Is it ethical to provide what the local government representative asked for?

The U.S.-based Megahotel Company has been very successful in establishing operations throughout the country. In recent years, Megahotels has also successfully established hotels in most major European business capitals. The company has decided to establish itself as a worldwide entity. This decision is based primarily on top management's belief that to effectively compete on an international scale, the company must provide its services to business travelers around the globe. In this way, U.S. or European travelers can stay in the company’s hotels anywhere they travel. Top management sees this expansion as critical in preventing business travelers from using the competition. As the vice president of marketing recently noted, “We cannot risk forcing our guests:to use competing hotels too often. After a few stays, these guests might decide to switch hotels permanently, simply because they can stay with the same property everywhere they travel.”