Feasibility Study: PESTEL & SWOT Analysis for F&T Sports Tours

This report analyzes the feasibility of F&T Company's new sports tour business in Bahrain, utilizing PESTEL and SWOT analyses to assess the macro and micro environments. The PESTEL analysis examines economic factors such as GDP growth, exchange rates, and the impact of Bahrain's economic policies, along with social factors like the youth population and the popularity of sports like soccer. The report highlights Bahrain's growing tourism industry and its contribution to the country's GDP, suggesting a positive outlook for the new business venture. It also addresses the increasing affordability of sports tourism due to rising employment rates and the potential for attracting more tourists with attractive sports tours. The analysis concludes that the positive aspects of Bahrain's social and economic environment outweigh the negative factors, indicating a strong potential for success for F&T's sports tour business.

Running head: TRAVEL AND SPORTS MANAGEMENT
Travel and Sports Management
Name of the Student
Name of the University
Author Note

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Economic Environment
The GDP-per capita (PPP) increased from $28300 (in 2011) to %$29800 (in 2013)
and this figure indicated towards the economic growth of the country as well (Raginaite,
2014). On the other hand, the higher exchange rate of the currency of the Bahrain may impact
the sports tour segment of the country as it will gradually enhance the travel costs of the
visitors. The economy of Bahrain has grown in a successful manner in last ten years due to
the liberal economic policies of the country and a clear vision for implementing that
particular policy such as Bahrain Vision 2030(Ossman&Frencillo, 2014). Between this
periods of time, the gross GDP growth of the country is almost 2.1% to 8.3%. The economic
freedom score of the country is 66.4 that give them the 54th position in 2019 index. Bahrain
holds the 5th rank among the 14 countries in the Middle East and North Africa region. As a
part of their economic development Bahrain launched an economic roadmap named The 2030
Economic Vision that clearly aims to improve the economic condition of the country.
Although the country’s economy is mostly dependent on the oil industry, still, in 2017, the
growth of the non-oil industry of the country face the growth of almost 4.7% and that has
increased from the 2016 (3.9%). Based on industrial growth and resultant employment the
(242 individual salary profiles) average GROSS salary in Bahrain is BHD 21,098. Average
NET salary is BHD 17,796. The most frequent GROSS salary is BHD 12,946. The most
frequent education is Bachelors Degree. The most frequent experience are 8-12 Years. With
the increasing amount of employment rate the affordability of the people is also increasing
significantly. As a result of increased affordability people can afford sports tourism better
than ever, while wilding the scope of sports tourism. The F&T is a Bahrain based company
that mainly operates in the Sports and Tour management sections. This organization is aiming
to develop a new activity that will compile the traveling and fun activities such as various

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sports in order to provide a thrilling experience to the travellers. The concept of sports tour
will give the experience of various sports in different countries of the world during the
travelling of those travellers who are interested in sports. The economy of Bahrain is a free
economy and the currency of the Bahrain is the second-most valued currency in the world
(Kinninmot, 2015). Since the initiation of the 20th century, Bahrain is investing more into the
tourism business. The F&T Company of Bahrain is planning to launch a new business of
sports tour in the country.The organization currently arrange different sports tour for the
young in which they are sent to the different renowned clubs of the world for training
program. Mainly they are sent to the Real Madrid, Barcelona of Spain for participating in
training program, practice match. Along with different clubs of Spain, the youths are also
sent to the different clubs of Argentina as well (Football and travel, 2019). The economic and
social environment of Bahrain are discussed as a part of the market analysis of that new
business design. Bahrain is the second country in that GULF region that act as a hub for
various business just after Saudi Arabia(Tadros, 2015). The country is mainly dependent on
the oil industry like other countries of that region. In order to design and market their new
business they have to analyse the market for determining any threats and opportunities that
may indulge in the social and economic environment of Bahrain. However, in recent times,
the tourism industry has become one of the blooming industry of the country and along with
this it has become a distinct contributor of the economy of Bahrain. With the immense
growth of the tourism industry, the country has also gone through the success of the tourism
industry and this sector has become one of the most important contributor to the GDP of the
country. In the year of 2016, the number of visitors are increased in numbers in the
country(Government of Bahrain, 2019). In 2015, the number of visitors were 11.6 million,
whereas in 2016 the visitors increased to 12.3 million and as a result the annual growth rate
has become almost 6%. Along with this, the number of hotel residency also increased that

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enhanced the ratio of guests and hotels in the country. The ratio was almost increased by 5%.
The rise in the primary indicators of that had positive effect on the rate of the tourist
residency in the country and showed a growth of 21.7% annually and reached to 2.8 days
from 2.3 days. As a result, the contribution of the tourism industry to the gross annual GDP
of the country has greatly affected in a positive manner. In 2015, the contribution of this
industry to the non-oil GDP of the country was almost 4.6 %, whereas in 2016, the figure was
improved and became 6.3% of total non-oil contribution to the total GDP (Government of
Bahrain, 2019). So it can be said that, the growth of the economic condition of the country
will positively help the new sports tour business in the country. The number of visitors has
increased and if there is some exciting sports along with this tourism, the visitors will be
attracted to this country more. The liberalized taxation policy of the country will also help
the new business as the hotels of the country should only give 5% tax to the government and
it will reduce the burden of travelling from the foreigners. As a result, more tourists will be
interested for visiting the countries and this will enhance the chances of the new business as
the success of the new business idea is mainly dependent on the tourists who are visiting
country. An attractive sports tour will make the visitors more interested about the country.
Social Factor
The youth population of Bahrain is almost 15.65% of total population (age group of
15-24 years). As the F& T company is associated with the sports tour to different countries
ofg the world, therefore this high percentage of youth population will encourage the company
to expand their business as well ( WHO, 2017).The Along with this, immense success of
soccer in Bahrain will also promote the sports industry of Bahrain. The youths of Bahrain are
now more interested about various sports specifically soccer. Moreover, the success of the
Bahrain football team also positively impact on the sports industry of the country(Parrish
&Nauright, 2014).Not only this, the enhanced economic growth also suggest that such sports

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tours are affordable for the people as the people are economically able to take such tours.
Hence, this economic factor secondarily affecting the society to take the facility of that
services and people are now quite aware of such services (Szirmai, 2015). So it will also
enhance promote the growth of the new business. Bahrain has also qualified for the round of
16 in the AFC Cup football and it has enhanced the popularity of football in the country
(Jose, 2019). Hence it this may promote the new sports tourism business in the country along.
Moreover, the youths are also interested about the soccer and that is the reason more number
of youths are taking the football trip to the foreign countries conducted by the F&T Company
of Bahrain (Bromber, 2014).Hence, it can be said that, the social and economic factors of the
country, Bahrain mainly affect the sports tourism industry of the country. Although there are
a few factors that are negatively affecting the sports tourism industry, still the immense
growth of the tourism industry and popularity of the sports have masked those negative
impacts. Therefore, it can be said that due to those positive aspects, the new business may get
success in the country (Raginaite, 2014).

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