Many definitions were found for the hospitality and tourism industry, which is understandable considering the diverse nature of this continuously growing business. The best definitive description came from the University of Nebraska-Lincoln that stated, “The hospitality and tourism industries are intertwined facets of the leisure service industry. The hospitality industry is a sector of the tourism industry that deals with guest service including restaurants, hotels, meetings, catering, resorts, clubs, and casinos. Tourism deals with travel away from home and encompasses all service industry and travel-related industries involved from transportation to entertainment, including attractions, food and lodging, marketing, planning, and development” (Pennisi, 2008, n. p.).
This definition correctly addresses the industry’s unique aspect of involving multiple facets that come together to make up the overall structure of the hospitality and tourism business. It also inexplicably states how the industry is comprised and funded by the involvement of many other industries that keeps the service industry at a constant, growing business.
As previously mentioned, the industry’s expanding nature is a strong indication that the monetary contribution is highly beneficial in economic terms. According to the World Travel & Tourism Council (WTTC), in 2012 the total contribution of the travel and tourism industry accounted for 9.3 percent of the global GDP approximating $6.6 trillion and supports more than 260 million jobs worldwide (World Travel & Tourism Council , 2013, p. 1).
The rise in spending on travel and tourism directly affects the production of new jobs and venues within the industry. The growth of the hospitality and tourism industry has increased the world job market so greatly that 1 out of every 11 occupations are within the confines of the industry (World Travel & Tourism Council , 2013, p. 14).
The global growth of the industry is consistently on the rise. Consequently, the United States has seen increasing numbers as a result. According to the WTTC, in 2012 the travel and tourism business contributed 8.6 percent of the entire U.S. GDP accounting for more than $3.1 trillion.
The United States has increased their employment in the hospitality and tourism industry continually since 2010. In 2012, more than 14.2 million jobs totaled 10 percent of the U.S. job market with an expected 1.9 percent increase expected by 2023 (World Travel & Tourism Council, 2013, p. 1).
On a regional scale, Louisiana had been the recipient of poor travel number mainly due to Hurricane Katrina and its after effects, New Orleans even more so. According to a report by the University of New Orleans in 2009, there was a 24 percent drop in visitor spending in New Orleans from 2004-2006 that subsequently affected tourism statewide as New Orleans is the leading tourist attraction amongst all Louisiana tourism sites. The report also predicted a rise in visitors to the city by 2012 of approximately 8 million people, which would be the first time tourism numbers were that high since Katrina (Charters, 2009, p. 3).
In fact, tourism officials announced that those 2012 predicted numbers had been reached when the city of New Orleans reported having 9.1 million visitors, second largest amount since 2004. The most promising fact was that visitor spending was documented at 6 billion, the largest the city has ever had (Waller, 2013, n. p.)
It goes without saying that the influx of technologies in the last century has led to a rise in the rate of leisure travelers. People are using their holidays, sabbaticals and leisure time to go mobile due to these technologies such as commercial airlines, automobiles and railways. As a result, many travel expenditures can be contributed to these machines. In fact, spending by leisure travelers accounted for 76 percent of the U.S travel contribution to GDP in 2012 while business travel accounted for the other 24 percent (World Travel & Tourism Council, 2013, p. 6).
Travel spending doesn’t end at transportation as we already know. Another main expenditure of during travel is made on lodging and food. Hotels and lodging has grown insurmountably along with the hospitality and tourism industry. “In 2011, the lodging industry generated $21.6 billion in pretax income, a 20% increase in year-over-year comparisons. Total industry revenue increased to $137.5 billion from $127.7 billion in 2010; the largest percentage change in the last ten years” (American Hotel & Lodging Association, 2012, n. p.).
The food and beverage industry have seen constant growth in sales number amongst travelers. According to a research study conducted by the U.S. Bureau of Labor Statistics, food and alcohol sales account for one-fourth of all U.S. travel dollars (Paulin, 2012, p. 3).
The culmination of positive travel numbers and increase in hospitality businesses revenues is largely due the taxes generated locally and by the state. Tourism tax dollars are key to the growth of the industry as they are drawn from tourism instead of the pockets of local citizens. This continued system helps to produce “a subsequent economic development engine. Subsequently, tourism promotion in Louisiana is a net revenue generator, not a cost, to taxpayers” (The Louisiana Office of Tourism, 2014, n. p.).
Tourism dollars are a huge part of our lives and most of us don’t even notice. Signifigant efforts to increase the flow of tourism dollars directly impacts each and every Louisiana citizen. “The tourism industry generates $850 million annually in Louisiana tax revenues - without it, every Louisiana household would have to pay an extra $550 in state taxes each year” (The Louisiana Office of Tourism, 2014).
A main source of this tax money is a hotel or lodging tax. This tax is instilled on every hotel or lodging venue and the amount of that tax differs depending on how big the establishment is. In 2013 the hotel sales in the city reached approximately $870 million, $78 million of which goes to the state of Louisiana. The money received from these taxes go to supporting numerous different state and local establishments that differ from city to city, state to state. New Orleans Hotel tax goes to several different entities such as the Louisiana Superdome Commission, the Ernest N. Morial Convention Center and the state general fund. Other portions go towards the New Orleans Metropolitan Convention and Visitors Bureau, the Morial Convention Center for debt services on outstanding construction bonds, the New Orleans Regional Transit Authority, the Orleans Parish School Board and New Orleans City Hall (Maldonado, 2012, n. p.).
The only glaring disadvantage to a hotel tax that has such a monumental affect on so many essesntial businesses and civil organizations is if people don’t travel to the destination. Obvioulsy, for New Orleans we saw how drastic this was during Hurrican Katrina and the years that followed but now as the recovery is for the most part complete we see the benefits of having such a tax.
In conclusion, it was with great effort and intent that this paper define and elaborate on the hospitality and tourism industry. With many evident advantages of having a surging economically efficent hospitality business it shows how the intertwined nature of the industry contributes immensely by creating jobs, capturing tourism tax dollars and impacting every individual invovled.
Bibliography American Hotel & Lodging Association. (2012). 2012 LODGING INDUSTRY PROFILE. Retrieved January 26, 2014, from American Hotel & Lodging Association.com: https://www.ahla.com/content.aspx?id=34706
Charters, H. (2009). Louisiana Tourism Forecasts: 2009-2013. New Orleans: The University of New Orleans Hospitality Research Center and Louisiana State University Division of Economic Development. Retrieved Janaury 29, 2014, from http://www.crt.state.la.us/TOURISM/RESEARCH/Documents/2009-10/2009%20Forecast.pdf
Maldonado, C. (2012, November 20). The New Orleans Hotel/Motel Tax . Retrieved January 29, 2014, from best of new orleans.com: http://www.bestofneworleans.com/gambit/the-new-orleans-hotelmotel-tax/Content?oid=2102931
Paulin, G. (2012, December). Beyond The Numbers. Retrieved January 26, 2014, from bls.gov: http://www.bls.gov/opub/btn/volume-1/pdf/travel-expenditures-2005-2011-spending-slows-during-recent-recession.pdf
Pennisi, D. &. (2008, July). Nebraska’s Hospitality and Tourism Industries: An Introduction. Retrieved January 26, 2014, from University of Nebraska-Lincoln Extension: http://www.ianrpubs.unl.edu/epublic/live/g1858/build/#target2
The Louisiana Office of Tourism. (2014). About Louisiana Office of Tourism. Retrieved Janaury 29, 2014, from louisiana travel.com: http://www.louisianatravel.com/about-louisiana-office-tourism
Waller, M. (2013, March 12). New Orleans hits second-highest all-time visitor count, 9.01 million in 2012, tourism officials announce. Retrieved January 29, 2014, from nola.com: http://www.nola.com/business/index.ssf/2013/03/new_orleans_hits_second-highes.html
World Travel & Tourism Council . (2013). Travel & Tourism Economic Impact 2013. Retrieved January 26, 2014, from World Travel & Tourism Council: http://www.wttc.org/site_media/uploads/downloads/world2013_1.pdf
World Travel & Tourism Council. (2013). Travel & Travel Economic Impact 2013 United States. Retrieved January 26, 2014, from World Travel & Tourism Council : http://www.wttc.org/site_media/uploads/downloads/united_states2013.pdf
This definition correctly addresses the industry’s unique aspect of involving multiple facets that come together to make up the overall structure of the hospitality and tourism business. It also inexplicably states how the industry is comprised and funded by the involvement of many other industries that keeps the service industry at a constant, growing business.
As previously mentioned, the industry’s expanding nature is a strong indication that the monetary contribution is highly beneficial in economic terms. According to the World Travel & Tourism Council (WTTC), in 2012 the total contribution of the travel and tourism industry accounted for 9.3 percent of the global GDP approximating $6.6 trillion and supports more than 260 million jobs worldwide (World Travel & Tourism Council , 2013, p. 1).
The rise in spending on travel and tourism directly affects the production of new jobs and venues within the industry. The growth of the hospitality and tourism industry has increased the world job market so greatly that 1 out of every 11 occupations are within the confines of the industry (World Travel & Tourism Council , 2013, p. 14).
The global growth of the industry is consistently on the rise. Consequently, the United States has seen increasing numbers as a result. According to the WTTC, in 2012 the travel and tourism business contributed 8.6 percent of the entire U.S. GDP accounting for more than $3.1 trillion.
The United States has increased their employment in the hospitality and tourism industry continually since 2010. In 2012, more than 14.2 million jobs totaled 10 percent of the U.S. job market with an expected 1.9 percent increase expected by 2023 (World Travel & Tourism Council, 2013, p. 1).
On a regional scale, Louisiana had been the recipient of poor travel number mainly due to Hurricane Katrina and its after effects, New Orleans even more so. According to a report by the University of New Orleans in 2009, there was a 24 percent drop in visitor spending in New Orleans from 2004-2006 that subsequently affected tourism statewide as New Orleans is the leading tourist attraction amongst all Louisiana tourism sites. The report also predicted a rise in visitors to the city by 2012 of approximately 8 million people, which would be the first time tourism numbers were that high since Katrina (Charters, 2009, p. 3).
In fact, tourism officials announced that those 2012 predicted numbers had been reached when the city of New Orleans reported having 9.1 million visitors, second largest amount since 2004. The most promising fact was that visitor spending was documented at 6 billion, the largest the city has ever had (Waller, 2013, n. p.)
It goes without saying that the influx of technologies in the last century has led to a rise in the rate of leisure travelers. People are using their holidays, sabbaticals and leisure time to go mobile due to these technologies such as commercial airlines, automobiles and railways. As a result, many travel expenditures can be contributed to these machines. In fact, spending by leisure travelers accounted for 76 percent of the U.S travel contribution to GDP in 2012 while business travel accounted for the other 24 percent (World Travel & Tourism Council, 2013, p. 6).
Travel spending doesn’t end at transportation as we already know. Another main expenditure of during travel is made on lodging and food. Hotels and lodging has grown insurmountably along with the hospitality and tourism industry. “In 2011, the lodging industry generated $21.6 billion in pretax income, a 20% increase in year-over-year comparisons. Total industry revenue increased to $137.5 billion from $127.7 billion in 2010; the largest percentage change in the last ten years” (American Hotel & Lodging Association, 2012, n. p.).
The food and beverage industry have seen constant growth in sales number amongst travelers. According to a research study conducted by the U.S. Bureau of Labor Statistics, food and alcohol sales account for one-fourth of all U.S. travel dollars (Paulin, 2012, p. 3).
The culmination of positive travel numbers and increase in hospitality businesses revenues is largely due the taxes generated locally and by the state. Tourism tax dollars are key to the growth of the industry as they are drawn from tourism instead of the pockets of local citizens. This continued system helps to produce “a subsequent economic development engine. Subsequently, tourism promotion in Louisiana is a net revenue generator, not a cost, to taxpayers” (The Louisiana Office of Tourism, 2014, n. p.).
Tourism dollars are a huge part of our lives and most of us don’t even notice. Signifigant efforts to increase the flow of tourism dollars directly impacts each and every Louisiana citizen. “The tourism industry generates $850 million annually in Louisiana tax revenues - without it, every Louisiana household would have to pay an extra $550 in state taxes each year” (The Louisiana Office of Tourism, 2014).
A main source of this tax money is a hotel or lodging tax. This tax is instilled on every hotel or lodging venue and the amount of that tax differs depending on how big the establishment is. In 2013 the hotel sales in the city reached approximately $870 million, $78 million of which goes to the state of Louisiana. The money received from these taxes go to supporting numerous different state and local establishments that differ from city to city, state to state. New Orleans Hotel tax goes to several different entities such as the Louisiana Superdome Commission, the Ernest N. Morial Convention Center and the state general fund. Other portions go towards the New Orleans Metropolitan Convention and Visitors Bureau, the Morial Convention Center for debt services on outstanding construction bonds, the New Orleans Regional Transit Authority, the Orleans Parish School Board and New Orleans City Hall (Maldonado, 2012, n. p.).
The only glaring disadvantage to a hotel tax that has such a monumental affect on so many essesntial businesses and civil organizations is if people don’t travel to the destination. Obvioulsy, for New Orleans we saw how drastic this was during Hurrican Katrina and the years that followed but now as the recovery is for the most part complete we see the benefits of having such a tax.
In conclusion, it was with great effort and intent that this paper define and elaborate on the hospitality and tourism industry. With many evident advantages of having a surging economically efficent hospitality business it shows how the intertwined nature of the industry contributes immensely by creating jobs, capturing tourism tax dollars and impacting every individual invovled.
Bibliography American Hotel & Lodging Association. (2012). 2012 LODGING INDUSTRY PROFILE. Retrieved January 26, 2014, from American Hotel & Lodging Association.com: https://www.ahla.com/content.aspx?id=34706
Charters, H. (2009). Louisiana Tourism Forecasts: 2009-2013. New Orleans: The University of New Orleans Hospitality Research Center and Louisiana State University Division of Economic Development. Retrieved Janaury 29, 2014, from http://www.crt.state.la.us/TOURISM/RESEARCH/Documents/2009-10/2009%20Forecast.pdf
Maldonado, C. (2012, November 20). The New Orleans Hotel/Motel Tax . Retrieved January 29, 2014, from best of new orleans.com: http://www.bestofneworleans.com/gambit/the-new-orleans-hotelmotel-tax/Content?oid=2102931
Paulin, G. (2012, December). Beyond The Numbers. Retrieved January 26, 2014, from bls.gov: http://www.bls.gov/opub/btn/volume-1/pdf/travel-expenditures-2005-2011-spending-slows-during-recent-recession.pdf
Pennisi, D. &. (2008, July). Nebraska’s Hospitality and Tourism Industries: An Introduction. Retrieved January 26, 2014, from University of Nebraska-Lincoln Extension: http://www.ianrpubs.unl.edu/epublic/live/g1858/build/#target2
The Louisiana Office of Tourism. (2014). About Louisiana Office of Tourism. Retrieved Janaury 29, 2014, from louisiana travel.com: http://www.louisianatravel.com/about-louisiana-office-tourism
Waller, M. (2013, March 12). New Orleans hits second-highest all-time visitor count, 9.01 million in 2012, tourism officials announce. Retrieved January 29, 2014, from nola.com: http://www.nola.com/business/index.ssf/2013/03/new_orleans_hits_second-highes.html
World Travel & Tourism Council . (2013). Travel & Tourism Economic Impact 2013. Retrieved January 26, 2014, from World Travel & Tourism Council: http://www.wttc.org/site_media/uploads/downloads/world2013_1.pdf
World Travel & Tourism Council. (2013). Travel & Travel Economic Impact 2013 United States. Retrieved January 26, 2014, from World Travel & Tourism Council : http://www.wttc.org/site_media/uploads/downloads/united_states2013.pdf