For example, if international currencies are stronger than the American dollar, people outside of the United States will want to visit. Le Monde, journal historique français, a connu bien des difficultés depuis sa création en 1944. Generally, companies and individuals in the UAE do not pay any taxes on income or wealth. However, there are some social challenges facing the United Arab Emirates today. (2018) From Bahrain to Qatar: These are the 25 richest countries in the world, available at: https://eu.usatoday.com/story/money/2018/11/28/richest-countries-world-2018-top-25/38429481/ (accessed 15 October 2019), Hinai, M. (2018) 10 things the UAE does better than anywhere else, available at: https://edition.cnn.com/travel/article/uae-reasons-to-visit/index.html (accessed 10 October 2019), Maceda, C. (2018) Richest 1 per cent own over half of UAE’s wealth, available at: https://gulfnews.com/how-to/your-money/richest-1-per-cent-own-over-half-of-uaes-wealth-1.2285345 (accessed 10 October 2019), OEC (2019) United Arab Emirates, available at: https://oec.world/en/profile/country/are/ (10 October 2019), Santander (2019) United Arab Emirates: Tax system, available at: https://en.portal.santandertrade.com/establish-overseas/united-arab-emirates/tax-system (accessed 12 October 2019), Trading Economics (2019) United Arab Emirates GDP, available at: https://tradingeconomics.com/united-arab-emirates/gdp   (10 October 2019). 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. For instance, if the political party in power sets a travel ban, it could hurt the tourism and hotel industry immediately. The ultimate power rests with the seven hereditary rulers. The hotel industry is experiencing major competition with corporations like Airbnb, which offer a variety of rooms for cheaper than the average hotel room. While all businesses are affected by economic changes, the hotel industry is one of the most susceptible to its influence. Approximately 82% of the UAE’s population has profiles on Facebook while YouTube’s penetration also stands at 82%. 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). As mentioned above, the UAE is one of the safest countries in the world with low crime rates. Continued growth is expected into 2020 and beyond. 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). Economic factors affecting the United Arab Emirates (UAE). 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 environment is the last element to discuss in the PESTEL analysis of the United Arab Emirates (UAE). Fast sharing news thanks to the internet. Many …, There are many companies the world over, that conduct PESTLE …. Please consider supporting us by disabling your ad blocker. The Emiratis are very keen on using social media. Travel bans can kill the hotel and tourism industry. It consists of seven emirates i.e. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. It is the 27th largest economy in the world. The life expectancy for men is 76 years and 78 years for women in the Arab Emirates. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how the Marriott International acquires Starwood Hotels & Resorts Worldwide. 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. The establishment needs to be honest about the calories in the good and nutritional ingredients of the dishes. Emiratis are very social people, and families love to live together. If a hotel is near an area with high crime rates, it’ll struggle to survive. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. Traveling websites forces hotels to remain competitive. People who stay at hotels will take photos and write up an honest post about their experience. In the arena of e-commerce and internet-powered business, the more informed you are, the better. 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 … However, the country has developed so rapidly in such a short time that it is now faced with some environmental challenges. When vacationing, customers want to stay somewhere warm and relaxing. Search the world's information, including webpages, images, videos and more. Choosing a spot with low crime is crucial for all hotel owners, otherwise, customers won’t stay at their locations. The UAE introduced the eDirham card in 2001 to facilitate payment for government and non-government services. We hope the article ‘PESTEL analysis of the United Arab Emirates (UAE)’ has been useful. The strength of currency can bolster the industry. Find out how stock trading could be of a benefit you. Due to the limited scope, the article offers basic discussion on the UAE’s legal environment. Another thing the government controls are taxes. Many analysists argue that the political freedom in the UAE is very limited. Other social challenges to note are obesity, drug abuse, high cost of living particularly in Dubai and Abu Dhabi, racial discrimination, and high rate of divorce. Emirati nationals only constitute 20% of the total population, making the country home to one of the world’s highest percentage of immigrants. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. The major legal factor that will impact Marriott’s future business is the status of services like Airbnb. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. It is very modern and well-integrated with the rest of the advanced world. 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. Technological environment is the next element to discuss in the PESTEL analysis of the United Arab Emirates (EU). Hospitality is one of the biggest investment sectors for global investors, especially within the United States. 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 maximum working hours for an adult employee is eight hours a day (48 hours a week). 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). Its GDP in 2018 was 414.18 billion US dollars (Trading Economics, 2019). 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. Due to the limited scope, the article offers basic discussion on the UAE’s legal environment. The UAE is one of the richest countries in the world in terms of per capita income. Crime rates ruin hotel profit. Whether it comes out successfully depends on a few primary factors, including unemployment rates, job growth, and travel spent. Though limited elections are held for federal advisory bodies, political parties are banned, and all electoral candidates must run as independents. This is a good and bad thing for the hotel industry. Hilton Worldwide is the largest hotel company and the fastest growing hotel company in the world. Each emirate is governed by a ruler, while the Federal Supreme Council, highest constitutional authority of the Emirates, consists of all the seven rulers. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. The government has a stronghold over the hotel industry. 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. Choosing a spot with low crime is crucial for all hotel owners, otherwise, customers won’t stay at their locations. You may also like reading PESTEL analysis of the USA and PESTEL analysis of India. According to the World Investment Report 2019, the total FDI received by the country from 2016 to 2018 was 30.4 billion US dollars. Other notable social media in use are Twitter, LinkedIn, Pinterest, Instagram, and Tumblr. Many factors affect the success and growth of the hotel industry. By: M Rahman | Tags: Global Business Issues, PESTEL analysis of the United Arab Emirates (UAE). 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. The UAE is one of the most visited countries in the world. This is why it’s so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Political factors affecting the United Arab Emirates (UAE). Hotel guests stay in hotels for a variety of reasons, such as when visiting family, friends, on business, or vacationing. Along with Hilton Hotels, a vast yet focused portfolio of Hilton Worldwide 13 brands in the premium hotels and resorts … It grew and evolved at a rapid speed in the last two decades. The UAE is a member of a number of international economic and political forums e.g. The UAE is a federal constitutional monarchy. 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. Legal Factors That Could Affect Marriott’s Future. It shows that rules and regulations are applied very strictly in the country. Anyone can write a review and post it on a blog or share it on social media. Strategic, PESTEL and Financial Analysis of Accor Hotels. In fact, according to some sources, over 200 nationalities live in the UAE making it one of the leading cosmopolitan hubs in the world. Environmental factors affecting the United Arab Emirates (UAE). The total population of the UAE is approximately 9.8 million as of October 2019 (World Meters, 2019). Technological factors affecting the United Arab Emirates (UAE). 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. However, it only takes one scathing review to destroy a reputation. Innkeeper laws. He is a lecturer in Management and Marketing. When she’s not researching into the sunrise, her nose is stuck in the latest (and cheesiest) of fantasy novels. 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. 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 most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. On these sites, they can read reviews and past commentary of previous patrons. 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. Travel websites have made it easier for people to price shop hotels. The strength and weakness of currency can affect the attractiveness of a vacation spot. The UAE is one of the most liberal countries in the Gulf, though it is conservative traditionally. Crude petroleum, refined petroleum, gold, diamonds, and petroleum gas are the top exports of the UAE. For instance, wealth gap is a problem as according to Maceda (2018), the richest 1% of the population own over half of the UAE’s wealth. Because of social media, the news is available and updated 24/7. You can quickly and conveniently book your room through an app — and it’s often less expensive than hotels in the area. 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. However, its participation in the Yemen war has strained its relations with Iran, a major regional power. Also enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters. Abu Dhabi is the capital of the UAE. As such, hotels must remain competitive, otherwise, patrons will book a different chain. They cover the whole range of human emotions from joy to anger, from hope to despair. They, on average, spend 2.56 hours on social media daily. Hopefully, this will grab attention and the hotel chain will gain new customers. It’s so quick that hotel owners can’t do much to stop it. Kiesha Frue is a freelance writer and editor with a love for health, wellness, and entrepreneurship. Its Labour Law applies to all staff and employees regardless of their nationalities. 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). Authorities in cities as diverse as New York, New Orleans and Barcelona have fined Airbnb and its hosts for violating zoning laws, hotel regulations and health and safety regulations. The government has invested heavily in space science, life science, nuclear science, and ICT over the years. It goes through economic cycles first and comes out first. 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. BBC (2014) United Arab Emirates country profile, available at: https://www.bbc.co.uk/news/world-middle-east-14703998 (accessed 10 October 2019), Encyclopaedia Britannica (2019) United Arab Emirates, available at: https://www.britannica.com/place/United-Arab-Emirates/Foreign-relations (accessed 12 October 2019), Freedom House (2019) United Arab Emirates profile, available at: https://freedomhouse.org/report/freedom-world/2018/united-arab-emirates (accessed 12 October 2019), Government AE (2019) Environmental challenges, available at: https://www.government.ae/en/information-and-services/environment-and-energy/environmental-challenges-in-the-uae (accessed 15 October 2019), Harrington, J. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. Google has many special features to help you find exactly what you're looking for. read our SWOT Analysis of the Hotel Industry here to learn more. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. The UAE is considered a big power in the Middle East and has considerable influences at global stage as well. Its top export destinations are India, Japan, China, Oman, and Switzerland. Everyone wants to stay somewhere safe. If a hotel is near an area with high crime rates, it’ll struggle to survive. This is a huge problem for hotels who often see a hike in profit during peak seasons when rooms are scarce. You can eat at the many restaurants built within, like Starbucks and iHop, too. The weather in the local area is the deciding factor for whether someone chooses to stay at a certain hotel. All rights reserved BSSL. 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. Hotels do offer more than the standard Airbnb room. It is also worth noting that the UAE is particularly safe for solo female travellers, especially with hotels such as Dubai’s Jumeirah Emirates Towers hotel and Dukes Dubai dedicating female-only floors with an all-female staff (Hinai, 2018). 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. Password requirements: 6 to 30 characters long; ASCII characters only (characters found on a standard US keyboard); must contain at least 4 different symbols; They highly advocate and practice religious, tribal, and traditional ties and values of cooperation and care. 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 …. In fact, the UAE is currently the most attractive ICT market in the Middle East. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. However, it can slightly vary depending on the types of business. The UAE is the 5th richest countries in the world with $74,410 GNI per capita (Harrington, 2018). Arabic is the major language, while Islam is the major religion in the country (BBC, 2018). It has been making tremendous progress in many fields since its full independence in 1971. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. Many hotels have additional facilities, like pools, a gym, and even massage parlors. If you liked any of these articles, please feel free to share with others by clicking on the icons below. Academia.edu is a platform for academics to share research papers. Legal factors: Two major laws nearly all hotels must follow. He holds an MSc in Tourism & Hospitality from the University of Sunderland. The industry is also overly reliant on the government; everything from potential tax reform to travel bans can cause the industry to crumble. Copyright ©2017 - 2025. Legal factors affecting the United Arab Emirates (UAE). Everyone wants to stay somewhere safe. Other relevant articles for you are: Advantages and disadvantages of a private limited company. 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. The GDP growth rate averaged 4.34% from 2000 until 2018 with a big increase in 2006, and a big slump in 2009. However, the UAE’s over reliance on the petroleum sector is a weakness. Psalms: The Holy Bible: King James Version These 150 prayers and hymns were used by the Hebrew people to express their relationship with God. Particularly, Dubai is a very dynamic emirate and a flourishing international business centre. The United Arab Emirates, often simply called Emirates, is a powerful country in the Middle East. All it takes is one decision and a country loses the vast majority of its economy. Everyday our market is changing the way it is. Travelers, particularly millennials, enjoy the mass selection of rooms Airbnb offers. Hotels often run out of rooms during peak seasons, and when they don’t, they jack up the room prices. Analyse PESTEL - Le journal Le Monde Étude de cas de 5 pages - Marketing médias. Our website is made possible by displaying online advertisements to our visitors. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. The United Arab Emirates is a constitutional federation. The UAE is a federal constitutional monarchy. It was also a key participant in the blockade of Qatar beginning in 2017 (Encyclopaedia Britannica, 2019). Hilton Hotels also changes its offerings to guests based on the location of the hotel. Any hotel with food or beverage establishments within must follow truth-in-menu laws, which means the food establishment must be truthful about the food and beverages served to guests. Hotel owners who are confident that their hotels are worthy will pay social media influencers to write about it. Social factors affecting the United Arab Emirates (UAE). This isn’t something hotel owners can control, but they must understand the seasonal differences before pricing their rooms — and adjust accordingly. However, major oil and gas companies, and subsidiaries of foreign banks are liable to the corporation tax at a maximum rate of 55% (Santander, 2019). the UN, World Bank, IMF, Arab League, OIC, OPEC, and GCC. Tailoring to patrons in varying locations. Reviews on blogs can make or break a hotel’s reputation. Airbnb is the hotel industry’s biggest competition. M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. 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. The civil liberties for both nationals and foreigners are restricted as well (Freedom House, 2019).