The Size and Economic Impact of the Hospitality and Tourism Industry

3276 Words May 7th, 2011 14 Pages
The Size and Economic Impact of the Hospitality and Tourism industry:
Tourism is a massive industry in New Zealand. It has a major consequence on the rest of the economy from the employment it provides to a major percentage of the workforce (9.6% of the total workforce in New Zealand), thereby contributing to the Gross Domestic Product (GDP).
The tourism growth in New Zealand is the outcome of the numerous of options that the hospitality industry offer visitors from all over the world. Some of the choice of accommodation that NZ offers are Apartments, Beach Houses, Holiday homes, Motels, Backpackers, Holiday Parks, Homestays, Nature retreats, Resorts , Health spas, Vineyard accommodation, Bed and breakfast, Farmstays, Hotels etc
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3. Turnover:
The holiday park sector employed 2,200 people in 2009 and a large number (37%) of holiday parks were run by self-employed operators with no employees and 35% were small with 1-5 employees (Ministry of Economic Development, 2010b). Consequently the turnover in this sector is insignificant. When explored for accurate data on labour turnover in the self employed holiday theme park sector with some employees, information was very limited. Some media articles on turnover in a particular HTP i.e. Waihi Beach TOP 10 Holiday Resort states that their turnover has grown strongly, averaging 17% year on year growth, and some years as high as 25%(Voxy News Engine, 2011). Since, the article does not explain the reason for the turnover but an assumption can be made from the types of visitors at HTP, which is the employees employed at these places, ought to be travellers on holiday work visa.

4. Wages:

Tourism is a service industry and high quality tourism experiences rely on delivery of world class service standards. Consecutively to provide a world class service, the industry requires skilled labour force. A tight labour market demands attractive and competitive pay rates and working conditions. The following table shows an average wage of an employee in hospitality sector. Although the industry is growing at standard rate the wages are relatively low for tourism sector when compared to other sectors.
New Zealand Average Hourly Earnings (not including overtime)
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