Topics: Hotel, Environment, Tourism Pages: 4 (1363 words) Published: March 10, 2014
1st Graded Assignment

The Organization chosen is Sandals Regency La Toc which makes up part of the Sandals chain of hotels in the tourism industry of St, Lucia. The hotel is a couple’s only resort and is known to offer guest a dynamic and exquisite hotel experience. A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro- environmental factors that have an impact on an organization. After extensive research and observation, I am of the opinion that all the macro-environmental factors affect the tourism industry. They are political, economical, social, technological, environmental and legal factors. Political factors include how regulations are and policies imposed by government might affect the way business is conducted. A number of political factors such as government policies, internal political issues, consumer laws, lobbying and pressure group affect the business strategies of the hotel industry. Take for instance import and export tariffs which can make it difficult or uneconomical to do business with certain countries. There may be restrictions on land acquisitions where by the government needs to know the type of hospitality business that is being set up as well as the size of the organization. Therefore if a hotel is wishing to expand as a result of increasing demand or some other factor, government may hinder this growth by bringing forth such laws. Another political factor affecting the hotel industry is the implementation of taxes. Take for instance the Value added tax (VAT) which was introduced in St.Lucia on October 1, 2012 where hotels are to pay 8%. This can have a financial burden on some hotels especially those which are struggling to survive in the industry. Economical Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. If the spending patterns of customers are favorable, for example the...
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