Challenges Facing 5 Star Hotel Businesses Essay

The hotel assiduity contributes remarkablely to revenue generation through and through customs, license fees, value added tax, landing fees, and exercise duty. The revenue gene prescribed plays a significant role in the overall suppuration of laynt economy as well as the global economy. The hotel industry, under the umbrella of tourism and hospitality, has confront many challenges that start led to a stagnated growth. nearly 5-star hotel businesses across the orchis of decennium shift their operation to restaurants that have potential droply limited their growth. Most hoteliers have mentioned short comes in demand and supply that atomic number 18 non in sync. Likewise, the market for five-star hotels is growing at a slower rate that demands operational efficiencies to have a bigger sh atomic number 18 of the pie. As much(prenominal), this story discusses the challenges experienced by five-star hotels in this century based on incumbent research validations.Description of a 5-Star Hotel and Rationale for the ChoiceThe term five-star hotel is close to often associated with ultimate luxury and by implication, expense. Five-star hotel groups are committed to displaying channelize through their behavior and achieves. Hotels promote corporate citizenship through their strategic private-public partnerships. The consequence of hotels is to reduce malnutrition, enhancing employment, promoting indigenous craftsmen and artisans. Five-star hotels present a unique scope and prospect that enables the development of raw potential individuals to a skilled workforce, which harmonize to Chandana, are immediately employable by the key players in the hotel sector (Chandana, 2013) Likewise, five-star hotels stab myriad community projects that emphasize on nourishment production, housekeeping, kitchen management, spas, and customer attend to promote economic empowerment for candidates from vulnerable social and economic backgrounds. The rule for choosing the hot el sector is cod to their capability and previous good record in global economic performance. However, the challenges facing the hotel sector are legion(predicate) and solutions are readily available. Likewise, the commitment of the hotel sector in economic development, creation of employment, food security campaigns, and environmental sustainability is significant for developing careers in the sector.Shortage of Qualified Employees check to a study conducted on the Romanian 5-star hotels, approximately 40 part of the 5-star hotels are facing the shortage of qualified employees. Besides, Haidment (2007) predicts that within the next ten years, employee shortage in terms of talent in a five-star hotel would addition by 15 percent. As such, five-star hotels around the globe, according to him, will memorial tablet challenging times from the human resource point of view. However, the problem is not the presence qualified and talented candidates to work for these hotels rather it i s the inability of these hotels to pull in talented and qualified candidates for the hotel industry (Haidment, 2007). The deficit mainly refers to the specialized positions such as receptionist, cooks, pastry cooks, chambermaids, and waiters. The study further reveals that the number of vacancies in five-star hotels is continually increasing with 11, 000 jobs announced annually, according to data forecast by public Travel and tourism Council (2007). The causes of labor shortage in five-star hotels, Haidment (2007) explains, begin with the wither of the population due to emigration. Besides, the lack of national integration plan to and action plan to support the development of human capital in the hotel industry, 5-star hotels, in particular, partially explains the deficit of employees in 5 star hotels.Look more thanthe basic economic problem essayInsufficient Employee Training and learningThe current market for 5-star hotels is highly competitive and requires skillful workforce to hang in successful in the competitive hotel sector game. Boella and Goss-Turner, (2005) indicates that one of the major obstacles that shine the workplace of 5-star hotels is the lack of employee explicateing and development. According to him, employee training is an native litigate that should be designed and implemented continually in any 5-star hotel as well as other firms. The significance of human resource incision is to improve the attractiveness of the organization by providing the employees with skills, knowledge and attitudes that in chip improves their current job performance (Boella & Goss-Turner, 2005). However, five-star hotels have experienced limited development activities that have hang the acquisition of new knowledge and skills for the purposes of employee career and individualized growth. The current economic downturn has hit five star hotels with dreadful impacts everywhere especially Europe and U.S. Thus, the productivity of the employees in the s ector, according to Boella et al. (2005), has reduced in double digits further challenging the organizations in meeting their establishment goals.InsecurityTerrorism is a global problem affecting two the developed and developing countries. According to Chandana, (2013) terror groups that exist in many an(prenominal) nations have led to a sharp economic downturn. In particular, the hotel industry is a sector that provides revenue for the government and employment to numerous peck globally. However, the acts of terrorism have led to the closure of some 5-star hotels and numerous lot rendered jobless. Chandana, (2013) notes that most five-star hotels, especially, in developing countries relies on visitors from abroad touring the nation. However, the threat due to terrorist and bandits in these countries has led to decrease in traveling and tourism activities. For instance, the modern terrorist activities and attacks by bandits in Kenya and Nigeria have seen some countries such as U.S type their citizens to visit these countries at their own risk. Yet, these countries have five-star hotels that heavily bank on of foreign visitors that seek the services of their facilities considered expensive for most of their citizens.Therefore, terrorist activities and bandit attacks, according to Lockyer (2007), provides a significant challenge to five-star hotels and the tourism sector at large. Also, bandits that reside within the countries have discouraged domestic tourism with the few potential visitors of 5-star hotels avoiding such places. Lockyer, (2007) further highlights that 5-star hotels attract terrorist activities as some of the agendas derived by the terrorists rail at seeking audience of the high class. Thus, the terrorists keep on storming 5-star hotels and grab and killing people. In a nutshell, the resultant victim in this fuss is the five-star hotel investors that experience severe losses leading to closure in original scenarios.CompetitionFierce co mpetition among the 5-star hotels has recently underscored by the increased outset of more hotels across the globe. Currently, luxury hotels are build up to 180-story with numerous rooms and reduced charges. The cut-throat competition among the hoteliers has led to the withdrawal of some hotels and mergers. Lockyer, (2007) writes that hotels have experienced mergers and acquisitions to achieve competitive advantage in the market. Due to the decrease revenues, merger and acquisition among hotels are the key marketing strategy of sustaining a competitive market. As such, numerous hotels are forced into mergers and acquisition, thus ending their individual objectives.ConclusionFive-star hotels around the world have documented numerous challenges over the past, according to research. The main challenges facing five-star hotels are competition, insecurity, and lack of effective employees. However, in order for five star hotels to survive the management essential set most efficient st rategic goals, identify the needs for implementing the goals, train employees and equip them with skills and knowledge required for job performance. Likewise, employee motivation to improve their skills is essential for curbing some challenges facing the hotel industry.ReferencesBoella, M. & Goss-Turner, S. (2005), Human Resources Management in the hospitality Industry, London ElsevierChandana, C. J. (January 01, 2013). The Canadian hotel industry innovative solutions to secure the industrys future. Worldwide Hospitality and Tourism Themes, 5, 2, 219-230.Haidment, F. (2007), Human Resources 2006-2007 Annual Editions, London then McGraw Hill CompaniesLockyer, T. L. G. (2007). The international hotel industry Sustainable management. New York Haworth Hospitality & Tourism PressWorld Travel and Tourism Council (2007), Romania Travel &Tourism Navigating the mode AheadSource document