Tourism in Generating Direct and Indirect Employment - Coursework Example

Tourism is an efficient generator of direct and indirect employment Name Institution Course Date Tourism in Generating Direct and Indirect Employment Introduction The hotel, hospitality and event industry is an important contributor of economic growth. It is the largest and the fast-growing sector in the world when compared to industries like construction, agriculture and retail (DiPetro, 2010). Tourism brings about positive result such as economic growth, job creation, access to transport as well as cultural benefits. The income generated from hospitality, tourism and event sector is used in growing the economy in different countries (DiPetro, 2010). Over the last decade, due to globalization and technological advancement, the industry has undergone changes in terms of eco-tourism, sustainability, e-commerce and emerging niche market. These changes are expected to change the way companies operate and how they relate to the customers (Yang and Fu, 2007). With these changes comes direct and indirect employment opportunities for many people around the world. The tourism industry not only generates wealth for employees working in tourism companies, but it also supports other industries thereby creating a multiplier effect (DiPetro, 2010). This paper will discuss the current growth and trends in tourism and hospitality industry and the direct and indirect employment opportunities in the industry. Also, the essay will also offer the future predictions for the industry. The Current Growth and Trends in the Tourism and Hospitality Industry One current trend witnessed in the tourism, hospitality and event industry is globalization. Today, people are more willing to travel around the world due to less stringent regulations (Deloitte, 2013). The international tourists in 2000 were about 674 million but this number increased to 797 million in 2005. In the United Kingdom, the tourism sector has grown fast and is expected to generate over £257 billion by 2025. The sector is growing at an annual rate of 3.8% which is faster than any other industry (Deloitte, 2013). In the United States, the tourism industry has generated about $1.6 trillion in 2015 creating about 7.6 millions. The industry accounts for nearly 11% of all exports in the country, positioning itself as the largest export (Deloitte, 2013). The statistics presented above shows how tourism and hospitality industry contribute to economic growth. The tourism, hospitality and event industry has also been faced with diversity issues. The sector has become more diverse in terms of employee population and guests (Blum, 2008). Due to globalization, the industry provides an opportunity to experience new cultural experiences for tourists and employees. It is therefore important for people to develop knowledge of interaction with tourists from different races, genders, and cultures. Companies have been forced to train their employees to appreciate and accommodate people from different backgrounds (Jin-Zhao and Jing, 2009). Technology is also another new trend in the hospitality industry and is a tool to boost competitive advantage. The use of technology in the industry has enhanced efficiency since, for instance, it has ensured orders and booking are made better, faster and cheaper. Technological solution for this industry includes communication gadgets such as social media, models for check-in and check-out of guests and innovations such as e-ticketing and e-booking (Chathoth, 2007). With such innovations in place, hospitality companies have the potential to improve its performance and effectiveness. Another trend involves sustainability and eco-tourism. Tourism has brought numerous challenges such as loss of cultural heritage, ecological degradation and pollution (Millar amd Baloglu, 2011). The impacts of tourism have led to many companies seeking responsible holidays and operations. There are many countries which have established stringent environmental laws that govern tourism countries (Millar amd Baloglu, 2011). Sustainable tourism has become very popular and has changed how companies operate and carry their activities. In most countries, all tourism and hospitality activities such as holidays, adventure travel and conferences should be sustainable. Sustainable tourism is committed to enhance the welfare of people and reduce adverse effect of tourism activities on the environment and culture (Millar amd Baloglu, 2011). Direct and Indirect Employment Opportunities in the Tourism Industry Tourism ability to create employment is one of the most important benefits that a country enjoys. As indicated by research conducted by Helms and Mayo (2008), tourism offers about 10% of the global income and one more than one tenth of the world’s populations have jobs as a result of the industry (Millar and Baloglu, 2011). With regard to the contribution of tourism in the global market, employment opportunities can either be directly or indirectly. Direct employment involves the number of jobs created directly in the industry. For instance, job opportunities in hotels, restaurants, parks, aircrafts, cruise line, travel agencies and shopping outlets etc. represents direct employment (World Travel and Tourism, 2015). The tourism and hospitality industry has directly employed more than 98 million people according to statistics provided in 2013 (Dayananda, 2014). This number represents 3% of the global employment. At the same time, the industry has indirectly created one in every element employment opportunities. Direct employment represents job opportunities for people who directly take part in the industry as employees or entrepreneurs (DECE, 2006). Tourism is considered a labour intensive sector than most industries and therefore it uses a larger percentage of unskilled ad semi-skilled people in most of its operations. As a result, tourism is considered an important source of direct employment, especially for people struggling to meet their needs (Blum, 2008). In most countries around the world, tourism is the only source of employment in the rural regions. Tourism and hospitality offers rural dwellers an alternative to unemployment and struggle and movement to urban regions (Millar and Baloglu, 2011). Employment opportunities offered by tourism can also be indirect through its value chain (Millar and Baloglu, 2011). Tourism industry creates indirect employment through its association with food and beverage companies, contractions and transportation companies. Indirect employment may take the form of activities like marketing agencies, accounting services, construction of tourism facilities, aircraft producers, etc. (DiPetro, 2010). These activities are dependent on the revenue generated by hospitality companies. According to Yang and Fu (2007), in developing countries, tourism, hospitality and event industry adds extra 60% on top of the direct impacts with regard to employment opportunities. Both direct and indirect employment benefits of tourism, hospitality and event industry not only come in the form of salaries to the employees, but may be in the form of multiplier effect (Dayananda, 2014). In most countries, tourism and hospitality creates a multiplier effect. Visitors in different regions buy tourist products and their spending is injected in the local economy. The income generated is spent in ensuring the growth of economy which creates a multiplier effect (DECE, 2006). A larger percentage of the income generated from tourism and hospitality industry is spent locally and the benefit is greater in expanding other sectors. What’s great about the multiplier effect is that revenue in tourism industry is used in supporting other industries preventing the failure that would lead to loss of jobs to people. An important aspect of the tourism industry is its connection to the local or host communities. Leisure and holiday destinations are often boosted by tourism communication (Millar amd Baloglu, 2011). Tourism development in local regions has an impact on communities as it gives them a sense of being an integral part of the sector. Tourism destinations hire local people in their particular leisure regions. This has changed the lives of people and has raised their standard of living (Millar and Baloglu, 2011). Future Predictions for the industry The future of tourism industry is bright. The industry is expected to grow as a result of enormous investments available around the world (Yang and Fu, 2007). In destinations such as the Middle East and Dubai, the amount of investments is high. Dubai has invested billions of dollars in developing infrastructure required to transform it into a world class destination (Millar amd Baloglu, 2011). Investments in hotels, cultural museums, seven start hotels and transport options such as trains will be developed in the future to boost tourism industry. Since governments rely on tourism as the main source of revenue and economic growth, the future of the industry will bring better things with more government involvement in terms of funding and regulatory support (Millar and Baloglu, 2011). The government support will result in the expansion of the industry in the long run. Due to this, the future of tourism and hospitality industry will offer people and customers with a variety of opportunities in terms of leisure activities and employment (Helms and Mayo, 2008). The future will also see the improvement of services in the hospitality and tourism industry due to the adoption of total quality management (Millar and Baloglu, 2011). Total quality management involves the improvement of service quality meant to reduce costs and enhance efficiency, ultimately leading to stakeholder’s satisfaction. Many hospitality companies have established total quality management as a means of gaining competitiveness (Yang and Fu, 2007). In 10 years, this trend will continue and more companies will implement this strategy in order to set a higher standard in service provision in the sector. Due to changes in customers’ preferences and intense competition, organizations are under pressure to modify their operations to improve its products and services. The improvement of services will heighten the growth of the sector in the long-run (Yang and Fu, 2007). The trend of booking leisure activities and hotels online through the internet is set to expand as more and more companies invest in these technologies. Due to such technologies, the traditional travel agencies will be affected considerably (Yang and Fu, 2007). Tourism companies and tour operators will respond by bring together more flexible holiday packages according to the preferences of the consumers. The travel sales through the internet will increase considerably in most markets and will change the expectations of the customers from the employees (Helms and Mayo, 2008). Working in the tourism, event and hospitality industry will require a different set of knowledge, skills and abilities from the employees. I would be required to have the knowledge of information technology and online customer service in order to drive the success and productivity of an organization. There has been a shake-out in the economy which has led to the failure of the smaller airlines (Yang and Fu, 2007). New developments have occurred in the form of low-cost airlines that are good alternatives for major airlines in companies such as United Airlines and Air Asia. Low-cost carriers will double the number of passengers and reduce expenditures for airlines (Yang and Fu, 2007). In many countries there is a probability of development of several mega hotels and restaurant that would create employment to people. With a large number of players in the market, the customers have high purchasing power and customers are ready to do anything to retain their best talent (Yang and Fu, 2007). One trend that would be witnessed in future is an increase in employee salaries as a means of retaining them. Conclusion Tourism, hospitality and event industry is an important contributor of economic growth. This industry has brought about different benefits such as job creation, improvement in infrastructure and cultural development. There are numerous growth and trends in the tourism and hospitality industry that have changed how companies operate and serve its customers. For instance, the growth of the concept of sustainability has led to companies adopting sustainable tourism as a means of protecting cultural heritage and reducing environmental pollution. Technological advancement has led to the introduction of new models of doing business such as social media, e-booking, e-ticketing, etc. One of the major benefits that tourism companies have brought in the economy is the creation of employment. Employment opportunities can either be direct or indirect. Job opportunities in hotels, restaurants, parks, aircrafts, cruise line, travel agencies and shopping outlets etc. represents direct job creations. Tourism industry creates indirect employment through its association with food and beverage companies, contractions and transportation companies. The future of the hospitality industry is characterized by improvement in service provision, increase in the use of technology and growth and expansion. This offers an opportunity for wider job opportunities. References Blum, S 2008, Hotel Operations: Theories & Applications, Kendall/Hunt Pub Co., New York. Chathoth, P. K 2007, The Impact of Information Technology on Hotel Operations, Service Management and Transaction Costs: A Conceptual Framework for Full-Service Hotel Firms. International Journal of Hospitality Management, vol. 26, no. 2, pp. 395-408. Dayananda, K 2014, Tourism and Employment: Opportunities and Challenges in Karnataka – Special Reference To Kodagu District. IOSR Journal of Humanities and Social Science, vol. 19, no. 11, pp. 1-11. Deloitte 2013, Tourism Job and Growth. 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