Micro Economy of South Africa

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South Africa

Table of Contents

➢ Hospitality Market Structure Analysis in SA………………………………………..

--Background information of SA hospitality sector
--Challenges confronting the investors in SA
--Economic issues that influenced the decision
--Recommendation for long-term demand management

➢ Factors influencing the demand of MichelAngelo hotel……………………………. ➢ Substitutes and Complements………………………………………………………… ➢ Market factors affecting the prices…………………………………………………… ➢ Profit maximization methods…………………………………………………………. ➢ Long-term sustainability………………………………………………………………. ➢ Articles/ Statistics………………………………………………………………………. ➢ References……………………………………………………………………………….

Hospitality Market Structure Analysis in South Africa

-South Africa Overview
South Africa, on the cоntinent's sоuthern tip, is bordered by the Atlantic Ocеan on the west and by the Indian Ocеan on the south and east. Its neighbоrs are Namibia in the northwest, Zimbabwe and Botswana in the north, and Mozambique and Swaziland in the northeast. The kingdom of Lesotho forms an enclave within the southeast part of South Africa, which occupies an area nearly three times that of California. The southernmost point of Africa is Cape Agulhas, located in the Western Cape Province about 161 km southeast of the Cape of Good Hope. Eleven official languages are recognized in the constitution of the country. South Africa has three capital cities: Cape Town, the largest of the three, is the legislative capital, Pretoria is the administrative capital; and Bloemfontein is the judicial capital . Our group has chosen the very best hotel, called the MichelAngelo hotel situated in Johannesburg, to conduct the research on the environment that has lead to the success of the property and to identify how to maintain and develop the hotel market demand for the long term. However , it is necessary to start from looking at national and regional industry trends, will be able to take advantage of opportunities that will enable growth while identifying threats that may affect profitability of the property. -Background of Tourism in SA

Tourism represents a significant opportunity for South Africa .Employing 212 million people world-wide, generating $3.4 trillion in world gross output and contributing $655 billion of Government tax revenues, travel and tourism is the world's largest industry.. The tourism industry is expected to grow by 50% by 2005 by which time the industry will be worth US$7 trillion to the world economy. South Africa has the world’s richest floral kingdom and a large variety of endemic and migratory birds. It is also home to one-sixth of the world’s marine species and has more species of wild animals than North and South America or Europe and Asia together. Its diversity, sunny skies and breathtaking scenery make it a popular holiday destination. In SA tourism has been identified as one of the key economic sectors with excellent potential for growth. About 9,6 million foreign tourists visited South Africa in 2008, a 5,5% increase over the 9,1 million foreigners who visited the country in 2007. The contribution of tourism to South Africa’s gross domestic product (GDP) is estimated to have increased from R162,9 billion in 2007 to R194,5 billion in 2008. The estimated number of jobs created directly and indirectly in the economy through tourism increased by 10% from 946 300 in 2007 to 1 041 700 in 2008.In March 2009, there were 195 589 same-day visitors and 493 559 overnight visitors (tourists) among the foreign arrivals. The volumes showed an increase of 7,9% (same-day visitors) and 1,9% (tourists) between February 2009 and March 2009. Road transport was the most common mode of travel used by 1 429 920 (67,1%) out of the 2 131 152 travellers. The number of travellers who used air transport was 681 487 (32%). -Tourism in SA nowadays

Business tourism

South Africa is also increasingly...
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