Brexit's Impact on Australian Tourism Industry: A Tourism Plan for Overcoming the Challenges

This report analyzes the impact of Brexit on Australian tourism industry and recommends a tourism plan to overcome the challenges. The plan focuses on increasing travelers' attraction, easy access to visa, and overcoming the impact on the Australian economy. It also discusses the scope of the plan in the tourism industry, overseas collaboration, and global competitiveness.

TOURISM PLANNING AND
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Brexit affects Australian tourism.....................................................................................................1
Background......................................................................................................................................2
The rationale of the tourism plan.....................................................................................................4
Increasing travellers’ attraction...................................................................................................4
Easy access to visa.......................................................................................................................4
Overcome impact on the Australian economy.............................................................................5
The scope of the tourism plan..........................................................................................................5
In the tourism industry.................................................................................................................5
Overseas collaboration.................................................................................................................6
Global competitiveness................................................................................................................6
The growth of the Australian economy.......................................................................................7
The process of the tourism plan.......................................................................................................7
Setting objectives.........................................................................................................................7
Stakeholder engagement with possible solutions........................................................................7
Implementation............................................................................................................................8
Revision.......................................................................................................................................8
Changes in tourism plan..............................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The tourism sector of any country depends upon the server aspect of the host country as
well as the trading partner countries (Low, 2016). In the same manner, the Brexit creates the
considerable situation for Australian tourism industry (Rumbens, 2016). In this context, the
present report is based in the impact of Brexit on Australian tourism industry. With the help of
several studies, the impacts have been analyzed and understand the importance of minimizing the
impact. In this regard, a tourism plan is recommended to overcome the impact of Brexit on the
tourism industry. It further increases the sustainability of tourism sector with the involvement of
key stakeholder as government and industry representative.
Brexit affects Australian tourism
The political stability of the country affects the business of dependent countries as well as
the country’s economy (Yeung, 2017). In this regard, the Brexit has the huge impact on the UK
economy as well as Australian tourism industry because in Australia around 9% tourists came
from the UK that’s why it is the key source market for Australian tourism sector (Wykes, 2016).
Owing to this, the Brexit createsthe direct impact on the Australian economy. However, the
variation in UK GDP has the great impact on the dependent overseas market. Further, the
downturn in the financial income of UK public forced them to prevent travel plans. Owing to
this, the Australian tourism industry negative influence by the lower growth of UK GDP. In this
regard, the political stability accelerates the economic growth of a country (Ramadhan et al.
2016). Furthermore, the lower pound value imposes UK people to lower investment in visitation.
Therefore, the political condition of the UK creates the significant impact on the Australian
tourism sector and forced to downturn.
The tourism is the fastest growing industry in Australia has significantly contributed to
the Australian economy. In this context, it contributes in Australian GDP with 3% of total GDP
and gives 4.3% employment to Australian public (Turner, 2018). Thus, the Brexit
hasconsiderable for the Australian economy. Further, it creates the barrier in the revenue
generation for tourism sector of Australia.
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Background
The Brexit influenced the relationship between the Australia, EU and UK. In the present
time, Australia has been establishing a free business contract with EU and wants to establish
another contract with the UK (Rumbens, 2016). Owing to this, the regulations may vary when
Australia wants to export and import goods from the EU and UK. However, the EU and the UK
are the key business partner for Australia (Taylor, 2018). Further, both EU and UK caused the
decline in the Australian trade export share in 2016 with 6.1%which significantly affected the
Australian economy (Rumbens, 2016). In this regard, Brexit has influenced the trade relationship
with the UK and creates business uncertainty which needs the specific attention of regulatory
authority so that suitable strategies can be framed so as to look into the issue. Furthermore, in the
Australian tourism, Brexit creates the issue for lower consumer attention, poor employment and
consumer mindset for higher saving. All these issues create the barrier in the Australian tourism
growth.
At the same, UK work as a gateway in creating an entrance for Australian business firm
into other EU member countries (Australian Institute of International Affairs, 2018). Thus, it
influenced the trading relation with other EU member countries. Therefore, the Brexit construct
the negative impact on every Australian industry which has import and export trade with EU and
UK. Moreover, the Brexit influenced the global competitiveness of the Australian tourism
industry. This is because older marketing strategies will not enough for new political and
business environments of Britain (Yasarata et al. 2010). Therefore, the Brexit influenced those
issues of Australian businesses which are imperative for maintaining the global competitive
edge.
In the present time, every countrytargets to take independent decisions in several contexts
like trade agreements with other countries (Low, 2016). Further, they avoid the interference of
other countries and groups in their decision and in relation with other countries. This gave rise to
Brexit so that UK could operate freely and form the relationship with other countries which are
not included in EU. However, currently, EU regulations are followed by the UK in every context
which might not be effective or favourable in every context (Taylor, 2018). Owing to this, Brexit
would be helpful for the UK to set up their independent trade policies and does not rely on one
EU policies. Although, members countries also provide benefit for several nations in term of
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immigration, employment, industry development and other related aspects; yet, the restriction is
imposed by single governing body which needs to abide by the members. This scenario impedes
the independent decision making through which countries like the UK initiated Brexit.
Moreover, political communities of UK understand the importance of independent decision
making and own regulation through which business activities and decision-related to the general
public can be taken. However, it would create distance with the countries included in EU but
still, now the country will be able to access the entire world with its own regulations and
procedures. Though to a certain extent negative impact may be faced by the UK but then the
long-term benefit will be seen with the improvement in the political, economic and social
condition of the country. In this manner, a referendum was conducted on 23 June 2016 and the
resulted in the favour of Brexit with 51.9% vote (Hunt and Wheeler, 2018). Owing to this, the
UK will be free from all the EU regulation and build new business contract with other countries.
However, the political stability is imperative for the economy which leads the uncertainty in
future growth (Aisen and Veiga, 2011). Similarly, high political instability is proportional to
lower growth in the economy (Fatas and Mihov, 2013). Owing to this, Brexit influenced the
economic growth of the UK.
However, the UK has some disadvantages from the Brexit as the WTO tariff will change
for the UK to import and export. Further, the UK trade process will be changed for other EU
members and become difficult to access. Owing to this, the Australian government needs to build
healthy relationship with the UK and invite the UK public in Australia from easy immigration
rules. In this context, working holiday maker (WHM) visa provided by the Australian
government for the UK's public between 18-30 age group (Tourism Australia, 2016). With the
introduction of such kind of effective plan, the government of Australia can make the healthy
relationship with the tour operators so as to grab the attention of visitors from both countries
towards each other. Therefore, the Australian government is aware of the visa policy for the UK
public. Further, the tourism industry used this policy for marketing and emerge the awareness in
UK public.
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The rationale of the tourism plan
As per the above discussion, Brexit creates a negative background for the Australian tourism
industry. In this context, the Brexit creates emergence for several following issues which needs
the proper solution.
Increasing travelers’ attraction
The effect of Brexit is the political movement which had affected the currency value of
the country and accordingly spending limit of the consumers or the general public get affected.
Here, the low value of the pound in comparison to dollar change the travelling habit of UK
public and impose them for saving money rather than investing somewhere. Owing to this, the
Australian tourism industry needs to improve their strategies to attract UK public, In this regard,
they will make cost-effective tourism plan which can be accessible or affordable for UK
travelers. However, suitable marketing strategies by focusing on the financial aspect can be used
so as to grab the attention of visitors. Moreover, industry representative develops more attractive
offering tour plan to their customer and encourage them for travelling in Australia. Further, it
builds their travelling experience to extraordinary.
On the other hand, the global warming destroyed the natural beauty of Australia. Further,
the travelers’ activity in marine area negatively influenced the marine biodiversity through
enhancing the heat level which resulted in coral bleaching (Williams, 2018). Due to this, they
focus on the conservation of their natural beauty as increase marine biodiversity with the help of
protective marine environment and. These environment protection techniques become helpful for
attracting overseas traveller. Further, it is important for the Australian government to find the
solution for both lower income UK traveller and the conservation of the marine environment.
Easy access to visa
Brexit influenced the immigration process of UK citizen and increased the flight charges
(Calder, 2017). Owing to this, Australian government needs to improve their connection with the
UK government and creates supportive immigration rule for easy access to visa. This is because,
the government politeness for foreigner increase the tourist satisfaction level for selecting
particular tour destination (Wanhill, 2013). Furthermore, they need to decrease their flight's
charges for travellers through which they are able to attract medium income group clients. It will
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further increase the travelling activity in Australia by encouraging public with the cheapest flight
price.
Overcome impact on the Australian economy
Brexit creates downflow in the value of pound as well as the Australian dollar (The
conversation, 2016). Owing to this, inflation occurs and decreases the global competitiveness for
business. Further, it prevents business for overseas expansion. In this context, the tourism
industry of Australia suffered from Brexit. Owing to this, it is important for Australia to build a
close relationship with the UK and post Brexit EU (McDougall, 2016). In this context, the
political changes influenced the international business relationships by creating changes in
present trade regulation (Luttrell et al. 2014). In this context, the current plan will be helpful to
focus on those specific issues and assist the UK government to make the favourable regulations
which promote the tourism of Australia. However, it might be possible that both governing
bodies come together and take decision for the promotion of each country with the collaborative
approach. For this purpose, a plan has been prepared for finding the alternatives ways to resolve
the issue related to Brexit and provides the new direction for the overall tourism sector of the
country. Therefore, the Australian government needs to set their focus on the finding the solution
for overcoming the impact of inflation.
The scope of the tourism plan
Brexit has long-term effects on several economies as well as the Australian economy. As
per the above discussion, Brexit influenced the Australian tourism industry as well as other
industries. In this context, the Brexit influenced several issues which are imperative for the
growth of any industry. Owing to this, the proposed tourism plan have possibility to progress in
the Australian economy. Further, it has huge scope in Australian tourism sector as well as other
business sectors these are following.
In the tourism industry
The tourism plan has huge scope in the tourism industry by amplifying the service
quality with unique offering with affordable price. Due to this, the Australian tourism industry
will be successful in attracting a large amount of foreign traveler. In this context, the
organization offerings in service quality work as a magnet for the consumers and build
sustainable tourism (Chen et al. 2011). Similarly, it will be helpful for targeting lower income
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group consumer with the affordable tour plan. This is because the understanding of customer
perception is necessary for improving the customer retention (Högström et al. 2010). Therefore,
the proposed plan increases the productivity of the Australian tourism industry.
Overseas collaboration
Collaboration is one of major aspect for the success of any business and industry. In this
regard, the business growth rate depends on the collaborative nature of the business (Majava et
al. 2013). Owing to this, the proposed tourism plan will be helpful for Australian business for
building a collaborative trade relationship with the overseas business firm. Further, it will be
helpful for increasing the productivity and profitability of Australian businesses which further
enhances the probability overall tourism sector of the country. Moreover, on the basis of the
above discussion, the free trade agreements of Australian government with UK and EU will
improve the tourism of Australia and reduce the impact of Brexit to a great extent. Therefore, the
tourism plan with the free trade agreement will be helpful for escalating the overseas
collaboration of Australian business.
Global competitiveness
The healthy relationship with UK and EU amplifies the probability of the development
process in the several Australian industries. Owing to this, they will be more developed and
expand globally. Further, it creates the positive global competitive edge which will attract the
huge amount of overseas customers. Furthermore, it will also increase the FDI in Australia and
brings more innovation to the industries. In this context, the higher rate of FDI is helpful the
business in the terms of development by increasing the investment in the innovation in the firm
(Belloumi, 2014). Similarly, the FDI is the major part of economic growth by determining the
natural resources, trade openness, the effectiveness of government and regulation quality
(Jadhav, 2012) Due to this, FDI will be contributing positively in global competitiveness of
Australian trade market. Moreover, liberalization in the immigration process will be attracting
the foreign consumer. Therefore, the optimistic global relation and government liberalization in
the immigration process willeffectively influencethe Australian tourism industry.
The growth of the Australian economy
As per theabove discussion, the overseas collaboration and global competitiveness of
Australian business are important for the Australian economy. Further, the tourism industry
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contributes well to the Australian economy such as GDP growth and employment in the
Australian public. Owing to this, the collaboration between tourism industry representative of
Australia and Britain’s tour operator firms will influence the tourism growth in Australia.
However, the government intervention in the overseas business influences the business
productivity in both positive and negative way (Mason and Brown, 2013). In this context, the
Australian government positively influences tourism industry by creating development strategies
and policies. However, it is already known that Brexit creates the unfair situation for the
Australian tourism industry. Owing to this, the government should build more effective strategies
for development and retain more traveler’s attention.
The process of the tourism plan
By considering the potential issues related to Brexit, tourism plan has been prepared for
the Australia which covers following different steps. It has been explained as follows-
Setting objectives
According to the above discussion, it is found that the tourism industry must need an effective
tourism plan to overcome the effect of Brexit. Further, it will increase the growth of the tourism
sector and the overall rate of return. Owing to this, the following objectives are set for improving
the efficiency of the tourism plan.
 To increase the arrival of Britain’s tourists in Australia by 20%
 To improve trade relation between overseas tour operators.
 To improve the global competitiveness of Australian tourism by 10%.
 To simplify immigration rule for Australian tourist.
 To increase customer retention for Australian tourism by 15%.
Stakeholder engagement with possible solutions
As per the above discussion the Australian government, Tourism industry representatives,
consumers and competitors are the key stakeholders of the Australian tourism industry. Owing to
this, the involvement of key stakeholder is imperative for creating effective tourism plan. In this
regard, the Australian government will be focused to enhance the growth of tourism industry in
this context, the Australian government may simplify the immigration rule for the tourist and
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increase the arrival rate of foreign tourist. Further, the government can also reduce the burden of
strict rules and regulation related to visa procedure for the UK travellers which will be helpful
for establishing the more effectual relation with the overseas business firm.
Moreover, the government should need to invest in the alternative solution for protecting
valuable marine life. In this regard, they can build a clone aquarium the same as the Great
Barrier Reef which can divert travellers and protect the marine environment. Further, the
government body can make affordable travelling charges. Further, the industry representative
should offer attractive service with moderate price. Further, they can also offer cost-effective
tour plan with additional services without any charges. At the same, the industry representative
should create healthy relations with overseas partners and force them into doing business with
them. On the other hand, they can improve their service quality through employee training.
Implementation
The implementation of the tourism plan is based on the stakeholder role in the current
problem. Owing to this, it is crucial for the Australian government to invest more in the
international trading contract and creates free flow in the international business. Further, they can
change their immigration policies create them quite simple for tourist; even, they can give a visa
without creating any trouble for visitors. Moreover, the government can create several
regulations for tourism industry representative. Thus, the hospitality representative will be bound
to offer a superior quality of service with affordable price. At the same, they will offer 30% off
on tour plan for the overseas travellers in the offseason and maintain continuous flow in the
arrival of visitors.
Revision
According to the result of the implementation of tourism plan, the revision is done upon
the outcome of the tourism plan in regular time span and evaluates the efficiency of the tourism
plan. In this context, the review will be implemented every month and analyzed the tourist's
growth in peak season as well as offseason. Further, at the departure time, the feedback from the
traveller will be taken for the future improvement. Owing to this, this revision process is helpful
for considerate the deficiency of current tourism plan.
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Changes in tourism plan
In this step, the modification will be done on the basis of the output of the revision
process and the changes will be implemented in the strategies of the current tourism plan. In this
regard, the modifications are done upon the current objectives and update them according to
future requirement. These modifications increase the effectiveness of the tourism plan and
magnify the probability of success.
CONCLUSION
On the basis of the above report, it can be concluded that the economy of a single country
is influenced by the political measures and economic changes in the other related economics.
According to the above analysis of Brexit impact on the Australian tourism sector, it can be
concluded that the political condition of the UK influenced their business environment as well as
the Australian business environment. In this context, the tourism plan can helpful for finding an
alternative solution for harmful issues which are created by Brexit with the engagement of
government and other stakeholders of the tourism industry.
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