situation is probably best summed up by the fact that the culinary highlight in the district is the KFC in Ranaul The main reason given for the lack of accommodation is that the average stay is only two days. Others argue however that the reason that tourists do not stay longer is the lack of more high-end accommodation and restaurants. Tourism in the area is reasonably well developed and would definitely be able to sustain longer visits to the area in terms of activities and events. As it is at the moment, most visitors come on a (long) daytrip from Kota Kinabalu where there are numerous hotels in all categories (including international chain hotels such as Hilton, Hyatt, Le Meredien and Shangri-La). The Sabah State Government has recognised the need for further development in the area. As part of the SDC (Sabah Development Corridor) they have made a large piece of land available for the development of a high-end hotel (4-star or 5-star) in the area. Your company, HDC (Hotel Development Company) has been asked to put in a bid to build and manage the property. HDC is an established hotel operator with 38 hotels in South East Asia, including a number of Mercure, Novotel, Best Western, Doubletree and Hilton hotels. The piece of land available is situated on the main road through the area and has great views of Mount Kinabalu on one side and the valley below on the other side. As the strategic advisor you have been asked to come up with a recommendation whether to develop a 4-star or 5-star property. Due to the fact that the area is near a World Heritage site and due to building height restrictions the total number of rooms for a 4-star hotel would be 300 rooms, whilst for a 5-star property the number of rooms would be 190. You are required to do the following: 1. Identify at least THREE (3) strengths and weaknesses each and at least TWO (2) opportunities and threats each for the proposed hotel/resort (Not for Mount Kinabalu as a tourist attraction!)

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question
situation is probably best summed up by the fact that the culinary highlight in the district is the KFC in
Ranaul
The main reason given for the lack of accommodation is that the average stay is only two days. Others
argue however that the reason that tourists do not stay longer is the lack of more high-end accommodation
and restaurants. Tourism in the area is reasonably well developed and would definitely be able to sustain
longer visits to the area in terms of activities and events. As it is at the moment, most visitors come on a
(long) daytrip from Kota Kinabalu where there are numerous hotels in all categories (including international
chain hotels such as Hilton, Hyatt, Le Meredien and Shangri-La).
The Sabah State Government has recognised the need for further development in the area. As part of the
SDC (Sabah Development Corridor) they have made a large piece of land available for the development of a
high-end hotel (4-star or 5-star) in the area. Your company, HDC (Hotel Development Company) has been
asked to put in a bid to build and manage the property. HDC is an established hotel operator with 38 hotels
in South East Asia, including a number of Mercure, Novotel, Best Western, Doubletree and Hilton hotels.
The piece of land available is situated on the main road through the area and has great views of Mount
Kinabalu on one side and the valley below on the other side.
As the strategic advisor you have been asked to come up with a recommendation whether to develop a
4-star or 5-star property. Due to the fact that the area is near a World Heritage site and due to building
height restrictions the total number of rooms for a 4-star hotel would be 300 rooms, whilst for a 5-star
property the number of rooms would be 190.
You are required to do the following:
1. Identify at least THREE (3) strengths and weaknesses each and at least TWO (2) opportunities and
threats each for the proposed hotel/resort (Not for Mount Kinabalu as a tourist
attraction!)
Transcribed Image Text:situation is probably best summed up by the fact that the culinary highlight in the district is the KFC in Ranaul The main reason given for the lack of accommodation is that the average stay is only two days. Others argue however that the reason that tourists do not stay longer is the lack of more high-end accommodation and restaurants. Tourism in the area is reasonably well developed and would definitely be able to sustain longer visits to the area in terms of activities and events. As it is at the moment, most visitors come on a (long) daytrip from Kota Kinabalu where there are numerous hotels in all categories (including international chain hotels such as Hilton, Hyatt, Le Meredien and Shangri-La). The Sabah State Government has recognised the need for further development in the area. As part of the SDC (Sabah Development Corridor) they have made a large piece of land available for the development of a high-end hotel (4-star or 5-star) in the area. Your company, HDC (Hotel Development Company) has been asked to put in a bid to build and manage the property. HDC is an established hotel operator with 38 hotels in South East Asia, including a number of Mercure, Novotel, Best Western, Doubletree and Hilton hotels. The piece of land available is situated on the main road through the area and has great views of Mount Kinabalu on one side and the valley below on the other side. As the strategic advisor you have been asked to come up with a recommendation whether to develop a 4-star or 5-star property. Due to the fact that the area is near a World Heritage site and due to building height restrictions the total number of rooms for a 4-star hotel would be 300 rooms, whilst for a 5-star property the number of rooms would be 190. You are required to do the following: 1. Identify at least THREE (3) strengths and weaknesses each and at least TWO (2) opportunities and threats each for the proposed hotel/resort (Not for Mount Kinabalu as a tourist attraction!)
A World Heritage Case
Mount Kinabalu was declared a World Heritage Site in the year 2000. It has long been popular with
domestic as well as foreign visitors. Tourists come to Mount Kinabalu not only to climb Mount Kinabalu
(with 4,095 meters the highest mountain in South-East Asia), but also to visit the Poring Hot Springs and
other local attractions and, specifically for the domestic visitors, to enjoy the temperate climate.
Temperatures vary from 15 to 24 degrees at the park's headquarters at 1,563 meters.
The number of both domestic and international visitor arrivals to Sabah has been rising steadily over the
last years (refer to table 1). As one of the main attractions in Sabah, Mount Kinabalu receives an increasing
number of tourists.
Table 1: Visitor Arrivals to Sabah
Year
International Arrivals
Domestic Arrivals
Total Arrivals
| 2018
1,316,567
2,517,846
3,834,413
2017
1,235,178
2,449,556
3,684,734
2016
1,128,776
2,299,132
3,427,908
2015
978,426
2,197,800
3,176,226
Source: Sabah Tourism Board
It is therefore somewhat surprising that the accommodation and restaurant scene does not reflect the fact
that Mount Kinabalu is a World Heritage site. The accommodation can mainly be found in and around
Kundasang which lies 8 kilometres from the main entrance to the National Park. The only other significant
development in the area is Ranau which is a further 16 kilometres away from Kundasang.
The accommodation in and around Mount Kinabalu consists mainly of guesthouses, small resorts, lodges
and retreats. The only "official" hotel is the Perkasa Hotel Mt Kinabalu (which is an old 3-star and rather
tired-looking hotel with very low review scores).
As for the restaurants, the situation is even more desperate. There are no significant restaurants in
Kundasang and even the above mentioned hotel and resort does not boast a restaurant to speak of. The
Transcribed Image Text:A World Heritage Case Mount Kinabalu was declared a World Heritage Site in the year 2000. It has long been popular with domestic as well as foreign visitors. Tourists come to Mount Kinabalu not only to climb Mount Kinabalu (with 4,095 meters the highest mountain in South-East Asia), but also to visit the Poring Hot Springs and other local attractions and, specifically for the domestic visitors, to enjoy the temperate climate. Temperatures vary from 15 to 24 degrees at the park's headquarters at 1,563 meters. The number of both domestic and international visitor arrivals to Sabah has been rising steadily over the last years (refer to table 1). As one of the main attractions in Sabah, Mount Kinabalu receives an increasing number of tourists. Table 1: Visitor Arrivals to Sabah Year International Arrivals Domestic Arrivals Total Arrivals | 2018 1,316,567 2,517,846 3,834,413 2017 1,235,178 2,449,556 3,684,734 2016 1,128,776 2,299,132 3,427,908 2015 978,426 2,197,800 3,176,226 Source: Sabah Tourism Board It is therefore somewhat surprising that the accommodation and restaurant scene does not reflect the fact that Mount Kinabalu is a World Heritage site. The accommodation can mainly be found in and around Kundasang which lies 8 kilometres from the main entrance to the National Park. The only other significant development in the area is Ranau which is a further 16 kilometres away from Kundasang. The accommodation in and around Mount Kinabalu consists mainly of guesthouses, small resorts, lodges and retreats. The only "official" hotel is the Perkasa Hotel Mt Kinabalu (which is an old 3-star and rather tired-looking hotel with very low review scores). As for the restaurants, the situation is even more desperate. There are no significant restaurants in Kundasang and even the above mentioned hotel and resort does not boast a restaurant to speak of. The
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON