Resort Industry Has Been Facing

Resort industry has been facing a myriad of challenges of late accompanied by the same challenges hitting hard on the tourism industry as well since these two are interdependent and work hand in hand with each other. There are major challenges that the resort industry faces and are as below;

The sustainable hospitality industry and climate change; there has been a trend of many people, mostly those concerned about the global warming looking for the resorts that are environment conscious and are putting efforts towards stopping global warming. Formatting the already existing resorts and hotels to the green hotels is quite a challenge yet there seems to be no option but to ensure that the resort industry complies with the green movement standards in order to encompass the entire clientele as well as to be sustainable.

Labor cost; it is said that in 2005 it is labor expenses that remained to be the largest expense for the hospitality industry. It is estimated that it accounted for 44.6% of the operating costs (Wang Jin Zhoa & Wang Jing, 2009). This labor costs made it hard for the general operation of the resort industry as it dictated almost the cost of everything that the clients would consume hence fear of losing clients among the resort managers. This situation has not gotten any better for the hotel industry as there are set minimum wages that puts the resort managers at a more difficult position that will likely impact on the number of employees as well as the customer experience.

Cross-cultural/Multi cultural issue; with the increasing globalization and the rapid expansion of many resorts across the globe, owning branches among people of varying cultures, the issue of cross cultural management and the challenges that come with it can no longer be ignored in the resort industry. There are multicultural talents that need to be well managed and tapped, and the varying political landscape also affects the hospitality industry. This has then seen many resorts and hotels to move into franchise which must as well be based on the proper understanding of the ownership, the external customers as well as the internal customers (the workforce and the market insight and promotion). It is a challenging task to harmonize the operations of the resort and the branches among different cultures till one achieves a smooth operation. It will involve first understand the varying cultures and train the employees to understand the culture of the various people and keep training them each time a new employee joins the group.