Part A) The hospitality industry in New Zealand faces many challenges, including but not limited to; work, competition and profit margins. Identify three key challenges that you believe are important to the success of New Zealand hospitality businesses: Define and describe the challenges using data from the sources listed below. The New Zealand hospitality sector has many challenges to overcome, which I have discussed in this essay. This sector is one of the major sectors contributing to the New Zealand economy (Statistics New Zealand, 2013). In this essay I will identify three main challenges, which I believe are important to ensuring a successful hospitality business. I will describe and define these challenges and use the data I have. This can be paid to the worker through wages or salaries (Conn, 2009). I think labor costs are a major challenge for a hospitality business. If you can keep your labor costs low and not negatively impact your service or product, you could save a lot of money. In the Restaurant Association New Zealand (RANZ) report, 60.8% of businesses said labor costs are one of the biggest challenges a hospitality business faces. In 2012, labor costs were 61% for a hospitality business (RANZ, 2013). The reason it was so high is because it is essential to running a hospitality business. Labor costs will always be a challenge for managers and owners who must understand that they must build a loyal customer base so they can maintain sales. Customer satisfaction should be the focus of your understanding manager. Rishi and Gaur (2012), stated that offering guests superior service compared to the competition is a great business ethic (Rishi & Gaur, 2012). This will create customer satisfaction and also sales. Managers and owners need to understand that it's not just about profit. The key is to maintain that income by creating customers