Balance Between Imperfect Judgment and Imperfect Prescription

Question: Discuss about the Balance Between Imperfect Judgment and Imperfect Prescription. Answer: Introduction It can be stated that the service of hospitality industry has a greater impact on the economy of a country. Therefore, it can be mentioned that the greater performance of the hospitality industry of a country can highly increase the gross domestic product of the country. As per the statement of Wang, Tsai and Tsai (2014), it can be mentioned that there is a positive correlation between the performance of the hospitality industry and the GDP growth of thee economy. This study will try to highlight the performance of the hospitality management sectors of an underprivileged country. In this connection, the service of hospitality sector of Thailand has chosen. This study will also try to identify whether Thailand has the opportunity to improve the performance of their hospitality services. In addition, this study will also try to highlight the political and the economical issues, which have faced by this country. With the help of the theory, the political and the economic situation can be evaluated. Background of the country According to Boella and Goss-Turner (2013), it can be stated that tourism and the earning from hospitality sector is the major source of revenue of Thailand. The hospitality industry of Thailand has reached to a new level in the year of 2015. In addition, it can be stated that this country has enjoyed its best year over the two decades. The investors are willing to invest in the hospitality sector of Thailand. As per the report of InterContinental Hotel Group, investors invest in this sector in order to boost the capital inflows into the economys hospitality industry. In the words of Zhang, Kandampully and Choi (2014), the hospitality industry of Thailand has reached to the highest peak among the 20 years. Therefore, the occupancy rate of the country has increased by 73.4 percent. As per the report of Travel daily News, Thailands tourism industry is mainly fuelled by the visitors of China. Political and economical situation of Thailand This study has highlighted the political and the economical situation of Thailand in this context, which are discussed in the following: Lack of millennial the new power segment: As per the statement of Kandampully, Zhang and Bilgihan (2015), it can be mentioned that exploration, innovation, communication are the key element of millennial. In Thailand, it can be observed that they do not implement new techniques or innovative ideas in their business. As hospitality industry is the major sector of the country, therefore, it is required to implement new strategies to increase their performance. Political tension and terrorism: In the opinion of Kim, Vogt and Knutson (2015), it can be stated that a tourist visit to a place in order to recharge his energy, for eternal peace, and also for adventure. They would not like to visit the place, which is affected by political upheavals. The security system in the hospitality industry of a country is required to be proper, so that the visitors do not feel unsafe throughout the journey. In this purpose, it can be mentioned that the visitors have not faced any political issues during their visit to Thailand. From the above figure it can be observed that the rate of unemployment is stagnant in Thailand, therefore, it can be mentioned that there is no unequal income distribution. In addition, it is noted that the rate of unemployment is not so high in the country, which can make a bad impact on the hospitality industry. There would not be income differentiation among the employees. Therefore, Yen and Teng (2013) opined that the performance of the individual employee would not make an effect on the hospitality industry. Analysis and evaluation of Political and economical situation The hospitality industry and tourism sector is depending upon the income statement of the labours. In the words of Bendoly (2013), it can be stated that the economic theory, Heckscher-Ohlin theory can relate this condition. As per this theory, it can be mentioned that tourism is highly labour intensive. Therefore, a country will enjoy the comparative advantage if the economy is labour intensive, which implies that the rate of labour of the country is cheaper. On the other hand, from the point of the labours, they are not willing the unequal income distribution. In this case, they feel reluctant to increase the productivity of thee organisation. Hence, the performance of the hospitality sector will be decreased, which has a negative impact on the tourist. Sustainability and resource constraints: In the points of Bharwani and Jauhari (2013), most of the hotels in Thailand have followed the green policy in their business strategy. As per green policy, the government of Thailand has aimed to focus to the environmental program, which is required to arrange by the management of the hospitality sectors. As a result, it can be expected that global warming and environmental energy use are influencing the hospitality business. Impact of Keynesian multiplier: As opined by Jones, Hillier and Comfort (2016), it can be mentioned that Keynesian multiplier analyses how the government spending highlights the cycles of the spending, which would in turn increase the employment as well as thee prosperity in the form of spending. If the hospitality sector aims to follow the Keynesian multiplier, then the economy of a country would be fully employed. In addition, Keynesian multiplier is also helpful to offset the rate of saving by taxing the savings and also by forcing to spend more. On the other hand, Keynesian model can differentiate the private savings and the investment into two different functions and it shows that savings is the drain of the economy. As a result, it can be inferred that the private investment will look inferior for the deficit spending. Therefore, in a synopsis, it can be mentioned that multiplier effect has a positive impact to increase the income structure of the hospitality sector, which in turn leads higher spending. According to Kandampully, Zhang and Bilgihan (2015), the multiplier concept is helpful, when the revenue earning by the economy would be increased. If the rate of exportable hospitality goods, the rate of visiting of the tourists from abroad would increase, the revenue earning would be increased. Effect of FDI in Hospitality industry: In order to stimulate the international as well as national investment in the hospitality sector, the government of Thailand has allowed 100 percent FDI. In addition, allowing of foreign direct investment into the construction development include the development of resorts and hotels. Therefore, the occupancy ratios would be increased. Outbound tourists from China also raise the foreign trips. This also increases the foreign direct investment of Thailand. Conclusion This study has highlighted the scenario of hospitality industry in Thailand. Hospitality industry of the country has developed massively in last 20 years. However, it can be observed that the country has not implemented innovations in the business. In order to improve the performance, the country requires applying new techniques or taking new innovative policies in the business. The tourists do not suffer from the political issues in case of visiting the place. Therefore, this will make a good impact on the tourists and they will like to visit the place. As a result, the business of hospitality sector will be improved. Recommendation Thailand hospitality sector can start mobile self check technique, mobile booking service. In order to implement new innovative techniques in the hospitality sector, they can install latest gadgets, so that the consumers can communicate with the restaurant authority easily. Using touch screen device, the guests can place their order for meal. As a result, the pattern of consumption will be changed. On the other hand, the hospitality industry can follow trajectory for the service innovation models. It will highlight the product differentiation and will also increase the operational efficiency. References Bendoly, E., 2013. 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