Opportunities and Threats for the UK Resort Industry - Research Paper Example

Introduction In this research paper, we would clarify the opportunities and threats in the tourism industry with special regards to the resorts in the United Kingdom. The research paper would also throw light on certain trends which seem more prominent than others besides analyzing the various threats that may be hindering the tourism industry as a whole. The research paper would also highlight certain specific growth opportunities and provide ways and means to achieve them in a stipulated time frame. The latter half of the research paper would include certain opportunities and threats which resort owners need to implement in their 12-Month Operational Management Plan. Lastly, the paper would also build a case for different actions that could be used to counteract the perceived threats and try to look for options which would help in meeting the anticipated opportunities. Opportunities And Threats For The UK Resort Industry Tourism industry, with special regards to resorts, is considered an important sector in the UK economy. Back in the year 1999, an astounding 22 1/2 million visitors came to visit UK (Torkildsen, 2005). The expenditure on the tourism industry in 1999 was estimated close to sixty one billion pounds (Torkildsen, 2005) and the total employees catering to the tourism industry were estimated to be close to 1.8 million people. The tourism industry is widely fragmented and according to the government estimates, there are over 125,000 businesses related to the UK tourism, out of which only 20% have an earning of over 250,000 pounds per annum. (Aramberri & Butler, 2005) Tourism industry is the world's largest industry and hence it is vital for the world economy. It directly or indirectly generates 11% GDP and provides jobs to over 200 million employees across the globe (Holloway & Taylor, 2006). The employment opportunities in the UK alone, with special regards to bars, pubs, restraints, cafes, night clubs, travel agencies, tour operators and tourist accommodations are immense but the problem lies in terms of competition. (DCMS, 2000) Of the total number of tourism related business in the UK, 80% do not earn beyond 250,000 pounds per annum and hence the employment opportunities through these organizations have limited growth potentials (Aramberri & Butler, 2005). The above mentioned sectors are directly or indirectly dependent on the tourism industry and when we take the example of a resort, which in itself is a self sufficient tourist hub, we forget to underline the problems of a mismanaged work force. If one of these sectors suffers a loss, the other sectors would automatically be affected and vice versa. Besides providing various employment opportunities and generating an annual income for the growth of a nation, the tourism industry with special regards to resorts in UK, gives an ample scope to numerous educational institutions (ONS, 2000). Various new courses and subjects pertaining to tourism benefit through this expanding trade. (EuroStat, 1998) The Necessary Threats To Counteract And The Opportunities To Capitalize On The UK tourism industry is a boon of sorts and is stated to provide ample work opportunities to millions of its citizens. As far as opportunities are concerned, there is no bigger opportunity than providing employment to all. The need for money is the single most driving factor which propels the citizens of a nation to work towards achieving their goals in a systematic manner. Resorts in UK provide employment opportunities to hundreds of thousands of individuals and this in turn increases the overall employee satisfaction scores. (Mort, 2006) If the tourism industry is to capitalize on its recourses, it needs to justify its act in terms of providing ample opportunities to those who deserve the most. Likewise, the growth of a resort with regards to the influx of tourists is directly proportional to the growth of those sectors which support the basic functionalities of a resort (Karl W. W'ber, European Cities Tourism (Organization), 2002). Meat shops, cafes, grocery stores, furniture stores, paint shops, essential hardware suppliers and general ground maintenance stores are required to run a resort in an efficient manner. Therefore, a resort is not a single entity which is confined to a specified area of land and a limited number of employees. In is, in actual terms, a storehouse of endless work related opportunities catering to various related sectors. An opportunity which needs special mention is the presence of various business and finishing schools that train students to become proficient in terms of the perquisites to enter a tourism related assignment. At the same time, there are certain threats which need to be countered. One of the major threats is a loss of employment opportunity with regards to resorts in UK. Numerous resorts shut down due to lack of business opportunities or a mismanaged work environment. In order to avoid an unprofessional work environment, a plan of action needs to be formulated which believes in training the employees as well as resort operators, the correct code of conduct. (Lumsdon & Page, 2004) A Twelve Month Operational management Plan Based on the above discussion, a general conclusion can be drawn wherein opportunities can be said to compliment an equal number of threats. Like every action has an equal and opposite reaction, each benefit is extracted through a detriment. With regards to UK resorts, it can be stated that if a resort is to function to its full capacity, the owners need to formulate plans which are based on concrete facts and capable of resolving crisis of varied levels. If we take the example of resorts in UK, then a resort operator needs to ascertain the type of employees which would prove beneficial for his/her organization (DCMS, 1999). The resort operator also needs to maintain a list various finishing schools and choose only those which pertain to his style of business. Likewise, the food and beverage needs to be obtained from sources which are in sync with the basic functionalities of a resort and care needs to be taken to handpick technical staff only after a complete evaluation has been performed. (DCMS, 2000) Once the basics have been taken care of, it is time to move ahead and plan on a wider level. This involves the resort operators hiring seasoned business executives to analyze their future prospects and ascertain ways and means to enhance their existing business opportunities. Another effective action plan involves various resort operators holding a round table conference and formulating ways and means to improve their existing set up. A healthy dialogue not only ends bitter cold wars between resort operators, it also gives rise to some healthy discussion which can prove beneficial in the longer run. (OECD, Organisation for Economic Co-operation and Development, 2000) Finally, a twelve month operational management plan needs to confide the details of various business policies with the related ministries. Elected representatives from the tourism ministry need to be kept in sync with the future plans and policies need to be formulated on the basis of mutual trust and understanding. (OECD, Organisation for Economic Co-operation and Development, 2000) Actions To Counteract Perceived Threats Various government bodies such as the English Tourism Council, the English Regional Tourist Boards, The Scottish Tourist Board, The Welsh Tourist Board and The Northern Ireland Tourist Board, have taken remedial steps to prevent the tourism industry with special regards to the resorts in UK. The policies would ensure that resort owners benefit through the means of grants and other benefits to the tourism sector. According to the report of 'Tomorrow's Tourism', the following steps were proposed. An overall target for the tourism industry was set and this was done to match the global rate of tourism by the year 2010. The report had three main objectives. The first was to provide the right framework to promote tourism; the second was to spread equality while the third was to ensure that the tourism industry grows on wise grounds. A fifteen plan action plan was then drawn by the related ministry officials and effective measures were taken to ensure optimum utilization of the available recourses. (DCMS, 1999) The major points in the agenda include- To ensure a free flow of tourists by providing relief on visa procedures. To ensure that sports, culture and media to work in consensus with various hotels and resorts to improve the inflow of tourists. To propose a White Paper to modernize the sale of liquor To urge the Environment and the Transportation department to work towards improving the conditions of roads and highways. The launch of a Pilot internet site in Cumbria to update tourists with the basic transportation systems in the United Kingdom. To ensure that the Ministry of Agricultural Fisheries and Food work to promote local food producers to attract more foreign clients & To ensure that the government supports both practically as well as financially to ensure the success of the annual Career's Festival. Conclusion Toursm industry is the largest industry in the world and it provides over 200 million jobs and 11% GDP worldwide. The total employment generated through tourism is set at 8%. By the year 2010, it is estimated that over 5.5 million jobs would be added each year through the means of tourism. In the year 1950 more than 25.3 million trips were made worldwide which later rose to 660 million trips by the year 1999. The increase was a whooping 26 times higher than the previous level. (DCMS, 2000) Between the year 1880 and 1997, the number of international trips rose by 8.7% on an average. While the fastest growth was recorded in the Asian region of China, Hong Kong, Thailand and Singapore, UK seems to have fallen behind in terms of international tourist trips. According to a recent forecast by the World Tourism Organization, the tourism sector would grow by an average of 4.1% a year for the next 20 years. Hence, by the year 2010, the number of travelers would exceed the one billion mark, and by 2020, the number of international trips would have touched the 1.6 billion mark. (ONS, 2000) (Lumsdon & Page, 2004) Works Cited Aramberri, J., & Butler, R. (2005). Tourism Development. Channel View Publications. DCMS. (2000, March 1). DCMS, The Tourism Summit, 1 March 2000: A report on The Conclusions. Retrieved November 5, 2008, from Available in full at:: http://www.culture.gov.uk/pdf/tour_summit_1.pdf DCMS. (2000). Government aims to give tourists a better deal. DCMS Press , 3. DCMS. (1999, February 3). Tomorrow's Tourism: A Growth Industry for the New Millennium. Retrieved November 5, 2008, from culture.gov.uk: http://www.culture.gov.uk/pdf/tomorrows_tourism.pdf EuroStat. (1998). Community Methodology on Tourism Statistics. London: EuroStat. Holloway, J. C., & Taylor, N. (2006). The Business of Tourism. Financial Times Prentice Hall. Karl W. W'ber, European Cities Tourism (Organization). (2002). City Tourism 2002: Proceedings of European Cities Tourism's International Conference in Vienna, Austria, 2002. Michigan: Springer. Lumsdon, L., & Page, S. (2004). Tourism and Transport: Issues and Agenda for the New Millennium. London: Elsevier. Mort, D. (2006). Sources of Non-official UK Statistics. Hampshire: Gower Publishing, Ltd. OECD, Organisation for Economic Co-operation and Development. (2000). Measuring the Role of Tourism in OECD Economies: The OECD Manual on Tourism Satellite Accounts and Employment. London: OECD Publishing. ONS. (2000). Labour Market Trends. Torkildsen, G. (2005). Leisure and Recreation Management . New York: Routledge. Bibliography Holloway, J. C., & Taylor, N. (2006). The Business of Tourism. Financial Times Prentice Hall. Karl W. W'ber, European Cities Tourism (Organization). (2002). City Tourism 2002: Proceedings of European Cities Tourism's International Conference in Vienna, Austria, 2002. Michigan: Springer. Mort, D. (2006). Sources of Non-official UK Statistics. Hampshire: Gower Publishing, Ltd. Read More