The hospitality sector in the Middle East
Introduction
The hospitality sector in the Middle East has been in the last decade affected by the political uncertainties that most countries in the region have been experiencing. However, in some countries such as Pakistan lies a massive opportunity for the hospitality sector (Shamsi et al., 2015).. With the faster growth in the economic power of the citizens in the country and tourist attraction sites in the country, the overall hotel industry is likely to have a boom in the future. The state also gives multinational enterprises a more significant opportunity for investment in the country for many reasons. Globalization, which is a process in which people, ideas, and goods spread throughout the world, spurring more interaction and integration between the world’s cultures have been the major drive for the movement of people in and out of Pakistan, which continues to create opportunities for this sector.
The chosen MNE
Wyndham hotel and resorts are a chain group of the hotel with the headquarters in New Jersey, USA. The hotels, which are one of the most recognized international hotels, operate both in the USA and beyond. It has locations in various parts of the world, including; China, Canada, Mexico, Colombia, Ecuador, Turkey, Germany, the UK, the Caribbean, the UAE, Indonesia, and margarita island in Venezuela. With a massive number of customers globally, the hotel remains one of the most preferred options for those on leisure and business-related visits in the various destinations where the hotel operates. For the success of the hotel in the Pakistan market, there is a need for the hotel to clearly understand the different elements of operations which have been applied to other markets and those which are unique to the Pakistan hospitality sector. This is the most important aspect of its entry success in the market, which has been in the past, termed as a conflict area. Don't use plagiarised sources.Get your custom essay just from $11/page
Background of Pakistan and why it may want to join
In recent days, Pakistan has become one of the crucial Asian tourist attractions destination and business hubs. The country has enjoyed a tremendous increase in the number of hotels as a result of the heightened peace that it possesses. This continues to make it one of the hotspots for tourism and business adventure with people from all over the world visiting either have pleasure or for purposes of business and other reasons. This is the leading contributor to the fastest growing economic power of the country, which for a very long time, has been through to be violent. The hotel industry in the country has been at the same time getting a massive boost as a result of the increasing number of visitors from all corners of the world (Ijaz et al., 2016).
Pakistan today is the Asian most vibrant country in terms of hospitality. The hospitality business is booming, and despite the attempts by various investors to invest in the hospitality industry in the country, here exit a gap both in terms of numbers and the needs or expectations of the customer in the country. For this reason, the Wyndham Hotel and Resorts might want to enter this new market. Wyndham Hotel and resort is on the leading global group of hotels operating in the various country such as USA, China, Canada, Mexico, Germany, UK, UAE, and Indonesia among other Asian countries is likely to get one specific niche which is unoccupied in the Pakistan country. With a massive change in the historical context in the country, the hotel industry is fast benefiting from these changes, and more businesses are moving to the country than it is happening in any other country in the region (Shamsi et al, 2015)..
Change in the Pakistan historical context
Historically, Pakistan has been known to be a violent country coupled with the numerous political and civil wars which the country and the region at large have witnessed in the past. Most businesses have, in the past, failed to thrive in one sector, which has had stability as a result of the conflicts. In the last two decades, however, the country has had numerous attempts to have conflict in the region ended. Some have been successful while others remain the course, such as the conflict resolution attempts that are being witnessed in Iraq and Iran. Pakistan has, however, achieved this stability, and the country is enjoying the fastest recognition as a global business hub (Ijaz et al., 2016).
The last half a decade has seen Pakistan build ties with other countries such as the USA and the European countries. These business-related ties and alliances with significant business blocks in the world, such as the European Union, have seen most countries, especially from the west investing in the country. Besides, such countries have also invested in the element of safety in the country, which continues to promote the stability and the business viability of the country. The hospitality industry is one such industry that is likely to thrive in the region as a result of the on found ability. Pakistan has had the various elements of investment attractions from the ties that the country has made with other countries. The business incentives that the government of the country is giving to the multinational companies and organization in the country continues to attract more companies to the state (Bashir & Nasir, 2013). Besides, the government has also put in place better taxation policies to attract the companies to invest in the country, and this element attracts the investment to Pakistan.
Multinational companies do find Pakistan one of the latest investment hub thanks to the many investment opportunities that the country offers. The country is also untapped frontiers in the various elements. According to investment research firm MSCI, Pakistan is o the emerging market index. But is not like a lot of their markets, and this is why the country is working on expanding and supporting other programs to make it even a more comprehensive investment hub in the Asian region (Shamsi et al., 2015). There is a sameness to other countries such as Nepal, Cambodia, and Vietnam with an enormous amount of challenges, a lot of young population, and plenty of investment opportunities for the multinational companies which are being attracted to invest in the country. In 2011, the business environment in Pakistan was quite nascent. However, from this time there has been to or there or even more incubators and accelerator, not including ones that were at the universities and that were barely any formal kind of investment. In 2012 the government did start shaping the area in terms of investment. The provisional government in Pakistan was investing in technology and launching business incubators and accelerators. The favorable government investment policies are the other opportunity for investment (Ijaz et al., 2016).
Entry mode
The mode of entry of Wyndham hotel and resort into the Pakistani market to determine the overall success of the company. For the company one successful, various elements of operation much are considered (Bashir & Nasir, 2013). However, the most critical aspect of factor to consider while venture in the new market is the market analysis. For the hotel, the management will have to understand the market to be aware of the various aspects such as the laws and regulations guiding the operations of such business, the tax policies of Pakistan and the level of competition that the market has to determine their entry pattern and behavior. Wyndham hotel and resort will have to clear understanding of the Pestle analysis of the Pakistan hospitality sector. Below is the Pakistani PESTLE analysis to determine how Wyndham hotel and resort will enter the market
| Political factors | Political favors play some of the most essentials role, especially of the country. The main targets of a hostel industry are attracting international tourism, which will host a variety of opportunities that goes beyond this industry alone. Political changes have directed impacts because the government, especially on the hotel industry, any small step taken by the government will affect the hotel industry operations (Ijaz et al., 2016). Pakistani government has in the past created enjoyable, and a conducive political environment for the country’s hotel industry as tourist feel free and safe to visit the country. A recent turmoil of political movement, which has seen neighboring nations such as Iran, Iraq, Israel, and Palestine, has spared the country, and this has boosted the hotel industry growth. The sector can be considered to one very robust one in the middle east region owing to the political stability that the country enjoys (Shamsi et al., 2015). |
| Economic factors | Economic factors include changes in the tax policies, interest rate, and the exchange rate have a significant influence in the hotel industry. It is best to understand that the economic changes one leaves a significant impact on the firm’s behavior and the sector at large. In the Pakistan hospitality sector, the favorable tourism policies and the growth in the economic situation have seen more people venturing in the market in the recent past. The economy of the country has faced minimal drop due to the financial system and controlled stay in the country. This has enables and continues to enable the hotel industry and hotelier to concentrate on foreign travelers allowing the local markets to get relief in the Pakistani hotel sector. The key benefit of this kind of operation is a situation where the country is enjoying improved tourism activities. |
| Social factors | Changes in social factors make an impact on the demand for the firm’s services and product. The willingness and the availability of the individual to work is a factor of the social environment. The social element of the Pakistani Is way above what it was in the past. As such, the hotel industry has been appreciating concerning the advancement in the social aspect. This is likely to create a good environment for the Wyndham hotel and resorts clients from other social countries around the world. |
| Technological factors | For any business, technology is the leading competitive advantage. In the same way, the hotel industry much relies on the aspect of technology for its development. Most hotel in the Pakistani hotel sector is currently using different software to help them in meeting the various needs of both staff member and the clients (Bashir & Nasir, 2013). As such, Wyndham will also have to enter into some market aware of the technological needs that the market has. Many customers and business people to make the use of technologically integrated hotels because it is the way of achieving customer satisfaction. Wyndham hotels and resorts must be fully aware of the same aspect (Shamsi et al., 2015). |
| Environmental | For the hospitality sector, the environment is one of the leading factors that affects the business. Changes in the weather and climatic condition usually have a tremendous impact on the hospitality industry. Pakistani is one country which has for a very long time not experience any significant climatic of adverse weather condition. This is often cited as one reason why tourism and hence the hotel industry is fast growing and is very competitive. Pakistan stands a better opportunity for the Wyndham hotels and resorts to invest and become equally completive due to the favorable and regularly weather condition throughout the year. |
| Legal | The legal environment is essential for the growth of the hotel industry. The current situation and war condition, which has been witnessed in the east, have negatively impacted the hospitality industry in the country. Most of the individual hotelier is now relying on the favor of the legal system in Pakistan to have the situation stabilize. This has been the leading cause of the slightest decline in revenues by the hotel industry over the last year (Raza et al., 2013). |
Conclusion
Pakistan has a massive opportunity for the hospitality industry. The hospitality sector has, in the past, remained very dormant owing to the little tourism activities that the country had in the past. However, as the country and the whole Asian region beginning to witness a great element of stability. This has created one of the latest need for hotels in the country as most people from all over the world are visiting the country to experience the new ad untapped tourism experience that the country has to offer. The increase in the number of tourists in the country is creating one of the greatest attraction opportunities for multinational companies such as Wyndham hotel and resort.
References
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