The Expansion Strategy of Jumeirah Group of the Hotel Literature review

The Expansion Strategy of Jumeirah Group of the Hotel - Literature review Example A company may grow internationally through setting up new enterprises to a new area that has not been tapped, through buying off a company or integrating with an existing company (Marcelo at el 2008, P.1). Traveling for leisure of business mostly involves crossing national and state boundaries (Prokkola 2010, P.223) and tourism and hotel services provider must tap into providing competitive services and products to the visitor traveling to their company. Jumeirah Group is a multinational company that operates luxurious hotels and serviced apartments in Dubai, Rome, and Shanghai, Germany among other places in the world and its headquarters in Dubai (Newswire, 2012). The company was found in 1997 and is affiliated to Dubai Holding (Hornett, G 2013). The company is planning to grow its operation by establishing five-star luxury hotels in various countries in Africa one of them being Seychelles. Seychelles is a group of about 115 granite and coral tropical island in the Indian Ocean (Bac kground Note: Seychelles 2007). Its temperatures vary all around the year though they are humid due to their size. Most people occupy Major Island while small islands are sparsely occupied, with most of the residents being Africans, Indians, Chinese and French settlers while others are expatriates (Political Conditions 2012, P. 10). Their culture is a mixture of French and Africa through the most used language is English and French. This paper will critically analyze the expansion strategy of the Jumeirah group of hotel in this island nation. Feasibility analysis Indian Ocean islands depend on tourism as main economic activities with Seychelles and Maldives being the most preferred than the rest in terms of gross domestic product, employment, tourism income and tourism ventures investments (Prayag 2011, P.221). For example in 2010 tourism contributed to the Gross domestic product of this islands as follows Mauritius 26.5 %, Reunion 4 % in Madagascan 12.7 % % Maldives 63.4 % and Seyc helles 46.4 % while it also contributed to the national employment about 14.2 % of the total new appointment in Mauritius, 1.9 % in Reunion,3% in Madagascan, 28.1% in the Maldives and 31.5 %Seychelles (Prayag 2011, P.223). In recent times Indian Ocean islands have recorded increase in tourism activities due to their favorable climate, geographical isolation, relatively long coastlines, diversity of ecosystems, cultural diversity and political stability (Prayag 2011, P.223). However, there have been challenges in this industry such as poor working conditions for the employees, high staff turnover, environmental degradation, poor staff training and insufficient rules and regulations (Prayag 2011, P.223). Major islands in the Indian Ocean that include Mauritius, Reunion, Madagascar, and Seychelles have teamed up to Form Vanilla islands to market their countries as the tourist destination with the aim of increasing visitors (Ramchurn 2011, P. 49).