A detailed and robust infrastructure of tourism research is possessed by Australia that places numbers and data behind the country’s tourism economy (O’Neill and Charters, 2000). Being the part of the Australian government, the Tourism Research Australia offers tourism intelligence to several state and national bodies, and being a component of that, does continuous economic research on the tourism industry (Hall,1991). The report on “Tourism Forecasts – Spring 2013” was given that gives 10 years predictions for Australia’s outbound, domestic, and inbound tourism sector.
The forecast related to the arrivals of international visitors shows a growing trend, i.e., from 5.8 million to around 6.6 million during the year 2013-14, and 5.6 million to about 7.0 million in the year 2014-15 (Gössling, Scott and Hall, 2013). These outcomes are achieved due to growth from the United States, China, New Zealand, the United Kingdom.
The paper discusses strategic management tools of tourism industry of Australia. The tools discussed in the paper include SWOT analysis, PESTLE Analysis and PROFIT Analysis.
- Destination of Australia appeals the visitors due to its uniqueness.
- Weaker as compared to the expected AUD- For the TFC forecast of April the AUD assumption for 2013-14 was US$0.99 (Dobson and Hooper, 2015).
- The progress of international economic recovery assists growth volume.
- Investments in online booking and digital marketing bring healthy competition and also back domestic tourism (Gössling, Scott and Hall, 2013).
- In air capacity, the robust growth is brought by competitive aviation sector which results in a decrease in airfares. This helps in increasing international and domestic tourist volume.
- Most of the European economies are facing deep recession, and there are no chances of their emergence in next 2 to 3 years.
- The economic growth of Australia will not have long-lasting below trend. As this would result in unemployment, and weaken the business and consumer confidence (Weber, and Ladkin, 2003)
- For the next 3 to 4 quarters, it is expected to have declined in the growth of local travel business.
- Although the occupancy rates of hotels are stable, yet few sectors are lowering their daily rates due to slow booking rate.
- In regional areas, limited investment is made which must support the global dispersal.
- In the short term, lower load factors occur due to softening of outbound demand, which then results in a decrease in airfares (Leiper, 2008).
- The economic importance of tourism may increase due to the depreciation of AUD.
- With most of the company’s stockpiling the loyalty points to decrease the liability via services and goods like tourism.
- In the long term, the debt ceiling of US will remain unresolved, bring recession not only in the US but also in other regions, especially Japan and Euro-zone, causes stalled recoveries.
- Being valid from October 2013, the new Chinese Tourism Law may have a long-term impact on the growth of the market, which seeks to explain practices like low prices, coercive measures of shopping and low-quality tours (Leiper, 2008).
- In various emerging and traditional markets, future growth is capped by the capacity of bilateral aviation; consolidation of regional aviation results in less competition which affects the leisure market.
- Raising the tourist dollar competition (notably, the marketing efforts by US, Thailand, and New Zealand(Higgins-Desbiolles, 2006)
|Political||The political environment of Australia is highly stable.There is no deregulation in the politics of Australia.The Australian politics approve open skies policy for international aviation (Ritchie, 2004)Foreign ownership rules are set by the Australian politics to ban foreign investment on land and housing. Politics of Australia define policies related to climate change (Ritchie, 2004)|
|Economic||Effects of Global Financial Crisis are still prevailingThe currency is risingUnemployment is increasingReal household disposable incomeIncreasing fuel costs (Ritchie, 2004)|
|Social||Demographics of consumer is changing (Ritchie, 2004)Traveling lifestyle is being largely adopted Consumer preferences are fluctuating with time|
|Technological||Efficient aircrafts Household access to internet is growing Investing high on research and development (Ritchie, 2004)New discoveries and inventions Surface transport investments|
|Legal||Legislative compliance requirementsBased on the rule of law, justice and independent of judiciary (Timo and Davidson, 1999).Anti-competitive behavior|
|Environmental||Carbon Emissions and Greenhouse (Ritchie, 2004)Tourism SaturationNoise Control LevelsShortage of infrastructure Capacity|
For the economy of Australia, the Tourism industry is getting vital importance that is increasing day by day. It is forecasted to get an annual increase of 3.4% in the tourism industry revenues over the next 5 years, with a prediction to reach up to $129.5 billion through the years 2017 to 2018 (Bussiness.gov.au, 2018). The calculations for the revenue are done on the basis of total expenses made on tourism services and products both by international and local tourists. In the tourism industry, the activities of domestic tourism comprise of about 3-4 quarters of the total operations of the industry, although, for the industry operators the fastest growing market is represented by the international tourism. As studied by the ABS Tourism Satellite Account, the industry is comprised of 2.7% of the total GDP of Australia during the years 2013 and 2014, and gives jobs to about half million individuals in the industry, accounting about 4.6% of the total employment of Australia (Dobson and Hooper, 2015).
In 2013 to 2014, about $18 billion are earned by Australia in the export receipts for tourism, which ranked tourism as the most essential and valuable export as well as most prominent export services in Australia behind, coal and iron core (Bussiness.gov.au, 2018). In the year 2008 to 2009, a noticeable decline is seen in the growth value of the tourism exports in Australia, all this is due to a decrease in the arrivals of short-term tourist, and in every 3 years the tourism receipts from the holiday and leisure tourism market had no contribution to the growth of industry (Bussiness.gov.au, 2018).
Just 3-4 quarters contribution is made by the Leisure tourism exports in the tourism exports of Australia during the year 2013 to 2014 (Bussiness.gov.au, 2018). During the past 10 years, there is an increased rate of demand for overseas leisure tourism as compared to the demand for leisure tourism from the domestic Australian market. In 2016, AUD27.3bn are generated by the visitors export, which is 8.5 percent of the total exports (USD20.3bn) (Bussiness.gov.au, 2018). It was predicted that this would increase in 2017 by around 6.1%, and 2.5% per annum growth from the year 2017 to 2027, i.e., AUD40.9bn in the year 2017, which is about 8.9% of the total growth (USD30.4bn) (Bussiness.gov.au, 2018).
Travel and Tourism, in 2016, has contributed directly to the employment in Australia by offering 545,000 jobs, which is around 4.6% of the total Australian employment rate (Bussiness.gov.au, 2018). It was predicted to have a decline in this rate by 3.8% during 2017, and then increase by 4 % of total employment in the year 2027, i.e., 574,000 jobs which is 0.9% per annum (Bussiness.gov.au, 2018).
Bussiness.gov.au., 2018. Tourism industry fact sheet. Department of Industry, Innovation and Science. Accessed from https://www.business.gov.au/info/plan-and-start/develop-your-business-plans/industry-research/tourism-industry-fact-sheet
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