Hospitality, Tourism and Events Environment Report

This report provides a PEST analysis of the Tower of London, examining the political, economic, social, and technological factors that impact the tourism industry and the Tower's success. It includes recommendations for the Tower's management to address these factors and enhance its visitor experience.

Hospitality, Tourism and Events
Environment Final Assessment Report Plan

Executive Summary
Tower of London is the heritage castle which is located on River Thames in the Central
area of London this is within the Tower of Hamlets into London. It was built in the year 1078 as
the symbol of domination of the elite ruling family of Britain and in 1100 it was used as prison
till 1952. Political factor of the PEST analysis would be including all elements of interference of
government into that which would be like that of policy or tariffs. Economic factor would be
including all elements which are related to economy like that of inflation, interest rates, exchange
rates and growth of nation in terms of GDP or PPP. Social factor also affecting the Tower of
London which can be influences by various cultural aspects of nation and its visitors as well.
Numbers of explorers are being increased frequently in case of visiting attractive place of
London city. Technological factors also playing essential role in case of generating response for
Tower of London in terms of increment within its numbers of visitors and tourist in London city.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
ANALYSIS SECTION 1: POLITICAL ENVIRONMENT............................................................2
Introduction..................................................................................................................................2
Elections......................................................................................................................................3
Property rights.............................................................................................................................3
Taxation effects...........................................................................................................................3
Conclusion...................................................................................................................................3
ANALYSIS SECTION 2: ECONOMIC ENVIRONMENT...........................................................3
Introduction..................................................................................................................................3
Interest rate..................................................................................................................................4
Exchange rate...............................................................................................................................4
Trends in economy......................................................................................................................4
ANALYSIS SECTION 3: SOCIAL ENVIRONMENT..................................................................5
Introduction:................................................................................................................................5
Factor 1:.......................................................................................................................................5
Factor 2:.......................................................................................................................................6
Factor 3:.......................................................................................................................................6
Conclusion:..................................................................................................................................6
ANALYSIS SECTION 4: TECHNOLOGICAL ENVIRONMENT..............................................6
Introduction:................................................................................................................................6
Factor 1:.......................................................................................................................................7
Factor 2:.......................................................................................................................................7
Factor 3:.......................................................................................................................................7
Conclusion:..................................................................................................................................7
CONCLUSION................................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFERENCE..................................................................................................................................9
APPENDICES...............................................................................................................................10
1

INTRODUCTION
Tower of London is the heritage castle which is located on River Thames in the Central
area of London this is within the Tower of Hamlets into London. It was built in the year 1078 as
the symbol of domination of the elite ruling family of Britain and in 1100 it was used as prison
till 1952. It is having 2.8 million visitors each year the owner of Tower of London is Queen
Elizabeth 2nd at present. So in this current assignment analysis would be done according to
function of PEST as the strategic tool which is mentioning external environment of Tower of
London.
Figure 1: Tower of London
ANALYSIS SECTION 1: POLITICAL ENVIRONMENT
Introduction
Political factor of the PEST analysis would be including all elements of interference of
government into that which would be like that of policy or tariffs. All the type of policy which
government of that country would be included within this political segment (PESTEL/ PEST
Analysis of The Tower London, 2018). This would be having very high impact on education and
infrastructure of country if these factors would be included then. Under this political factors in
this part would be including three major factors like that of election, property rights and taxation
effect. Showing all these impacts on London Tower including challenges and risk which are been
associated with and then conclusion would be made on bases of this.
2

Elections
The upcoming elections of country would be changing the trends within country thus this
is likely to affect Tower of London and the amount of visitors which are visiting here on time
period. This is regarded as the risk to tourism department of London Tower as they need to
following new implemented policies and regulations if new government is coming into power.
Property rights
All the new legal laws related to Tower of London would be requiring to change the
amount of visitors coming. As if the property rights are been increasing then current fare for
tourist would be increasing on faster pace which is affecting or restricting their entry into
London Tower. The strength of all types of laws and property rights would be decreasing the
number of people coming here with this level of corruption will also be increasing crime rate.
Taxation effects
Tax rates are the most important political factor which is impacting the London Tower
and its publicity as well (Matthews, 2015). The change in government would be leading to
changes in legislations as well thus ultimately this would be impacting London Tower on greater
level. If there is an increase into tax which is levied on property of Britain then owner need to
pay higher tax which they would certainly be taking from people who are coming there to visit
Tower of London.
Conclusion
The main key points from the above part would be including:
 Due to election major changes would be on country which would be leading to
modification on London Tower.
 All the changes on property rights and taxation of country would be influencing Tower of
London.
ANALYSIS SECTION 2: ECONOMIC ENVIRONMENT
Introduction
This factor would be that which is providing good amount of opportunity for company or
they would also be regarded to as threat by company which is risker in near future. Economic
factor would be including all elements which are related to economy like that of inflation,
interest rates, exchange rates and growth of nation in terms of GDP or PPP. These mentioned
factors would be affecting and impacting growth and decision making of firm so that they could
3

be able to operate their business in proper terms (Barrett, 2017). In this part there would be
including three factors of economic environment like that of interest rate, exchange rate and
trends in economy. All these would be studied in respect of Tower of London in connection with
this so that it becomes easy to understand.
Interest rate
This is that rate at which it becomes easy to analyse amount of interest due per period of
time within the country in accordance with borrowed or lender amount. This is the rate which is
charged by bank or central bank of nation determining the amount of money flowing into
country over certain period of time. This would be majorly affecting the cost of capital of
London Tower in putting into their daily money into so that they could be able to attract more
number of visitors. Thus this would be again be impacting the extent business could be growing
and they are been able to expand their business and operations. If bank is charging higher interest
rate on travelling and personal loan which they are giving to customers then number of visitors
would be lowered down.
Exchange rate
This is that value of one currency which is used to exchange other currency of country for
the purpose of conversion and many other. This type of rate would be also called to as the price
of currency of one nation in respect to that of other having two elements namely foreign and
domestic currency as well (Zamburlini, 2016). Exchange rate is been determined with demand
and supply of currency of domestic country in international market. This would be impacting
exporting goods cost to company and then analysing what would be happen to growth and
development of business. All the fluctuations of exchange rates are to be impacting number of
visitors and amount of money from customers who are coming for visiting Tower of London.
Normally exchange rate of all country’s currency would be determined on bases on US dollar as
this is considered to as strongest currency of world. Other than this changes in level of income
disposable by customers on travel and tourism of their and this would be impacting more on
Tower of London and its visitor’s attraction. £1 would be equal to $1.33.
Trends in economy
There are rising and increasing trends in most of the economy of world which is
promoting people to travel more and more so that they could be able to know about other
nation’s culture and history. As Tower of London is the one which is representing history and
4

culture of Britain is one of the most common and famous for the visitors. There are increasing
trends of family gathering and leisure holidays into London which is making and improving the
number of customers who are having very low budgets. There is gradual economic slowdown of
Britain which is attracting many local tourist to go out with their family and friends on holiday.
There are many changed in demographic terms within UK which is making its own contribution
of increasing popularity of family reunions including all generations of family (Meng, Cave and
Zhang, 2017). Other than this there is also increasing trends in solo travel trip on side of women
which includes that there are about 80% of travelling decisions which are taken by women. So
this would also be affecting or encouraging them to visit Tower of London all by themselves and
taking the experience of travelling alone. There also include that people are visiting places
especially those which are having cultural and heritage importance so that people could be able
to learn about history of place.
ANALYSIS SECTION 3: SOCIAL ENVIRONMENT
Introduction:
Social factor also affecting the Tower of London which can be influences by various
cultural aspects of nation and its visitors as well. Numbers of explorers are being increased
frequently in case of visiting attractive place of London city (Kolios and Read, 2013). Social
factor plays vital role in case of arriving numbers of tourist for visiting Tower of London.
 Changes in the moral and social principles of the peoples of London which encourage
them to visiting this historical place again and again.
 Changing in the population growth also enforcing them to frequent arriving in London
city to visit this historical place. Heritage and cultural emotions of local peoples associated with this body which attract
most them to coming for visiting Tower of London. \
Factor 1:
Tower of London is one of the key visiting point of the city which is established in heart
of UK in London city, numbers of visitors has been increasing within nation because of visiting
this historical place (Cook, 2014). The tower is currently facing numbers of key challenges
regarding to management of its various crucial factors in industry. People of city and visitors are
curious about knowing the past historical stories of its various types of historical places which is
established in the city.
5

Factor 2:
London is the main hub of people for across the globe. In recent tome's in the UK,
numbers of tourist-er are increasing frequently and most of them are arriving in London for
visiting Tower of London. So social culture and life-style of UK country's population
encouraging them to visiting numbers of places which is related to history of the UK efficiently.
So heritage place has been playing most vital part for increment in numbers of visitors in city
and it impacting upon economic growth of the country because of visitors pay for exploring this
place. So government of city is generating wide range of revenue from it.
Factor 3:
According to different age group, social culture influence local peoples to knowing about
historical story of Tower of London and main purpose of establishment of it in London city.
Religious beliefs and lie styles of city population making effect to selection of this heritage place
to visit. So peoples of city preferring to selection of this place again and again to visit and
numbers of tourist in the city also increasing because of Tower of London established in UK.
Conclusion:
From the above discussion about social factor of peoples of the country encouraging
them to selection of Tower of London place as major heritage body in city (Meng, Cave and
Zhang, 2017). So assist them to valuing social cultural factors of the state. So it can be said that,
social elements of peoples of city influencing them to targeting the Tower of London heritage
place to exploring it and peoples comes to visit it because of it connected with their cultural
norms and history as well.
ANALYSIS SECTION 4: TECHNOLOGICAL ENVIRONMENT
Introduction:
Technological factors also playing essential role in case of generating response for Tower
of London in terms of increment within its numbers of visitors and tourist in London city.
Numbers of technological instruments is being utilised by administration of Tower of London in
terms of booking tickets and holiday bookings to excellent as the time progressed. So
technological factors also affecting the Tower of London to increment within its existing
numbers of visitors. Several types of technological facilities has been provided by government of
London within tower to facilitate its visitors in the place easily with technological instruments.
6

 Existing technology which assist the visitors to facilitate them to availability of various
advanced features.s
Factor 1:
Technological advancement in order to generating sufficient amount of profitability in
industry in order to getting sufficient amount of profitability and impacting in industry. Variety
of technological instruments are being utilised by its management professionals in case of
making the place more attractive at the place (Madden, 2012). Ticket booking and online holiday
booking packages has been provided for its professionals in case encourage its visitors in case of
coming up in London city to visit this place again and again. So it can be said that, technological
advancement assist its administration to influencing explorer to serving variety of technological
advancement criteria within the business environment to making them more efficient within it.
Factor 2:
In addition to it, numbers of visitors has been serving technological facilities by
government of London towards its visitors in the place to facilitating its customer in industry to
maintain the customer satisfaction level. Internet access has been provided by administration of
Tower of London in terms of giving facilities to its explorer to having access of internet at any
times in the place efficiently. So it can be said that, availability of internet access in the Tower
can positively influence upon its clients to visit again and again or utilisation of other
technological instruments as well.
Factor 3:
apart from it, several technological and innovation technological instrument has been
established in order to helping people to getting ticket in easy manner. This is an attractive
historical castle located on the north band of the river Thames in central London. O it makes
impact upon generating of wide range of amount of profitability for the government by booking
ticket on a specific amount of money (Matthews, 2015). The tower is generating wide range of
revenue on yearly basis. Technological instrument providing facilities to its visitors to displaying
the historical story of the Tower of London.
Conclusion:
from the above discussion, it has concluded that, technological instrument has been
established by government of London in country to maintain satisfaction level of its visitors at
the place. With the help of technological advancement instruments, its explorer is getting several
7

types of benefits which encourage them to frequent increment within its existing visitors and
tourist-er at the place. So technological factors also affecting the sales revenue and numbers of
visitors has been increasing year by year.
CONCLUSION
At the end it was concluded that all the factors which are been included should be taken
into consideration like that of political, economic, social and technological. These factors are the
one which is included within external environment which is impacting visitors who are coming
to visit Tower of London. The factor like that of recent trends in travel and tourism sector like
that of increasing gathering with family so that they could be spending quality of time with them.
This would be including more number of visitors in Tower of London which would thus be
improving its business and cost of capital as well. The exchange rate of British Pound in respond
to the US Dollar would be also impacting the number of visitors who are coming from USA and
rest others exchange rate of currency would be depending upon £ as well.
RECOMMENDATIONS
All the factors which are included within the above part should be considered at the time
when there are people who are coming from all around the world to visit Tower of London. On
the other hand there are some recommendations that need to be consider like that of:
 More emphasis must be given to local political environment that of Tower Hamlets so
that more number of visitors could be attracted.
 Funding should be given to Tower of London so that it is been restructure could be
conducted which would be helpful for them.
 The current inflation rate would be impacting the pricing service of Tower of London
which needs to be considered within this PEST analysis.
8

REFERENCE
Books and Journals:
Barrett, J., 2017. CRITICALLY EVALUATE THE LONDON 2012 OLYMPICS’IMPACT ON THE
ECONOMY IN RELATION TO TOURISM AND THE LOCAL COMMUNITY (Doctoral
dissertation, Cardiff Metropolitan University).
Chow, S.E.S., 2015. Relevant external environmental forces affecting green supply chain in the
Philippine consumer electronics industry. International Journal of Supply Chain and
Operations Resilience. 1(3). pp.219-242.
Cook, A. J., 2014. The Privileged Playgoers of Shakespeare's London. 1576-1642. Princeton
University Press.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the United
Kingdom. Energies. 6(10). pp.5023-5045.
Li, Y., Lu, Y., and Kwak, Y.H., 2018. Evolutionary Governance for Mega-Event Projects
(MEPs): A Case Study of the World Expo 2010 in China. Project Management
Journal. 49(1). pp.57-78.
Madden, D., 2012. London Bridge in Plague and Fire: A Novel. Univ. of Tennessee Press.
Matthews, W., 2015. Cockney past and present: A short history of the dialect of London.
Routledge.
Meng, Y., Cave, M. and Zhang, C., 2017. Spatial distribution patterns of phosphorus in top-soils
of Greater London Authority area and their natural and anthropogenic factors. Applied
Geochemistry.
Zamburlini, G.I.C., 2016. Modernist heritage conservation: an evaluation of theories and
current practice (Doctoral dissertation, University of Salford).
Online:
PESTEL/ PEST Analysis of The Tower London. 2018. Accessed through:
<https://www.casequiz.com/the-tower-london-136158/>.
9

APPENDICES
Figure 2: Best tourist destination of Europe
[Source: Li, Lu and Kwak, 2018]
Figure 3: Time spend while standing in line
[Source: Chow, 2015]
10

Figure 4:Visitor admission trends in 2016
[Source: PESTEL/ PEST Analysis of The Tower London, 2018]
11