The tourism and hospitality industry is broad, covering travel, accommodation, food services, conferences, leisure and recreational activities. This report focuses on the passenger airline industry, the hotel industry, and the fast food industry as a whole. Examine the current state of these industries and their existing leadership practices. The issues and challenges that the industry and its leadership are likely to face over the next five to ten years are examined and then recommendations are made for how these challenges can be addressed. Current State of the Industry As the world economy becomes increasingly globalized, the importance of air travel has steadily increased (Hwang, 2011). According to the air traffic report published by the International Civil Aviation Organization (ICAO), Airports Council International reported that air traffic growth in 2010 increased by 6.3% compared to 2009. This corresponds to 2.5 billions of passengers transported. The numbers are expected to grow quite significantly as the focus is on emerging economies, including India and China. In addition to the United States and Europe, it was predicted in 2009 that by 2028, 14 of the 20 major airport hubs will be in Asia Pacific (Butterworth-Hayes, 2011). The progress of transformation in the structure of the airline industry, particularly in international airlines following the The signing of the “airline deregulation act” in the United States in 1978 and in Europe in the 1980s and 1990s was dynamic (Fillol , 2009). The formal acceptance of this act by the regulatory body signified the beginning of the “global liberalization of the aviation sector” or the bilateral “open skies” agreement. This act had a strong impact on the economic performance of the aviation industry. Airline Scholars, Fu, Oum...... middle of paper ......, L., Franz, I., & Russell, S. (2007). A systematic approach to career development at McDonald's. Organizational Development Journal, 25 (3), 31-37.Service Skills Australia (2011) Environmental scanning for tourism, hospitality and events. Retrieved September 23, 2011, from http://www.serviceskills.com.au.Tarlow, P. (nd) Tourism and transport: planning for the future. Retrieved September 23, 2011, from http://www.eturbonews.com/24332/tourism-and-transportation-planning-future.Wain, D. (2009). Leadership with ketchup in its blood. Training Journal, 25-27.Wickford, H. (n.d.).Types of Hotel Ownership. Retrieved September 29, 2011, from http://www.ehow.com/about_5598328_types-hotel-ownership.htmlWilliams-Lee, A. (2008). Accelerated leadership development is at the top of McDonald's talent management menu. Global business and organizational excellence, 27, 15-31.