FACTORS| SOMALIA – THE TARGET MARKET| HOSPITALITY AND TOURISM/PROSPECTS| Political| * The country is politically instable.  * There is no single government that regulates the economy. * Transitional government, known as the Transitional Federal Government (TFG) is currently regulating but does not seem to be regulating to full extend. * However, the TFG remains fragile and lacks the capacity to provide services inside Somalia. Constant violence (terrorist attacks, kidnapping foreigners, bombings etc.) on the streets of Somalia has shut down any hopes for the development of tourism. * Constitution: None in force.  * Political party: None. * No UK government representation in Somalia * Foreign Trade and Policies: With no government in hand, the regulation of foreign investment and trade policies is hard to exist.  * Security threats and political instability| * The hospitability sector will remain with those hotels that rely heavily on the influx of government officials and representatives of the UN and other NGOs. For the time being, the travel and tourism industry is being neglected, with this situation expected to continue until the country finds some level of political stability. * Travelling to Somalia regarded as dangerous.  * Travel warning has been issued to travellers by the UK government. with regards to the safety and security. * Tourist facilities are non-existent. (CIA website US)  * The recent creation of the Ministry of Tourism has established the framework of promoting travel to the area, but civil unrest must be brought under control for that to ever happen.| Economic| Population (millions, 2009) | 9.1 million|
GDP | $5.731 billion (2009)|
GDP growth | 2.6% (2009)|
GDP per capita | $600 (2009)|
GDP by sector | Agriculture (65%), industry (10%), services (25%) (2005)| Labour force | 3.447 million (2007)|
Labour force by occupation: | agriculture (71%), industry and services 29% (1975)| Main industries :| sugar refining, textiles, livestock, money transfer, telecommunications| SOURCE: CIA FACT 2009  * Industry: Types--Telecommunications, livestock, fishing, textiles, transportation, limited financial services. Somalia's surprisingly innovative private sector has continued to function despite the lack of a functioning central government since 1991.  * Somalia lacks natural resources and faces major development challenges.  * No major production but the economy exist with little from foreign aid and small scale industries such as textiles, handicrafts and meat processing. Banking Structure: The Central Bank of Somalia is the official monetary authority of Somalia. In terms of financial management, it is in the process of assuming the task of both formulating and implementing monetary policy. Monetary:With the absence of central government, counterfeiting of local currencies take place. Owing to a lack of confidence in the local currency, the US dollar is widely accepted as a medium of exchange alongside the somali shilling.  * Private Trade:Privatisation is slightly catching up with some local investors on small scale trading between UAE, India and China. Debt: IMF - More debts and trade deficits for Somalia. In 2006, the country recorded arrears to the tune of $498 million. The worsening humanitarian crisis has been aggravated by poor economic performance. The UN’s Food Security Analysis Unit (FSAU)reports that in September 2008 3.25 million people, about 41% of the population, required humanitarian assistance until the end of 2008.This represents a 77% increase since January 2008.76 Piracy in the country is growing. | * Fiscal policy, trade policy and monetary policy is equally unstable for Somalia. * The travel and tourism industry in Somalia has been on life support for many years. The few hotels still open rely on a regular influx of...