Business strategy for Hotel Ritz expansion into Malaysia's tourism market

Business Communications

C.E.O

Opening a New Hotel Chain in Kualalumpur, Malaysia

As per your request I have researched the business environment in Malaysia in order to evaluate the scope of our new hotel chain opening up in Malaysia. Malaysia has a highly lucrative tourist industry and can prove to be a very fruitful market for Hotel Ritz.

The Malaysian Business Environment

The Malaysian government recognizes tourism as a key industry and provides immense support to the Malaysian tourism industry. An important step taken by the Malaysian government in this direction is the launching of a tourism promotional campaign called 'Malaysia Truly Asia' (Suratman). This campaign promotes the Malaysian tourism in a very appealing manner. The campaign has an official website that flaunts the country's traditional and modern attractions and implies that Malaysia has something to offer for people of all ages, gender and social stature. The campaign is also active on social networking sites such as Facebook. The official website of the campaign carries out regular online polls to get an idea about the prevalent consumer demands. Moreover the Malaysian government has made and continues to make heavy investments in developing the Malaysian tourist industry and has relaxed policies in order to attract foreign investment in the tourism industry. One of the greatest positive aspects of Malaysia is its relaxed legal formalities and relaxed embassy laws. The procedure to attain a Malaysian visa is quite hassle free unlike many countries. Many countries around the world enjoy visa exemption under Malaysian law and the visa fee for most countries is minimal (Noorbakhsh).

Malaysian government is doing all it can to promote the Malaysian tourism. Moreover, the fact that holiday packages in Malaysia are much cheaper as compared to other holiday destinations have resulted in attracting more tourists, who otherwise travel to European destinations, which are now very expensive. The fact that Malaysia is also emerging as an international trade hub has also increased the number of corporate tourists visiting the country.

Over the years Malaysia has been successful in gaining advantages from cheaper sources of energy. Presently, Malaysia's energy sources are cheaper that what is prevalent in most parts of the world. Currently, United States of America is one country that has cheaper energy resources. The low priced energy resources means that Malaysia saves on electricity, fuel and transport costs which greatly contribute in the progression of Malaysian tourist industry.

Malaysia is a home of natural beauty including beautiful hill stations, beaches and a very well planned capital Kualalumpur and the administrative center, Putra Jaya. Malaysia has emerged as a paradise for natural beauty lovers (Wai-Ching and Gun-Fie David).

Prospective Investment Opportunities

Malaysia's economic and political stability and business friendly environment is very promising for our new hotel chain project. We must carry out research pertaining to investment costs and capital budgeting for a more decisive conclusion.