Economic Crisis Management in Hospitality and Tourism Industry

Hotels- the most important accommodation subsector which provide the greatest total employment within the tourism industry at the global

Globally the tourism and hospitality industry is undergoing and evolving the radical changes. From the past experiences are now advancing at greater pace through faster development of skills and knowledge developed to create and adapt innovation in several ways. Therefore, it is important to have greater understanding of current issues and knowledge in order to cope with future challenges effectively.

Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).

The Tourism and Hospitality Industry is one of the largest industries in the country. This industry is one of the key front-line players which contributes greatly to the growth of the economy of a country. They are the vital source of income for both government and private sectors. People often mistaken that the duty of the profession in the tourism and hospitality to be somewhat similar, that is to serve clients but in fact, there is actually a vast difference between the roles of a tour guide, travel tour manager and travel agency manager.

The hospitality industry or the lodging industry is one of the most major service oriented industries in the world, inhabiting a noteworthy stand in the global economy. This self-sustaining industry has been successful in creating more than 258 million jobs across the world and contributing to around 9.1% of the world GDP. The figure would touch 296 million in 2019 according to the expectations of UNWTO. Presently, the industry has gained a worldwide economic segment having a direct and indirect impacts on the world economy. The rapid growth of this industry is being experienced by various countries including India. The hospitality sector of India is growing at a fast rate and referred as one of the most beneficial enterprise in terms of profit and contribution to the economy through foreign exchange. Hotels are a critical part of the industry and play their part in providing services and

First section of risk management that the essay will discuss is surrounding tourism industry. There are number of catastrophic disasters have occurred all around the world. The casualty and damages are immeasurable.

Crisis communication is one of the most important and neglected components of organizational communication in today's business world. It is vital that every corporation have contingency plans for emergency situations, both natural and man-made. Studies show that eighty percent of organizations confronted with a major disaster runs out of business within two years.(Hickman & Crandall 1997) Nevertheless, we also know that almost forty percent of all Fortune 1000 companies have an operational crisis management plan in place. (Hickman & Crandall 1997) This paper will examine and evaluate three journals that discuss different aspects and needs for an active crisis plan.

From an environmental perspective, it is apparent that the world is starting to realise that increases in tourism are having a negative impact on the environment. This is due to increases in energy consumption, which in turn heightens the effects of global warming (Neto, 2002). There are many controls that governments are trying to put into place, such as flight rationing (Liverpool Business School, 2009). However, it can be argued that these have not really begun to have a significant effect on tourism, as they are still insufficient to dampen demand. It may become a problem in future years, as the number of controls is likely to increase. Perhaps the largest environmental factor would be natural disasters, like Hurricane Katrina (Cashell, 2005) and the tsunami that hit Asia in December 2004 (Birkland, 2006). These will impact negatively on people’s confidence in visiting places that have been hit severely by such disasters.

The Indian hospitality industry has emerged as one of the key industries driving growth of the services sector in India. It has evolved into an industry that is sensitive to the needs and desires of people. The fortunes of the hospitality industry have always been linked to the prospects of the tourism industry and tourism is the foremost demand driver of the industry. The Indian hospitality industry has recorded healthy growth fuelled by robust inflow of foreign tourists as well as increased tourist movement within the country and it has become one of the leading players in the global industry.

Tourism has tremendously grown and developed over the years where it is now considered an industry. The stabilisation of a nation is a must for the development of tourism industry, tourism also helps generate income for the country. There are a wide range of associations that are involved in this industry including the independent hotels. The hotel industry is involved in consortium where they join in one or more associations to increase their buying capacity, and improve or grow their offers of services to target

Tourism is considered as an exceptionally complex whilst significant economic activity that sometimes appears to have as many detractors as supporters. According to Timothy A. FaladeObalade and Suchi Dubey (2014), the tourism industry began in the year of 1960 and has developed rapidly during the last five decades in terms of income generating and the total number of tourists who travel domestically as well as internationally. It was proven that tourism industry is a powerful source of revenue, even during the economic crisis, despite some fluctuations in tourism that has been caused by certain circumstances such as terrorist threats as well as severe diseases such as SARS and HIV.

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

The aim of this report is to understand what happened globally in economy for the last 7 years in order to build an affective and precise managerial strategy for Global Hotel in to generate profitability and create a successful business.

With rapid advances in science and technology, tourism has acquired the station of an industry in all industrialized countries. The high influx of foreign tourist traffic has accelerated demand for

It should be noted that in most countries, transforming tourism into an economic activity on a national scale has occurred in the second half of the century. Furthermore, the consolidation of tourism has led to appearance of the provision of the services, process known collectively as the tourism industry.