Investors have bid up hotel prices and bid down required yields to relatively low levels. The momentum of the hotel investment market has been enhanced by significant liquidity in the mortgage markets.
Emerging market: The World Tourism Organization estimates that global tourism visitation (as measured by arrivals) has increased from 770 million in 2005 to 983 million in 2011 and is expected to continue to increase reaching 1,561 million by 2020. China alone is expected to generate 100 million outbound tourists by 2020 up