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problem 1: The hotel and catering industry has constantly made a positive contribution towards the economic health of a country. Examine affects that have contributed to the development of the hotel industry in a country with which you are well-known.

problem 2: A hotel guest will rarely stay or eat in a hotel for its own sake, the use of the hotel representing a derived demand.

a) Describe the main types of demand generating source which a hotel might experience.
b) describe the characteristics that will differentiate between different types of hotel guest.

problem 3: Although a hotel might derive the majority of its income from accommodation, a range of supplementary services and facilities will often be offered to add value to the product and increase sales.

a) Distinguish between two activities that will raise earnings via the sales of rooms in a hotel.
b) Describe how the atmosphere in a hotel dining room might be changed.

problem 4: The provision of food and drink forms an important activity in most hotels, and will be used to attract visitors to the premises in the hope that some will book accommodation as well.

a) Describe how banqueting might differ from other aspects of a food and beverage operation.
b) Outline the benefits and drawbacks of having one central kitchen in a hotel.

problem 5: The management style adopted in a hotel will greatly affect the efficiency of the operation.

a) Compile an organization chart for a large hotel, identifying departments and levels of management and indicating the span of control in each department.
b) State one benefit and one drawback in the use of an organization chart.

problem 6: As the number of tourists declines owing to an economic downturn, the priority is to reduce operational costs, yet to maintain the profitability. Examine how variable costs might be decreased.

problem 7: An understanding of the fundamental principles of accounting will enhance the chances of a hotel manager in accomplishing financial budgets and targets.

a) Define the given financial terms:

• Current assets
• Current liabilities
• Equity
• Fixed assets
• Gross profit

b) describe how a hotel manager might compute whether a specific food item is being overstocked.

problem 8: Developments throughout the past few years have brought about changes in hotel ownership, which have resulted in the proportion of group-owned hotels steadily increasing in number.

a) Describe how the administration of a hotel managed under a management contract will distinct from a hotel operated under a franchise agreement.
b) Examine benefits that a hotel group can expect as a result of its larger size.

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