Challenges in Hospitality Industry in New Zealand

In most countries, the hospitality sector is viewed as an important sector in the economy. The sector creates wealth and generates significant income to the nation’s GDP (Aquapark, October 1, 2013). The business also tends to employ thousands and thousands of people who generate their daily bread from the industry. Despite these benefits, the hospitality business is characterized by high risks of losing its potential. In New Zealand, the industry is characterized by variable income and high fixed costs. In some countries of the world, the competitive bar raises high because of the condensed proximity of the most attractive and finest destinations. In such an environment, the drop in the industry’s advantage tends to have a detrimental effect on the national economy. The sector is characterized by some significant challenges which are discussed below.

One significant challenge to the hospitality industry is Leadership. Leadership is the key to the success or failure of every department, office or industry (Anonymous, 2011). It affects the hospitality management in the industry. Although the management and leadership are used interchangeably, they are not the same. It is a significant quality in the success of the hospitality sector. Many employees in the industry are not leaders, and this compromises their effectiveness in the market. The shortage in leadership quality is putting the hospitality industry in a downhill to collapse. To curb this, majority of the hiring managers are seeking applicants who demonstrate the ability to shift from one role to another based on the necessity of the environment (Chung-Herrera, 2003).

Another major challenge in the hospitality sector is guest profiling. This is the ability to gather and use g...

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