HOTEL AND HOSPITALITY INDUSTRY - THE PHILIPPINES MANTRA GROUP Alexander McTaggart - 2167751 Chad Booyzen - 5830214 Edwina Smith - 7665180 Halima Abdulkadir - 100634263 Lu An - 101077717 INB30011 - International Investment & Economic Development
Table of Contents Executive Summary. 2 Recommendations 3 Introduction. 4 Company Overview. 5 Industry Overview. 7 Philippines Products & Market Summary. 9 Industry Structure. 9 Competition 10 Barriers 10 Trends 10 Economic Development Assessment. 0 Country Choice - Philippines. 0 Regulatory Environment. 0 International Entry Mode Choice. 1 Strategy Specific Factors 1 Company Specific 1 Country Specific Factors. 1 Ethical Impact Assessment of Investment 3 Conclusion 4 Recommendations. 5 References. 6
Executive Summary The objective of this report is to analyse the Australian and Philippines Hotel and Resorts Industries, while drawing on these analyses to provide Australian Hotel and Resort company, The Mantra Group Limited, with prospective internationalisation opportunities into the Philippines economy. Furthermore, the report gives insight into the Philippines socio-cultural background to establish an understanding of their culture, consumer base and economic growth and development. By establishing a sound knowledge of the Philippines economy and socio-cultural history the report provides an economic development analysis of a similar economy considered for internationalisation, Greece. The Philippines is a fast-growing developing economy with a flourishing hospitality, business services, tourism and hotel and resort industry. Through a range of statistics displaying the current market outlook for the Australian Hotel and Resorts industry and it current and future trends, an analysis is undertaken to understand and provide insight into the Philippines own Hotel and Resorts industry. Through this analysis trends are identified for expansion outside of hotels and resorts for The Mantra Group as serviced apartments, business services, hospitality and other emerging industries become apparent. The report demonstrates The Mantra Group's current operation and forecasted portfolio pipeline to achieve an understanding of their current operations and corporate strategies. This is used to assist in identifying the company's strengths and current market stand point. An industry overview of both the Philippines and Australian Hotel and Resorts industry further expands on the potential gaps in the market and reasons for internationalisation. Identifying the reasons and benefits of the Philippines economy for market entrance are offered and justification for the Philippines being an attractive market. The regulatory environment of the Philippines is analysed to identify any potential barriers either in trade or legislation for new market entrants, identifying a sound regulatory environment for our chosen industry with low wages and ease of trade between Australia and the Philippines. Utilising the information presented in the main body of the report, merger and acquisition is identified as being the ideal international market entry choice, further strengthen by a range of country, industry and strategic factors discussed to provide justification. Finally, an ethical impact assessment of investment is conducted using our chosen framework to identify ethical consideration and issues that The Mantra Group would need to consider when entering the Philippines market. Ethical issues such as corruption, deteriorating social and environmental standards, labour