development of tourism and hospitality industry

The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

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Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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Modeling Economic Growth in Contemporary Belarus

ISBN : 978-1-83867-696-4 , eISBN : 978-1-83867-695-7

Publication date: 8 November 2019

The development of the tourism and hospitality industry in Belarus has a long-term positive trend. This process is uneven and the growth rate is below the global average. To stimulate the development of the tourism and hospitality industry, measures are being taken in the form of creating visa-free zones, stimulating business activity, holding major sport events. The potential for growth in this industry has not yet been exhausted. The assessment of the competitiveness of Belarus in comparison with the neighboring countries showed that the development of the tourism and hospitality industry requires improvement of the business environment, increase of openness for tourists, strengthening of country marketing in the world tourism market.

• Tourism business
• Hospitality industry
• Destination
• Tourism competitiveness
• Tourism industry
• Accommodation sector
• Hotels and similar accommodation facilities

Tarasionak, A.I. and Dziadok, V.M. (2019), "The Development of the Tourism and Hospitality Industry", Sergi, B.S. (Ed.) Modeling Economic Growth in Contemporary Belarus ( Entrepreneurship and Global Economic Growth ), Emerald Publishing Limited, Leeds, pp. 163-180. https://doi.org/10.1108/978-1-83867-695-720191011

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Travel, Tourism & Hospitality

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Leading global travel markets by travel and tourism contribution to GDP 2019-2022

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• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
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• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
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Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

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Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

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Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Leading online travel companies worldwide 2020-2022, by revenue CAGR

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Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

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Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

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Evolution of Hospitality Industry

19th century: indulgence of luxury into the evolution of hospitality industry, 20th century: beginning of modern hospitality era.

Cars became extremely popular in the mid 20th century. Intercity traveling became more convenient because of the well-connected network of roads. These factors favored the growth of Motels. The word motel is made up of “Motor and Hotel”. Motels were small 10×10 Ft wooden cabins for the travelers to take rest during the night journeys. These motels were built alongside the main highways to host more and more people who might want to take rest for a few hours or stay overnight during their journey. The concept of the motel was well received and they grew exponentially in numbers in a later stage. The motels were affordable and convenient and that is the reason why the concept of Motels was well received.

21ST CENTURY: TECHNOLOGICAL INTEGRATIONS IN THE EVOLUTION OF HOSPITALITY INDUSTRY

While it all started with providing only a place for sleeping, the traditional hospitality industry has evolved to become what we see today. Despite all the changes the industry saw, the customer has always been the center. It is consistently evolving to become more advanced. In this new century, the hotels reached the new heights, literally. Some of the tallest hotels were built in the 21st century. The technological advancements in the  Engineering Design Services  made it all possible. Hotel Fairmont Makkah and Burj al Arab are some examples of it.

Founded in the year 2008, Airbnb opened up a new segment in the hospitality industry.  It acts as a marketplace connecting people who wanted to rent their property with those who want to rent it. Since more and more people are traveling for business or for leisure, this gives them a very convenient and affordable option. Also, there has been seen a great hike in the number of solo travelers globally. These solo travelers not much bothered about the amenities. They don’t mind sharing spaces. They love meeting and interacting with locals as well as fellow travelers. And that is why concepts of youth hostels and home-hospitality have become new trends. The Internet helps a lot to such hospitality businesses. People can see the availability, photos, and reviews from other users. Today, we can browse through all our possible option for staying in any part of the world. We can know about services and amenities. Not only we can reserve our stay but we can also pay in advance. The recent trends in the evolution of hospitality industry favor the  construction of hotels  which has a classic historic touch integrated with modern services.

The hotel industry has always contributed largely in terms of revenue for any healthy economy. The modern hotel industry in 1960 valued around $3 Billion, which crossed the mark of $25 Billion in the year 1990. These numbers went down due to attacks of 9/11 and recession in the early 2000s. But the industry and its people stood strong and got back its lost pace soon in the new decade. Today, the hotel industry is worth more than $500 Billion providing jobs to 4.5 million people.

We at Russell and Dawson feel extremely proud of being associated with the hospitality industry. Founded in the year 1965, Russell and Dawson is a client-first company which has been providing architecture, engineering and construction services nationally and internationally for more than 50 years now. From the first hospitality project in the year 1982, we have provided various services to more than 245+  hospitality projects  so far. Russell and Dawson has worked with hotel developers/owners for the new development, conversion or renovation projects for prestigious brands like IHG(30+ projects), Marriott(15+ projects), Hilton (55+ projects), Carlson Group(4 Projects), Best Western(14 projects), Hyatt and independent brands in the northeast region and overseas – India, UAE (Dubai), Sri Lanka, Egypt, Bahrain, and Brunei.

Since 1965, Russell and Dawson have been meeting and exceeding the expectations of our clients. If you would like to learn more about the incredible benefits of our hotel design-build service and connect with architectural experts regarding your next  construction project , please call or contact us online today!

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PROVIDED FULL ARCHITECTURAL DESIGN SERVICES FOR THE FULL RENOVATION OF BROWARD COUNTY JUDICIAL COMPLEX IN FORT LAUDERDALE. Singer Architects, Inc., a Russell and Dawson company is pleased to announce that Broward County Judicial Complex, located at 540 SE 3rd Avenue

Development of Tourism and the Hospitality Industry in Southeast Asia

• Purnendu Mandal 0 ,
• John Vong 1

College of Business, Lamar University, Beaumont, USA

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Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore, Singapore

• Showcases perspectives on the socio-economic impact of tourism in Southeast Asian economies
• Includes the latest developments in the hospitality industry in Southeast Asia
• Explores the impact of tourism on sustainable development in Southeast Asia

Part of the book series: Managing the Asian Century (MAAC)

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Table of contents (8 chapters)

Front matter, destination asean, beyond 2015.

• K. Thirumaran, Pamela Arumynathan

Factors Affecting Willingness of Foreign Tourists to Spend Money in Benefiting Local People

• I Gusti Ayu Oka Suryawardani, Agung Suryawan Wiranatha, Christine Petr

Destination Loyalty Model of Senior Foreign Tourists Visiting Bali Tourism Destination

• I. Gusti Bagus Rai Utama

Hedonic Shopping Motivation: Does It Really Matter?

• Tjong Budisantoso, Abhishek Bhati, Adrian Bradshaw, Chun Meng Tang

The SWOT Analysis of Turkish Airlines Through Skytrax Quality Evaluations in the Global Brand Process

• Erkan Sezgin, Deniz Yuncu

Managing Development of Resort Destinations in Southeast Asia: Emerging and Peripheral Phu Quoc Island

• Vo Phuoc Quang Pham, K. Thirumaran

Optimum Stimulation Level and Shopping Experience: A Case of Australia

• Tjong Budisantoso, Chun Meng Tang, Adrian Bradshaw, Abhishek Bhati

Understanding Dark Tourism Acceptance in Southeast Asia: The Case of WWII Sandakan–Ranau Death March, Sabah, Malaysia

• Meltina Masanti

Back Matter

• Impact of tourism on sustainable development in Southeast Asia
• Medical tourism in Southeast Asia
• New developments in the hospitality industry in Southeast Asia
• Rapid socio-economic and cultural changes in Southeast Asia
• Role of tourism and hospitality industry in Southeast Asia

This book highlights the state-of-the-art tourism and hospitality industry in Southeast Asian countries, while also presenting future directions for the industry with an emphasis on decision-making models. It first elaborates on the significant role of the tourism and hospitality industry given the rapid socio-economic and cultural changes occurring in Southeast Asia, before providing perspectives on medical tourism, tourism for seniors and several other developments within the tourism and hospitality sector. Development of Tourism and the Hospitality Industry in Southeast Asia presents scholarly perspectives from researchers across the region and is geared towards world-wide readers in academia, as well as experts from the industry.

Purnendu Mandal

Purnendu Mandal is a Professor at the College of Business, Lamar University, Texas, USA. His teaching and research interests are in the areas of Strategy Management, Technology Development, Supply Chain Management, Strategic MIS and System Dynamics Modelling. He published over 200 journal articles and conference papers. His research papers appeared in journals such as European Journal of Operational Research, International Journal of Production Economics, Management Decision, International Journal of Operations & Production Management, International Journal of Quality & Reliability Management, Logistics Information Management, etc. He serves in editorial board of a number of international journals. He is the founder chair of International Conference on Managing the Asian Century and he is the Book Series Editor of ‘Managing the Asian Century’ published by Springer.

John Vong is Adjunct Professor at the Lee Kuan Yew School of Public Policy, National University of Singapore. Dr. Vong received his PhD in banking and finance systems from the University of Bradford, United Kingdom. He was a former Adviser to the World Bank Group and United Nations Development Programme. His research interest is in digital and technology innovations in financial services, education and health. His recent publications include a book entitled, Emerging Technologies for Emerging Markets (Springer, 2015).

Book Title : Development of Tourism and the Hospitality Industry in Southeast Asia

Editors : Purnendu Mandal, John Vong

Series Title : Managing the Asian Century

DOI : https://doi.org/10.1007/978-981-287-606-5

Publisher : Springer Singapore

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2016

Hardcover ISBN : 978-981-287-605-8 Published: 18 December 2015

Softcover ISBN : 978-981-13-5699-5 Published: 09 December 2018

eBook ISBN : 978-981-287-606-5 Published: 11 December 2015

Series ISSN : 2364-5857

Series E-ISSN : 2364-5865

Edition Number : 1

Number of Pages : VII, 128

Number of Illustrations : 13 b/w illustrations

Topics : Tourism Management , Emerging Markets/Globalization , Economic Growth

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• Hospitality Industry

The Origins Of The Hospitality Industry And What Lies Ahead

August 19, 2018 •

3 min reading

A brief history of the hospitality industry

Away from home, surrounded by strangers and yet you feel welcome. The original idea of hospitality has remained unchanged since the creation of the word itself. Derived from the Latin word “hospes”, meaning both visitor and stranger, hospitality has its roots in ancient history.

Thousands of years ago, when road networks were scarce and traveling was cumbersome strangers arriving in a foreign land had to rely on either their camping skills or a local’s kindness when looking for shelter. During the age of pilgrimage and the development of major trade routes throughout Europe, it was mostly inns and taverns offering primitive rooms to weary travelers. The idea of a hotel built for the sole purpose of hosting guests did not exist in Europe until the 18 th century, when technological progress and the introduction of faster and more reliable modes of transport made long distance travel available to wider public. With the influx of large numbers of foreigners into major cities, the need for accommodation led to the opening of the first hotels in the modern sense. Since then, the sector has known a nearly unbroken run of growth and international expansion.

Travel industry industry growth

Over the last two decades, international departures have more than doubled from around 600 million to more than 1.4 billion in 2016.

Thanks to this immense potential, a network of service providers has developed that caters to nearly every desire imaginable. Hospitality has gradually become one of the largest and most diverse industries, employing hundreds of millions spread over different sectors.

Today, businesses in the industry can generally be divided into four categories:

• Food & Beverage
• Recreation 
• Travel & Tourism

Every category under the umbrella of the term “hospitality” further contains many different sub-sector and operators. The mere global scale of the industry makes it difficult to provide a conclusive overview without taking up hours of your time. Travel, for instance, encompasses all modes of transportation available to travelers, including coaches, airplanes, vessels, taxis etc. While all sectors are interconnected and reliant on each other, each one of them is facing unique challenges and opportunities in the future.

The importance of innovation in hospitality

Going forward, the key for companies looking to defend or expand their current position in the market will be to keep up with the pace of innovation.

The emergence of new technologies such as artificial intelligence (AI) and the internet of things (IoT) , means that providers are now faced with the challenge of moving their offer into the era of digitalization.

The availability of extensive data on each individual guest will make it possible for companies to tailor their offers at a bespoke level, leading to closer and more immersive client interaction.

Hotel rooms that automatically adjust the lighting and the temperature to each traveler’s personal preferences can enhance guest experience and thus make it more likely for them to return. Traditional check-in and guest interaction procedures at hotels will likely see a fundamental overhaul.

The introduction of voice recognition software, for instance, will enable hotels to automate tasks that would traditionally be performed by a human.

This will result in more efficient processes at properties all around the world. While procedures are being streamlined, vehicles, amenities and buildings become smarter and more interactive.

The challenge for providers will be to keep alive the human touch that has made hospitality establishments so successful. At the same time, adapting to and using these new technologies will be crucial in the fight for customers in one of the most competitive markets in the world.

Need more resources on Hospitality Industry trends? Check these articles out:

• High-tech hotel wars: Sleeping in China just got more futuristic - CNN
• New Technologies Will Revolutionize The Hospitality Industry - Forbes
• Hospitality Industry: All Your Questions Answered - Hospitality Insights

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UN Tourism | Bringing the world closer

• SUSTAINABLE DEVELOPMENT
• Competitiveness
• Innovation and Investments
• ETHICS, CULTURE AND SOCIAL RESPONSIBILITY
• TECHNICAL COOPERATION
• UN Tourism ACADEMY

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Sustainable development

"Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities"

Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations, including mass tourism and the various niche tourism segments. Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability.

Thus, sustainable tourism should:

• Make optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to conserve natural heritage and biodiversity.
• Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance.
• Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.

Sustainable tourism development requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary.

Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful experience to the tourists, raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them.

COMMITTEE ON TOURISM AND SUSTAINABILITY (CTS)  

Biodiversity

UN Tourism strives to promote tourism development that supports, in equal measure, the conservation of biodiversity, the social welfare and the economic security of the host countries and communities.

Climate Action

Tourism is both highly vulnerable to climate change while at the same time contributing to it. Threats for the sector are diverse, including direct and indirect impacts such as more extreme weather events, increasing insurance costs and safety concerns, water shortages,  biodiversity loss and damage to assets and attractions at destinations, among others.

Global Tourism Plastics Initiative

The problem of plastic pollution in tourism is too big for any single organisation to fix on its own. To match the scale of the problem, changes need to take place across the whole tourism value chain.

Hotel Energy Solutions (HES)

Hotel Energy Solutions (HES) is a UN Tourism -initiated project in collaboration with a team of United Nations and EU leading agencies in Tourism and Energy . 

Observatories (INSTO)

The UN Tourism International Network of Sustainable Tourism Observatories (INSTO) is a network of tourism observatories monitoring the economic, environmental and social impact of tourism at the destination level. 

When responsibly planned and managed, tourism has demonstrated its capacity to support job creation, promote inclusive social integration, protect natural and cultural heritage, conserve biodiversity, generate sustainable livelihoods and improve human wellbeing.  As the sector is experiencing tremendous growth, collective efforts to ensure its long-term sustainability are essential.

Resource Efficiency in Tourism

The report aims to inspire stakeholders and encourage them to advance the implementation of the SDGs through sustainable tourism.

Small Islands Developing States (SIDS)

Small Island Developing States face numerous challenges. For a significant number, their remoteness affects their ability to be part of the global supply chain, increases import costs - especially for energy - and limits their competitiveness in the tourist industry. Many are increasingly vulnerable to the impacts of climate change - from devastating storms to the threat of sea level rise.

Travel facilitation

Travel facilitation of tourist travel is closely interlinked with tourism development and can be a tool to foster increased demand and generate economic development, job creation and international understanding.

UNGA Sustainable Tourism Resolutions

The UN Tourism is regularly preparing reports for the General Assembly of the United Nations providing updates on sustainable tourism policies both from UN Tourism member States and States Members of the United Nations, as well as relevant agencies and programmes of the United Nations system.

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Rosatom Starts Production of Rare-Earth Magnets for Wind Power Generation

TVEL Fuel Company of Rosatom has started gradual localization of rare-earth magnets manufacturing for wind power plants generators. The first sets of magnets have been manufactured and shipped to the customer.

In total, the contract between Elemash Magnit LLC (an enterprise of TVEL Fuel Company of Rosatom in Elektrostal, Moscow region) and Red Wind B.V. (a joint venture of NovaWind JSC and the Dutch company Lagerwey) foresees manufacturing and supply over 200 sets of magnets. One set is designed to produce one power generator.

“The project includes gradual localization of magnets manufacturing in Russia, decreasing dependence on imports. We consider production of magnets as a promising sector for TVEL’s metallurgical business development. In this regard, our company does have the relevant research and technological expertise for creation of Russia’s first large-scale full cycle production of permanent rare-earth magnets,” commented Natalia Nikipelova, President of TVEL JSC.

“NovaWind, as the nuclear industry integrator for wind power projects, not only made-up an efficient supply chain, but also contributed to the development of inter-divisional cooperation and new expertise of Rosatom enterprises. TVEL has mastered a unique technology for the production of magnets for wind turbine generators. These technologies will be undoubtedly in demand in other areas as well,” noted Alexander Korchagin, Director General of NovaWind JSC.

For reference:

TVEL Fuel Company of Rosatom incorporates enterprises for the fabrication of nuclear fuel, conversion and enrichment of uranium, production of gas centrifuges, as well as research and design organizations. It is the only supplier of nuclear fuel for Russian nuclear power plants. TVEL Fuel Company of Rosatom provides nuclear fuel for 73 power reactors in 13 countries worldwide, research reactors in eight countries, as well as transport reactors of the Russian nuclear fleet. Every sixth power reactor in the world operates on fuel manufactured by TVEL. www.tvel.ru

NovaWind JSC is a division of Rosatom; its primary objective is to consolidate the State Corporation's efforts in advanced segments and technological platforms of the electric power sector. The company was founded in 2017. NovaWind consolidates all of the Rosatom’s wind energy assets – from design and construction to power engineering and operation of wind farms.

Overall, by 2023, enterprises operating under the management of NovaWind JSC, will install 1 GW of wind farms. http://novawind.ru

Elemash Magnit LLC is a subsidiary of Kovrov Mechanical Plant (an enterprise of the TVEL Fuel Company of Rosatom) and its main supplier of magnets for production of gas centrifuges. The company also produces magnets for other industries, in particular, for the automotive

industry. The production facilities of Elemash Magnit LLC are located in the city of Elektrostal, Moscow Region, at the site of Elemash Machine-Building Plant (a nuclear fuel fabrication facility of TVEL Fuel Company).

Rosatom is a global actor on the world’s nuclear technology market. Its leading edge stems from a number of competitive strengths, one of which is assets and competences at hand in all nuclear segments. Rosatom incorporates companies from all stages of the technological chain, such as uranium mining and enrichment, nuclear fuel fabrication, equipment manufacture and engineering, operation of nuclear power plants, and management of spent nuclear fuel and nuclear waste. Nowadays, Rosatom brings together about 350 enterprises and organizations with the workforce above 250 K. https://rosatom.ru/en/

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