Pestel Analsis on Somalia for Tourism

PESTEL ANALYSIS ON SOMALIA | FACTORS | SOMALIA – THE TARGET MARKET | HOSPITALITY AND TOURISM/PROSPECTS | Political | * The country is politically instable. [1] * 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. [1] * 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. [1] * 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. [2] * 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) [2] * 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

References: 1. CIA FACTBOOK, 2009 “Somalia”. [Online]. Available from https://www.cia.gov/library/publications/the-world-factbook/geos/so.html [Accessed on 25th April 2011] 2. US DEPARTMENT OF STATE, 2011, Somalia Country Specific Information and Travel Information (Online) Available from http://travel.state.gov/travel/cis_pa_tw/cis/cis_1023.html#safety [Accessed on 26th April 2011] 3. WORLD BANK 2008, Knowledge Development Program, available (Online) Available from at: www.worldbank.org/kam (Accessed on 29 April 2011) 4. EARTH TRENDS (Online) Available from http://earthtrends.wri.org/searchable_db/index.php?theme=5 (Accessed on 17 April 2011) 5. THE WORLD BANK 2011, (Online) Available from http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/SOMALIAEXTN/0,,menuPK:367691~pagePK:141132~piPK:141109~theSitePK:367665,00.html (Accessed on 17 April 2011) 6. CENTRAL BANK OF SOMALIA, (Online) Available from http://www.somalbanca.org/monetary-policy.html - central bank of Somalia (Accessed on 22 April 2011) 7. UNITED NATIONS, (online) Available from http://www.un.org/en/ (Accessed on 24 April 2011) 8. IMF (online) Available from http://www.imf.org/external/country/SOM/index.htm (Accessed on 29 April 2011)