New Hotel Locations in the City of Irbid using 'Local Economies' and GIS Models

Abstract

This study determines the location of new hotels in the city of Irbid based on the geographic location, price, capacity and services of established ones. With data on 11 hotels operating in the city of Irbid, a mathematical and GIS models were constructed to test the new location against agglomeration and differentiation economies. The findings of the study suggest that the new location may benefit from agglomeration but to a larger extent on differentiation. The GIS model suggests the southern part of the city as the best location for the new hotel. However, the provided services should be unique than rivals and at the same time at a premium cost.