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Michael Sagild Managing Director Asia Pacific Le Meridien Hotels & Resorts. “ Sustainable Tourism Markets – The Art of Bringing Together Distinct Business, Political and Economic Objectives”. Brand Positioning. F or upscale international travellers , is the luxury worldwide brand of

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Michael Sagild

Managing Director Asia Pacific

Le Meridien Hotels & Resorts


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“ Sustainable Tourism Markets– The Art of Bringing Together Distinct Business, Political and Economic Objectives”


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Brand Positioning

For upscale international travellers,

is the luxury worldwide brand of

hotels & resorts

owned by .



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Le Méridien Core Values

  • Innovation

  • European flair with a French accent

  • Respect for local culture

  • Care and attention


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Expectations of Hotels from

local host governments

  • Master plan for destination positioning,

  • promotion and infrastructure development

  • Up to date market research on current and

  • future tourism trends and potential feeder

  • markets

  • Strategic plans and partnerships for development of air transport (national

  • carrier or feeder market carriers).

  • Tourism promotion structure with

  • adequate funds to compete on

  • international level.


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Expectations of Hotels from

local air Carriers

  • Adequate capacity, frequency, pricing,

  • flexibility

  • Distribution technology, facility of access

  • (especially smaller inter-island airlines)

  • Competitive pricing with regional

  • competition

  • Long term vision and commitment to

  • growing air traffic to the destination (that

  • is, specific local objectives)


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Driving forces leading to

investment of a new hotel

  • Master plan for destination positioning,

  • promotion and infrastructure development

  • Current and future development of air

  • service

  • Current and future hotel inventory and

  • infrastructure

  • Political stability of the country

  • Safety and Security

  • Available trained workforce


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Driving forces leading to

investment of a new hotel

  • Foreign language aptitude of workforce

  • Training and educational facilities

  • Availability of basic produce and foodstuff

  • locally , import regulations / quotas and

  • cost of air/sea freight

  • Medical facilities

  • Immigration restrictions for executive staff

  • Population’s attitude towards foreign

  • tourists.


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Investment Risk

Political instability

CASE STUDY: FIJI

Fragile air carriers

CASE STUDY: VANUATU

No critical mass of tourism infrastructure

CASE STUDY: BROOME, WA AUST.


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Investment Risk

High dependence on few source markets

CASE STUDY: MELBOURNE

Lack of destination marketing

CASE STUDY: NEW CALEDONIA

Lack of destination differentiation

CASE STUDY: GOLD COAST, AUST.


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Investment Risk

  • Financial Incentives

  • CASE STUDY: FRENCH POLYNESIA

  • High risk of unsustainable supply growth

  • CASE STUDY: SHARM EL SHEK, EGYPT

  • OR, put simply, “beauty is only skin deep”


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On What Basis Does a Hotel Company

Decide to Enter a New Market?

Phase 1

  • Strategic fit of product with chain Philosophy

  • Investment partner capacity

  • Project type and cost

  • Market Conditions


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Phase 2

  • Review of project and location

  • Review of market conditions

  • Project goals

  • Estimated cost to complete and preliminary

  • financial returns

Phase 3

  • Detailed project analysis

  • Outside market feasibility study

  • Thorough product evaluation

  • Detailed financial analysis


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Destinations AchievingSustainable Competitive Advantage


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Modern Business Theory

  • Sustainable Competitive Advantage:

  • Those things which are:

    • Rare

    • Difficult to replicate; and

    • Valuable

  • create sustainable competitive advantage.

  • Porter (1992)


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Modern Business Theory

Innovation:

“The ability to innovate may be the only future competitive advantage available to companies in the future.”

Strata (1989)


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Oro Bay – Aerial Shot

Rare

Bungalow Suite Bedroom

ILE DES PINS

Hotel Lobby




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Appeal to International visitors

  • Political Stability

  • Transportation

    • Availability of flights

    • Frequency of flights

  • Infrastructure

    • Hotels, Restaurants etc

  • Successful Destination Marketing

    • Build awareness



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