Answer to Question #197566 in Management for Trishita Pingolia

Question

Answer in not more than 1000 words.What are various decision criteria for deciding a location for a business setup? Explain these decision criteria with reference to a location decision for setting up operations of a Large Hospitality Setup (like a Resort. etc).

Answer 1

 Decision Criteria for Deciding the Location for   a Resort

 

           Costs: The decision the location of resort is entirely dependent on the cost of land in an area. Most hotels are located where land prices are albeit cheaper, especially in the outskirts of town to enhance higher return on investment. The second criteria of resort location selection decision is the presence of tourist attraction. Large and medium size hotels often prefer locations where there are tourist attractions like near the beaches, near game reserves, etc. which are likely to attract more tourists who bring income to such hotel.  Transport and communication availability is another factor that is considered in the selection of a hotel location. Hotel owners prefer places where there is good transport and communication infrastructure to facilitate access of the hotel and communication within the hotel environments.