Current Trends and Contributions of Tourism Industry in Australia

Choose any one industry of your choice and discuss the reforms in that industry.

Every country has different types of natural and geological characteristics. Hence, based on this, the country can attract many tourists from all over the world. Tourism industry not only provides their income to the national income of the country (McLennan, Becken and Moyle 2017), but also it creates large numbers of employment as well. Hence, it is an international phenomenon. The tourism industry in Australia is well-known and increasing rapidly. Hence, in this essay, the tourism industry of Australia is chosen to discuss. Austrian tourism contributes a large portion of its income to the country’s national gross domestic product (GDP). Moreover, there are many people, who are employed in this business. Other vertical businesses, which are related to this tourism industry, also get benefits. These vertical businesses are hotel and restaurant industry and other hospitality business related to tourism industry. There are many popular destinations in Australia, which are famous all over the world. These well-known places are Queensland, the Great Barrier Reef and the Gold Coast, Uluru and so on (Pearce, Strickland-Munro and Moore 2017). There are also some coastal cities like Brisbane, Melbourne and Sydney, which attract tourists.

This tourism industry in Australia is increasing rapidly. Every year, this country with its unique but beautiful nature attracts many tourists from all over the world. Hence, this industry plays an important role in Australia’s economy (Pindzo and Radulovic 2017). However, the economy is facing some problems related to unskilled workers and infrastructure. Hence, some reforms are required in those fields. In this country, some newspapers also have published different articles based on it. The agricultural and mining sector of this economy is performing poor due to declining global commodity market (Walsh, van der Plank and Behrens 2017). Hence, the government of Australia should give importance to this tourism industry. Tourism Research Industry of this country gives research information, which is chiefly based on both domestic and international markets. This information helps those two sectors to take and make decision of this tourism industry in Australia. Hence, in this essay, the economic condition related to this industry will be discussed. Moreover, a recent newspaper analysis will be done to understand the current situation of this industry.

The natural beauty of Australia is very rich and rare. People go there to see the unique beauty of nature in Australia. There are different types of animals and birds, like Kangaroo, emus, platypuses, which only can be found in Australia (Natusch, Lyons, Brown and Shine 2016). According to the Australian government, this unique natural beauty attracts almost every people from the world. As there are some popular destinations to visit with its natural beauty, it is helpful for this country to enhance this industry further.

Fig 1: Trends of Tourism Industry in Australia

Source: (Raisi, Baggio, Barratt-Pugh and Willson 2017)

It can be seen from the above figure that the trend of tourism industry in Australia is increasing significantly (Pham, Nghiem and Dwyer 2017). Moreover, the government of Australia is also contributing more funds to develop the concept of Tourism 2020 in Australia.

Challenges and Problems in Tourism Industry of Australia

Maximum tourists are from North-East Asia, North America, China, South Korea, Japan and USA. Main reasons behind this growing tourism industry are lower Australian dollar, low airfares and safety perceptions. However, behind those factors, there are some problems related to this industry. According to a Australian newspaper, people, who are employed in tourism industry, skilled and efficient labourers are required to develop this industry (Slezak 2018). Infrastructural condition also helps this industry to attract tourists. Hence, it is important to reform these factors. The government of Australia should focus on these chief issues.

As said before, the Australian government should develop the tourism sector as all other sectors are lacking behind. However, without co-ordinated policy framework and appropriate management strategies, it is impossible to achieve long-term growth in tourism sector. Moreover, the level of benefits will not be maximised without this management strategies (Rice 2014). A global as well as domestic national perspective is not enough to develop this tourism industry. This impacts related to this industry will vary from state to state and from region to region. This variation will be in terms of different activities, the social, economical, cultural and environmental objectives and the intensity of activity related to tourism. Therefore, the government should impose measures with large magnitude (Mistilis, Buhalis and Gretzel 2014). These measures will be education and information, standard and regulatory instruments, planning and management strategies and so on.

The Sport and tourism Division of Australia set some national policies and direction for leisure, hospitality and tourism in Australia (Underdahl 2017). This division has imposed a Federal Government policy to develop and implement a program in the sports, recreation and tourism sectors. This policy is designed to create a policy and economics conducive to grow and develop these dynamic sectors. The chief objective of this division is to enhance the level of innovation and competition of sport and tourism industries of Australia.

Tourism Ministers have introduced some comprehensive principles and funding process for the Tourism Demand-Driver Infrastructure (TDDI) programme. This TDDI will give $43.1 million to the State and Territory governments for more than four years. This program has some principles. Firstly, this program will try to align its projects of the Tourism 2020 strategy within one or more strategic areas (Tolcha 2017). Secondly, this TDDI program is trying to increase the demand of this tourism industry from Asia. Thirdly, this program tries to make a competitive digital capability. Fourthly, it will provide support assurance to the tourism transport environment to grow. There are also some other principles which will help this country to develop its tourism industry.

To practically implement those principles, TDDI program have taken some objectives, which are mainly based on environment, construction, transport and to enabling. It will develop and increase the country’s natural assets, for example, protecting and recreating public places like beaches, walking trails and parks. This program will build cultural institutions, sporting and entertainment facilities city zones to attract tourists. Moreover, it is important to develop a transportation sector to enhance the tourist facility (Tourism Western Australia 2018). Hence, this infrastructure program will take some projects to develop roads, networks, ports, airports and rails. On the other hand, this program will enable its indigenous development of tourism. It will help to develop the tourism networks and programs to improve industry capacity. Moreover, it will help capability and plans and feasible studies related to tourism industries.  

Management Strategies to Enhance Tourism Industry of Australia

The Australia government’s key target is Tourism 2020. The government of this country and the state and territory governments are trying to encourage investors to invest in this tourism industry. Hence, they implement regulatory reform to improve this environment related to investment (Pham, Nghiem and Dwyer 2017). The facilitation services and investment advice offered information to local and global investors by the Australian trade and Investment Commission. Moreover, the Tourism Investment Monitor makes a benchmark of the investment level for main tourism sectors of Australia. This benchmark is produced by Tourism Research Australia. These tourism sectors are transport aviation, Arts and Recreation industries and accommodation (Biggs, Hicks, Cinner and Hall 2015). These report accesses present and current investment activities in these three sectors. Moreover, it can help tourism investors to make decision regarding investment.

The Tourism ministers of Australia have declared four policies under the Tourism 2020. This policy will help the country to grow its national strategy regarding the tourism industry (Pham, Nghiem and Dwyer 2017). These policies can be explained further. Firstly, the government will encourage the tourism-experiences with high-quality. This will include indigenous tourism. Secondly, the government will limit some constraints that may impose burden on tourism industry. These are red tape, tax and other regulatory burden related to tourism industry. Thirdly, the public authority will undertake and coordinate some effective marketing campaigning to increase the market demand of tourism (Tolcha 2017). Lastly, the government will implement some policies where the public sector will work with private industries. This public-private partnership will help to develop the infrastructural condition of tourism industry to increase demand.

To develop the tourism industry of a country, it is also important to develop the hotel business in Australia (Ashraf and Manzoor 2017). However, it is a very complex process. Proper infrastructure and planning is required to develop this sector.

There are some difficulties related to Australia business policy, which affect the tourism industry in Australia (Spasojevic, Lohmann and Scott 2017). These are taxi driver authority, liquor licence and registration related to food business.

In Australia, millions of people are engaged with this tourism industry of Australia. Around 929000 people are directly and indirectly hired in this sector (McLennan, Becken and Moyle 2017). Hence, it represent round 8% employment of Australia’s total population.

However, according to a report related to Australian tourism, there was a shortage of almost 38000 people in tourism industry, in 2015. This number will be over 120000 people in 2020, if the Australian government does not take any step (McLennan, Becken and Moyle 2017). This vacancy is facing considerable recruitment, difficulties and deficiency in skills. There are some hotels and restaurants, whose owners or managers think that employing unskilled waiters, room cleaners, kitchen staff and bellhops will not create any trouble in their business. However, it is not correct. In every stages of this industry, skilled people are required.  This industry is also required airline pilots, tour guides, computer programmers and other jobs expert related to this industry (Spasojevic, Lohmann and Scott 2017). According to the business strategy, one manager and supervisor are required behind every ten unskilled employees. However, Australian tourism industry has faced difficulties to recruit experienced and trained workers to fill vacancies in hotels and restaurants. Hence, this industry recruits retired persons who are experienced hires foreign workers, especially for the peak seasons.

National Policies and Funding Process to Boost Tourism Industry of Australia

The government of Australia has taken four important actions to address the employment shortage under this tourism industry. Firstly, the government will improve the number of recruitment for this tourism industry. Secondly, the government body will increase regional workforce development and planning. Thirdly, the Australian government will identify a particular gap between education and training related to this tourism industry to address this employment gap (Voyer, Barclay, McIlgorm and Mazur 2017). Lastly, the government will facilitate the workforce mobility to expand the traditional workforce.

Australian tourism needs urgent infrastructure. Firstly, in Australia, there are some major gateway and business cities, like Sydney, Melbourne, Brisbane and Perth. There is a shortage of expensive hotel accommodation in those cities (Vila, Darcy and González 2015). During peak season, the tourism industry feels shortage of luxurious hotels in those cities. The shortage of luxuries hotels in Australia is a factor of stagnant market in Australia’s business travel. This is a severe contrast to the strong growth of holiday travel (Drennan, McGowan and Tiernan 2016). Secondly, the Australian cruise market has increased more than six fold in last few decades. This rapid growth has made port facility shortage, especially in most famous cruise embarkation and destination ports of Sydney in Australia.  This growth opportunity will remain limited unless Sydney does not offer a third dedicated cruise terminal.

There is also a problem related to railway transportation in Australia. Many airports in Australia have already managed to increase the number of domestic and international passengers as well as new services related to airlines to improve transportation services in Australia (Spasojevic, Lohmann and Scott 2017). High-speed railway service is essential as it can reduce the huge demand of airlines. However, the government of Australia has been debating since last few decades that whether this railway service is required or not.

Australia needs to take some steps to overcome the shortfall related to its tourism industry (Olya and Al-ansi 2018). There is some deficit related to its hotel business. Australia does not have luxuries hotels for its visitors. Hence, the government can offer incentives to these restaurants for developing and investing purpose.

The central government and state government can invest more funds to promote tourism as career, education and training as a vocational course and at higher educational level. The government of Australia can include tourism and hospitality training in Australian syllabus as a subject at all levels of education (Greenhill, Walker and Playford 2015). This may include means-based assistance to undertake training and education for young Australians at government affiliated training and educational institutions. Tourism industry needs relevant permits for operating safe business in Australia.

After analysing the tourism industry of Australia, it is important to analyse the economic condition based on this sector.  The importance of tourism sector is important for every country at present. This is because the economic condition of this business sector is increasing rapidly. It has a great contribution on a country’s national income. Hence, it is important to impose suitable policies to develop this tourism industry of a country (Airey and Ruhanen 2014). The government should change its policy decision related to this industry according to the requirement. At the time of inflation, the government can reduce the hotel price and fare price so that tourist can come in Australia. On the other hand, the government will increase the hotel price and fare price when inflation arises in the economy. Hence, economists also have interest to analyse the impact of this business sector on an economy.

On the other hand, economic condition also helps tourism industry of a country to grow and develop its business strategy. An established and developed economic condition with good infrastructure helps this tourism industry of this country to improve their business process. Economic growth also influences the tourism industries to develop their business (Assaf and Agbola 2014). In Australia, good communication system, hotel and hospitality sectors and all other facilities will help this industry to grow further. Moreover, the government of Australia bears some expenditure to develop this tourism industry. This expenditure has three types of impacts. These are direct, indirect and induced impacts. The direct impact shows increasing amount of sales revenue of a firm to influence the tourist needs for various goods and services. Some firms are within this tourist industry and some firms are outside this industry. Indirect effect happens from ‘flow-ons’. It happens when direct suppliers buy inputs from other firms from a region. This region buys inputs from other firms (Char-lee, Ritchie, Ruhanen and Moyle 2014). This process is continuously going on. In the economy, every industry is affected by the indirect effects of the primary tourist expenditure. Moreover, induced effects happen when the receivers of the direct and indirect expenditure-owners and their workers spend their enhanced incomes. Governments of each country understand the positive impacts of tourism and the tourism industry. It also helps to increase and gather the cross-cultural communities for the people of Australia. As tourists from different parts of the world visit Australia, the country gets enough resources to increase their knowledge.

Conclusion

Tourism is one of the best industries in Australia. The enhancing propensity of people to spend holidays overseas increases the demand of tourism industry of Australia. Due to increasing globalisation of travel and changing pattern of travel behaviour, the tourism industry of Australia is becoming important and competitive. Many people are working there and a major portion of national income is contributed by this industry. However, this tourism industry is facing some troubles related to skilled workers and lack of infrastructure. However, in each year, a large number of tourists visit in Australia. Hence, the industry has some requirements to achieve to expand their business in an efficient way. Australian government treats this tourism business as one of the main source of income because with small investment, the government can get huge amount of revenue.

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