The UAE is a federal constitutional monarchy. It maintains very good diplomatic and trading relations with the United States, Saudi Arabia, India, China, and many other countries in the region and beyond. This is a good and bad thing for the hotel industry. This is a huge problem for hotels who often see a hike in profit during peak seasons when rooms are scarce. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. rodrigo | December 20, 2012 WritePass - Essay Writing - Dissertation Topics [TOC] ... Accor’s construction and maintains platform naturally brings together teams from development, operations, finance, legal affairs, marketing and hotel systems. Everyone wants to stay somewhere safe. Hilton Worldwide is the largest hotel company and the fastest growing hotel company in the world. Technological factors affecting the United Arab Emirates (UAE). If they don’t, they may find themselves on the receiving end of scathing reviews online, lack of customers because of environmental issues like the weather, or into legal trouble like if hotel owners were to violate innkeeper laws. However, it can slightly vary depending on the types of business. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels. It shows that rules and regulations are applied very strictly in the country. The major legal factor that will impact Marriott’s future business is the status of services like Airbnb. If you liked any of these articles, please feel free to share with others by clicking on the icons below. According to the World Investment Report 2019, the total FDI received by the country from 2016 to 2018 was 30.4 billion US dollars. Hotels often run out of rooms during peak seasons, and when they don’t, they jack up the room prices. It is also worth noting that the UAE is particularly safe for solo female travellers, especially with hotels such as Dubai’s Jumeirah Emirates Towers hotel and Dukes Dubai dedicating female-only floors with an all-female staff (Hinai, 2018). The establishment needs to be honest about the calories in the good and nutritional ingredients of the dishes. Travel bans can kill the hotel and tourism industry. Another thing the government controls are taxes. Other social challenges to note are obesity, drug abuse, high cost of living particularly in Dubai and Abu Dhabi, racial discrimination, and high rate of divorce. You can eat at the many restaurants built within, like Starbucks and iHop, too. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. The UAE is a federal constitutional monarchy. La particularité de cette matrice est sa vision globale de l’environnement.Elle met en avant six grands acteurs, qui forment son acronyme : Politique, Économique, Socioculturel, Technologique, Écologique et Légal. Reviews on blogs can make or break a hotel’s reputation. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. L’analyse PESTEL (qui existe aussi sous la forme PEST) permet de surveiller les risques et les opportunités que pourraient rencontrer l’entreprise et son marché. Legal Factors That Could Affect Marriott’s Future. Crime rates ruin hotel profit. Airbnb is the hotel industry’s biggest competition. The government has invested heavily in space science, life science, nuclear science, and ICT over the years. the UN, World Bank, IMF, Arab League, OIC, OPEC, and GCC. Innkeeper laws. Due to the limited scope, the article offers basic discussion on the UAE’s legal environment. For example, if international currencies are stronger than the American dollar, people outside of the United States will want to visit. However, the UAE’s over reliance on the petroleum sector is a weakness. Its GDP in 2018 was 414.18 billion US dollars (Trading Economics, 2019). Approximately 82% of the UAE’s population has profiles on Facebook while YouTube’s penetration also stands at 82%. It consists of seven emirates i.e. Legal environment is the last element to discuss in the PESTEL analysis of the United Arab Emirates (UAE). Academia.edu is a platform for academics to share research papers. The hotel industry is experiencing major competition with corporations like Airbnb, which offer a variety of rooms for cheaper than the average hotel room. The United Arab Emirates, often simply called Emirates, is a powerful country in the Middle East. For instance, wealth gap is a problem as according to Maceda (2018), the richest 1% of the population own over half of the UAE’s wealth. While all businesses are affected by economic changes, the hotel industry is one of the most susceptible to its influence. Hotel guests stay in hotels for a variety of reasons, such as when visiting family, friends, on business, or vacationing. It grew and evolved at a rapid speed in the last two decades. Legal factors affecting the United Arab Emirates (UAE). Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. Because of social media, the news is available and updated 24/7. In the arena of e-commerce and internet-powered business, the more informed you are, the better. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. The life expectancy for men is 76 years and 78 years for women in the Arab Emirates. By: M Rahman | Tags: Global Business Issues, PESTEL analysis of the United Arab Emirates (UAE). If a hotel is near an area with high crime rates, it’ll struggle to survive. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. This isn’t something hotel owners can control, but they must understand the seasonal differences before pricing their rooms — and adjust accordingly. It is the 27th largest economy in the world. The United Arab Emirates is a constitutional federation. Continued growth is expected into 2020 and beyond. Tailoring to patrons in varying locations. In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. In fact, the UAE is currently the most attractive ICT market in the Middle East. Many factors affect the success and growth of the hotel industry. Most of the immigrants living and working in the UAE are from India, Pakistan, Bangladesh, the UK, the USA, Iran, Canada, China, Philippines, South Africa, and Nepal. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. Many …, There are many companies the world over, that conduct PESTLE …. Whether it comes out successfully depends on a few primary factors, including unemployment rates, job growth, and travel spent. If a hotel is near an area with high crime rates, it’ll struggle to survive. It’s so quick that hotel owners can’t do much to stop it. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how the Marriott International acquires Starwood Hotels & Resorts Worldwide. The UAE is a member of a number of international economic and political forums e.g. Other relevant articles for you are: Advantages and disadvantages of a private limited company. As mentioned above, the UAE is one of the safest countries in the world with low crime rates. The ultimate power rests with the seven hereditary rulers. Traveling websites forces hotels to remain competitive. Emiratis are very social people, and families love to live together. Choosing a spot with low crime is crucial for all hotel owners, otherwise, customers won’t stay at their locations. Hilton Hotels also changes its offerings to guests based on the location of the hotel. Economic factors affecting the United Arab Emirates (UAE). However, major oil and gas companies, and subsidiaries of foreign banks are liable to the corporation tax at a maximum rate of 55% (Santander, 2019). As such, hotels must remain competitive, otherwise, patrons will book a different chain. Any hotel with food or beverage establishments within must follow truth-in-menu laws, which means the food establishment must be truthful about the food and beverages served to guests. Hotel owners who are confident that their hotels are worthy will pay social media influencers to write about it. Anyone can write a review and post it on a blog or share it on social media. Analyse PESTEL - Le journal Le Monde Étude de cas de 5 pages - Marketing médias. The UAE is considered a big power in the Middle East and has considerable influences at global stage as well. Particularly, Dubai is a very dynamic emirate and a flourishing international business centre. Find out how stock trading could be of a benefit you. The maximum working hours for an adult employee is eight hours a day (48 hours a week). Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. Copyright ©2017 - 2025. All it takes is one decision and a country loses the vast majority of its economy. Hilton Hotels is a global flagship brand of Hilton Worldwide Holdings Inc.and it has 572 hotels and resorts in 85 countries and territories across six continents. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Authorities in cities as diverse as New York, New Orleans and Barcelona have fined Airbnb and its hosts for violating zoning laws, hotel regulations and health and safety regulations. Airbnb is the hotel industry’s biggest competition, PESTLE Analysis: Business Environmental Analysis, How and Why Finance and Business Students should …, FedEx SWOT Analysis 2021: 5 Biggest Threats and …, 3 Things to Do Before Launching an eCommerce …. They cover the whole range of human emotions from joy to anger, from hope to despair. Psalms: The Holy Bible: King James Version These 150 prayers and hymns were used by the Hebrew people to express their relationship with God. Legal factors affecting the United Arab Emirates (UAE) Legal environment is the last element to discuss in the PESTEL analysis of the United Arab Emirates (UAE). Its Labour Law applies to all staff and employees regardless of their nationalities. Le Monde, journal historique français, a connu bien des difficultés depuis sa création en 1944. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. However, there are some social challenges facing the United Arab Emirates today. They highly advocate and practice religious, tribal, and traditional ties and values of cooperation and care. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. If you’re curious about the strengths, weaknesses, opportunities, and threats this industry faces, read our SWOT Analysis of the Hotel Industry here to learn more. Everyone wants to stay somewhere safe. People who stay at hotels will take photos and write up an honest post about their experience. The GDP growth rate averaged 4.34% from 2000 until 2018 with a big increase in 2006, and a big slump in 2009. The UAE is the 5th richest countries in the world with $74,410 GNI per capita (Harrington, 2018). Travel websites have made it easier for people to price shop hotels. Strategic, PESTEL and Financial Analysis of Accor Hotels. It is worth noting that the UAE has recently taken initiatives to de-escalate the critical situations in the Middle East, particularly its tensions with Iran. Its top export destinations are India, Japan, China, Oman, and Switzerland. This FedEx SWOT analysis highlights the brand's strengths and weaknesses, as well as possible external opportunities and threats, Political factors: The government holds extensive power over the hotel industry, Economic factors: Weakened currencies, economic cycles, and tailored offerings, Sociocultural factors: Customers want cheaper hotels and turn to Airbnb instead, Technological factors: Social media, blogs, and scratching reviews, Legal factors: Two major laws nearly all hotels must follow, Environmental factors: The importance of the local climate, Hotel Industry’s PESTEL analysis: Bottom line. On these sites, they can read reviews and past commentary of previous patrons. He is a lecturer in Management and Marketing. Google has many special features to help you find exactly what you're looking for. When vacationing, customers want to stay somewhere warm and relaxing. Perfect balance between traditional religious culture and modernity, luxurious hotels, stunning shopping malls, skyscrapers, crystal clear beaches, historical ruins, indoor theme parks, and versatile cuisine are some of the factors that attract millions of tourists every year. You can quickly and conveniently book your room through an app — and it’s often less expensive than hotels in the area. Hospitality is one of the biggest investment sectors for global investors, especially within the United States. Generally, companies and individuals in the UAE do not pay any taxes on income or wealth. It is very modern and well-integrated with the rest of the advanced world. The UAE is one of the most liberal countries in the Gulf, though it is conservative traditionally. Each emirate is governed by a ruler, while the Federal Supreme Council, highest constitutional authority of the Emirates, consists of all the seven rulers. Search the world's information, including webpages, images, videos and more. Constant noise of construction, invasive species, carbon footprints, limited water sources, overfishing, waste generation, air pollution, land degradation, and desertification are having immense impact on the environment (Government AE, 2019). Everyday our market is changing the way it is. It has been making tremendous progress in many fields since its full independence in 1971. However, the country has developed so rapidly in such a short time that it is now faced with some environmental challenges. The weather in the local area is the deciding factor for whether someone chooses to stay at a certain hotel. Technological environment is the next element to discuss in the PESTEL analysis of the United Arab Emirates (EU). The industry is also overly reliant on the government; everything from potential tax reform to travel bans can cause the industry to crumble. Please consider supporting us by disabling your ad blocker.