PEST Analysis
2.1.1 POLITICAL
The hotel industry had evolved very rapidly since the opening policy in 1978, after that the economy has gradually transformed to a market-oriented one. The reform has created a much better business environment for the hotel industry development (Hornsby, 1990).
According to Kotler (1996), The political environment is strongly affect hospitality industry, political environment is made up of laws, government agencies and pressure groups influence and limit the activities of various organisations and individuals in society.
Furthermore, The EU has proposed plans to sponsor holidays for the travellers who have not enough money to travel. According to Travel Weekly (2010), these plans assist many customers who facing financial problems or personal circumstances to have a vacation. For example, young person aged from 18 to 25, disable people and pensioners etc. The idea for help these people to travel was put forward by Antonio Tajani who is the EU commissioner for enterprise and industry, declaring that having a holiday is a human right.
Therefore, this proposal actually could stimulate consumer and offer them more opportunity to holidays. Perhaps this might be good news to the hotel industry to fight in the recession.
2.1.2 REGULATORY
Regulation environment is protects companies from each other. While most businesses praise competition, they try to counteract it when it affects them. Another way is try to restrict companies dealing any unfair and guilty transactions. Furthermore, regulation also aims at protecting consumer from unfair business practices. If unregulated, firms might make unsafe or low quality product and services, be untruthful in their advertising, or deceive through packaging and pricing.
VisitBritain, the body which aims to promote the UK tourism, has launched a £6.5 million advertising campaign outside the UK to promote the affordability of Britain as a destination. However its calls for this investment to be matched by the UK
The hotel industry had evolved very rapidly since the opening policy in 1978, after that the economy has gradually transformed to a market-oriented one. The reform has created a much better business environment for the hotel industry development (Hornsby, 1990).
According to Kotler (1996), The political environment is strongly affect hospitality industry, political environment is made up of laws, government agencies and pressure groups influence and limit the activities of various organisations and individuals in society.
Furthermore, The EU has proposed plans to sponsor holidays for the travellers who have not enough money to travel. According to Travel Weekly (2010), these plans assist many customers who facing financial problems or personal circumstances to have a vacation. For example, young person aged from 18 to 25, disable people and pensioners etc. The idea for help these people to travel was put forward by Antonio Tajani who is the EU commissioner for enterprise and industry, declaring that having a holiday is a human right.
Therefore, this proposal actually could stimulate consumer and offer them more opportunity to holidays. Perhaps this might be good news to the hotel industry to fight in the recession.
2.1.2 REGULATORY
Regulation environment is protects companies from each other. While most businesses praise competition, they try to counteract it when it affects them. Another way is try to restrict companies dealing any unfair and guilty transactions. Furthermore, regulation also aims at protecting consumer from unfair business practices. If unregulated, firms might make unsafe or low quality product and services, be untruthful in their advertising, or deceive through packaging and pricing.
VisitBritain, the body which aims to promote the UK tourism, has launched a £6.5 million advertising campaign outside the UK to promote the affordability of Britain as a destination. However its calls for this investment to be matched by the UK
References: Recession has being the major influence factor during 2004 to 2009. As noted by Keynote (2010), the number of visits peaked in 2007. However, there was a fall in 2008. During 2007 to 2008, the number of visits fell by one million.