Discuss the keymacro-economic factors affecting demand for your industry sector
The hospitality industry makes a major contribution to the UK economy. It is a fact that the hospitality business employs a large percentage of people. This paper further focuses on economic impact. It will be covered what is the main reasons affecting demand.It will be analyzed about the global recession problem and how the recession has been impacted on people. Below in the essay will be covered how The Titanic anniversary and The Olympics Games increase The United Kingdom economy. The purpose of this essay is to examine and give practical examples related with the hospitality industry.
First of all, the main important factors are that demand is affected by the level of income andinflation in hospitality business. Inflation has affected every industry in theUK and especially hospitality and tourism. According to Anon a. (2012)"inflationis a rise in the general level of prices of goods and services in an economyover a period of time. When the general price level rises, each unit ofcurrency buys fewer goods and services". The biggest issue of theinflation is that the prices are growing up, but the salary is not rose up.Prices increasing have caused a decrease on consumers travelling as much asthey usually would like. Furthermore, it is a fact that people spend less moneyon travelling abroad and staying over in a luxury hotel. It is getting more andmore popular to make holidays at home, as it is the cheapest an availableoption. Many hotels compete with each other doing special offers to sell roomsfor the local residents. Also regular customers have even reduced their spendingmoney on travelling and staying in hotels. We will cover another one a negativefactor that quite period in hotels lead to reduce staff. During recession everyindustry has to reduce personnel due to fear of going into liquidation ofbusiness.
Another one the biggest a global problem in the world is...
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