Economic Comparison Between Italy And Egypt

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Egypt is govern under Emergency Law since 1967.These Torahs forbids non-govermental political activities such as street presentations, non-approved political organisations, and un-registered fiscal contributions.

The state underwent The Egyptian Revolution of 2011 forced the surrender of President Mubarak. The sequence of the state ‘s authorities by Military Junta abrogated the Constitution and promised free and just elections under a Reformed authorities and political system.

Italy is a democratic democracy. It has been ranked the universe ‘s 23rd most-developed state with a Quality-of-Life Index rank of top 10 in the universe. It is one of the founding member of the European Union and portion of the Eurozone. Italy is besides a member of the G8, G20 and NATO. It is besides a member province of the Organisation for Economic Co-operation and Development, the World Trade Organization, the Council of Europe, the Western European Union and the United Nations. Italy has the universe ‘s ninth-largest defense mechanism budget and portions NATO ‘s atomic arms. Italy plays a outstanding function in European and planetary military, cultural and diplomatic personal businesss.

Economic Factors

GDP

Gross domestic merchandise ( GDP ) per capita based on purchasing-power-parity ( PPP ) increased fourfold between 1981 and 2006, from US $ 1355 in 1981, to US $ 2525 in 1991, to US $ 3686 in 2001 and to an estimated US $ 4535 in 2006. Based on national currency, GDP per capita at changeless 1999 monetary values increased from EGP 411 in 1981, to EGP 2098 in 1991, to EGP 5493 in 2001 and to EGP 8708 in 2006. Based on the current US $ monetary values, GDP per capita increased from US $ 587 in 1981, to US $ 869 in 1991, to US $ 1461 in 2001 and to an estimated US $ 1518 ( which translates to less than US $ 130 per month ) in 2006. Harmonizing to the World Bank Country Classification, Egypt has been promoted from the low income class to take down in-between income class.[ 1 ]

Italy on the other manus enjoys a really high criterion of life, and has a high nominal GDP per capita. It has the universe ‘s seventh-largest nominal GDP, 10th highest GDP ( PPP )[ 2 ]and the 6th highest authorities budget in the universe[ 3 ]. The GDP for Italy in twelvemonth 2010 was $ 1.782 trillion, and increase from $ 1.763 trillion in twelvemonth 2009.

Unemployment rates

The unemployment rate in Egypt is high and described as a ‘time bomb ‘ by IMF main Dominique Strauss-Kahn.

Unemployment rates in Italy rised from 7.8 % in 2009 to 8.4 % in 2010.

Following are the informations of unemployments in Italy, resourced from CIA – Word Fact Book.

Per capita income

The GDP per capita is comparatively low, harmonizing to resources from CIA World Fact Book, The income per capita for Egyptians are $ 6,200.00, compared to Malaysia ( $ 14,200.00 ) or Iran ( $ 11,200.00 ) but higher than its neighbours Ethiopia ( $ 1, ooo.oo ) and Sudan ( $ 2,200.00 ) .

The GDP per capita for Italy in 2010 was somewhat higher than 2009, with a record of $ 30,700 compared to $ 30,300 in twelvemonth 2009. However it was noteworthy that GDP per capita for both old ages were lower than 2008 GDP per capita of $ 31,900.

Interest rates

The involvement rates for Commercial Prime Lending shown a lessening from 2008 to 2009. The rates for premier loaning from commercial bank was 12.33 % as at 31st December 2008 while 2009 experienced a lessening of 0.35 %

The commercial bank premier loaning rate for Italy is reasonably high, nevertheless, there was a lessening from 11.2 % as at 31st December 2008 to 10.26 % in 2009.

Inflation rate

The rising prices rate for monetary value of consumer merchandises in Egypt raised by 0.9 % from 11.9 % in 2009 to 12.8 % in 2010. While in Italy, measured by monetary value of consumer merchandises was 1.4 % in 2010, compared to 0.8 % in the old twelvemonth.

Size of population and birth rate

As at 2011, Egyptian population is estimated at 82,079,636, whereby 32.7 % aged between 0-14, 62.8 % aged between 15-64 while the staying consists of 4.5 % of the entire population.

The estimated population growing rate predicted up to July 2011 is 1.96 % with birth rates of 24.63 births/1,000 population and decease rates of 4.82 deaths/1,000 population

Italy is estimated to hit 61,016,804 in population by July 2011, which is the 23rd highest in the universe, whereby 13.8 % is aged 0.14 old ages old, 65.9 % is aged between 15- 64 old ages old, while the staying 20.3 % is aged 65 and supra. The population growing rate is estimated at 0.42 % for this twelvemonth with birth rate of 9.18 births/ 1,000 population. However, the decease rate is besides estimated high with 9.84 deaths/ 1,000 population.

Currency exchange

For the past 5 old ages the currency exchange rate for Egyptian Pound against US Dollars fluctuated between 5.4 to 5.73 per USD, as followed:

2010 – 5.6124

2009 – 5.545

2008 – 5.4

2007 – 5.67

2006 – 5.725

The currency widely used in Italy is Euros ( EUR ) , following are the exchange rate against USD:

2010 – 0.7715

2009 – 0.7179

2008 – 0.6827

2007 – 0.7345

2006 – 0.7964

Political & A ; Economic factors

Egypt holds strong political relationships internationally. As a member of the Arab League, Egyptians traditionally hold the place of Secretary General. Egypt maintains good relationship with its neighbors Libya and Sudan, and is a cardinal spouse in the hunt for peace in the Middle East and declaration of the Israeli-Palestinian struggle.

Egypt maintains good relationship with European Union Countries, at the same clip EU is the biggest trading spouse presently accounting for 42 % of Egyptian exports and 37 % of imports for Egypt.

European Union dealingss with Egypt are based on a partnership relation within the Euro – Mediterranean and Middle East country, which is of critical strategic importance and a cardinal external dealingss precedence for the EU.

The Euro-Mediterranean Partnership launched at the 1995 Barcelona Conference between the European Union and its originally 12 Mediterranean Spouses: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey, and the Palestinian Authority. Libya presently has observer position at certain meetings. Since the expansion, in May 2004 and January 2007, the co-operation covers 35 states, the EU of 27, including Cyprus and Malta and the 10 Mediterranean Partners.

Egypt takes an active function sing Euro-Mediterranean Partnership, such as its engagement in the proficient meeting of which it was the talker for the Arab group.

Egypt is an active member of alliances in the international sphere, following are a few ranks Egypt gained in international trade and pecuniary organisation / pacts and corporation:

Arab Bank for Economic Development in Africa

Arab Cooperation Council

Agence de Cooperation Culturelle et Technique

African Development Bank

Arab Fund for Economic and Social Development

Arab League

Arab Monetary Fund

African Union

Organization of the Black Sea Economic Cooperation

Council of Arab Economic Integrity

European Bank for Reconstruction and Development

United Nations Economic Commission for Africa

United Nations Economic and Social Commission for Western Asia

Food and Agriculture Organization

Group of 15

Group of 24

Group of 77International Atomic Energy Agency

International Bank for Reconstruction and Development

International Chamber of Commerce

Islamic Development Bank

International Fund for Agricultural Development

International Finance Corporation

International Monetary Fund

Italy has a capitalist economic system with a high GDP per capita. Harmonizing to IMF and World Bank, Italy was the 7th largest economic system in the universe in 2009. Italy is a member of G8 ( Group of 8 ) industrialized states, the European Union and OECD.

Italy is besides celebrated for holding Europe ‘s 5th greatest figure of billionaires. A quarterly study prepared by the Economist Intelligence Unit on behalf of Barclays Wealth in 2007 estimated that there were 280,000 dollar millionaires in Italy.

Italy is really active in the international personal businesss sphere and have gained rank in many international organic structures, among those are:

African Development Bank

Asiatic Development Bank

Bank for International Colonies

Council of Europe

Cardinal European Enterprise

International Monetary Fund

European Union

NATO

International Organization for Standardization

International Bank for Reconstruction and Development

Inter-American Development Bank

Group of Ten

International Chamber of Commerce

International Fund for Agricultural Development

International Finance Corporation

United arab republic

Undertaking site: El-aksur

Located on the Nile, Luxor is celebrated for being the ‘Open Air Museum ‘ that boasts Egypt ‘s celebrity for its Ancient Civilization.

Luxor is the ancient capital of Thebes and is surrounded by rich heritage sites that attracts 1000000s of visitants to Egypt each twelvemonth. Attractions are found on both the East and West bank of the Nile river near Luxor.

East bank

Luxor Temple

Karnak Temple

Luxor Museum

Mummification Museum

Winter Palace Hotel

West bank

Valley of the Kings

Valley of the Queens

Medinet Habu ( memorial temple of Ramesses III )

The Ramesseum ( memorial temple of Ramesses II )

Deir el-Medina ( workers ‘ small town )

Tombs of the Nobles

Deir el-Bahri ( Mortuary Temple of Hatshepsut, etc. )

Malkata ( castle of Amenophis III )

Colossi of Memnon ( memorial temple of Amenophis III )

Porter 5 Forces Analysis

Existing Competition

Existing competition to put up a luxury hotel in Luxor is strong, the chief participants found in the country are international hotel giants such as Hilton and Sheraton group and local hotels that offers luxury corsets with a competitory rate.

Menace of new entrant

Menaces of new entrants are reasonably low for the minute as Egypt undergoes the 2011 political revolution. International investors are still cautious over the possible political tumult that might impact their investing returns. However, there are still menaces from local investors that have confident in the betterments that the revolution can convey. Harmonizing to Mohamed A. El-Erian, CEO of PIMCO[ 4 ]in response to the public violences to take President Mubarak, “ there is small uncertainty in my head that the state is now on a new, bold and unsure route toward greater democracy and single freedoms ”[ 5 ], he urges the recovery or ‘reset ‘ the state ‘s economic system with engagement from both internal ( Egypt government- viz. finance curate ) and external forces ( investors ) .

Dickering power of purchaser

The bargaining power of purchaser ( clients ) are great in this instance. This is due to high competition between rivals in the country which created a mild monetary value war, harmonizing to Booking.com, an on-line hotel engagement and reappraisal web site, there are 22 reputable hotels in Luxor, and each self-praises comfort with a competitory monetary value[ 6 ]. The monetary value war between the 22 hotels so lowers the shift costs for consumers, rendering consumers to hold higher power to deal.

Menace from provider

Supplies required by hotels are huge, whereby the chief groups of resources required are trappingss and contraptions in the early phase and uninterrupted supply of adult male power and perishable goods such as nutrient points, wear and tear merchandises such as towels and bed sheet, and assorted room necessities for the comfort of the visitants.

Supply of adult male power are of abundant for the clip being in Egypt as the state are confronting high unemployment rate in recent old ages. The lone menace to this resource is the deficiency of experient workers for hotel industry, nevertheless this can be overcome by supplying proper preparation and coaching.

Other resources involved nevertheless, faces higher menace as the geographic location every bit good as the political and economic instability within the state hinders trade and investors. Egypt ‘s economic system came to a entire arrest during the tallness of turn overing Murbarak ‘s regulation in February 2011. Although the Niles fertile land promises supplies of agricultural merchandise, there is still an uncertainness of supply, pending political and economical restructuring of Egypt.

Menace from replacement

Presently, there are 2 known replacements for a luxury hotel in Luxor. The first replacement is the possibility of consumers taking a lesser grade hotel in the same country, as Luxor is lined with many hotels and adjustments due to its celebrity of ancient edifices that attracts tourers from around the universe. The 2nd menaces of replacements are the luxury hotels at Red Sea. Red Sea is another popular tourer finish in Egypt whereby the coastal countries are lined with luxury hotels and resorts that offers loosen uping vacation pickups. This becomes a menace in going replacements for luxury adjustment for travellers who chooses Egypt for a luxury retreat but non needfully required to go to Luxor.

Reason for taking the location

Company point of position

Egypt, particularly Luxor is a suited location to put in a luxury hotel with the undermentioned grounds:

Attract high income history fascinators

Egypt, with its mysterious antediluvian ruins is the involvement of many fascinators around the universe. The thought is to pull high income travellers that are interested to see the Egyptian history but in entire comfort and luxury at the same clip.

Opportunity to pull Middle Eastern travellers

The rise of Middle East in recent old ages renders a immense chance for concerns in service industry as they are more than willing to pass on luxury pickups. Egypt, being a member of the Arab League posses advantage to pull traveller from within the League particularly for conservative Muslim travellers that are concerned about the nature of the finish every bit good as other inside informations such as nutrient and supplication topographic points.

Opportunity from the current economic position quo

The current diminished Egyptian economic system creates an chance for investors to come in the market. With the high exchange rate against the US Dollar, investors should be able to come in the market with lower entryway cost ( after transition ) .

Cheaper stuff monetary values

The current position quo of Egypt ‘s economic system provides company with chance to beginning for local resources at a reasonably lower monetary value. This is due to the diminished economic system during the 2011 political revolution created a deadlock in Egypt ‘s economic system. This creates an chance for investors to obtain better profitableness with the lowering of stuff monetary values

Abundance in human resource

Egypt is presently confronting high unemployment rate, in which provides service based industries such as hotels ample of much needed resources. With this, the company will salvage costs by using locals alternatively importing workers from other states.

Market point of position

Predicts of economic system growing after the 2011 political revolution

Egypt was under conservative opinion for old ages, in which entryway to the state market was hard with ruddy tapes and such. As Egyptians battle for a democratic political system and more unfastened market, this will pull investors to put in the state. Bing an early entrant in the market will profit the company in sense of holding the first mover advantages.

A market full of possible and chance

Bing a member of Arab League, Egypt is a market full of possible, particularly to aim other states within the League, this is due to the close ties between states within the League encourages trade dealingss, in other words, attract concerns.

Lower entryway barrier

The recent political convulsion in Egypt had many investors drawing out of the market. The state is in demand of foreign injections for a faster recovery, it can be foreseen that investings of large undertakings such as a luxury hotel will be welcome by the authorities and the people, particularly from another Muslim state such as Malaysia. At the same clip, rivals in the market is besides significantly lesser compared to the yesteryear, hence making an unfastened door for a major investing that have better opportunities in return.

SWOT Analysis

Strength

Strong political ties between Malaysia and Egypt

Malaysia has ever maintained strong political ties with Muslim states around the universe, rendering Malayan investors really welcome in most Moslem states. Malaysia and Arab are both members of G15 whereby members have a shared set of normative and principled beliefs, shared causal beliefs, shared impressions of cogency, a common policy endeavor. These political ties advantages Malayan houses for entry into Egypt market.

First mover ‘s advantage

Early entry into the market gives the company the first mover ‘s advantage, in which, resources, particularly scarce resources such as good location could be sought out foremost.

Lower cost

Early entryway before the economic roar besides promises cheaper resources as supply is still more than demand. This in return, cuts back the costs for the operator and hence increases the profitableness.

Failing

Limited cognition on local concern patterns

Unlike western states, Middle East concern climes are non unvarying or wholly unfastened, as the states are still conservative. This creates an uncertainness for investors who are non accustomed to the local concern patterns and commercial clime.

Opportunity

Less investors in the market

The recent political convulsion in Egypt had investors drawing out from the market. Now with revolutionized political relations and lesser investors in the market for the clip being, it is a good chance to tap into this market.

Menace

Existing participants in the market

Luxor and Red Sea readily have luxury resorts that caters for high terminal travellers, and therefore creates stiff competition for a new entrant in the market.

Possibility of political agitation

Although the tallness of political revolution has passed and Egypt paving its manner for a better socioeconomic position, there lies a hazard of possible revenge from political protagonists for the old office and hence, put on the lining another convulsion

Entry Mode

Direct Investing

The current economic position of Egypt gives advantage of constructing a concern with lowered costs, and therefore direct investing could be applied, this besides eliminates the demands of royalties and licensing costs compared to other methodological analysiss.

Pull offing selling mix

Merchandise

The hotel should be thematic with the environments of ancient Egyptian, but with modern comfortss and comfort. The construct of sleeping rooms shall be inspired by hareem designs to make a cosy and comfy atmosphere. Board shall be fitted with high tech contraptions for amusement and work. Food and drinks will include local and international bill of fare with first category criterions in readying.

Monetary value

The monetary values for luxury hotels in Luxor are largely between USD250- USD350 for common suites while monetary values for luxury suites could travel up to USD900 per dark[ 7 ]. The monetary value for this new hotel will be hedged with the current published rates of USD300 to USD800 for suites and suites. The published rates are fixed while effectual rates will be subjected to publicities.

Promotion

Promotions are the most of import facets to pull visitants to remain in hotels. Our new hotel will get down its publicity even before the hotel ‘s launch to make ballyhoo among travellers to Egypt. The pre-launch publicity will so offer an attractive introductory monetary value for early birds who booked within the promotional period. This is to promote would be travellers to see what the new hotel has to offer. Prices will so be adjusted with several different grades such as cyberspace rates, walk in rates and early bird rates.

Distribution

Several distribution channels will be utilized to advance the new hotel. The chief channel will be coaction with circuit operators, this is because uninformed travellers will prefer to happen mention from circuit operators should they be uncertain on their travel agreements. The 2nd channel will be the cyberspace. Modern travellers depend to a great extent on the cyberspace to research and be after their journey every bit good as agreements, cyberspace advertisement non merely is fast and inexpensive, it reaches the mark audience straight.

Peoples

Peoples are the staff who run the concern and supply services for hotel invitees. Top direction will be sourced from both local and abroad, this is to promote broad thought sharing and determination devising. Ground staff will be sourced locally unless particular demands are required and no local beginning could run into the demand. This is to salvage on cost for the company and supply chances for locals to be hired. All land staffs will be given proper preparation to fix them for their Stationss and linguistic communication classs to develop them for serving international crowds.

Physical grounds

The hotel will portray high category services with local appeals. The hotel compound are to be kept clean at all clip, while suites are good maintained. Service staffs speaks both local linguistic communication ( Arab ) and English. This is to provide for both Arabic and International invitees. The hotel compound will be of free look country, whereby dressing particularly adult females ‘s garb are non subjected to knocking should the adult female chooses non to cover the modestness and have on a head covering. The hotel will be equipped with universe category installations and offer broad scope of nutrient and drinks on the bill of fare to suite every gustatory sensation buds.

Italy

Undertaking Site: Milan

Milan, with its rich historical yesteryear and modern twenty-four hours promotions has much to offer to visitants and occupants likewise. The chief attractive forces of Milan that visitants can look frontward to are:

Architecture

Parks and Gardens

Entertainment and acting humanistic disciplines

Manner and design

Cuisine

Language and literature

Religion

Sports

Porter 5 Forces Analysis

Existing Competition

Existing competition for luxury hotels in Milan is really high as Milan is readily a international tourer attractive force. The most noteworthy luxury hotels in the country are:

Carlton Hotel Baglioni

Hotel The Gray

Principe Di Savoia

Seven Stars Galleria

Park Hyatt Milan

Hotel de la Ville

Grand Hotel Et De Milan

The Westin Palace Milan

Four Seasons Milan

Le Meridien Excelsior Gallia

Each of these hotels range from classical luxury to super luxury[ 8 ]. Competition in the country is high as non everybody could afford a stay in Milan ‘s luxury hotels.

Menace of new entrant

The menace of new entrant is reasonably high. This is due to the high costs to open a hotel and run its concern in Europe whereby the exchange rate for EU currency is hitting a high note. Another factor is that current strong competition among bing participants could discourage many new entrants from come ining the market as they are non willing to take the hazard of losing out.

Dickering power of purchaser

The bargaining powers of purchasers are highly high in this instance. Milan is frequented by European blue bloods, famous persons and affluent people from all around the universe, where monetary value tickets are non the ultimate factor to taking a hotel during their visits. They could exchange with low or none shift cost. Hence, consumers are in power to find their pick, seting hotel operators in the country on high hazard of losing their clients easy.

Menace from provider

The menace from providers, known as dickering power of providers is low. Europe is abundant with industries that supplies stuffs and contraptions needed for the hotel industry. The competition within these industries are high, therefore making a purchaser ‘s market instead than provider ‘s market. Should at that place be breaks of supplies from the local market, purchasers can easy entree to providers from neighbouring states such as France, Switzerland, Germany and such as these states are connected by land and are close to one another.

Menace from replacement

The menace from replacements are high, Milan non merely boasts beautiful holiday Villas and service flats for rent. These holiday Villas and service flats are to the full furnished for comfort and are available for assorted monetary value scopes. They offer more privateness and are among the favours of people who desire more private scenes.

Reason for taking the location

Company point of position

A manner capital frequented by upper crust crowd

Milan is a top notch topographic point in Italy for a luxury hotel concern as Milan attracts affluent travellers from around the universe often, particularly with their seasonal manner shows and high terminal shopping mercantile establishments. It is a known fact that affluent famous persons from around the universe will go to manner shows in Milan, and are able and willing to pass.

Business District

Milan metropolis is besides a busy concern territory that brings in concern people from all around the universe. It is an chance to tap into corporate market by offering corporate rates to guarantee long term backing from concern crowds that travels to the country. It is where a luxury hotel ‘s mark clients gather and there is where the concern is.

Market point of position

Strong EU against USD.

It would be a good thought to put in European states as the exchange rate for Euro is beef uping against USD easy but certainly since its debut on 1st January 1999. The euro is presently the 2nd largest modesty currency every bit good as the 2nd most traded currency in the universe after the US $[ 9 ][ 10 ].

Good location

Milan is a busy concern territory that promises affluent crowd with its seasonal manner shows, trade conferences, and historical sites that ne’er fail to pull visitants and supporters likewise. Hotel concern in this country is ideal as the metropolis itself brings foreign visitants to remain and pass within the metropolis itself.

Abundance in resources

European states are rich and abundant in resources. Italy itself is one of the major exporters in the universe, which means, the menace to short supply is rare. On the other manus, should at that place be breaks of supply within the state, purchasers could beginning off neighboring states that are besides of copiousness.

SWOT Analysis

Strength

The strength of gap of new hotel is being new itself. Consumers with wonder will seek to see something new should the promised offering are attractive. This advantage, when packaged together with interesting publicities will hold positive effects in pulling experience searchers, particularly those who frequented the metropolis and are looking for new experience.

The location is another undeniable strength. Milan is among the most visited metropoliss in the universe, it welcomed 1.894 million reachings in twelvemonth 2009 itself[ 11 ]. With its celebrated attractive forces and big influx of visitants, Milan is a perfect location for hotelkeepers.

Failing

Cost remains the highest failing of puting up a concern in European states. The cost for labour and stuffs are high in Europe. From puting up the concern to operations, the costs are higher than many other states, particularly with the high exchange rate of Euros.

Opportunity

High degrees of freedom for investings, concern and trade. Italy economic system remains as a capitalist economic system, in which patterns an unfastened market system. This is an advantage for foreign investors in the state as the unfastened policy ensures less ruddy tapes and more encouragement from the authorities to come in the market.

Menace

The chief menace to the hotel concern is the stiff competitions with other operators in the same country. In this instance, Milan is lined with infinite hotels with new 1s looking like mushrooms after a electrical storm, in which, 22 are celebrated luxury hotel. Hence the biggest menace for the concern is now the competition from other hotels in the country with same category of luxury.

Entry Mode

The manner of entryway chosen for Milan is joint venture. Joint venture reduces entry hazards by using the local spouse ‘s assets, it besides helps when foreign investors have unequal cognition of local institutional or legal environment. Joint venture besides allows foreign spouse entree to local adoption powers. It besides benefits the concern by making perceptual experience that the good will of the local spouse is carried frontward.

Marketing Mix

Merchandise

The hotel will be converted from acquisition of smaller hotels that are shacking in older edifices with influence of historical significance. The thought is to renovate the topographic point and upgrade it into a luxury hotel but maintain the historical appeal of the edifice. There will be two chief subjects for the suites, whereby classical Italian with Roman influence will be the chief attractive force while modern-day modern furnished suites will provide visitants with sense of manner. Food and drinks will focus on on Italian and European culinary art, nevertheless a set of international bill of fare will function as a backup for international crowds who prefer a gustatory sensation of place.

Monetary value

The monetary value scope for suites in Milanese luxury hotels are between a‚¬200 – a‚¬500 per dark ‘s stay. The new hotel will accommodate the published monetary values from a‚¬200 – a‚¬500, and offer internet rates for travellers who books off the cyberspace.

Promotion

Promotions for room rates will be planned to harmonize with manner events in Milan, in which, rates will be cheaper during manner hebdomad with bundle corsets for more than one dark.

Distribution

Information distribution will chiefly environ the cyberspace as the bulk of citizens in the western hemisphere are normally ‘net-izens ‘ . Another channel of information distributions will be through advertisement at luxury recreational nine around Italy. Italy houses many billionaires, which is the hotel ‘s mark audience.

Peoples

Top direction will be chair chiefly by Italians and some from abroad. Ground staffs will be brought in from 3rd universe states such as China, Ukraine and India. This is to salvage on operating costs as rewards for Europeans are higher compared to 3rd universe states. Staffs will be trained to talk English and Italian or Gallic to provide affluent crowds who prefers to talk those 3 linguistic communications.

Physical grounds

The hotel caters for affluent invitees, in which are used to exceed quality comfortss. The suites will be furnished with high quality furniture and contraptions, complete with international Television channels and high velocity cyberspace entree. Service staffs will be trained to supply highest quality services while nutrient and drinks are of all right dining quality

.

Decision

Every state has their ain alone offerings and possibilities. The two states chosen of this undertaking is judged based on different facets that the state market could offer although both may look to be in entire resistances of market scenes.

Egypt may look like a bad market for a luxury hotel, particularly right after the Egyptian political revolution of 2011 to turn over the market, in which, many investors pulled out the state market. What I see, is chance, particularly with good mentalities on the benefits from formation of a democratic authorities. The current market state of affairs excessively obsessed ample of possible, particularly since the backdown of investors, come ining the market now will enable the company to derive first mover ‘s advantage. Selling schemes and mixes to be used in Egypt market are besides different as the market and socioeconomic scenes are immensely different signifier other markets and can non be generalized under one expression.

Milan, the metropolis of manner in a state who produces universe category millionaires demands more than merely another hotel. The state is ne’er short of attractive forces and investors can afford to tout luxury without exercising excess of un-necessity. The market is ne’er short of hard currency thrown in, and while providing for the rich and celebrated, the equilibrium between practicality and luxury is the chief focal point of marketing the concern in Milan. Milano is a perfect scene for luxury adjustment concern, and while over the top offers are thrown in to pull categories who could afford to fling, practicality is kept at cheque by polycentric selling schemes that is ‘tailor fitted ‘ to suite the mark market group.

With this, Egypt and Italy becomes the chief focal point of the as these two are the perfect scene for a luxury hotel concern.