· tourists holidays will expire and they would return

·        
Introduction

According
to Ibisworld.com (2017), global tourism is the short-term movement of international
tourists across national borders for any purpose including leisure, business,
conference and visiting friends and relatives.

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The size and scope of the
global tourism and hospitality industry

·        
Analyze the size, nature and sub-sectors
of the global tourism and hospitality industry

According
to Rafat Ali, Skift (2015), the tourism industry constitutes 10% of the world’s
Gross Domestic Product and about 10% of all employment in the world (see
appendix).

The
products and services of the tourism industry can be intangible such as
holidays and the products are short-lived which means the tourists holidays
will expire and they would return to their generating regions. The tourism
products and services are inseparable.

There
are four main sub-sectors which includes private sector, commercial sector,
catering sector and public sector.

§  Private
sector includes all services providers in tourism like in hotels, transport.
Also accommodation is part of the sector and can be categorized as either
serviced in which all tourists’ facilities are available or non-serviced where
it is self-service accommodation.

§  Commercial
sector; its main objective is to make profit.

§  Catering
sector has the responsibility to prepare dishes and are catered for the guest
by the food and beverage department.

§  Public
sector includes all government organizations that specializes in saving the
needs of the industry like Zimbabwe Tourism Authority (ZTA).

 

·        
Analyze the role of stakeholders of the
industry

Stakeholders
in the tourism industry includes suppliers, private sector, public sector and
international organizations. According to Ritchie and Crouch (2003), suppliers
provide all the required elements based on tourist’s needs and must be aware or
the price, service quality, tourist selection, uniqueness and innovation of the
products offered.

The
private sector create employment, create business opportunities, generate
income and foreign currency, cater needs for customers, prepares space and
activities for the customers.

The
public sector is concerned with several functions such as arranging
developments carrying out rules and regulations on tourism, developing main
infrastructure, advancing the appeal of public tourism and conducting marketing
to promote tourism arrears (Inskeep, 1991).

International
organizations for example International Air Transport Association (IATA),
promotes safe regular and economic air transport and United National World
Tourism Organizations (UNWTO), deals with the market research and studies
problems within the industry.

·        
Explain the history of the tourism and
hospitality industry

The
history of tourism can date back around 2000BC when Egyptians tribes used to
visit places to held festivals. During that time the Greeks also travel to
their gods for festivals. The currency which was acceptable was the Roman
coins. During that time travelling was difficult because of poor roads.

17th-19th
century roads were improving and better surfaced. Children were sent on
Grand Tour in European cities to have better education. The sick started to
visit places like Bath and this popularize spas. In the 1850s, hotels were
built close to new railway stations. In 1862, railway companies started to
operate stream ships and shipping of goods were popular.

During
the World War 2 (1939-1945), the war affected the industry because were not
travelling. Around 1950s caravan holidays became popular and there was
development of private car ownership according to their affordability. From
1969 government policies started to support tourism and acts were met.

In
twenty-first century, technology had huge impact on the industry and
development in the products and services has played a major role in the
changing of the industry.

·        
Analyze the inter-relationships and
links between tourism and other sectors

Tourism
has inter-relationships and links with other sectors like transport sector,
agriculture, trade union and many more.

§  Transport
sector makes it easy for the movement of tourist from one place to another.
Tourists can use air, water, road or rail transport to and from their
destinations.

§  Agricultural
sector provides products for the hotels and restaurants to make different
dishes for the tourists and special crops will be branded so that some tourist
would bring them home as souvenirs.

§  Trade
unions like the International Transport Worker’s Federation (ITF) is the main
trade union that protects the tourism industry. Trade unions protect the
integrity of its trade, defend and to promote the rights of its members.

§  Arts
and culture industry provides entertainment to tourists through cultural dances
and performances from different cultures.

 

The food and accommodation
sub-sectors within the global tourism and hospitality industry

·        
Characterize the distinctions between
different types of accommodation and their operations

Accommodation
can be classified as serviced or non-serviced accommodation. Hotels are
serviced accommodation and they have been achieved by direct ownership and
franchising like KFC. Boutique hotels are often furnished. Their main aim is to
provide high quality to the guest and they are very cheap.

Hostels
are non-serviced accommodation and also low budget accommodation were guest
would rent a bed and other amenities are provided like kitchens. Lodges are
houses usually in rural areas used on holidays. Timeshares are vacation
property with shared legal control and right of use. Holiday centres are camps
which offer chalets as accommodation and entertainment at a low price.

·        
Characterize the distinctions between
different types of food operation

Food
operations include all activities to do with the provision of food and drink.
Restaurants offer takeaways and limited sitting area and it can be family
restaurants or exclusive restaurants. Family restaurant accommodates large
number of people and comprises of a children section and parking space.
Exclusive restaurants offer five star services to customers and they offer wide
menus which may include a wine list and food menu.

Fast
food outlets are very small shops like Nandos and they offer meals like chips
and chicken which are easy to cook and save. Catering and banqueting they cater
for conference centres, wedding venues and many more were people are served on
premises and at the same time. Institutions like hospitals also offer food
services within their institution. Also accommodation food service includes
hotel bars and restaurants.

·        
Analyze the factors affecting
accommodation location decision

Factors
affecting accommodation location decisions include health and safety and food
standards. Health and safety of all employees should be ensured by the
accommodation providers through providing quality food to customers and
maintaining the working environment for the employees and welfare provision.

Planning
and permission may affect accommodation location decision. Accommodation
providers must follow the rules and regulations of the location they want to
build the accommodation and whether the accommodation is suitable in that
location.

Building
Control Regulations are developed by the government and they include standards
for designs, building and alterations of the accommodation and this may affect
accommodation location decisions.

Banini,
et al. (2010), indicate that the stimulating instruments adopted by local
authorities to attract potential investors are important in the accommodation
location decisions and they may include fiscal, administrative, information and
infrastructure instruments.

·        
Analyze the effectiveness of transport
and distribution system

Transport
systems enables tourists to reach their destinations from their generating
regions. In domestic transportation mostly rail, road, air is used and water in
other local destinations enables locals to travel and visit attractions within
their country and it is more economical than international transport. Goods and
services of the tourism industry can be transported easily within the country.

Global
transport enables people to travel from one country to another. Air and water
transport are mostly used and it helps the industry to grow through exchanges
in foreign currency, goods and services between countries and spreading of
different cultures in other countries.

The
distribution chain explains the process by which a product is supplied from its
service providers to the customers. There is direct distribution whereby
tourism products are sold directly from the provider to the consumer and
indirect distribution whereby they use intermediaries to sell the products.
Using indirect distribution is cost saving, customers are able to buy in small
quantities and intermediaries help in boosting sales. However, indirect
distribution system has its weakness which include loss of product importance
and loss of communication control.

The issue and influences
affecting the global tourism and hospitality industry

·        
Review the development of the industry
and the reasons for change

Technology
has played a role in the growth of the tourism industry. Customers are now
buying their packages direct from the service providers not using
intermediaries through the developments of internet and this is because of time
scarcity. Also call centres has increased in the industry.

The
development of infrastructure and transport system has allowed tourists to
travel to and from destinations of their choices. The development of new
materials has affected the design of the transport systems.

Changes
in business practices; private and public sectors are focused and encouraging
sustainable tourism. This change causes less damage to the environment and it
strengthens the economy.

The
change in lifestyle; the increase in car ownership has boosted the domestic
tourism whereby people would travel to different place in their country during
their spare time with family and friends and they would have more freedom in
their own car.

·        
Evaluate the impact of government
activity and political issues

The
government makes the legal framework which the tourism businesses operate
within it and the businesses must follow those regulations. These regulations
may reduce the capacity to make profits due to high taxes. Government also
helps in infrastructure development and it benefits the locals as well as the
tourism industry. Sometimes the industry would be given financial assistance
like tax breaks by the government.

In
countries with political instability and ethnic unrest contributes to the fall
of the industry hence the fall of their economy. Terrorism activities makes
some countries to advice their people against travelling to such destinations.

The
political issues include the trade blocs. Regional trade blocs like Southern
African Development Community (SADC) increase trade among countries in southern
Africa through the reduction of visa restrictions, promote cross-border
movement of goods and people and helps in harmonizing national policies.

·        
Define the contribution of the industry
on the economy and impact

Tourism
industry alleviates poverty. Employment is created and jobs can be direct
whereby employment is created in hotels, restaurants and other facilities that
save tourist directly or it can indirect whereby jobs are created in the
informal sector like vendors (see appendix).

Tourism
improves the economic growth through foreign currency that tourists brought.
The increase in the rate for money exchanges increases benefits to other
industries. It contributes to the increase in income and well of a destination
as tourists spend their money on different activities.

Also
advances in food security whereby the food and hygiene standards in the
hospitality industry helps the economic growth through the attraction of more
visitors.

However,
the economic impacts can contribute negatively on a destination. Developing
countries mostly suffer from leakages because of foreign investment for tourism
facilities, cost of imported goods and foreign exchanges and many more. Tourism
can spread diseases whereby people from different countries and cultures may
bring in diseases. Some of the tourists will be criminals or even terrorists.

·        
Evaluate the effect of trends in modern
lifestyle habits

Technology
developments; tourism and hospitality industry sell their products and services
online. People now use online booking and online food ordering and this has
changed the modern lifestyles.

Government
stability; if a country is experiencing political issues and ethnic unrest lead
people not to visit the country and this leads to the decline of the industry.
Tax reduction; when governments offer tax reduction it strengthens the economy
whereby people would spend more money in the industry. In generating countries
economy will keep growing and hence discretionary income rises leading people
to spend more money in tourism industry.

The
other trend is sustainability, people nowadays prefer to visit places with
positive impact on the environment and community and people now know the
sustainability efforts the industry are taking.

·        
Evaluate the way in which external
factors affect the industry and organizations within it

Corporate
Social Responsibility is a corporation’s initiatives to assess and take
responsibility for the company’s effects on environmental and social wellbeing (Investopedia.com).
It helps in the creation of employment and more revenue in the community.

According
to Wikipedia, globalization is the increasing interaction of people through the
growth of the international flow of money, ideas and culture. Globalization
helps in provision of employment, brings in foreign currency and helps in the
growth of the economy.

Sustainability;
sustainable tourism is a concept of visiting a place as a tourist and trying to
make only a positive impact on the environment, society and economy
(Wikipedia). Tourists are concerned with the nature and companies that are making
impact on the environment and community.

According
to Young Scot, ethical tourism is responsible tourism means thinking about the
consequences of ones’ actions as a tourist on the environment, local people and
local economy. Producers should practice ethical activities so as to promote
ethical tourism.

The growth of global tourism
and hospitality brands

·        
Define the characteristics and uses of
branding

According
to Laura Lake (2017), branding is a name, slogan, sign, symbol, design or a
combination of these elements that identify products or services of a company.

Rick
Suttle pointed out that, small company’s brands must be targetable that is
business owners must identify the types of customers who are most likely to
purchase their brands and companies must focus on narrower segments of the
population for greater manageability.

Brand
awareness as a characteristic is built through internet advertising, newspapers
and brand logos and this would enable customers to recognizing the brand and
the type of brand image (Rick Suttle, n.d).

According
to Rick Suttle (n.d), brands must remain consistent throughout their existence
and small businesses make numerous promises in commercials and ads about their
brands and consumers expect companies to continue living up to these promises.

Categories
of branding are family brands, individual brands and own brands. According to
Kotler and Keller (2012), brand create mental structures that help consumers
organize their knowledge about products and services in a way that clarifies
their decision making provides value to the firm and brands identify the
producer of a product and allow consumers to assign responsibility for their
performance to a particular provider.

·        
Analyze the development of global
tourism and hospitality brands

According
to Raju Timothy (2016), the history of branding can be traced from the ancient
marketplace, medieval marketplace, 19th century folks and lastly
twentieth century.

§  Ancient
marketplace – in ancient Babylon buyers were lured to purchase goods. 3000
years ago in Western Zhou Dynasty of China, they held trade fairs were they
display their goods.

§  Medieval
marketplace – the trading industry began to recover. Printing methods began and
this helped in advertisement. Craft guilds were formed and middle class become known.

§  19th
century folks – pre-advertising and pre-branding spreads information
identifying goods and quality of products.

§  Twentieth
century – the use of internet helped the producers to market and create adverts
and logos. Sponsorships by brands has also increased.

·        
Analyze the benefits of branding and
brand loyalty

According
to Doyle (2000), building a strong brand can translate into greater market
share, ability to dictate a price premium and reduce promotional expenses which
all result in greater incremental cash flow for the firm today and in the
future and also allows for price premiums.

The
brand helps to create brand loyalty and it reduces the risk in purchasing to
the customer. Susan Gunelius posted that brand loyalty is the consumer’s
emotionally-changed decision to purchase a specific brand again and again. Its
benefits include customer loyalty and acceptance of products and extensions.

·        
Explain the use of tourism and
hospitality globalization strategies and their risk

The
tourism and hospitality globalization strategies include franchising, mergers,
acquisitions, strategic alliances and many more. According to the Business
Dictionary, franchising is an agreement where one party grants another party
the right to use its trade-name as well as certain business systems and
processes to produce and market a good and service according to certain
specifications like the Holiday Inn hotels. In franchising there is speed of
growth, improve valuations and increased profitability. Their risks include some
of the branches will fail to follow the standards and the accounting systems.

Merger
is a transaction where two firms agree to integrate their operations on a
relatively co-equal basis because they have resources and capabilities that
together may create a stronger competitive advantage (Anurag Savarnya, n.d).
According to Anurag Savarnya, mergers are carried out to increase market share,
economies of scale, profit for research and development and also they have
risks which includes clash of corporate cultures and employees maybe resistant
to change.

Another
globalization strategy is an acquisition. According to Anurag Savarnya (n.d),
an acquisition is a transaction where one firm buys another firm with the
intent of more effectively using a core competence by making the acquired firm
a subsidiary within its portfolio of business like Hilton International by
Ladbroke. In acquisitions the market share increased, increased
diversification, avoid excessive competition and their risks include inadequate
valuation of target, inability to achieve synergy and finance by taking hug
debt (Anurag Savarnya, n.d).

·        
Conclusion

The
tourism industry is one of the world’s largest industries hence reducing
poverty by creation of employment and businesses. Tourism generates foreign
currency and this helps in the growth of the economy. Tourism industry has
inter-relationships with other sectors like transport sector and it helps to
shape the industry. Transport developments have contributed in making some
destinations accessible. However, technology is taking over jobs like in
bookings thereby resulting in unemployment leading to poverty.

The
role of stakeholders should be emphasized as they are suppliers who provide all
principles required in the tourism industry. Sustainable tourism should be
achieved so as to reduce negative tourism impacts and produce economic benefits
for the community.