Post Olympic Effects on Hospitality Industry

Aim: To identify the issues that the hospitality industry may be faced with post Olympics 2012 and to recommend strategies to overcome the reduction in the business to hospitality organisations. Objectives: 1. To study the opportunities in the hospitality industry during Olympic 2012 2. To evaluate the impact of post Olympics 2012 on hospitality industry. 3. To recommend the strategies to the hospitality industry to survive post Olympic downfall in business The London Olympics is spending a huge amount of money for the Olympic Games and for their facilities.

Preparing for the Olympics, hospitality industry needs to consider the impact of tourists during the Olympics time and beyond. It involves the pre and post Olympic stays of the tourist. The hoteliers are creating a unique atmosphere and spending lots of money for the Olympics. Hospitality industry has challenges to recover all the money which they spend for Olympics, which depends on the strategies which they will use after post Olympics. The Olympic Game is now becoming the most important event in the calendars of sport tourism and is also acting as a catalyst for the growth of a tourism destination’s product.

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It is very important to examine the pre-games impact and contrasting them with post games results, researching the works of various authors on the same topics pulls up the threat of vast differences. It is very obvious that there is essential need for more rigorous and standardized industry method to reduce the differences to minimum. The reports of DCMS suggests that there is an inadequate attention and underestimation of importance is being paid to what could be the most important period of all that is the post Olympic period and there is also an overall lacking in understanding the behavior of Olympic tourists.

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It is very vital to evaluate the post games impact of Olympics on Hospitality as a great deal of money and time is invested into predicting the impacts of the games, the Games suffer from a lack of ex-post analysis. London 2012 will provide an opportunity for UK to generate extra revenue as sport tourism is now considered to be in the introduction phase to the tourism product lifecycle, London now has achieved the position which could help to maintain a unique competitive advantage through tailoring the product to the contemporary tourists.

London 2012 Olymdspic Games Visit Britain’s aim’s to use cultural and sporting activities to improve the quality of life, support the pursuit of excellence, creative and leisure industries, and champion the tourism. It will also track progress, monitor and implement as follows: BHA will work towards a new tourism growth target for 2008-11, and later a further target for 2012-15, and monitor progress towards those targets. The Strategy will be to maximize the legacy through effective post-games marketing and make London and Britain “must see destinations’.

DCMS, Visit Britain and Visit London published Winning in 2007 after consulting the local tourism agencies and tourism industry, Visit Britain (2011). Wining is the revised document emerged after consultation and its envisaged programmed will run until 2017. It was an enviable task to write a strategy that would embrace the whole of UK, yet accurate to make the most of the opportunity provided by the London 2012 games . The document also mentions more specific targets and aspirations, as in how through tourism extra revenue will be generated using London 2012 games.

For example, it showcases an explicit objective that would help in reversing the decline in domestic overnight stays which explains lack of interests or attention on cultural tourism. Although they mentioned about new festivals, the desire to imitate Australia which achieved success by utilizing the 2000 games and contributed extra thirty percent through cultural activities in international tourist participation and the cultural Olympiad. Can these aims prove feasible/how realistic they can be?

A strategy called Winning was published in the year 2007 which was supported by researchers and prominent economist from UK, who claim that the London 2012 Olympics can unveil an opportunity to UK to add ? 2. 1 billion additional revenue to the overall tourism benefits. The substantial economic bequest written is, there will be a dramatic increase in the number of tourist spending, which is merely supported or justified with the aid of their positive projection. The accent on estimated revenue by tourism as a vital monetary consequence of the event allows an appealing negation.

The Tourism policy is also being marginalized in organizational structures and strategy scaffolds of broader Olympic development. Visit Britain and Visit London is forecasting that amid 50-70% of the net economic profit of organizing the games measures over 7-10 year period will amass through tourism. These forecasts are a result of “ex- ante” monetary collision analysis which is reputably unpredictable. (Kronbalatt, 2006) and (Crompton, 1995) indeed suggest vigilance when taking into account such tourism projection for Olympic profits.

By developing three estimates of its most probable effects (Blake, 2005) accredited the vague economic results of the Olympic Games. The central case suggests that there can be an increase of 1. 5% to the UK’s tourism amid 2012 and 2016. However possible consequences can range amid a probable decrease by 4% or increase in 7%. To ascertain the correctness of these forecasts, the report also contains ways on how to observe the effects. The only facet that initiates concern is that being so close to the event, the UK had failed to have an initiates in the earlier part as Sydney did.

Winning, a strategy which was published in 2007 is supported by suggestions from economists, researches and postulates that the 2012 games will provide them an opportunity to generate ? 2. 1 billion in additional tourism benefits (DCMS, 2007, p. 17). The main tangible economic legacy of the games will be an increase in the number of visitors spending is justified with the help of their optimistic projection. The emphasis on Tourism revenue as the key economic outcome of the games allows an interesting contradiction.

Tourism policy has been marginalized both in the organizational structures and policy framework of wider Olympic planning. Visit Britain and Visit London is estimating that between 50-70% of the net economic benefits of staging the event measured over 7-10 year period will accrue through tourism. Such forecast are the outcome of “ex-ante” economic impact analyses which are notoriously unreliable (Crompton, 1995). Kornblatt (2006) certainly recommends caution when considering the tourism projections of “Olympic benefits”.

These positions are reaffirmed by academic analyses. By developing three estimates of its likely effects (Blake, 2005) acknowledged the uncertain economic outcomes of the 2012 games. According to Blake’s “Central Case”, the most likely outcome is that there can be an increase in tourism to the UK of 1. 5% between 2012 and 2016. However, Blake also suggests that the effects could range between a reduction of 4% and an increase of 7%. To establish the accuracy of these forecasts, the report also includes measures on how to monitor the effects.

The only aspect that initiates worries is that, being so close to the games, the UK does not almost have any initiatives similar to that of Sydney, where effects of longitudinal tourism were monitored by groups that began working well before the 2000 games and which included a strong representation from the academic community ( e. g. , see Faulkner et al. ,2001). To recommend the strategies to the hospitality industry to survive post Olympics downfall in business: According to a stark warning from the European Tour Operators Association issued for the start of British Tourism Week LONDON tourism is “running away” from the U.

K. rather than toward it. The main concern was the shortage of availability of hotel space at “reasonable market rates” in London during Olympics period. ETOA’s Executive director, Tom Jenkins had said that the European tour operators are “most concerned that the U. K. in general is underperforming on the worldwide tourism market”, citing a 105% U. K. 10-year growth figure compared to 130% growth in European tourism and 195% worldwide. On the other hand along with raising problems with the taxation system and the complications and restrictions imposed with getting a U.

K visa, Jenkins also highlighted “a core postulated that London will have bonanza year for business in 2012” as leading to overpricing and a potential pre- and post-Olympics “crater” in the hotel market. He also warned this Olympic effect could have much longer lasting implications. According to the research made by us we would recommend the following strategies for the issues: UK hoteliers should be able to position themselves for the London Olympics: Hoteliers need to consider the before and after impact of visitors coming for the Olympics or arranging the vacation holidays around the time of the event.

They need to consider the impact of the event itself. It should be mainly focused in terms of occupancy and rate and most of the hotels should have sophisticated models in place to deal with these issues Smith and Stevenson (2009) . London hoteliers should incorporate Olympics related ideas into their packages: The hoteliers should use the occasion to create a unique atmosphere. It is important that all the UK hotels recognizes that it will have to step up to the plate and offer a world-class welcome to what could possibly be completely new inbound markets Gibson (2010).

Improving customer service: People expect best service when they come to visit the country for the Olympics. In this situation many skilled workers are required for providing a good experience for the visitors. The hotels must employ sufficient staff, as well as well trained chef to work flexibly and must be able to cope up the pressure. They should employ people who will welcome the visitors in a helpful manner and in a professional way. They should also have good language skills as well as they must be aware of disability requirements and other cultural ideas, Red White and Blacks (2011).

Need to increase accessibility: The Paralympics games are going to attract nearly 4,500 athletes, the tourism business must strive to provide reliable information about accessible facilities and must understand the need of the visitors mainly the disabled people. They should explore the possibility of the research of the effectiveness of disability awareness training in the tourism industry. They should also consider the disability training as a part of gold standard customer service work

Improve skills and retention of the staff: For the last two years more than half of the managers do not have minimum management qualifications. There is a severe shortage of skilled chefs. The main backdrop of the hospitality industry is high rate of staff turnover which costs approximately ? 1 billion each year. The employers should check for the qualification reform while recruiting new staffs. The industry must check more for employee benefits as well to retain the employees Kirkup & Major (2006) Bibliography:

Updated: Aug 12, 2021
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Post Olympic Effects on Hospitality Industry. (2018, Jun 30). Retrieved from

Post Olympic Effects on Hospitality Industry essay
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