Resort Management - Economic Impact on Resorts Assignment

Resort Management - Economic Impact on Resorts - Assignment Example A slow economy in the region implies that business trips increase tremendously, thus positively affecting profits. Cost containment has been another hiccup facing the Grand Floridian and thus reducing the productivity (Miller 55). The resort management has come up with ways to lower the cost without negatively affecting the quality standards. As a result of cost containment, the management has cut down cost of products and services leading to low revenues. According to a research study by Choi, taxes, and deductions play a vital role in the hospitality industry. Higher taxes and lower tax deductions in Florida have negatively affected the Grand Floridian’s revenues. For instance, high energy taxes will lead to fewer trips while high corporate taxes result in less net profit after tax. On the other hand, increased guest sophistication has also posed a significant challenge to the Grand Floridian Resort. As a result of increased consumer preferences, the resort has been forced to undertake renovation of recreational facilities, business hubs, and guests’ rooms in order to match customers’ expectations. Lack of adequate number of employees working in the resort has led to reduced productivity. Labor shortage is triggered by the increased services offered at the Grand Floridian resort (Choi 68). Therefore, the resort management needs to handle the aforementioned hiccups in order to improve on the number of guests, and increase efficiency. There are also favorable economic factors that have facilitated the growth and expansion of the Grand Floridian resort. For instance, the organization has received benefits from the federal government through subsidies and reduced taxes resulting in higher profits and revenues. Therefore, the government has enhanced the organization’s operations by offering tax breaks, and incentives to the entire hospitality and tourism industry. On the other hand, rising competition in the industry has led to increased creativity