Together, hospitality, tourism and events are one of Australia’s largest industries. In recent times, these industries have been faced with many challenges and opportunities. Examine these in terms of the positive and negative impacts they are having. Essay Example
Together, Hospitality, Tourism and Events in Australia
Together, Hospitality, Tourism and Events in Australia
Together, hospitality, tourism and events in Australia
The hospitality, events, tourism and together are today ranked as one of the leading industries not only in the globe but Australia too. In the first quarter of 2015, Australia received more than 7.1 million tourist arrivals and also expected to grow in the next five years (Jones, 2015). In fact, a research conducted by Tourism Australia (2011) estimated the hospitality events, tourism to grow and be worth $140 billion by 2020. The potential growth is attributed to the major emerging economy comprising of China, Singapore and Hong Kong. China is projected will be the leading contributor of tourism industry of Australia by 2020 (Australia Government Publicity Commission 2015). Despite the opportunities, in recent times in Australia, together, hospitality, tourism and events industries have been faced with many challenges. Therefore, this essay will examine these challenge and opportunities in terms of positive and negative effects they are having.
Together, Hospitality, events, and tourism is a vital sector for Australia. The industry contributes almost $35 to the GDP of Australia while creating $95 billion, and directly hires more than 500,000 candidates and earns almost 12 percent of Australian overall export earnings, hence making it the leading service export sector in the country (Tourism Australia 2011). To maintain and support creating jobs, contribution to GDP and economic development, Australian Hospitality, events, tourism and together industry needs to find more opportunities. Some of the growth opportunities which have been identified for this industry include Asian growing economy, technology advancement and infrastructure growth.
Over the years, international tourism has driven Australian Hospitality, events, tourism and together industry to growth and to become one of the competitive industries in the world. Kulendran and Dwyer (2009, p.277) stated that in the last two decades, the Australia has experienced a decline in tourist who visits from their historical sources such as US, Japan and UK, and it meant that the country has to look for opportunities elsewhere. Emerging economies in Asia have provided Australia an opportunity as the new source of more international tourist arrivals. The Herald Sun (2015) claimed emerging economies in Asia, especially China and India have strongly grown in the recent years majorly owning to the increasing real household and disposable incomes hence influencing the consumption and new wealth which transforms demand for luxuries especially trips in foreign countries for leisure and business experiences. Pearce, Philip and Mao-Ying (2014, p.24) argued that North-East Asian countries such China are country the region’s leading tourist to Australia and contributes the largest expenditure from tourism in Australia.
A research by Tourism Research Australia (2014) forecasted that the level of visitors from China to Australia is likely to increase and equals that of New Zealand which now ranks as a leading source of tourism to Australia, by 2022. Most of the Australia’s source of tourist from Asia have rising economies which are characterized by consumer confidence and rapidly increasing middle class growth hence Australia is likely to benefit from high spending from tourist from this region (Australia Government Publicity Commission 2015). International tourism is positive to Australia because it generates foreign exchange hence boosting the economy of the country. Tourists from these Asian countries pay for service in hotels, restaurants, theme parks, national parks, stadiums, historical sites and museums which flow into the economy thus contributing to the GDP (Veal, Darcy & Lynch 2013).
A research by The Herald Sun (2015) reported Chinese visitors spent nearly $3.5 billion in 2014 and are projected to use almost $9 billion in their Australian trips by 2020. In addition, international tourism creates employment in Australia as people are employed as tour guides, drivers, airhostess, pilots, hotel managers, event organizers, accountants, receptionists and finance managers among other careers. In the process, their earn income to support their families and pay tax to the government. Hall (2007, p.78) posited that the growth of Asia countries and spending in Australian tourism leads to economic development. Hotels, roads, airports and museums are normally built by the government to encourage international tourism. However, international tourism especially Asia is a threat to Australian national security. Terrorists especially from Asian countries have used increase of tourism activists to sneak into other countries and cause havoc (Australia Government Publicity Commission 2015).
The advancement of technology like the internet and personal computers, Smartphone, tables and laptops has become an opportunity in hospitality industry (Zhou 2004, p.34). The internet and technological devices have enabled communication with no geographical limitation as customers can book hotels in Australia from any part of the world. A research conducted by Veal, Darcy and Lynch (2013, p.135) claimed that 69% of Australian citizens can access internet. The growth of internet technologies is project to enable 80% of Australian population to get online by 2020. Tourism Australia (2011) opined the adoption of technology makes it easier for hospitality, events, tourism and together companies to market their products or services on a digital platform and reach many tourists across the globe. Technology is also a competitive advantage factor in which customer does not need to travel to Australia to book a hotel but can do it anywhere. Websites and social media makes a great platform for hospitality, events, tourism and together companies to showcase their offerings at a cheaper cost (McCabe 2009, p.67). However, technology in hospitality has its negative impact as its renders many people jobless.
Despite the opportunities, hospitality, events, tourism and together companies face challenges such as economic fluctuations, increasing competition from other countries and weak domestic tourism. Veal, Darcy and Lynch (2013, p.58) posited that in 2008, just like other countries of the world, Australia faced economic crisis which led to demand for services in hospitality industry. The situation continued up to 2011 when still experienced low number of tourist visiting the country leading to slow growth in economy and joblessness. However, when the American dollar compared to the local Australia dollar, Australians hospitality, events, tourism and together companies can still benefit from high foreign exchange.
Today, there is increasing competition in tourism sector as most developed countries build infrastructure to attract tourists from other parts of the world (Tourism Australia 2011). Competition is good for growth of tourism sector since it makes the market players to develop state of the art infrastructure and create more product and service. However, Tourism Australia (2011) contended the competition also creates negative impact on Australians hospitality, events, tourism and together companies because it lowers their profits and market share. For instance, Australia’ international tourism segment share of the market has decreased recently and its domestic counterpart has also declined in terms of expenditure since 2000 (Australia Government Publicity Commission 2015).
In conclusion, several literature reviewed have found out that Australian hospitality, events, tourism and together have grown over the years and is one of the strongest worldwide. The sector is projected to grow due various opportunities such as economic growth in Asia, technology and infrastructure. Nonetheless, the industry players must overcome challenges such as terrorism, economic dwindling and competition if there want to remain strong and successful.
Australia Government Publicity Commission 2015, Australia’s International Tourism Industry: Productivity Commission Research Paper, viewed 7th December 2015 from http://www.pc.gov.au/research/completed/international- tourism/international-tourism.pdf
Hall, C.M 2007, Introduction to Tourism in Australia: Development, Issues and Change, 5th Ed., Pearson – Prentice Hall, Sydney
Jones, L.H. 2015, Influx of Asian visitors to boost tourism, viewed 7th December 2015 from
Kulendran, N & Dwyer, L 2009, Measuring the Return from Australian Tourism Marketing Expenditure in Asia, Journal of Travel Research, Vol. 47, No.2, pp 275-284.
McCabe, S 2009, Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases, Amsterdam, Elsevier/Butterworth-Heinemann.
Pearce, Philip, L & Mao-Ying, W 2014, Building familiarity with a new market: motivations for Chinese recreational vehicle tourists in Australia, Journal of Hospitality & Tourism Cases, Vol.3, No.1, pp. 20-29.
Tourism Australia 2011, Tourism 2020:Whole of government working with industry to achieve Australia’s tourism potential,
viewed 7th December 2015 from http://www.tourism.australia.com/documents/Tourism_2020_overview.pdf
The Herald Sun 2015, Australia enjoying its biggest tourism boom since Sydney 2000 Olympics,
viewed 7th December 2015 from http://www.heraldsun.com.au/travel/travel-news/australia-enjoying-its-biggest-tourism-boom-since-sydney-2000-olympics/news-story/36a730909f06ff2f742df135dcae22ff
Veal, A.J, Darcy, S &Lynch, R 2013, Australian Leisure, 4th edition, Pearson Australia, Frenchs Forest.
Zhou, Z 2004, E-commerce and information technology in hospitality and tourism, Delmar, London.
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