January 26, 2017
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The upcoming 2020 Summer Olympics in Tokyo may prove to be a short-term boost to the city’s hospitality industry as a large influx of travelers is expected to arrive. However, even the most optimistic of commentators understand that this uptick in demand is a rare and fleeting windfall opportunity whose effects are mainly short term.
While there may not always be a major event in a city that draws as many travelers as a sporting event on the scale of the Olympics, the hospitality industry has several options to explore when fueling sustainable long-term growth prospects.
Foremost among these is diversification and acquisition. Many of the larger hospitality industry giants have made several acquisitions of smaller, hitherto independent hotel brands and their associated properties. This expansion, which for many companies could be aggressive, opens companies up to previously untapped markets, often without the associated risks with establishing a presence anew.
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Cooperating with municipal governments also offers opportunities for the hospitality industry’s many players. Hotels provide a lucrative revenue stream for cities and bring with them the influx of travelers that in turn play a role in fostering economic growth within the city. These partnerships, which revolve on visibility campaigns to encourage the arrival of tourists to visit or invest in the city, acknowledge the interdependent roles played by both sectors to one another.
Patrick Imbardelli currently serves as the director of Imbardelli Holdings Limited, a private investment company based in Sydney, and has behind him more than three decades of experience in the hospitality industry. Visit this page for more updates on the trends in the hospitality sector.