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Foreign Direct Investment Project Mövenpick Hotels & Resorts: Sri Lanka

Foreign Direct Investment Project Mövenpick Hotels & Resorts: Sri Lanka. Scott Brodbeck Justin Kahrl Meg MacWhirter Joseph Marchetti. STRT 571 – International Business Environment | May 3, 2010. Company Position. Organizational resources and capabilities Expansive property portfolio

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Foreign Direct Investment Project Mövenpick Hotels & Resorts: Sri Lanka

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  1. Foreign Direct Investment ProjectMövenpick Hotels & Resorts: Sri Lanka Scott Brodbeck Justin Kahrl Meg MacWhirter Joseph Marchetti STRT 571 – International Business Environment | May 3, 2010

  2. Company Position • Organizational resources and capabilities • Expansive property portfolio • Brand recognition throughoutEurope, Asia, Middle East and Africa • Strong cash position • Industry structure and competition • Global recession • Market saturation

  3. Expansion Analysis • Business expansion objectives • Develop our existing core market • New opportunities in developing countries and emerging markets • Customer demand • Expand leisure/holidayresort segment • Exotic locations India Sri Lanka

  4. Sri Lanka • New market seeking • 26 year civil war ended in 2009 • 32% hotel occupancy increase • Strategic location • Exotic locale • Visitors from existing markets • Country characteristics • Established infrastructure • Educated labor force

  5. Foreign Direct Investment • Investment climate • Tourism industry = national priority • Tax incentives, low import tariffs • Risk assessment • Political – potential future instability • Economic – currency risk • Geographic – weather-related risks, climate change Sri Lankan Tourism and Investment Assistance Agencies

  6. Investment Strategy • Beach-front property in Hikkaduwa • Location decision • First mover advantage • Costs • No VAT on construction equipment • Low labor costs • Engineers - $300-650/month • Semi-skilled workers -$50/month • Significant return on investment

  7. Mövenpick Resort and Spa Sri LankaSoft Opening|Fall 2012

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