Good Example Of Destination Marketing – Marshall Island Essay

PESTLE Analysis:

A pestle analysis will be carried out on Marshall Island in order to determine the country’s political, economic, social, technological, legal, and environmental factors.

Political:

Marshall Island has had a steady government since it gained its independence in 1979.
Democracy
Government supports trade and tourism
Excellent labor laws
The islands have been able to create and establish diplomatic relations with over 70 countries.
Legal
It also has relaxed visa laws with visitors from Palau and The United States being allowed to enter without a visa.
Visitors from countries such as Canada, Australia, and Norway just to mention a few can request a visa upon their arrival on the island. This makes the Island an easy travel destination.

Has strict land acquisition laws for foreigners

Economic:
The Marshall Island’s economy has been steady growing over time with an estimated 3% growth in GDP
60% of the economy relies on aid from the United States
Some citizens practice subsistence farming
Has excellent marine resources
The island heavily relies on trade with other countries since it mainly relies on imports.
The island’s economy is also supported by an effective taxation system that collects income, corporate and sales tax.
The country has a relaxed currency policy that makes currency conversion easy for visitors. I
It also has easy funds transfer policies since there are no imposed restrictions.
It utilizes the United States Dollar as its main currency. This makes it an excellent destination for tourists.

Social:

The islands have 68,000 residents.
Low housing costs and living costs
Low crime rates
The residents are very social and have easily interacted with foreigners over the years.
Most of the residents speak English. This implies that there are few communication barriers for English visitors.
Residents participate in traditional weaving and boat construction. This is an excellent tourist attraction.

Technological:

There has been an increase in the use of mobile phone technology and computer usage in the Island. Social media use is also high within the Island.

The country also has broadband internet

It has National Telecommunications authority tasked with improving technology standards within the Island.
Technological advancements have increased the number of tourists who book their trips online.
Environmental:
The Marshall Islands have an excellent surrounding environment.
Excellent environment is due to the islands location. This provides an excellent tropical climate that greatly favors tourism.

The natural environment within the islands make it an good habitable environment.

The Islands have experienced issues with sinking due to rising oceans as a result of global warming and melting ice caps.

The country has also adopted excellent environmental policies aimed at conserving its low-lying coral atolls.

Marshal Island visitor analysis
The Island receives very few visitors per year. Visitors on holiday compromise about 1000 people per annum. This is a very low number considering that the Island is an excellent travel destination.

Customer profile

Customer Types
Couples on honeymoon
Holidaymakers
Hiking
Swimmers and snorkelers
Characteristic
Aged between 25 and 45
Love swimming in the ocean and exploring
Love adventures
Recently married
Looking for budget accommodation
Motivation
In search of adventures
Want to feel free
Want to sight see
Looking for culture
Possible countries
United States
United Kingdom
Germany Taiwan
Figure 1: Figure showing the number of tourists to Marshall Island from 2005 - 2011
Retrieved from: http://www.spc.int/prism/marshalls/index.php/tourism-statistics/visitor-arrivals
Figure 2: Figure showing the number of tourists to Marshall Island from 2005 – 2011 by purpose of visit

Competitor analysis:

The main competitor with Marshall Island are Maldives, Fiji, and Bali.
Porter’s five forces analysis
Threat of new entrants: Medium
Marshall Island supports foreign investments in the country
Competitors are better placed and could offer alternative travel destinations
Has strict land ownership laws for foreigners
Competitive Rivalry: High
There are numerous travel destinations around the world
The United States and Europe have the largest share in the tourism industry
New travel destinations are emerging globally
Bargaining power of suppliers: High
Strict land ownership laws
Frequent flights into Majuro from United Airlines and Our Airlines
Stable government, political climate and economy
Strict visa rules
Currency used is the United States Dollar
Threats of substitutes: High
Fiji, Bali and Maldives offer the same tourism packages
Better services are being offered in other destinations
Bargaining power of buyers: Low
Marshall Island is an excellent travel destination with low crime
.