Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. Technological factors affecting the United Arab Emirates (UAE). It goes through economic cycles first and comes out first. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. The UAE is one of the most liberal countries in the Gulf, though it is conservative traditionally. Please consider supporting us by disabling your ad blocker. Crime rates ruin hotel profit. 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. Hotels do offer more than the standard Airbnb room. This is a good and bad thing for the hotel industry. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Legal factors: Two major laws nearly all hotels must follow. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. Our website is made possible by displaying online advertisements to our visitors. Choosing a spot with low crime is crucial for all hotel owners, otherwise, customers won’t stay at their locations. Travel websites have made it easier for people to price shop 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. Any incidents close to the hotel can be reported within minutes, shared online by thousands, and have articles written up by media outlets in seconds. The strength and weakness of currency can affect the attractiveness of a vacation spot. Fast sharing news thanks to the internet. Arabic is the major language, while Islam is the major religion in the country (BBC, 2018). The Emiratis are very keen on using social media. Tailoring to patrons in varying locations. The market environment or business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships.The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the … Other notable social media in use are Twitter, LinkedIn, Pinterest, Instagram, and Tumblr. Hotel owners who are confident that their hotels are worthy will pay social media influencers to write about it. 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. It shows that rules and regulations are applied very strictly in the country. Emirati nationals only constitute 20% of the total population, making the country home to one of the world’s highest percentage of immigrants. Copyright ©2017 - 2025. If a hotel is near an area with high crime rates, it’ll struggle to survive. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels. The ultimate power rests with the seven hereditary rulers. Everyday our market is changing the way it is. For example, if international currencies are stronger than the American dollar, people outside of the United States will want to visit. The United Arab Emirates, often simply called Emirates, is a powerful country in the Middle East. Find out how stock trading could be of a benefit you. However, the country has developed so rapidly in such a short time that it is now faced with some environmental challenges. It consists of seven emirates i.e. Travelers, particularly millennials, enjoy the mass selection of rooms Airbnb offers. Due to the limited scope, the article offers basic discussion on the UAE’s legal environment. It was also a key participant in the blockade of Qatar beginning in 2017 (Encyclopaedia Britannica, 2019). For instance, if the political party in power sets a travel ban, it could hurt the tourism and hotel industry immediately. They cover the whole range of human emotions from joy to anger, from hope to despair. Choosing a spot with low crime is crucial for all hotel owners, otherwise, customers won’t stay at their locations. Crude petroleum, refined petroleum, gold, diamonds, and petroleum gas are the top exports of the UAE. 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. Gold, jewellery, cars, diamonds, and refined petroleum are the top imports which the country imports mostly from China, India, Germany, the United Kingdom, and Turkey (OEC, 2019). Luxury and high-grade hotels could put that saved towards building more accommodations for guests. Approximately 82% of the UAE’s population has profiles on Facebook while YouTube’s penetration also stands at 82%. The weather in the local area is the deciding factor for whether someone chooses to stay at a certain hotel. Hotels often run out of rooms during peak seasons, and when they don’t, they jack up the room prices. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how the Marriott International acquires Starwood Hotels & Resorts Worldwide. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. Many factors affect the success and growth of the hotel industry. At one time, trying to find a different hotel would be the only option, but now you can check Airbnb and likely find something suitable and cheaper. Strategic, PESTEL and Financial Analysis of Accor Hotels. People who stay at hotels will take photos and write up an honest post about their experience. Travel bans can kill the hotel and tourism industry. Though limited elections are held for federal advisory bodies, political parties are banned, and all electoral candidates must run as independents. Search the world's information, including webpages, images, videos and more. You can eat at the many restaurants built within, like Starbucks and iHop, too. Social factors affecting the United Arab Emirates (UAE). Kiesha Frue is a freelance writer and editor with a love for health, wellness, and entrepreneurship. the UN, World Bank, IMF, Arab League, OIC, OPEC, and GCC. We hope the article ‘PESTEL analysis of the United Arab Emirates (UAE)’ has been useful. Hospitality is one of the biggest investment sectors for global investors, especially within the United States. The UAE is a federal constitutional monarchy. Generally, companies and individuals in the UAE do not pay any taxes on income or wealth. 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). It grew and evolved at a rapid speed in the last two decades. By: M Rahman | Tags: Global Business Issues, PESTEL analysis of the United Arab Emirates (UAE). They, on average, spend 2.56 hours on social media daily. Its Labour Law applies to all staff and employees regardless of their nationalities. Everyone wants to stay somewhere safe. Traveling websites forces hotels to remain competitive. The maximum working hours for an adult employee is eight hours a day (48 hours a week). The UAE is considered a big power in the Middle East and has considerable influences at global stage as well. This isn’t something hotel owners can control, but they must understand the seasonal differences before pricing their rooms — and adjust accordingly. Hotel guests stay in hotels for a variety of reasons, such as when visiting family, friends, on business, or vacationing. 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. Airbnb is the hotel industry’s biggest competition. 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. Analyse PESTEL - Le journal Le Monde Étude de cas de 5 pages - Marketing médias. As such, hotels must remain competitive, otherwise, patrons will book a different chain. 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. Since the government affects this industry so intensely, many hotel owners are on edge during election time, as a new President with new ideals can swiftly impact the hotel industry, and overthrow the previous President’s laws. However, its participation in the Yemen war has strained its relations with Iran, a major regional power. The strength of currency can bolster the industry. Psalms: The Holy Bible: King James Version These 150 prayers and hymns were used by the Hebrew people to express their relationship with God. In fact, according to some sources, over 200 nationalities live in the UAE making it one of the leading cosmopolitan hubs in the world. While all businesses are affected by economic changes, the hotel industry is one of the most susceptible to its influence. The UAE is one of the richest countries in the world in terms of per capita income. The UAE is a member of a number of international economic and political forums e.g. When vacationing, customers want to stay somewhere warm and relaxing. However, it can slightly vary depending on the types of business. 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). Google has many special features to help you find exactly what you're looking for. Hopefully, this will grab attention and the hotel chain will gain new customers. https://www.bbc.co.uk/news/world-middle-east-14703998, https://www.britannica.com/place/United-Arab-Emirates/Foreign-relations, https://www.government.ae/en/information-and-services/environment-and-energy/environmental-challenges-in-the-uae, https://gulfnews.com/how-to/your-money/richest-1-per-cent-own-over-half-of-uaes-wealth-1.2285345, https://en.portal.santandertrade.com/establish-overseas/united-arab-emirates/tax-system, Advantages and disadvantages of convenience sampling, Stakeholders of Facebook (Facebook Stakeholder Analysis). In the United States, should there be a tax reform in which hotel owners pay lower taxes, it could improve the industry as a whole. Because of social media, the news is available and updated 24/7. This detailed PESTEL analysis of the United Arab Emirates (UAE) aims to explore some of the political, economic, social, technological, environmental, and legal factors affecting the United Arab Emirates today. Emiratis are very social people, and families love to live together. It has made remarkable economic progress over the years and the factors that have mostly contributed to it are abundant natural resources, economic diversification, innovation and inflow of foreign direct investment (FDI). In fact, the UAE is currently the most attractive ICT market in the Middle East. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. The UAE is the 5th richest countries in the world with $74,410 GNI per capita (Harrington, 2018). In the arena of e-commerce and internet-powered business, the more informed you are, the better. If you liked any of these articles, please feel free to share with others by clicking on the icons below. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. 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. read our SWOT Analysis of the Hotel Industry here to learn more. Anyone can write a review and post it on a blog or share it on social media. The total population of the UAE is approximately 9.8 million as of October 2019 (World Meters, 2019). Technological environment is the next element to discuss in the PESTEL analysis of the United Arab Emirates (EU). However, the UAE’s over reliance on the petroleum sector is a weakness. The UAE is a federal constitutional monarchy. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. 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 …. 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. According to the World Investment Report 2019, the total FDI received by the country from 2016 to 2018 was 30.4 billion US dollars. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. 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. Innkeeper laws. 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. However, there are some social challenges facing the United Arab Emirates today.