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Merger between Marriott and Starwood Hotels

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Marriott-Starwood merger to spark turf war in Japan

According to Japan Times, Marriott is poised to expand its business in Japan ahead of Tokyo’s hosting of the Olympic Games in 2020, when the government wants to achieve a target of 40 million foreign visitors a year.

http://www.japantimes.co.jp/news/2016/05/24/business/marriott-starwood-merger-spark-turf-war-japan/#.WGKp4_mLTIU

Clearly, Marriott and Starwood see the massive influx of tourists as a potential source of business. They hold higher advantages based on the offers of luxury facilities and higher overnight rate through increased foreign visitors compared with local hoteliers. The intense competitions that the local hoteliers facing is huge. The reason is Marriott Hotel employs staff with multiple languages so they can better accommodate visitors who speak different languages. In fact, the government is putting 10,000 English signs in the city as a transformation.

http://blogs.wsj.com/japanrealtime/2016/02/02/tokyo-to-add-english-to-10000-signs/

Indeed, they are increasing accessibility and helping the government to better accommodate the incoming visitors as the government has aimed to achieve 40 million visitors per year. Well, this is just a statistical assumption. It is also notable that their earned profits give a hint of leakage because most of the money will be repatriated back to the headquarter. On the environmental aspect, Marriott has strong sustainable approaches in contributing positively to the environment. Its sustainable commitment perhaps can bring a greater influence on the communities as well as its partner- Starwood Hotel.

Overall, it is not difficult to foresee the impacts on local accommodation providers. These may include the rise of resentment, time and money consuming in staff training to ensure the delivery of excellent customer service as well as language improvement to stay competitive.

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