3 important Roles of Hospitality in Economy
Here are 3 important roles of hospitality in economy
1. Local phase
3 important roles of hospitality in Economy, first include the local phase, which can have massive benefits for national and international tourists due to their own culture, language, art galleries, Museums, and monumental heritage sites, along with local handicraft art and keen products that influence international tourists. They contribute to the Nepal government’s improvement and increase national economic stability. For example, Nepal is a large tourist destination because of Nepalese culture, history, and heritage sites, such as temples, towers, and beautiful natural landscapes.
2. National phase
Tourism is a vast industry that grows the country’s economy. Currently, Nepal’s economic situation has improved a massive range of tourist arrivals. The new study shows about 371,140 jobs have been generated by the tourism industry. Kathmandu which is the capital city of Nepal that’s the major tourist attraction area of Nepal.
3. International phase
The hospitality industry boosts the global economy according to its famous cultural and currency exchange rates. That promotes the country’s culture and art hence this could lead to preservation for a long time, and travelers get curious about that country’s culture and language. On the other hand, also generates job opportunities if the tourism rates boost surely there will be demand for human resources for service. According to research in 2023, India has generated about 39 million jobs regarding tourism jobs so this is the perfect example so far.
4. Advertising hospitality industry
It exceeds its brand reputation in the hospitality industry and provides the best experience to customers, also it going to be easy to collaborate and promote which makes it unique along with creating partnerships with local businesses. Its major focus is to maintain brand standards so license brands and products run as brand names and reputations as well as maintain quality. Without any extra effort licensing can benefit and boost incomes and revenue.
Analyzing global growth, franchising, and licensing that contributed to the hospitality industry
The hospitality industry has been impacted by franchising and licensing in the market such as employment rates, increasing multiple industries, and entrepreneurial ways of boosting the labor force market.
1. Development in globally
The global growth impacted hospitality vastly and demand for national and international prices regarding fuel and taking advantage of travelers. Nowadays people are willing to pay more money when it comes to travel and tourism, also taking care of themselves by gifting. On the other hand, through brand recognition, it gets impact easily also it will be easy to beat its competitors when the brand is famous. Also increases trust issues with customers if the brand is worldwide famous then there is no problem dealing with customers they easily trust the brand, or according to loyal customers’ preferences while they are traveling they prefer their favorite brand too.
2. Franchise
Within the hotel industry, one of the hardest parts is brand recognition so through franchise it will be easy to promote brand reputation, or even it’s not mandatory to promote a brand. Naturally, customers recognized the band it is also called creditability. It is not necessary to fix any issues the brand will take responsibility for all this, along with providing some specific professionals for specific training and drills that reduce costs and budget. Moreover, adapting the ongoing innovations and new ideas that make a strategy to run the hotel smoothly, the franchisor provides new products and services to its company, which grows the business and beats competitors.
3. licensing
It promotes product services based on its logo, brand name, design, sign, and a lot of other combinations that impact customers while walking on a street. Hence this could lead to generating revenue without any efforts or modifications, only through brand it automatically enhance in the hospitality business. In this highly competitive world, it doesn’t need to advertise or approach customers only targeted customers come and go by its identity. They can also collaborate with other brands such as cosmetic brands hence they offer numerous facilities while transaction time to luxury hotels. While maintaining the brand they also acknowledge the local market such as culture, art, and many more.
The hospitality industry includes its type such as accommodation, tourism and travel, fun activity, and event organizing, also offers various services and facilities like the accommodation department, food and beverage department, travel and tourism department, event organizing department, and fun activity department. Moreover, the major and functional sector combines cleaning services, eating and drinking, food production, and the front desk, and the minor sector has the safety sector and fixing, human resources, sales and advertisement, and accounting. These all are interrelated with each other such as housekeeping and front office department, engineering and front office department, F&B with event management, advertising and finance, and front office with sales and marketing department. Hospitality plays roles in the local phase, national phase, and international phase, also impacting franchising, and licensing, in the hospitality industry. In addition, evaluating global, branding, licensing, how they played a role in the hospitality industry, and globally, branding, and licensing.
