Analyzing DMC Spain Protocol: A Comprehensive PESTLE Assessment

This case study presents a PESTLE analysis of DMC Spain Protocol, examining the political, economic, social, technological, legal, and environmental factors influencing its business environment. The political landscape includes concerns about terrorism and the role of tourism administration bodies. Economically, Spain's unemployment rates and its position in the Euro Zone are considered. Social factors involve Spain's popularity as a holiday destination and the impact of the Eurozone crisis. Technology highlights internet usage and social media penetration. Legal aspects cover consumer protection laws and EU influences. Environmental considerations focus on sustainable development in tourism. The internal environment is also analyzed, identifying competitors such as other DMCs and PCOs, as well as suppliers and partners like wedding venues and catering services. The target customers range from local and international business people to affluent individuals, particularly from the Middle East, seeking high-end event experiences. Desklib provides access to similar solved assignments and study resources for students.

Running head: ENVIRONMENTAL ANALYSIS OF DMC SPAIN PROTOCOL
PESTLE Analysis of DMC Spain Protocol
Political- Spain is suffering from political turmoil and fears of terrorism that threatens the tourism sector of Spain. The terror
attacks taking place in Spain has been responsible for the dwindling number of the tourists in Spain. Attacks are made on the
open-top tourism bus that has created fear in the minds of the tourists. These incidents have an effect on the event and the
destination companies of Spain. Ministry of Industry, Energy and Tourism refers to the department in that of Spanish general
administration that has been responsible for carrying out the government policies in relation to tourism within Spain. Spain
Convention Bureau is instrumental in offering meeting planners with the outstanding destinations that can help in guaranteeing
spectacular meetings along with events (Seraphin et al., 2018). This network has helped in bringing together cities along with
towns throughout Spain. Madrid Convention Bureau plays an important role in promoting Madrid as the destination that is ideal
for holding the meetings along with conferences.
Economic- Unemployment rate within Spain has decreased to that of 14.55 in third quarter of the year 2018 from that of
previous period. It accounted to be the lowest jobless rate since last quarter of the year 2008. The unemployment rate within
Spain has been seen to average 16.54 percent from the year 1976 till the year 2018. According to the Spanish Convention
Bureau, Spain is 4th economy in that of Euro Zone (Brusca, Rossi & Aversano, 2015). It has been found to be 14th world
economy in relation to Gross Domestic Product. It has been brought out by Spanish Convention Bureau that Spain has lowest
criminality rate within Europe. It has been found that 83 % of the event planners research the destinations by making use of the
internet. Trade shows prove to be effective for that of 30 % of the event planners and 26 % for that of Destination Management
Company.
Social- Spain has been found to be second favourite of that of the holiday destination and it has global market share of around
7 %. The crisis taking place in the Eurozone has adversely affected the social condition of Spain. There has been wage
reduction along with the increase in the unemployment that has badly affected the social condition of Spain (Dermetzopoulos,
Christou & Bonarou, 2016). Spain has been witness to weakening of the aspect of social protection and there has been
reduction in relation to public social expenditure. The young people face a lot of pressure owing to the factor of unemployment
and suicide rate among the youth has increased a lot owing to the stress that they have to face in the society.
Technology- There are a large number of households in Spain that own computer and hence they can easily access the
internet. There has been year-on-year increase on continuously from that of 55.9 percent in the year 2006 to that of 78.4
percent in the year 2017. It has been found that in the year 2017 there was 83 % of the Spanish households who had access to
internet. There are around 42 million people who live in Spain (Spainmarketresearch.com., 2019). It has been found that there
are around 81 % of people who make use of the aspect of social networking. It suggests that there around 15 million people
who use the platform pertaining to social media. The social media channels that are used in Spain pertains to Face Book,
Twitter, Instagram, Pinterest and Linked In. The advertising before the event can help the consumers in knowing about the
presence of a business. The events have a major impact on the business and it helps in the effective marketing of a company.
Legal- Travel industry within Spain is regulated with the help of various laws and the most significant is the law pertaining to
consumer protection. Legal system within Spain follows that of civil structure code. Judicial system existing in Spain can be
said to be transparent but it is slow-moving. Spain has legal framework that helps in providing protection to the environment
and they control the different contaminating agents. This acts as a barrier in the path of the travel agencies in Spain. The travel

1ENVIRONMENTAL ANALYSIS OF DMC SPAIN PROTOCOL
agencies within Spain have to be cautious when organising events in Spain. European Union has a great amount of effect on
that of Spanish economy (Van Niekerk, 2017). Single market helped in transforming Spain into that of a good market for the
products that would be manufactured within central countries. Spain had been perpetrated with adjustment programmes and
this had a great effect on the legal laws of Spain.
Environment- Tourism is a profitable economic activity in Spain. Tourism is responsible for contributing to 11 % of the GDP
and tourism is considered to be a structural activity within Spain. Strategic Sustainable Development Strategy was implemented
in Spain that helped in guaranteeing economic prosperity and protected the environment (Brusca, Rossi & Aversano, 2015).
Sustainability can play an important role in promotion of social cohesion and it can pave the path for development of Spain.
Sustainable event management is practised in Spain that helps in producing an event by taking into consideration the
environmental along with social issues.
Micro (Internal Environment)
Competitors
Destination Management Companies (DMC) in Spain has direct competitors within Spain called Omnitel
Communicaciones, Marketing Land, Totalisimo, Amazonia Team Factory and Conventia Lemon. These event agency
companies pose stiff competition to each other among the event companies in Spain (Van der Wagen & White, 2018). There
are clients who make direct contact with the suppliers so that they can organize events that acts as competition for DMC
companies in Spain. There are various universities in Spain like University of Granada along with University of Seville that acts
as competitors for the event and the DMC companies. There are venues that directly involve itself in organizing the events and
they act as direct competitors to that of the event companies in Spain. There are many Professional congress organizers within
Spain like Event Management Barcelona, Madrid Experience and MYS Eventos that threaten the fortunes of DMC companies
of Spain.
Suppliers and Partners
There are many wedding venues within Spain like Sunset Beach Club, Villa Nicolai, La Cala Reort and Casa Felix
that act as destination venues for the events held in Spain. There are various hotels in Spain like Hotel Via Castellana,
Catalonia Sagrada Familia, Catalonia Atenas and Silken Al- Andalus Palace that act as the partners of event companies within
Spain (Pearce, 2015). DMC companies takes recourse to the catering management that helps it in supplying food to the
guests of the event. The catering services are provided in Spain with the help of various companies like La Juliana Gourmet,
Life Gourmet Catering, Masia Xamandreu and Leal Maese Catering that are instrumental in providing catering services to that
of DMC companies of Spain. The use of Information Technology is very popular in Spain and this helps in in the promotion of
destination planning within Spain.
Customers of DMC Protocol Spain
The customers in that of business event planning comprise of local along with international business people. The
Customers of DMC companies ranges from that of middle class to the wealthy people. The consumers of the destination
management company are primarily the people from Middle East, China along with that of top European countries. A large

2ENVIRONMENTAL ANALYSIS OF DMC SPAIN PROTOCOL
number of customers are the people from the affluent class who have the wealth of spending on the destination events. The
people in the Middle East prefer glamorous events and hence they comprise of to be the main market for that of DMC Spain
(Gössling, Scott & Hall, 2018). The venue of the events are selected on the basis of the class along with status of the people. It
has been stated by Sustainable Event Alliance that the events within Spain are held owing to different purposes like business
conference, year-end parties along with that of financial reporting.

3ENVIRONMENTAL ANALYSIS OF DMC SPAIN PROTOCOL
References
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climate change. Journal of Sustainable Tourism, 1-15.
Pearce, D. G. (2015). Destination management in New Zealand: Structures and functions. Journal of Destination Marketing &
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Seraphin, H., Smith, S., Scott, P., & Stokes, P. (2018). Destination Management through Organizational Ambidexterity: A Study
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Van der Wagen, L., & White, L. (2018). Event management: For tourism, cultural, business and sporting events. Cengage AU.
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