Hotels play an important role in the most countries by providing facilities for the transactions of business, for meeting and conferences, for the recreation and entertainment. In that sense hotels are as essential to economics and societies as are adequate transport, communication and retail distribution system for various goods and services. Through their facilities, hotels contribute to the total output of goods and services, which make up the material well-being of nations and communities.
In many areas hotels are important attraction for visitors who bring with them spending power that the local and who tend to spend at a higher rate than they do when they are at home. Through spending by visitors hotels thus often contribute significantly to local economics both directly indirectly through the subsequent diffusion of the visitor expenditure to the Government coffers and to other recipients in the community.
In areas receiving foreign visitors, hotels are often important foreign currency earners and in this way may contribute significantly to their countries balance of payment. In countries with limited export possibilities, hotels may be one of the few prime sources of foreign currency earnings.
Hotels are important employers of lanour. Thousands of jobs are provided by hotels in the many occupations that make up the hotel industries in most countries; many others in the industry are self employed and proprietors of small hotels. The role of hotel as employer is particularly important in areas with few alternative sources of employment where they can contribute to regional development.
Hotels are also important outlets for the products of other industries. In the building and modernization of Hotels, business is provided for construction industry and related trades. Equipment, Furniture amd Furnishings are supplied to hotels by a wide range of manufacturers. Food, drink amd other consumables are among the most significant daily hotel purchases from farmers, fishermen, food and drink suppliers, and from gas, electricity and water companies. In addition to these engaged directly in hotels, much indirect employment is, therefore, gemerated by hotels for those employed in industries supplying them.
Hotels are an important source of the amenities for local residents. Their restaurants, bars and other facilities often attract much local customers and many hotels have become social centres of their communities.