The Australian tourism industry is generating huge revenue and creating the most jobs for its citizens. Hospitality includes both the tourism and hotel sectors along with transportation. It is a huge industry, employed around 800,000 employees, while it is considered the seventh largest industry in Australia for its jobs creation. As the industry is growing continuously, it contributes about 9 billion to the Australian economy. The hospitality and hotel industry is the huge industry associated with many other sectors and industries. There are many considerable challenges the Australian industry is facing over the last decade. Some of the key challenges are the natural catastrophes and disasters, increasing inflation rate continuously, terrorism, and a shortage of skilled labours. Other issues related to this industry could be the health hazards, global water crises, pandemic diseases, and transportation issues. The interest rate is constantly growing which is soaring the challenges for the industry. The rise in interest rate has a great influence over the prices and expenses incurred during tourism. The lack of trained and competent workforce is the major contemporary issue of the Australian hospitality industry. The quality of services depends upon the skills and experience of the staff within the industry. Mostly the tourist guides and the hotel staff has a great impact on the experience of a tourist who visits Australia. Investing in the human resource of an organisation always produce greater outcomes in terms of quality of service, reduce the cost, reduce time to complete a task, and satisfying customers at great extent.
Tourist market potential
Tourism is the key contributor to the Australian economy because of numerous natural tourism landscapes loaded with the advanced infrastructure and other facilities which attract tourists from around the globe. Australia provides many distinguished services to the tourists such as its tasty foods, aquatic and coastal, nature and wildlife, luxurious hotels, advanced transportation system, and proper infrastructure. The potential market for the tourists in Australia could be the nature and wildlife, as here many unique animal species are available. There are certain forests and the wildlife which could attract the tourists, however, it needs a proper strategy that could enhance this segment of the industry. To develop this market segment of the hospitality industry, a set of actions and a concrete strategy is required. Transportation is the main factor of this market segment, with properly trained guides, which could lead the tourists and guide them on how to avoid any risk. The tourism industry should focus on the infrastructure of the landscape where the wildlife is abundant. The Wildlife Tourism Australia has the potential to contribute to the country economy. According to the Wildlife Tourism Australia 2018 conference, different aspects were discussed thoroughly to balance the needs of the wildlife, the tourists, and the local residents and operators. Wildlife Tourism Australia brought together different delegations they presented their ideas on how to improve tourism in this sector. The potential market segmentation helps the industry to retain their existing clients, or the existing rate of the tourists, and also attract new potential tourists who will produce more profit for the industry and the country. The scope of hospitality management is very vast, and it also influences political decisions. For instance, the Australian government has reviewed its visit visas policy, the civil aviation, transportation sector, infrastructure, foods, and other products of the country. Australia has realised the importance of tourism, and from the last decade, the government has spent billions of dollars on the development of tourism throughout the country. The protection of wildlife is the primary concern of all the nations around the world. Using wildlife as a source of tourism will ultimately benefit many dimensions of this sector. First, it will help the wildlife itself, as WTA will protect the animal species. Secondly, WTA will protect the forests and will follow the environment-friendly activities. Finally, it will generate revenue for the country through the loyal and excited tourists, who are curious to explore new places and see new species of plants and animals.
Transportation has a significant influence on the tourism industry. An advanced and luxurious transport system facilitates the tourists to reach their destination. Australia has focused on the development of transport to boost its tourism. Both these sectors are benefiting the country by highest government infrastructure investment (Network, 2018, p.10). Moreover, there are vital projects such as the provision of cruise ship facilities to the tourists, transport links to the airports, access to roads to the key destinations. The transport sector is now fully equipped with the latest technology such as the provision of mobile phone coverage, wifi and free fast net facilities.
Moreover, online seat reservations, online payment, online status and schedules of their flights, trains and buses arrivals and departures are the main factors which made the tourism easy (Static.treasury.gov.au. 2019, p.15). There are specific major development plans in the transportation sector, the high priority projects for the year 2019 are The western airport of Sydney, upgradation of the M4 motorway, upgradation of M80 ring road, WestConnex, Ipswich Motorway Rocklea-Darra. The productivity of public transport is enhanced by infrastructure development. The Tourism and Transport Forum Australia (TTF) is supporting two transport projects and has taken these initiatives to facilitate the tourists. The Brisbane Cross Road Rail and the Melbourne Airport Rail Link. The development of the transportation sector could create a lot of jobs and will contribute to the country economy. Numerous projects will generate employment opportunities and will overcome the unemployment level of the country. The diminishing unemployment level will improve the economic stability of the country. In Australia the provision of free wifi in the transport facilities are widely practised, that delighted the passengers to enjoy their journey. TTF spends huge budget over the regulation of Wi-Fi, because they provide high-speed public internet, initially in the capital cities.
Furthermore, Australia is the leading country renowned for skilled workers in the fields of travel, tourism, hoteling, and hospitality. Australia is hiring qualified employees and labours from other countries, to provide quality services to the tourists. The continuous growth in developmental projects in the infrastructure for the advancement of transportation requires skilled works, due to which Australia is hiring skilled labours, engineers, and other technical staff from other underdeveloped countries. As the population of the country is growing, tourists are increasing, and skilled workers from other countries, so the government has initiated many infrastructure development projects.
The hotel industry is growing and has the potential to contribute to the national economy. The long term strategy of the tourism department of Australia is to identify the needs for new infrastructure and other investments including luxury hotels for accommodation. Such investments aim to improve the volume of tourists rush to explore the beauty of Australia. Hotels can raise the employment opportunities and contributes to the country GDP (Jacobs et al., 2016, p.19). Hotel industry of Australia has developed in the last few decades, provides all the luxurious facilities to the tourists. However, there are many low-cost hotels as well, and it depends on the budget of the tourist. The tourism industry should focus on the economy class hotels besides the three stars and five stars hotels. It will increase the flow of tourists who have a limited budget for their stay in Australia. One class will prefer a large number of facilities and features and would be able to pay higher rents. However, others would have lower expectations about the services provider of the hotel. They want to consume less amount on accommodation and stay for more time during their visit to Australia with a limited budget. The rent cost of a room at a hotel is dependent on features of the room, and the willingness to pay different rage of payments. The hotel industry has employed 300,000 people around the country, and there are more than 6000 small and large hotels. Which generates about 11 billion per year to the economy of the country.
Crisis and risk management
The risk is the probability of occurrence of negative events, in the tourism industry risk could cause losses which could be measured through different tools. The risk could be related to the financial losses and mismanagement, while other is associated with the non-financial risk mostly concerned about the safety and security of the tourists. There are many strategies which are used worldwide to mitigate the risk factors. The first strategy is Risk Avoidance this strategy is used to avoid the risk through the proper management system. For instance, planning a tour during the bad weather is a risk and to postpone the plan is total avoidance of the risk. Risk avoidance is not possible always. It seems like an ideal situation because one cant avoids the risk all the time. So it is better to opt for other strategies because this strategy has many limitations. The second strategy is the Risk Reduction which refers that risk can not be eliminated but could be reduced by proper management, and information (Gibbs Warren, 2015, p.117). The risk could be reduced by limiting risky activities and take rational decisions. There is a saying that higher risk higher return, however, it is opposed by the new studies, and now the researchers believe that lower risk can yield higher outcomes. High risk is always due to lack of information, and nave decision which are taken without any shreds of evidence. Safety parameters should be made to avoid the level of risks, such as the fire extinguishers in the hotels, smoke detectors, build earthquake-proof buildings, hire certified tour guides, trained drivers, and trek leaders. Next strategy is the Risk Transference this is an effective strategy used by all organisations. Risk transference means to transfer your risk to other organisations. For example, the insurance companies are taking the chances of other companies products and properties. The tourism department in Europe provides insurance to the tourist which covers the overall loss, accidents, stolen valuables, and death etc. The company will compensate the tourists in these kinds of injuries. The final strategy is risk retentions If the other strategies dont work then, the tourism department has to consider this strategy. The retention strategy of risk and crises mitigation to retain the minor risks and accept the risk. The minor risks should be considered as the part of the job. In the tourism department the minor risks are the delays of flights, unavailability of rooms at the desired hotel, bad weather etc.
Social media influence
Social media has become a fundamental source of marketing for most of the top companies. The importance of social media in our lives could not be denied. It is the most effective and inexpensive medium of communication, and companies used this medium to convey their message to their target customers (KKF et al., 2016, p.67). For the tourism and hospitality industry the social media, in particular, is an excellent source of the promotion of a place, hotel, transportation, or the tourism guide firm. Tourists mostly subscribe the pages and groups on the social media related to their exciting places, activities and people. For instance, a picture of natural beauty gets viral in a short time around the world. So the people get interested in visiting there. The viral images and videos have a significant influence on the tourists decision. People love to share their pictures and videos of their travelling on the social media that is free of cost source of advertisement. Nowadays many hotels and resorts are using social media as the source of contests, and campaigns. I want to share my own experience, and I use social media to find a better hotel, best restaurants etc. before travelling a place and search its pictures through their Facebook official pages etc. Social media has reshaped the travelling agencies to review their travel agency models. They are using social media accounts to enhance their sales. In this era of internet, people are doing all their tasks through themselves, the role of agencies is reduced, however, the digitalised agencies are still providing their services to the potential customers(Zeng and Gerritsen, 2014, p.29). When a person contacts a brand through a Twitter account, thousands of people are curious about the response of brand, and people want to know the reaction of the company.
Visitor experience development
Australia is enriched of natural beauty such as glaciers, beaches, forests, wildlife, parks, mountains, and seas. The weather of this country is pleasant, with an advanced transport system. Mrs Macquaries Chair wrote her feelings about her tour to Australia, and she talked about the beauty of Sydney, Opera House is like a paradise on the earth. She added that sitting in the boat was her first experience, where she found the water surrounded the structure of three sides and at its south side Royal Botanic Gardens were visible.
Similarly, John Utzon has mentioned his experience about his previous visit to Australia, Within that short time he visited numerous places in the country. He was amused by the Blue Mountains National Park in Australia, which is 81 kilometres vast area situated in the west of the Sydney. It is a complete lovely package with three huge rocks called as the Three Sisters. Moreover, this park contains waterfalls, trees, ancient rainforest, and aboriginal rocks.
To conclude, tourism is the services industry which is an excellent source of revenue generation for many countries. The natural beauty and fantastic landscape is the God gifted resource, which attracts people from thousands of kilometre to explore it and get their mental satisfaction. Australia is one of the beautiful countries of the world and has become the centre of interest of the tourists. Besides the unlimited opportunities, it also holds specific challenges. Some of the key challenges are the natural catastrophes and disasters, increasing inflation rate continuously, terrorism, and the shortage of skilled labours. Other issues related to this industry could be the health hazards, global water crises, pandemic diseases, and transportation issues. The interest rate is continuously growing which is soaring the challenges for the industry. The rise in interest rate has significant influence over the prices and expenses incurred during tourism.
The role of modern technology in tourism has boosted its revenue generation and raised the number of tourists used to visit Australia. The hotel industry is growing and has the potential to contribute to the national economy. The long term strategy of the tourism department of Australia is to identify the needs for new infrastructure and other investments including luxury hotels for accommodation. A risk factor is highly associated with this industry because some sites which attract the tourists might have dangerous roads. Which could possible cause accident, moreover we have discussed the strategies of mitigating the risk factor associated with this industry.
Gibbs, L. and Warren, A., 2015. Transforming shark hazard policy Learning from ocean-users and shark encounter in Western Australia. Marine Policy, 58, pp.116-124.
Jacobs, B., Lee, C., Watson, S., Dunford, S. and Coutts-Smith, A., 2016. Adaptation planning process and government adaptation architecture support regional action on climate change in New South Wales, Australia. In Innovation in Climate Change Adaptation (pp. 17-29). Springer, Cham.
Network, P.T., 2018. Transport Strategy refresh.
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. The role of customer engagement in building consumer loyalty to tourism brands. Journal of Travel Research, 55(1), pp.64-78.
Static.treasury.gov.au. (2019). online Available at https//static.treasury.gov.au/uploads/sites/1/2017/06/C2016-052_Tourism-and-Transport-Forum-Australia.pdf Accessed 19 Jan. 2019.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism A review. Tourism Management Perspectives, 10, pp.27-36.
CONTEMPORARY TOURISM ISSUES PAGE 2
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