Full Essay States

Pestel Analyse

Pestel ASIA

Political Factors

The cornerstone of any national Tourism and Hospitality policy is the requirement for political stability because of safety of hoteliers or other investors and tourists (Chon and Ph.D 2000). Singapore enjoyed a reputation for political stability. Government of Singapore also provides social welfare service for hotel industry by establishing the Singapore Hotel Association so that their members will have a discount access to all equipment and products, informed of new trends. Mandarin Oriental Hotel is its membership so that the hotel has a strong support from the SHA (SHA 2007).

Economic Factors

Economic factors concern the nature and direction of the economy in which a firm operates such as Business Cycles, Exchange Rate or Disposable income. Number of business traveler will decline in the recession. Disposable income also has influence on hotels occupancy such as leisure guests of five stars hotel may raise because of some discount promotions. Especially for international chain hotel - its profit may be impacted when convert from Singapore dollar to the currency set by head quarter in Hong Kong. Occupancy is also fluctuated relative to currency exchange rate. For instance, when the US dollar is low, it helps to keep Americans at home to avoid the loss on currency exchange (Chon and Ph.D 2000). Understanding the situation, the hotel chooses its target market is leisure guests (Ettedgui 2009). Exchange rate difference is hugely important to profit. Varying exchange rates mean that profits will fluctuate but it will not vary over time because the profit made on one day may become a different sum when transported to the home country of the company (Brotherton 2003)

Sociocultural Factors

The social and cultural environment consists of broad societal trends which affect hotel organization. The most profound social changes in recent years have been the entry of a large number of women into the labor...