Olympics In Promoting Hospitality Industry In London Tourism Essay

Citius Altius Fortius – Faster, Higher, Stronger is the Olympic Motto. Let us evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London that is the degree of fastness, height and strength Olympic 2012 generates in the Hospitality Industry. The story so far …On 6th July 2005 International Olympic Committee president Jacques Rogge made the announcement after IOC members voted 54-50 to eliminate the French capital in the fourth and final round of secret ballots in Singapore. London has twice played host to the Olympics, in 1908 and 1948. It becomes the first city to host the Olympics three times. The Games will act as a platform to display the London culture across the world. It will also attract tourism in the country .The arrival of spectators will produce a boost for the hospitality industry across London. The effects of London 2012 will be felt long after the Olympic flame has left the capital.

The days changed (from 2005 to 2008).The financial crunch has hit the market. At the London Olympic Park, the Olympic Delivery Authority is spending a lot for the development of Olympic city. London city will have major venues than any other city in the world. The evaluation and comparison is required which may be tricky when the games are over, however positively the project may become a vibrant element.

The role of 2012 Olympic in promoting the hospitality industry in London is vital. The government and the hospitality industry itself need to play a major role and take advantage of this historic event and develop standards and service which should play as a Role Model and set an example in itself. The government needs to implement strategies to promote tourism and attract tourist. They need to observe and the follow the fruitful strategies followed by the previous host countries. All the channels of mass communication such as Media and Press should be used appropriately to create awareness and enthusiasm, a sort of “Hype” which is most essential in publicity these days. The government should try at the optimum level to provide concession in the transportation, best infrastructure facilities and the most important of all create an environment to facilitate the multilingual international tourists. Financial support, if required will prove as Boon in Disguise, please remember the present Financial Crunch in 2008.

Tourism 2012 in number

£2.34b Estimated benefit of the Games to the tourism industry

£9.3b Current bill for the Games

£22b Estimated investment in Beijing Games

18% Was cut from VisitBritain’s funding for 2008-11

Source – Figures presented by Caterersearch (2008)

The skill factor comes into picture. Hospitality needs to improve skills to cater the needs of international tourist .Development of new innovative ideas, publicity strategies, procedures and improved quality should be the area of concern for the hospitality industry. Quality should not be made available at the cost of increasing the “COST”; however steps should be taken to permeate the cost with the help of “Optimum utilisation of resources”. The hotel staff should be provided training so that they can use their experience in the best manner to deal with attitude, culture and understanding level of the tourists.

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The major impact of Olympic Games 2012 on economy as a whole will be observed when the hospitality industry will be able to derive long running benefit from and after Olympics 2012, in proportion to the spending made for infrastructural development with respect to Olympics 2012.This benefit should be widespread not only during the games also in the post game period. In order to achieve this benefit the expenditure and spending of the tourists should be accurately converted into income and employment in the hospitality industry that is the cost-cutting and budget should be well planned to provide the best standards with the affordable price. The Olympics Games with the associated facilities should be promoted in such a manner that they must act as “Winter Fuel” for the hospitality industry. Even after the games the spirit should be on that is there should be consistent flow of tourist.

According to the Economic Impact of the London 2012 Olympics Adam Blake 2005/5 in the pre-Olympics phase (2005-2011).A relatively small legacy effect also takes place, with a boost to international tourism arrivals and spending. Other sectors experience smaller increases in gross value added in the pre- Olympics phase, such as hotels (£54 million), Bars (£37 million), Restaurants (£37 million) and air transport (£37 million). These sectors gain through the legacy effect, and experience modest increases in employment in this period, for example 2,554 FTE jobs are created in hotels, 2,094 in Bars and 1,811 in restaurants. The post-Games period 2013-2016 is characterized by the legacy effect, with increased tourism demand from overseas. It is also a period in which, because there is less pressure on prices than prior to and during 2012, consumers choose to save less and consume more; prior to 2012 the Olympics raise returns to capital and increase prices, which induces a small shift towards savings and investment.

Source – “Report by Adam Blake, (May 2005) Economic Impact of the London 2012 Olympics”.

In a nutshell the role of 2012 Olympic Games in promoting the hospitality industry is directly related and effecting the enhancement of hospitality industry in a long run .It also requires the complete aid and funding from the government. The hospitality industry also, itself has to take initiative and play a complimentary role to “skim the milk”. This is an opportunity to grab and time to pull up the socks .The country is in real need of inflow of external wealth which will act as a lubricant to run the economy during the recession. Being optimistic, keeping the present Credit crunch aside, it draws us towards a conclusion that if appropriate measures are taken and implemented the 2012 Olympics will prove to be beneficial to the hospitality industry, develop the standards. This event will demand and appeal the government to provide contribution towards the hospitality industry. If this event is successful it will set a benchmark for future events, keeping the constant inflow of tourist which will keep the hospitality fertile and productive.

Let us be a part of the Olympic spirit and create a Win /Win situation.

Rationale for the Topic:

The most awaited event London Olympics 2012 , would not only bring fantastic competition rather would have long lasting effects on the city .The games would make the area more rewarding area to live and work in. Along with the rest of the UK, the games would also boost London’s tourist industry, create jobs in hospitality sector and stimulate the voluntary sector. Behind the curtains economic effects, impact on the development of standards and quality, the cost and the honour associated with the games and its potential to accrue benefits makes this topic interesting.

Research Questions:

The research is proposed to evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London. The evaluation raises questions such as; Is the quality and standards of the hospitality industry developed to cater the international tourist? What is the role of government in promoting the Olympic Games to attract tourist? The comparison has to be made between pre-game cost in development and the post-game economic effects in terms of long lasting benefit? What is the general effect of Olympics on the hospitality industry where it was held? How to retain and convert the expenditure and spending into the profits to gain enduring advantage? The different types of spending patterns by the visitors?

Research Objectives:

The eventual objective of this research is to evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London. Initially there is a need to study the measures taken for the development and promotion of hospitality industry in the pre game period to gratify the international tourist, accordingly to infuse the benefit of the same after the post-game period.

The major objectives of the research can be bifurcated as below:

1. To critically evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London.

2. To estimate and appraise the growth of standards, quality and endorsement to satisfy and attract the Tourist.

3. To emphasis on the preservation of the positive drizzle of the Olympic Games for the betterment of the post-game period.

Literature Review:

Gourmet Burger Kitchen, Managing Director, David Sykes, said: “The Olympic Games will bring more people to the Capital than ever before – surely this can only be a good thing for London’s hospitality industry. We have 24 London restaurants, so we’re bound to feel the benefits of the hundreds of thousands of visitors the Games will attract to the city.” The CBI has also identified ways in which London can maximize the commercial opportunities that come with hosting the games, and include promoting London as a top tourist and business destination, while improving the quality and service offered by hotels and conference centers.

Source – Big hospitality (2008)

Liz Williams, Managing Director of London restaurants, The Real Greek, said: “The 2012 Olympic games can only be positive for London restaurants, as it will bring more people to the City, meaning more diners. Being so close to the planned regeneration site in East London, The Real Greek restaurants in Spitalfields and Hoxton should benefit from the Games. So the Games are good news all round and hopefully Greece will win some medals to boot!” County councils across the UK are currently offering schemes to help provide staff training to improve customer service skills in time for the games.

Source – Big hospitality (2008)

Peter Hancock, chief executive of Pride of Britain Hotels, said: “It is hard to imagine the minister for tourism in any other country making such negative comments about their own accommodation stock.” Perhaps he should not have been surprised. Tourism is clearly not a priority at the Department for Culture, Media and Sport (DCMS). Out of 77 press releases issued by the department so far this year, just one has been about tourism.

Source – Caterer & Hotelkeeper (2008)

Brian Wisdom, chief executive of People 1st, said: “The 2012 Olympics presents one of the biggest opportunities we have ever had to showcase the UK to the world – so it’s vital we look to eradicate the “Manuel factor” now, by promoting the right skills in the hospitality, leisure, travel and tourism industries. The welcome we give the millions of visitors flocking here will be pivotal in helping change long-held perceptions and ensure that the UK becomes globally renowned for its gold standard customer service.”

“By working together with employers and the industry we can continue to encourage and attract enthusiastic and motivated people into the sector,” he added.

Source – Caterer & Hotelkeeper (2007)

Methodology:

The method used in this research is the Exploratory method. The research has been commenced from an inductive position. Further analysis of articles and reports is required. It is necessary to identify the relationship between the data collected and the research objective and the research questions. A theoretical framework later need to be built up on the basis of the secondary data collected and analysed. Accordingly the Extended text has to be reduced for explanatory display. There are no controls over the variables at the present situation. Further observation is required with respect to occurrence of future events and situations to draw a comprehensive conclusion.

Data Analysis:

Qualitative data refers to all non numeric data or data that have not been quantified and can be a product of all research strategies. (Saunders, Lewis, and Thornhill, (2007), Research Methods for Business Students; 4th Edition, Prentice Hall (ISBN 0273701487), chapter-13, p-470)

Qualitative Analysis is expressed in words unlike the Quantitative which is expressed through numerical data .This type of Research lays the initial foundation for better understanding .This data is extended, unstructured and includes some statistical figures with respect to impact of Olympic Games in the Pre Game period and predictions of the same in the Post game period . So the slightest blend of Quantitative analysis is also required .This gives improved understanding of the Research Objectives.

Data Collection:

Secondary data has been collected using the inductive approach. Secondary data is the method of collecting data that has been already analyzed by some one .(Kothari C.R.,(2005),Research Methods and Techniques;2nd Edition,New Age International Publisher,chapter-6,p-111).In this proposed research, the data collected by using the secondary data in this most of the information is collected from the internet and articles. All the research questions and the objectives are met by the secondary data.

Conclusion:

With the above research findings, I can conclude that Olympic 2012 will bring

References:

1. Becky Paskin (2008, 12 June), Hospitality industry doubts benefits of 2012 Olympics [Online] Available from URL:

http://www.bighospitality.co.uk/cgi-bin/item.cg

[Accessed 01NOV08]

2. Caterer & Hotelkeeper (2008, 11 September), Industry needs to get on track for 2012 Olympics [Online] Available from URL: http://www.caterersearch.com/Articles/2008/09/11/323351/industry-needs-to-get-on-track-for-2012-olympics

[Accessed 01NOV08]

3. Daniel Thomas (2007, 04 September), Hospitality needs to improve skills in time for Olympics [Online] Available from URL: http://www.caterersearch.com/Articles/2007/09/04/315862/hospitality-needs-to-improve-skills-in-time-for-olympics

[Accessed 02NOV08]

4. Adam Blake, Nottingham University Business School (May 2005), The Economic Impact of the London 2012 Olympics [Online] Available from URL: http://www.nottingham.ac.uk/ttri/pdf/2005_5.pdf

[Accessed 03NOV08]

5. Personnel Today (2007, 15 October), Hotels poach top talent for 2012 London Olympics due to skills shortages and staff retention problems [Online] Available from URL:

http://www.personneltoday.com/articles/2007/10/15/42797/hotels-poach-top-talent-for-2012-london-olympics

[Accessed 08NOV08]

6. Kothari C.R., (2005), Research Methods and Techniques; 2nd Edition, New Age International Publisher, chapter-6, p-111

7. Saunders, Lewis, and Thornhill, (2007), Research Methods for Business Students; 4th Edition, Prentice Hall (ISBN 0273701487), chapter-13, p-470