The Difficulty of Running a Hospitality Business in New Zealand

The Difficulty of Running a Hospitality Business in New Zealand
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The Difficulty of Running a Hospitality Business in New Zealand
As an important revenue maker, the hospitality industry has always been attracting people’s attention. In particular, hospitality refers to the warm reception of guests by giving them accommodation, food, drinks, and entertainment. The hospitality industry of New Zealand is lucrative, and in 2018, nationwide sales rose by 3.6%, exceeding $11 billion. In 2017, hospitality businesses in the country increased by 534, totaling to 17,328 (Restaurant Association of New Zealand, 2018). As such, one of the most significant challenges of starting and operating a firm in New Zealand is stiff competition. The paper focuses on the reasons why it is difficult to start and operate a hospitality business in New Zealand despite the increasing demand for international tourism. However, this essay argues that running a hospitality firm in New Zealand has obvious advantages, and stabilizing the business is not as hard as expected due to the rising demand from the domestic market and the boost of global tourism.
[Arg. 1] Despite the difficulty associated with starting and operating a hospitality business in New Zealand successfully, there are increasing demands from the domestic market. [Q] “Sales for the food to go sector grew 5.7% in 2018. In dollar terms, this translates to an increase in annual sales of $148 million…” (Restaurant Association of New Zealand, 2018). The majority of residents of New Zealand have started going out to celebrate occasionally. For this reason, they gather in restaurants or clubs, which is the reason why spending in the hospitality industry has increased. For example, some of the regions where customer spending is high include Christchurch, Wellington, and Auckland. Since the hospitality industry has lucrative returns, many firms are being opened, increasing the competition. Consequently, it becomes hard for new market entrants to succeed due to the lack of appropriate resources and experience required to gain a competitive advantage.
[Arg. 2] The continued growth in international tourism facilitates the development of the hospitality sector. In the recent past, New Zealand has become one of the favorite destinations for many people from different parts of the world. [S] Bowie et al. (2016) affirm that New Zealand has a lenient immigration policy that is not strict as compared to other western countries. In addition, residents of this country are welcoming, and they appreciate immigrants regardless of their culture, skin color, gender, race, and ethnicity (Bowie, Buttle, Brookes, & Mariussen, 2016). For instance, some highly-skilled individuals from African countries are migrating to New Zealand to search for jobs. That is the reason why the country has become a destination for people across the world. When many individuals go to a particular region, the sales of food must rise since no one can live without eating. As a result, being one of the favorite places to visit, New Zealand attracts various groups of people, which enhances the expansion of the hospitality industry.
[C-Arg. 1] The most significant problem in the hospitality industry of New Zealand is the unavailability of highly-skilled personnel. [P] The country has a shortage of highly-skilled chefs who are required to prepare menus that fit different groups of people (New...