Macroeconomic Analysis of South Africa Research Paper

Macroeconomic Analysis of southwestern Africa - Research Paper ExampleHospitality Segment in South Africa Similar to any other diligence, the cordial reception industry has to face a noteworthy encroachment due to the economic condition in any country. The economic conditions prevailing within an economy determines the manner of travel and thus the profitability of hospitality sector. Hotels require a major financial investment. Nevertheless, financial suppliers select guarantee that the hospitality organizations are satisfactorily feasible to repay the invested amount. The situation of hospitality market is in the main determined by income per room and occupancy rates. Increasing occupancy rate in hospitality industry denotes high demand which can open the opportunity for new entrants in the hospitality industry. It is worth mentioning that the hospitality industry is directly related with national as well as distant travelling trends for tourists and commercial message vi sitors (PwC, 2011). Hospitality organizations can gain high return on investment in the presence of hefty and healthy economy. For instance, the macroeconomic factor such as growth rate has major impact on the travel because it entices and preserves customers and drive sales within the industry. Furthermore, the condition of economy creates an impact on some(prenominal) domestic as well as global corporate travel. It is in this context that South Africa has satisfying demand for hospitality services. With the virtues of the macroeconomic environment prevailing in the business context of South African hospitality industry, the number of overnight visitors in South Africa has adjoind considerably from 2004 to 2006 by almost 10.23 million. The increase in number of travel has accelerated the room occupancy rate as well as hotel revenue (PwC,...This paper is one of the best examples of the macroeconomic analysis of South Africa, and the overview of its current state of hospitality s egment. Even though the financial structure of South Africa is improving, it is facing two most important macroeconomic problems (i.e. unemployment and electricity) which can have a substantial impact on the industrial development of the economy. The paper analyzes the goal of these problems and how the government reacts with the problems through developing macroeconomic policies. Furthermore, the paper excessively describes the hospitality industry in South Africa and its relationship with current macroeconomic issues faced by the country in order to understand the capableness of instigating a new venture in the particular industry.South Africa is regarded as the economic centre of the African continent. It has outstanding and advanced legal structure. The financial system of South Africa is observed to be in a healthy position.South Africa is not only considered as a major developing economy, but is also as the gateway to other African markets. In the region, South Africa play s a vital part for faculty generation, transportation, industrialization and hospitality services. Similar to any other industry, the hospitality industry has to face a significant impact due to the economic condition in any country. The economic conditions prevailing within an economy determines the trend of travel and thus the profitability of hospitality sector.Analysts predict that South Africa will remain economically attractive for tourism and hospitality sector. Even though there are some unemployment and electricity shortfall issues in the country, its overall market attraction is satisfactory.