Political. The political environment in the United Kingdom has always been favorable for the hospitality industry. However, in 2006 the proposal for a bed tax in order to generate revenue for the government is seen to be detrimental to the tourism as well as the hospitality sector. The clamor from various groups had succeeded in barring the implementation of this proposal (Opodo 2007). Today, UK is seen to be attracting more tourists through programs like VisitBritain (Opodo 2008). Economic. The economic growth in UK has been subject to the envy of the different nations. However, as the world is becoming more and more integrated it is expected that UK will also be adversely affected by the forecasted recession in economies like US. The Deloitte Economic Review projects that the UK economy is set to experience its weakest period of growth in 15 years and there is also a risk of recession in the next two years (UK Economy 2008). The slowdown is attributed to the global financial crisis and associated credit crunch which also brings low consumer confidence and spending (UK Economy 2008). Social. The latest social trend publication of the National Statistics Office indicates that the UK citizens are enjoying an ever improving standard of living because of higher disposable income. Aside from focusing on the quality of the products that they buy and consume, people are also becoming more concerned on how socially responsible the companies which manufacture them (Social Trends 2008). Spending on leisure and recreation is also on the rise attributed to the increasing need of relaxation from the complexities of life. Thus, families are spending huge portions of their money for short vacations which are stress-free and on-stop to maximize the use of their time (Social Trends 2008).
Technological. The internet is the single most influential technological development driving important changes in UK’s technological landscape. The internet had gained acceptance and popularity not only in business circles but also on households. With most families are getting access to this technological revolution, business organizations introduce online advertising and shopping (Social Trends 20