Resort Management - Economic Impact on Resorts - Assignment Example

Economic challenges and economic benefits facing Disney Grand Floridian Resort and Spa There is a broad range of economic factors that influence the productivity and performance of Disney Grand Floridian and Spa. For instance, increased competition in the hotel industry has resulted in a reduced number of individuals visiting the Grand Floridian. The establishment of over forty leading resorts and spas in Florida has led to vast customer preferences. On the other hand, the Grand Floridian relies on the nation’s economy leading to fluctuations in revenues and profits.

Nation’s economy plays an imperative role in the performance of the resort. A slow economy in the region implies that business trips increase tremendously, thus positively affecting profits. Cost containment has been another hiccup facing the Grand Floridian and thus reducing the productivity (Miller 55). The resort management has come up with ways to lower the cost without negatively affecting the quality standards. As a result of cost containment, the management has cut down cost of products and services leading to low revenues.

According to a research study by Choi, taxes, and deductions play a vital role in the hospitality industry. Higher taxes and lower tax deductions in Florida have negatively affected the Grand Floridian’s revenues. For instance, high energy taxes will lead to fewer trips while high corporate taxes result in less net profit after tax. On the other hand, increased guest sophistication has also posed a significant challenge to the Grand Floridian Resort. As a result of increased consumer preferences, the resort has been forced to undertake renovation of recreational facilities, business hubs, and guests’ rooms in order to match customers’ expectations.

Lack of adequate number of employees working in the resort has led to reduced productivity. Labor shortage is triggered by the increased services offered at the Grand Floridian resort (Choi 68). Therefore, the resort management needs to handle the aforementioned hiccups in order to improve on the number of guests, and increase efficiency.There are also favorable economic factors that have facilitated the growth and expansion of the Grand Floridian resort. For instance, the organization has received benefits from the federal government through subsidies and reduced taxes resulting in higher profits and revenues.

Therefore, the government has enhanced the organization’s operations by offering tax breaks, and incentives to the entire hospitality and tourism industry. On the other hand, rising competition in the industry has led to increased creativity and innovations in the Grand Floridian’s products and services (Sehlinger and Testa 89). For instance, the resort has expanded its services and renovated guests’ rooms with the aim of embracing customers’ needs and expectations.Florida economy has improved, over the years, leading to a positive impact in the hospitality industry.

According to research studies, the hotel, and lodging sector has experienced a tremendous increase in performance relative to other sectors of the economy. Moreover, other economic sectors such as transport, manufacturing, and information have a significant impact on the performance of the Grand Floridian resort and spa. The affirmative growth in the aforementioned economic sectors facilitates growth and development in the Grand Floridian resort (Choi 76). On the other hand, increase in employment within the region signifies an increase in average income.

As a result, individuals can afford products and services offered by the resort. The Grand Floridian has also provided employment opportunities to the populace, leading to economic growth and development. Therefore, the Disney Grand Floridian and Spa has flourished in the Magic Kingdom resort area due to favorable economic factors. Works CitedChoi, Jeong-Gil. "A Review of Current Financial Issues Facing the International Hotel Industry." Journal of Hospitality Financial Management (1997): 2-6.

Miller, Laura Lea. Frommers Walt Disney World and Orlando with Kids. New Jersey: John Wiley & Sons, 2010.Sehlinger, Bob and Len Testa. The Unofficial Guide to Walt Disney World 2015. Birmingham: Unofficial Guides, 2014.