Introduction and Background Analysis
The hospitality industry has grown into one of the largest and most crucial industries in the world. The importance of the hospitality industry can be observed in various sectors of the economy. The creation of jobs is one of the biggest contributions to the industry. On top of that, the industry’s contribution to the economy and the gross domestic product (GDP) is estimated to be at over 10 percent (Hall & Gosling, 2012). The industry also contributes greatly to bringing the capital investment and exports to the host countries. With the advent of globalization, the hospitality industry has felt the surge in the numbers of the people moving throughout the world. The mobility of people across the world means that they need the hospitality industry to settle in the various destinations. The industry has been on the receiving end of increased efforts to grow it and develop it into a major contributor to the different countries throughout the world. Fused with the tourism and hotelier industry, the industry’s major strength is in the branding of the destinations and creation of a unique product to the market (Boella & Gross-Turner, 2013). The development of the hospitality industry throughout the world has led to increased competition in the sector. The branding and efforts to win over the market have increased a notch. This has led to heavy intellectual and financial investment in the industry.
The hospitality industry, however, is dependent on the global trends and stability. The industry is dependent on good economic growth and stability in the destination countries to flourish. The economic downturn experienced in 2007-2007 had a major impact on the hospitality industry. The hospitality industry with the tourism and hotelier industries are a luxury industry. This means that they work best when the economy is booming, and workers have surplus income to spend. When the economy is not doing well, like in 2007-2008, there are cuts in spending and the hospitality industry bears the brunt of such downturns in the economy. With the global terrorism and other issues facing the world, the hospitality exists in a system that is faced with a myriad of issues (Jayawardena et al., 2013). This paper is going to review two major issues that face the hospitality industry. These issues are covered below.
Issue with Sustainable Development and Green Hospitality Industry
The environment and sustainability issue is one of the most pertinent issues facing the world today. There is a debate in all sectors about the steps and measures to be taken to ensure that the environment is conserved. Coming from a history of reckless emissions of greenhouse gasses into the atmosphere by the industrialized countries, the world is coming to a realization that such a model of development is not sustainable. The evidence of global warming and climate change are apparent. This has forced governments and the private sector to come to an agreement that something has to be done. However, what should be done? This is the biggest point of departure (Mayaka & Akama, 2014). The issue is that adopting sustainable development models also affects the profitability of the different business models, at least at first. This is the main issues; these businesses are not willing to take the hit and transform into eco-friendly models. The cost of conversion is too high. It will involve a complete change in the approach to the supply chain management of these firms. As a result, adopting the environmentally safe models of development has proved too challenging (King, Funk & Wilkins, 2011).
Sustainable Development and the Hospitality Industry
The hospitality industry is no exception when it comes to the industries that need to adopt sustainable models. The movement to take the hospitality industry green has gained traction in recent years. The hospitality industry is a crucial component if the largest industry in the world- travels and tourism. The hotel industry is comprised of different types of accommodation services that constitute of luxury bed and breakfast in luxury hotels. Others include inns, lodging structures, economy properties, and all-suite hotels. These businesses can be owned and run by individual operators, multinational corporations, pension funds, insurance companies, governments and other investors (Airey, Dredge & Gross, 2015). This means that this industry has a major impact on the environmental, social, and economic aspects of life in society. This means that it has become increasingly crucial to adopt sustainable models of operation and development of the industry for the future of society and the industry as well. The industry has a major role in its contribution to the gross domestic product. Job creation is also another major contribution to the economy and society. The hospitality provides much-needed employment opportunities to the people in society. Its position as a labor intensive industry, it hires many wage earners. These wage earners contribute to the gross domestic income through their taxes, plus their disposable income contributes to the gross domestic output as well, this might contribute to the creation of other employment opportunities (Airey, Dredge & Gross, 2015).
The hospitality industry also plays a major role in poverty reduction. This is pronounced in the less developed countries and regions. Tourism models that are well-designed, planned, and executed can be beneficial to both the host communities and the travelers or tourists. Sustainability in this context means a permanence to the benefits to the host communities and permanence in the provision of the hospitality or tourism product to the market. This implies the optimum utilization of the resources of the host country. Such resources include biological diversity. Sustainability also implies the minimization of the cultural, ecological, social effects on the host society or community. It also means maximizing the benefits to the local communities and the conservation of its resources, including the flora and fauna (Airey, Dredge & Gross, 2015).
The sustainability of the hospitality industry will happen if the business operations are sustainable. This means that the businesses adopt strategies that provide benefits and progress to the enterprise and the stakeholders today. At the same, this model should ensure that these strategies take care of the conservation and sustenance of the natural and human resources for future needs and posterity (He, Li & Keung, 2011).
The Hospitality Industry and the Environment
Estimates in the tourism industry state that by 2020, the tourism arrivals are forecast to be at above 1.56 billion. This is more than double the number of travelers today. As a result of this surge in the number of people traveling and thus needing the services of the industry, the industry has to develop. This means the industry has to devise strategic and sustainable policies that will accommodate the increasing traffic. Mass tourism has can have a major depleting effect on the environment. This is because; the traveling throughout the world will need the use of cars and jets, and these consume fossil fuels. Hotels create huge quantities of waste that is disposed of to the environment. Such waste has a negative effect on the environment. It can cause water, air, and soil pollution (Jones, Hillier & Comfort, 2014). The hospitality industry is also a major consumer of water and energy as well. Although the extent or the level of pollution that the hospitality industry is not at the level of the major polluters in the world such as manufacturers, the industry does contribute to global warming nonetheless (Jones, Hillier & Comfort, 2014).
The increase in the construction of hotels and the expansion of the hospitality industry can, therefore, put significant pressure on the environment. This has increased the necessity of adopting environmentally-friendly models in the development of this industry. For example, the U.S. Environmental Protection Agency (EPA) estimates that lodging ranks fourth in the list of the most intensive energy users in the commercial sector of the United States. An improvement in the efficiency of the use of energy in the hospitality industry is needed. This will contribute to a reduction in the emission of greenhouse gasses and thus reduce the effects of global warming (Jones, Hillier & Comfort, 2014).
Analysis of the Issue
The hospitality industry, like most of the industries that are leading in economic, social, and cultural contribution to society needs reform. The pressing reform is in the sustainability direction. This means the industry has to find a common ground model that will take into account a three-part balance. This is expressed as “profits, planet, and people”. The industry needs to establish a balance in which the business model generates income of profitability and maintains the socio-economic contribution to society such as employment, poverty reduction, and contribution to GDP growth. At the same time, the industry’s model of development has to be conscious and receptive to the needs of the environment. This means that the industry should utilize the natural resources in a manner that is profitable for the business and the stakeholders and still be sustainable for posterity (Walker & Walker, 2012).
Multicultural Issues
The other issue facing the hospitality industry is the multicultural issue within the industry. Globalization means that the world is interconnected and interdependent. The advent of technology in transport and communication means that the connection among people throughout the world is easier, faster, and reliable convenient. The hospitality industry has benefited from these improvements to technology and the transport sector. The mobility around the world has been made easier, faster, and safer (Rodriguez-Anton et al., 2012). This has also led to an increase in the number of multicultural workers and talent that is working in the hospitality industry. The major issues have become the management of the multicultural talent that is in the industry (Rodriguez-Anton et al., 2012).
Workers or employees that have come from different backgrounds have different outlooks and perceptions of work and other issues that surround work in the hospitality industry. As such, the management has to understand the diversity in the employee pool and tailor their management policies in a manner that reflects and respects the diversity. He issues of prejudice have been raised in the industry. Prejudice at work has negative effects on the performance of the workers (Rodriguez-Anton et al., 2012). This leads to reduced output and the affected workers not delivering at their optimum. In such cases, the morale at work is also an issue. Such a working environment can resource in a collective poor performance and thus the tourism or the hospitality industry can underperform. The management, therefore, have to be alive to the existence of such issues. They need to come up with management strategies and recruitment strategies that achieve a great mix of culture and experience. The next step is to train these workers a work ethic and teamwork that will work to deliver the aims and objectives of the industry (Rodriguez-Anton et al., 2012).
The other challenge of a multicultural composition of the hospitality industry is communication. Communication is crucial to the management and the performance of the workforce. The management and the employees have to be clear in the direction that the firm is taking. This means that the workers are clear on the policies and strategies that the business and the industry are taking. A lack of communication between the management and the workers leads to the creation of a gap of knowledge and information between the two. This affects the performance of the workers (Aragon-Correa, Martin-Tapia & de-la-Torre-Ruiz, 2015). Communication issues can also affect the customers or the clients. Poor communication with the customer can lead to confusion and poor customer service. With the increased competition in the hospitality industry, such mishaps cannot be afforded in the industry as it might lead to a loss of customers to other destinations (Aragon-Correa, Martin-Tapia & de-la-Torre-Ruiz, 2015).
Training and development of the human resources is an issue that is crucial to the development of the hospitality industry. The dynamics and trends are changing at the work. These changes are constantly happening. This means that approaches of the hospitality industry has to change with the times. For example, the adoption of sustainable models discussed above means that the workers have to be trained and brought up to date about the issues that the industry is facing. The training should also cover the changes that will, therefore, happen as a result. Such training is aimed at ensuring the policies that the industry adopts are compliant with the ensuing regulations and laws laid out by the host governments. The policies also have to be compliant to the global trends and dynamics. Training of the human resource is also aimed at encouraging the workers to be innovative. This means that the employees can be allowed to think outside the box and have freedom to experiment with ideas. Such innovation in the hospitality industry can earn individual businesses a competitive edge or advantage over other businesses in the industry (Aragon-Correa, Martin-Tapia & de-la-Torre-Ruiz, 2015).
Practical Recommendations
The managers should adopt a relationship management system. Although the management styles differ from one manager to another, the approach to managing the cultural diversity that exists in the hospitality industry can be common. The managers should review their experiences and relations to allow them to manage the cultural diversity effectively. The cultural diversity of the industry has been attributed to increased performance and innovation and creativity in the industry (Huang & Rundle, 2013). However, the management of such a workforce has also been said to be difficult to manage. The managers should realize that the workers, whether majority or minority do not always share the same feelings or ideas about certain issues. The manager should, therefore, create programs that will increase the awareness of the cultural diversity. This will enable the workers and fellow employees in the industry to be aware of such diversity, and this will contribute to reduced prejudice and discrimination and increase cooperation and teamwork among these workers. An employee relationship system can also be implemented (Chen, Cheung & Law, 2012). This will work to foster the relationships in the workplace between the workers from different backgrounds. Managers should also accept these cultural differences in the workplace. Such acceptance means that all workers will be treated equally by the managers. Such an acceptance from the top can be a good example for the rest of the workforce to follow in the industry (Chen, Cheung & Law, 2012).
Diversity management training programs can also be adopted by the manager in the hospitality industry. A training program will ensure that all the workers and stakeholders involved in the industry are trained about the existence of diversity and how to behave or accommodate this diversity within the industry. Training, education, and development are crucial in the hospitality industry to allow the businesses to be competitive in the industry. Globalization has had a major impact on the hospitality industry. It has made it necessary for the businesses in the hospitality industry to be effective in how they work in foreign environments. This is crucial due to the multicultural nature and differences in terms of laws and cultures in foreign environments (George & Wiliams, 2012). The accommodation of workers from different backgrounds means that the businesses have an international outlook and a business’ approach that is informed. For example, a hospitality business entering the Chinese market will be well served to work with a Chinese workforce alongside the workforce from the home country of the company. This will allow the business to learn from the Chinese workers on issues such a culture, the market, and the laws and regulations. Such details are crucial in making the decisions of entry and the marketing and development of the business (Kozak, 2012).
Bibliography
Airey, D., Dredge, D., & Gross, M. (2015). Tourism, hospitality and events education in an age of change. The Routledge handbook of tourism and hospitality education, 3-14.
Aragon-Correa, J. A., Martin-Tapia, I., & de-la-Torre-Ruiz, J. M. (2015). Sustainability issues and hospitality and tourism firms’ strategies: analytical review and future directions. International Journal of Contemporary Hospitality Management, 27(3).
Boella, M., & Goss-Turner, S. (2013). Human Resource Management in the Hospitality Industry: A Guide to Best Practice. Routledge.
Chen, R. X., Cheung, C., & Law, R. (2012). A review of the literature on culture in hotel management research: what is the future?. International Journal of Hospitality Management, 31(1), 52-65.
George, B. P., & Williams, A. J. (2012). The Evolution of Sustainable Supply Chains in the Hospitality Industry: Fifty Years of Evolving Commitment to Green. LEaDinG THE Way, 311.
Hall, C. M., & Gossling, S. (Eds.). (2012). Sustainable culinary systems: local foods, innovation, tourism and hospitality. Routledge.
He, Y., Li, W., & Keung Lai, K. (2011). Service climate, employee commitment and customer satisfaction: evidence from the hospitality industry in China.International Journal of Contemporary Hospitality Management, 23(5), 592-607.
Huang, Y. T., & Rundle-Thiele, S. (2013, January). Internal Marketing: Exploring the Impact of Cultural and Language Issues. In Proceedings of the 2nd International Conference on Green Communications and Networks 2012 (GCN 2012): Volume 5 (pp. 551-558). Springer Berlin Heidelberg.
Jayawardena, C., Pollard, A., Chort, V., Choi, C., & Kibicho, W. (2013). Trends and sustainability in the Canadian tourism and hospitality industry. Worldwide Hospitality and Tourism Themes, 5(2), 132-150.
Jones, P., Hillier, D., & Comfort, D. (2014). Sustainability in the global hotel industry. International Journal of Contemporary Hospitality Management, 26(1), 5-17.
Jones, P., Hillier, D., & Comfort, D. (2014). Sustainability in the global hotel industry. International Journal of Contemporary Hospitality Management, 26(1), 5-17.
King, C., Funk, D. C., & Wilkins, H. (2011). Bridging the gap: An examination of the relative alignment of hospitality research and industry priorities.International Journal of Hospitality Management, 30(1), 157-166.
Kozak, M., & Martin, D. (2012). Tourism life cycle and sustainability analysis: Profit-focused strategies for mature destinations. Tourism Management, 33(1), 188-194.
Mayaka, M. A., & Akama, J. S. (2014). Challenges for the tourism, hospitality and events higher education curricula in Sub-Saharan Africa. The Routledge Handbook of Tourism and Hospitality Education, 235.
Rodríguez-Antón, J. M., del Mar Alonso-Almeida, M., Celemín, M. S., & Rubio, L. (2012). Use of different sustainability management systems in the hospitality industry. The case of Spanish hotels. Journal of Cleaner Production, 22(1), 76-84.
Walker, J. R., & Walker, J. T. (2012). Introduction to hospitality management. Pearson Higher Ed.
Innovative Writers 