TOURISM, HOSPITALITY AND EVENT MANAGEMENT

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1189

TOURISM, HOSPITALITY AND EVENT MANAGEMENT

Department

Tourism, Hospitality and Event Management

Tourism, hospitality, and event management business are considered to be economically significant because they provide both consumer goods, as well as leisure services. This industry is part of a large group of companies that provides goods and services to travellers. The tourism, hospitality and event management industries include restaurants, accommodation, meetings, event, cafes, bars catering, tour services, casinos, and so on. Walker (2010) has indicated these sectors are among the largest and fastest-growing industries in the world. Currently, these sectors account for a workforce of 2.1 million, most of which are based in restaurants, hospitality services, events and so on. Equally, tourism, hospitality and event management are fast growing professional fields due to their success and attractiveness (Rutherford & O’Fallon 2007). In this paper, we will look at how size, structure and interconnecting elements of tourism will be valuable in any career path.

Size and Sectors that make up Tourism Industry in Australia

According to Kasavana & Brooks (2007), the tourism industry has five major sectors: tourism lodgings such as cruise ship, hotels, camps; transportation services such as buses, trains, airplanes and ships; food and beverage operations such as bars and restaurants, retail stores such as art shops and gift shops; and the activities such as business, education, sports, and festivals. The Australia’s tourism industry relies heavily on domestic spending. Domestic tourism accounts for approximately 75% of the country’s tourism expenditure while international tourists account for only 25% (TRA 2011). However, the number international tourists have been rising steadily by 1½ annually over the past decade. Currently, Australia is the eighth largest tourism destination globally and attracts about 3.3 of global income on international tourism. 95% of tourism businesses are self-employed, micro and small businesses, and indication that the industry is labor intensive. The tourism industry in Australia employed approximately 764,000 workers in 2010 in accommodation and food services, accounting for 6.7% of the total workforce. Direct tourism employment has continued to grow, in 2015, it increased by 1.4%, approximately 6,900 jobs. Moreover, at the same time tourism has boosted the country Gross Domestic Product by about $33.9 billion.

Tourism is expected to achieve more than $115 billion in overnight spend by 2022, from $70 billion in 2010. Total tourism expenditure is expected to be largely driven by strong inbound expenditure growth. However, significant growth of in bound tourism is expected to be driven by the Asian markets with major markets including Singapore, United States, United Kingdom, China and New Zealand. On the other hand, domestic tourism expenditure is expected to increase by 2022.

Current growth and trends in Tourism Industry

Due to increase in globalization today, people are travelling more than ever around the world. The Australia industry has shown a strong revenue growth over the past few years. This has been contributed by the increase in the number of international visitors, particularly when the Australian dollar depreciated. The depreciation lowered travel and accommodation costs increasing the number of international visitors to Australia. Since mid-2014, the Australian dollar has been falling, particularly against US dollar and British pound. According to the Australian Bureau of Statistics, almost 620,000 international tourists visited the country, an increase of 2 %, while the number of outbound was reduced by 0.7% (ABS 2010). The number of short-term overseas arrivals continues to increase, as well as domestic trips because the currency has depreciated making trips cheaper. Last year, Chinese tourists pumped about US$4bn into the Australian economy, and this figure is estimated to increase by 2020.

Furthermore, the expansion of low-cost airlines and increasing incomes, particularly in developing countries in Asia and China has boosted the number of international tourists in Australia (OECD 2010). Currently, China is the second-largest source of international tourist. In 2014, the number of Chinese visitors increased by 21.9% compared to the previous year.

Technology advancement has also presented opportunities for greater efficiency, as well as allowing guest services to be integrated. Technology is considered as a strategic resource in business to increase competitiveness (Picolli 2008). When technology is used effectively, it can make significant operational improvements. For instance, communication tools have eased online marketing, hotel bookings and so on because they are faster and cheaper (Romanovs, 2000). Recently, Tourism Australia has unveiled a high-tech new global marketing campaign. The campaign includes virtual reality experiences and 360-degree videos. This virtual reality element is aimed to demonstrate to the visitors «how it feels» to holiday in Australia. The marketing campaign will be crucial in helping tourism Australia to reach its long-term goal of generating overnight visitors spend $140 by 2020.

Employment Opportunities and Career Path

Tourism is a diverse industry with numerous long-term career opportunities in various environments (Williams 2007). One can choose to work either indoor or outdoors, and flexible or standard hours. I believe it offers the most exciting careers in the world. I have always wanted to be a travel designer; I believe travel services act as a central part of the tourism industry since it touches in many sectors. Travel services sector will offer me an opportunity to meet clients from allover the worlds, as well as learn another aspect such as marketing, sales, and so on.

My educational background in tourism will be crucial to understanding the intricacies of this sector in the industry. This knowledge will help me to assess the visitors, determine who travels for business, leisure and events. It is also important to understand what travellers do and spend. With advancement in technology, B2B model has made travel and tour business cheaper and faster. Travel service is a dynamic field, with numerous opportunities to learn and gain experience in other sectors and fields to help me advance to travel designer.

Conclusion

Tourism, hospitality, and event management are a diverse industry. However, tourism act as a driver because it has travel dimension and tourist impact that brings diverse communicants. The tourism sector is among the fastest growing professional field, with numerous employment opportunities. The tourism industry is expected to achieve approximately $115 billion overnight expenditure by 2022, resulting in an increase in job opportunities. Also, advancement in technology has played a crucial role in increasing the number of visitors by offering faster, and cheaper ways of advertising, bookings, and so on.

References List

ABS (Australian Bureau of Statistics) 2010, Australian National Accounts: Tourism Satellite Account 2009-10, ABS Cat No 5249.0, December.

Kasavana, M & Brooks, R 2007, Managing Front Office Operations, Educational Institute, AHLA, Michigan.

OECD (Organisation for Economic Co-operation and Development) 2010, OECD Tourism Trends and Policies 2010, OECD Publishing, Paris.

Piccoli, G 2008, ‘Information Technology in Hotel Management’, Cornell Hospitality Quarterly, vol. 49, no. 3, pp. 282-296.

Romanovs, A, 2000, Using Integrated Information Systems in the Field of Tourism. Proceedings of 6th Nordic-Baltic Conference in Regional Science “Nordic-Baltic Sea Region on the Eve of the 21st Century”, Riga, 269-272.lpp

Rutherford, D & O’Fallon M 2007, Hotel Management & Operations, Wiley.

TRA (Tourism Research Australia) 2011, Tourism Industry Facts and Figures at a Glance, Tourism Research Australia, Canberra.

Williams, J. 2007, The Future Trends in Tourism-Global Perspectives, a club of Amsterdam conference.