Strategic marketing and international marketing for Burj Al Arab hotel in Dubai

5218 Words Mar 12th, 2003 21 Pages
RISK ANANLYSIS AND REVIEW OF COMPEPTITIVE ENVIRONMENT "o"oFOR DUBAI AND ITS BURJ AL ARAB HOTEL

INTRODUCTION

Hotels are world-beaters. They provide people comfort and luxury with over the edge technology. How do hotels function in this vast competitive market of travel and tourism? How do hotels operate by inculcating all the diversity and varied factors of globalisation? How do they develop themselves into a successful establishment by gaining an edge over its competitors? Dubai and its Burj AL Arab hotel are certainly successful cases. The aims and objectives of the project is to analyse and distinguish various strategies, which Burj AL Arab hotel follows to align with the risk environment in Dubai it functions, in order to increase its
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It is crucial important for the managerial level to treat people with equal respect and revere different cultural norms.

The Relevant and Current Economic Climate

The relevant and current economic situation and climate of Dubai evident influenced the development and threats of Burj Al Arab-the Arabian Tower.

The city of Dubai has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. At present levels of production, oil and gas reserves should last for more than 100 years. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement. (www.nbd.co.ae) The factors that distinguish Dubai are its attractive commercial and investment climate that made Dubai an important destination for international trade and tourism, investors, businessmen and shippers from neighbouring countries and other parts of the world coming to the Dubai thus making a positive impact on its economic and commercial activity.

Figure 1.

Reflecting buoyant economic activity in trade, services and tourism and manufacturing sectors, the Gross Domestic Product (GDP) real growth rate is 5.6%(2001 EST.). The GDP Purchasing power parity is $51 billion and the
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