Integrated Seminar in Hospitality and Tourism Management Case Study

Integrated Seminar in Hospitality and Tourism Management - Case Study Example Riley (2012) states that the economic balance between exports and imports has been achieved gradually in the year 2000 due to increase in exports to the U.S.A, Europe, Africa and Asia. India’s contribution to world exports has risen from 0.6% in 1993 to 1.5% in 2010, symbolising 150% increase. In addition, India has balanced its trading in Asia, especially China. India’s major advantage is notably its large population and demographics. According to IMF population statistics, the number of working citizens from the age of 15-64 years has been increasing over the years due to rapid population increase. However, the fertility rate has decreased; therefore, leading to the workforce, increasing as the amount of dependants increase. If the low fertility rates persist, India will face an increased ageing population and the dependency ratio will rise. However, the demographic advantages will increase and continue until 2050 (Riley, 2012). The Indian government will continue to be cooperative to foreign investors since they are the main contributing factors for the economy. The government’s policies have created a business environment attractive to foreign investors. The government has taken initiatives in sectors such as telecom, securities exchange, defence, and oil refineries in a bid to encourage foreign investments. 2) Do the deeper pockets (cash and other resources) of international hotel chains give them a competitive advantage over domestic chains? If the advantage exists, is the advantage of deep pockets a sustainable advantage? Starwood Hotel and Resorts Worldwide, Inc. has an added advantage over the local chains due to its capital and infrastructure. Over the years, the distress in India’s hospitality industry has crippled local hotel chains with debts. As a result, Starwood capitalised on this to save on costs by simply branding already existing hotel properties throughout the