Political Factors
Discuss about the Perceiving Tourist Destination Landscapes.
Nowadays, travel and tourism industry is a largely growing industry which serves the needs and demands of millions of travellers. As this sector is based on the satisfaction level of customers, so it is necessary that effective marketing strategies and plans should be formulated by companies operations in this sector (Becker, 2016). This report is focused on identifying a tourist corporation in New Zealand that wishes to construct a new property in chosen destination in New Zealand. For this discussion, Gables Lakefront Motel is chosen as tourism organization that is planning to establish its new building in Rotorua. This report includes the competition and marketing analysis of chosen motel in the perspective destination in New Zealand.
For this report, the chosen location is Rotorua that is situated in New Zealand. Rotorua is a town that is set on its namesake lake on the North Island of New Zealand. The destination is very well-known for its Maori culture and geothermal activities. The estimated population of the town is 58,800 that make it tenth largest urban area. Rotorua is a primary destination for both international and domestic tourists. There are various tourist attractions in Rotorua like lakes, geothermal areas, inner suburbs, parks etc. The current position of the company reflects that Rotorua is voted as the most beautiful city of New Zealand. According to the tourism statistics, Rotorua hosts more than 3.3 million visitors (Pearce & Schaenzel, 2015).
In summer season, the total resident and traveller’s population of this destination peaks at 100,000. Tourism at Rotorua contributes 10.5% of Gross Domestic Product. This location is internationally recognized for its Maori Culture, geothermal and adventure outdoor activities. About this, it can be stated that approximately one third of foreign visitors to New Zealand travels and visits Rotorua destination. Australia is the largest international market of Rotorua that accounts for 7% of total tourist days (Rotorua NZ, 2018). Apart from this, other major international markets are such as USA, United Kingdom, China, Japan, Germany and South Korea.
To analyze the selected destination i.e. Rotorua, some of the external environmental factors can be considered (Walker, 2016). These factors show the attractiveness of market whether it is a good decision to expand operations in Rotorua. About Rotorua, the data can be collected by analyzing below-given related factors:
Political factors influence routine lives of many citizens all over the New Zealand and organizations need to develop with different ways to overcome the political conditions in the nation. The country has a political stable environment that assists it to entice more international guests. Currently, The Rotorua District Council spends 6% of its development budget on tourism activities (Rotorua NZ, 2018). This council plays an important role in the development of Rotorua as public services and goods like needed infrastructure, public spaces, parks, public transport and attractiveness of CBD are major components of traveller’s experience. It indicates that local bodies of Rotorua support travel and tourism industry in the city. It can create a positive environment for the new property of Gables Lakefront Motel in Rotorua.
Proposed Accommodation
There are four major economic drivers for Rotorua that contribute considerably to overall development of New Zealand’s economy. Rotorua has a leading position in four sectors i.e. tourism, agribusiness, geothermal and forestry. The area is continuously making innovations and development in both current and emerging sectors to enhance domestic employment and productivity of business. Last year, Rotorua’s Gross Domestic Product is totaled over $2 billion and accounted for approximately 1.4% of total GDP of New Zealand (Razzaq, Hall & Prayag, 2016). If this motel will expand its business in this city, it will be able to increase employment for local population. The economy of this city will assist the organization to become a more productive enterprise.
Sustainable development in the city brings prosperity to enhance the living standards and quality of lives of Rotorua’s citizens. English is an official language in the city so businesses are able to interact with tourists. Tourism sector in Rotorua assists to connect with different cultures, impress the visitors with perfect services and provide them lifetime experiences. Gables Motel needs to enter into this city by considering the changes in the trends and lifestyles of tourists and domestic population of Rotorua.
The Rotorua District Council has made an investment to infrastructure at Rotorua. The major strengths of this destination are such as variety of attractions, Maori culture focus, performing arts, natural landscape and scenery and geothermal features (New Zealand Tourism, 2016). Additionally, this location has an outstanding infrastructure which has been developed to sustain the growth of travel and tourism industry. It has different modes of transportation through which people can reach to the destinations like rail transport, air transport, sea transport etc. It can attract more tourists at Rotorua (Kozak & Kozak, 2016). By establishing a new premise in Rotorua, Gables Motel can have various benefits of its physical infrastructure.
The name of chosen accommodation entity is Gables Lakefront Motel. Gables Lakefront Motel is a popular hotel property that is currently situated at Lake Terrace in Taupo Town Centre, New Zealand. Across the street Lake Taupo, this motel is 2 km from Taupo DeBretts hot springs. It is a luxurious hotel that offers different types of rooms like one bedroom, 2 and 3 bedroom family units. It is a large hospitality group that offers different accommodation services like holiday homes, apartments, hotels, motels, holiday parks and campgrounds. For single people and small family, Gables Lakefront offers Deluxe 1 bedroom unit and superior one bedroom. These bedroom apartments have excellent views and their own private pools (Gables Lakefront Hotels, 2018). Along with accommodation services, the motel offers some additional facilities like free Wi-Fi, flat screen TV, living area with sofas, laundry facilities, icemaker, kitchenettes etc.
Competition Analysis
In the new target market i.e. Rotorua, the motel will provide some additional facilities like pick up and drop facilities to airport, multi-cuisine, shopping (fashion and clothing), rental vehicles, gym and sports kit to the tourists who will be arriving to Rotorua for leisure and entertainment purpose. The company will develop its operations by including some more facilities in its hospitality service range. Considering the marketing, competitive and environmental analysis, Gables Lakefront Motel will establish its new property in Rotorua, city in the North Island, New Zealand (Gables Lakefront Hotels, 2018).
From the above data collection factors, it can be stated that Rotorua is a significant destination of New Zealand. It indicates that tourism industry has experienced a strong growth in this city. In this city, there are various hospitality organizations as there are an increasing number of travellers and visitors (Ryan, 2015). Gables Lakefront Motel will face intense competition in Rotorua hospitality industry. One of the major competitors is Holiday Inn that offers comfortable accommodation and it is perfect place for family holiday, business conference and mountain biking trip. The hotel Holiday Inn is located in an attractive and approachable location that is the major attraction of this hotel. Apart from this, Accor group of hotels have also introduced its 2 hotels in Rotorua which also can pose competitive threat to Gables Lakefront Motel. These hotels of Accor group are named as Ibis Rotorua and Novotel Lakeside and both are located on the perfect shores of Rotorua Lake (Rotorua NZ, 2018). It offers peaceful surroundings with splendid views. It provides the insights of Maori culture of New Zealand that is the major attraction of this hospitality organization. Additionally, other competitors for Gables Lakefront Motel are Copthrone Hotel, Millennium Hotels and resorts, Kingsgate Hotel Rotorua, RotoVegas Motel etc.
These are the major competing brands in Rotorua Hospitality industry which can affect the business operations of Gables Lakefront Motel in the city. The organization are offering innovative and attractive accommodation services and adopting effective strategies (Kotler, Bowen, Makens & Baloglu, 2016). Considering the increased number of tourist arrival, the above international hotel chains like Holiday Inn, Accor Hotels have made investment to establish their properties in Rotorua city in New Zealand. Thus, it can be stated that Gables Lakefront Motel needs to differentiate its services from other competitors as all are offering identical accommodation and hospitality services to the targeted population in Rotorua, New Zealand.
After analyzing the external environment and competition in the market, it is very important to determine the potential customers. Under this business expansion, Gables Lakefront Motel will determine the customers and tourists which are arriving to Rotorua for leisure and entertainment purpose. According to the tourism statistics, Rotorua is a favorite for both domestic and international tourists (Pike & Ives, 2017). The major targeted segments for Gables Lakefront Motel are both international and domestic visitors of New Zealand. Benchmark thrashing growth in local visitor night stay at Rotorua’s hotels for April month 2018 points to this city being a great place for Kiwis to spend last days of summer season. The data reflects that tourism in this city is $816.3 million per year sector of which $448.4 million comes from local visitors and rest from international travellers (Rotorua NZ, 2018). There are 162,000 tourists visit to Rotorua Activities Monitor Sites and 3.1 million people visit to Rotorua Attraction Monitor sites (Rotorua Lakes Council, 2015). It indicates that number of international visitors is more than domestic visitors in Rotorua. Most of these visitors are arriving to the city from South Korea, United States, United Kingdom, Japan, China and Germany (Sun, Zhang & Ryan, 2015).
Looking at this trend and customers’ segmentation characteristics, Gables Lakefront Motel will target the people who like to spend money on leisure and entertainment activities. In addition to this, the tourism and hospitality corporation will target the market segment that includes millennial customers. In its new property in Rotorua, the motel will provide the services considering the tastes and preferences of millennial travellers (Mok, Sparks & Kadampully, 2013). It will assist the organization to establish its new property in Rotorua, New Zealand.
Conclusion
In the limelight of above discussion, it can be concluded that travel and tourism is one of the fastest growing service sectors that significantly contributes to country’s GDP and overall economy. The above report shows that Gables Lakefront Motel is planning to expand its hospitality operations in one of the attractive cities in New Zealand i.e. Rotorua. This district contributes to the GDP of country and tourism industry is the largest employer in the city. It will be good for the organization to establish new property in this city. To overcome the threat of competition, the chosen motel should implement effective marketing strategies and tactics.
References
Becker, E. (2016). Overbooked: The exploding business of travel and tourism. US: Simon and Schuster.
Gables Lakefront Hotels. (2018). Rooms at Gables Lakefront Hotels. Retrieved from https://www.gableslakefrontmotel.co.nz/rooms.
Kozak, M. & Kozak, N. (2016). Tourism and Hospitality Management. UK: Emerald Group Publishing.
Kotler, P.T., Bowen, J.T., Makens, J. & Baloglu, S. (2016). Marketing for Hospitality and Tourism, Global Edition. UK: Pearson Education Ltd.
Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality, tourism, and leisure. UK: Routledge.
New Zealand Tourism. (2016). New Zealand’s culinary culture. Retrieved from https://media.newzealand.com/en/story-ideas/new-zealands-culinary-culture/
Pearce, D. G., & Schaenzel, H. A. (2015). Destinations: tourists’ perspectives from New Zealand. International Journal of Tourism Research, 17(1), 4-12.
Pike, S., & Ives, C. (2017). The restructuring of New Zealand’s Regional Tourism Organisations. Journal of Destination Marketing & Management, Retrieved from: https://eprints.qut.edu.au/114607/2/__qut.edu.au_documents_StaffHome_StaffGroupl%24_lindequm_Desktop_ePrints_114607.pdf
Razzaq, S., Hall, C. M., & Prayag, G. (2016). Tourism Management Perspectives. Tourism Management, 18, 92-97.
Rotorua Lakes Council. (2015). Positive tourism trends for Rotorua. Retrieved from https://www.rotorualakescouncil.nz/our-council/news/Pages/default.aspx?newsItem=6437.
Rotorua NZ. (2018). Key Facts. Retrieved from https://www.rotoruanz.com/media/toolkit/key-facts.
Rotorua NZ. (2018). Research and Statistics. Retrieved from https://www.rotoruanz.com/research-and-statistics.
Ryan, C. (2015). Trends in hospitality management research: a personal reflection. International Journal of Contemporary Hospitality Management, 27(3), 340-361.
Sun, M., Zhang, X., & Ryan, C. (2015). Perceiving tourist destination landscapes through Chinese eyes: The case of South Island, New Zealand. Tourism Management, 46, 582-595.
Walker, J.R. (2016). Introduction to hospitality. UK: Pearson Higher Ed.
New Zealand Tourism. (2016). New Zealand’s culinary culture. Retrieved from https://media.newzealand.com/en/story-ideas/new-zealands-culinary-culture/
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