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CULTURAL AND ECONOMIC FACTORS AFFECTING HOTEL AND CATERING INDUSTRY LEMS QUALITY HOTEL

ABSTRACT

The topic of the study is factors affecting Hotel and catering industry (A case study of Merry house Idah Igala). The researcher used both the primary and secondary data in the course of the study. The primary data was collected through the instrument of questionnaires and observation. The secondary data was sources through textbooks, journals, magazines and Libraries. The research design for the study was the survey research. The population of the study was 82 employees of the establishment. The sample size of the study was 63 employees derived using the Yaro Yamani formula for the determination of sample size. A total number of 63 questionnaires were distributed and returned thereby having a hundred percent return rate. The researcher used sample percentage and chi-square as statistical tool for the analysis. The study revealed that the majority of the workers in this establishment are ignorant on pay determination method which shows that management does not involve workers in the machinery or the mechanics of payment determination. The workers role is reduced to that of a rigid adherence to rules and regulations. The researcher recommended among others that broad personnel policy study be embraced by employers in the hotel industry.  

 

CHAPTER ONE

1.0 INTRODUCTION

As an important part of service industry, catering and food service industry is the important carrier of the brand and culture for a country or region with the characteristics of wide market, extensive influence and more employment opportunities. A wide variety of catering products and different styles of food culture has been shaped in the background of different regions and cultures (Yang, 2009). On the other hand, as one of the six elements of tourism activities, “food” has been given to attention by tourists. Catering and food service industry plays an important role in the promotion of local food features and culture of tourism destination through providing catering products and services for tourists. Many countries have designed and developed catering and food brand with own features and style, such as the Beer Festival of Munich in German, Pickled Cabbage Festival in South Korea, series unique meal of cactus and corn in Mexico, Samba Carnival and characteristic barbecue in Brazil and so on. These unique food resources and new product ideas not only attract tourists from all over the world, but also bring considerable catering income (Kang, 2010). In recent years, the development of global catering and food service industry maintains a rapid and healthy momentum of development (Table 1). According to Fortune Magazine in the United States in July 2012, three food service enterprises enter the world top 500, including American McDonald’s Group, the magnate in the snack industry of the world; British Compass Group, one of biggest food group of the world; and Sodexo Group, tourism catering service enterprises in France. Rounding out the top 500 enterprises in the United States was Aramark (the international leading professional company), Yum Brands (the largest network of worldwide restaurants), Starbucks (the leading retailer and roaster of specialty coffee in the world) and Darden Restaurants (the most recognizable and successful brands in full-service dining). These food service groups provide a fast catering and food service for the consumers from more than 100 countries and regions all over the world, accounting for about 5% of global market share (Yang, 2009). It can be seen from Table 1 that the convenience has gradually become the trend of the development of catering market with the rapid development of economy and society.

In China, catering and food industry shows a steady and rapid growth with the rapid growth of Chinese economy and increase of urban and rural residents’ incomes since Reformation and Opening. The retail sales of hotel and catering services were 5.48 billion Yuan in 1978, exceeded 10 billion Yuan and reached 11.21 billion Yuan in 1983, exceeded 100 billion Yuan and reached 117.5 billion Yuan in 1994 and exceeded 1000 billion Yuan and reached 1034.6 billion Yuan in 2006. At the end of 2010, it reached 1764.8 billion Yuan produced by over 4.9 million catering and food service sites, accounting for 11.24% of total retail sales of consumer goods. For top 100 catering enterprises, the gross income, the total assets and profit respectively reached 139.58 billion Yuan, 

 

1.1 BACKGROUND OF THE RESEARCH

Hospitality industry is one of the leading industries in the world; It contributes to prosperity creation and further economic development of a country; it covers hotel, resorts, and travel as well as restaurant businesses. These services business are mutually depend increase in tourism will ultimately lead to improvement in resorts, restaurants, hotel including travel industries. This study basically concerned with assessing the strategies of the production planning and inventory control in hospitality. This will consequently access the extent to which stock can be controlled.

Source: Dennis Oscar. "Humanity and hospitality" 2011

Since the beginning of recorded time, people have travelled, and during their travels, have needed shelter. This consequently encouraged the springing up of some accommodation in form of inns and small hotels and subsequent larger hospitality suites, to meet such needs. This thus hospitality is said to be the world’s ‟ second oldest profession. Just after the civil war in 1970, there was a virtual absence of hotels and especially, the well-known names in the international hotel industry in Nigeria. Not until the late 70‟s, during the oil boom era did Nigeria start experiencing some growth in her hotel industry. In recent years however, Nigeria hosting of several major international events like the common wealth heads of government meeting (CHOGM), All African games, carnivals, meeting including the visits of two American presidents another presidents with their entourage, has led to the building of several more hotels in Nigeria, especially in the major cities. This growth is not restricted to Nigeria alone, example, the American food service industry in 1979 had 110 billion dollars of bussing for meals away from home and was in fact the third largest industry in the country in terms of gross retail sales, it employs about 6 million people and had average of 125. 42 employees in 1995 and yet still needs many additional employees every year. Nigeria has since seen many important developments and changes in the relative improvement in the standard of living of a vast majority of working people. These improvements have come about as a result of many different factors including greater national productivity, stronger growth of economy, having more enlightened management and pressures from trade unions. The contributions made by the hotel and catering industry to this general rise in standard of living are considerable, providing essential and leisure services, employment and wealth creation. Hotel development in any country is a detailed process, requiring a high level of preplanning prior to, during and after construction. There is still evidence in many places in Nigeria that this pre-planning has not adequately been carried out, resulting in some hotels that are unable to meet today’s and tomorrows ever-changing and increasing customer needs, including the fact that demand far outstrips supply, with major cities like Lagos having now shortages. Nevertheless, Tourism, of which the hotel and catering industry is a principal element is said to be a potential growth sector in Nigeria. The conditions of employment of a large number of the industry’s staff have not kept pace with those enjoyed by working people elsewhere, in spite of the technical improvements within the catering industry itself. The reasons for the slow rate of improvement in the industry’s condition of employment are considerable including an understandable reluctance on the part of many proprietors and managers to adjust labour earnings according to improvements in the industry. Another reason could be that trade union movements exert little influence in most sectors of the industry, since moreover most people that make up the industry’s workforce are people who are not prepared to make a career out of the job. The working conditions of the industry’s staff are for most cases unattractive. There are intrinsic problems which are unavoidable such as having to work long evenings and weekends. Other problems however can certainly be removed or reduced by determined management action. Such problems are staff reliance on tips, ignorance of workers on methods of calculating pay and the distribution of service charges, and management’s reluctance to involve staff in matters that affect their working lives. Management should therefore evolve a way of bringing out the best in these groups of ignored members of our workforce. In Nigeria, there are many organizations that provide catering services and which by their nature can be termed hotels. It is estimated that there exists about 550 hotels, inns and commercial guest houses in Nigeria by the year 2008 that employs between 10 and 250 people in line with their sizes. It is said that about 418 – 900 people were employed in 2003 worldwide.

 

1.2STATEMENT OF RESEARCH PROBLEM 

Nowadays, the tourism industry has great development and many countries have managed to improve their situation and overcome on their economic problems, such as low levels of per capita income, unemployment frequency and a shortage of foreign exchange revenues. Surveys conducted in the field of tourism revenues and share of tourism in total world trade exchanges shows that this share has been modest in recent decades and although beginning in the 1950s, the share of tourism services in total world exports was 3.4% (Ledesma-Rodriguez, 2004). The world economy in the late 1980s witnessed a share of over 8% to tourism services in the total exports. In 1990 have spent a total of 230 billions of dollars in different countries of the world and have been recorded 425 million tourists in countries of the world. In 2000, 661 million tourists were around the world and in 2007 about 900 million. Year 2008 has been announced 994 billion dollars that this figure is equivalent to 30 percent from world exports of technical and engineering services and the number of tourists worldwide in 2008, with growth of two per cent over the previous year has reached to 922 million people. It is expected that the number of tourists and revenue for this industry will reach to one billion and 600 million, and two trillion dollars respectively in 2020 (Werthner & et al,2004).

Actually the tourism industry is industry that nowadays can compete well with industries like automotive and oil. Countries with tourist attractions regard to the magnificent natural, culture and civilization, religious and ancient monuments have talents and abilities in attracting tourists (Lee, & Chang, 2008). The economic impact of the industry perhaps is one of the most effective reasons of attention and government attention to tourism in their national development and in fact, the tourism considered as one from the driving forces of economic growth and development in countries (Romilly & et al, 1998). While tourism creates a series of new activities in the community and also tourism is leading to activation of other economic sectors. Sectors such as transportation, food, fuel and energy, handicraft and building sectors, which consequently will boost tourism activities, for this reason, many countries have tried to promote this industry and provide opportunities necessary to tourism development. Nigeria is a country of adopting tourism, also it is one of the tourists exporting countries and always number of outputs of tourists is over the number of inputs in the country and number of tourist supply with normal passports have a larger share of total tourist supply (Meraseli,2005).

 

1.3 OBJECTIVES OF THE STUDY

The researcher embarked on this study to highlight the economic factors and cultural factors affecting the hospitality industry basically hotel and catering industry, among others objectives are:

1.To suggest possible ways to overcome the issues of cultural facing the industry.

2.To analysis the growth and survival of the hospitality industry amidst the challenges facing them.

3.Evaluate the economic and social contribution of the hospitality industry to the nation.

4.To promote the hotel and catering industry to the nation

 

1.4 SIGNIFICANCE OF THE STUDY

The outcome of this research work will help the hotel management and the catering industry to effectively manage business for optimal production and strategies means of handling the economic factors and cultural issues affecting their industry. Also, this research work will be a tool, an academic tools in the hands of the students and other researchers too. 


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