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TOU501 - Reforms in Tourism Industry

Added on - 07 Mar 2020

In the TOU501 Individual Report, we will discuss Tourism Industry. The writer of the article points out the fact that Australia missed out on 61 bids for international conventions in the year 2016 which resulted in an 11% decline in Overseas Visitors Traveling to Australia. Finally, the article points out a positive attribute of the budget in the sense that the government set aside funds to finance tourism-reliant sectors that suffered the aftermath of Tropical Cyclone Debbies. It is a no-brainer that the tourism industry plays an integral role in the economies of the world

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Running Head:Tourism Industry ReformsBudget Reforms to the Tourism IndustryBy (Name)(Tutor)(University)(Date)
Tourism Industry Reforms2Budget Reforms to the Tourism IndustryIntroductionOn 9thMay 2017, theHerald Sunpublished an article titled;“Budget 2017: Visa fees up,tourism funding to Tourism Australia down.”This article takes note of the Federal Government’sintended economic policy reforms which are likely to affect the tourism industry either positivelyor negatively. The negative effects of the said budget proposal include a slash of up to $14million from Tourism Australia’s annual budget. Further, the government intends toprogressively increase the application charges for visas over a period of four year- a move thathas been criticized as a setback to the lobbies to make Australia’s visa fees competitive. Further,the news article notes with concern that federal government has so far failed to make good itscommitments to create a National Convention Bids Fund of up to $10 million that has beensought by the Association of Australian Convention Bureau and the Tourism AccommodationAustralia to enable the country compete with other countries for major conferences.The writer of the article points out the fact that Australia missed out on 61 bids forinternational conventions in the year 2016 which resulted in the 11% decline in oversea visitorstravelling to Australia. Finally, the article points out a positive attribute of the budget in the sensethat government set aside funds to finance tourism-reliant sectors that suffered the aftermath ofTropical Cyclone Debbies and further that government expressed its dedication to build theWestern Sydney airport and develop surrounding infrastructure such as roads and faster railconnections to support the airport.AnalysisFrom the above, it is notable that the article principally revolves around the issue ofmonetary policies that government intends to adopt and their likely effect on the tourismindustry. It is a no-brainer that tourism industry plays an integral role in the economies of theworld. In Australia, tourism associated expenditures make average direct contributions of about3.65 to the GDP and 4.7% to the employment rate. For the tourism sector to continue playing thisimportant role in economic growth (both in terms of GDP contribution and employment rate)there is need for significant investment in the sector. It is therefore arguable that federalgovernment appreciates this fact judging from the budget provision for funding the tourism-
Tourism Industry Reforms3reliant sectors that were affected by cyclone Debbies and further funding to build the WesternSydney airport and putting in place infrastructure which will have a direct positive impact on thetourism industry.Fig: Australian forecast on Tourism ExpenditureSource:Anao.gov.au (2017)The graph shows that the total overnight expenditure by tourism have been on the rise; this is adirect positive impact of Australian tourism reforms.Further, as noted by the Business Events Council of Australia (BECA), the businessevents sector is very integral to the world economy as it injects significant amounts of money toparticipating economies worldwide. In reaffirming the views of the news article referred toabove, BECA acknowledged that Australia is being edged out of the map on competitiveness forhosting international conventions. The International Congress and Convention Association notedthat Australia dropped from position 7 to 13 between 2000 and 2012.
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In sum, it is noteworthy that, among other factors, the demand for international travel is dependent upon the destination in question. It is considered to view that the creation of this demand is a function of the Tourism Industry players of the destination country who ought to create favorable conditions that will attract tourists. By adopting policies that improve Infrastructure and Promote Investment in the tourism industry, the government would increase the competitiveness of the tourism industry which may, in turn, increase the demand.