Economics for Managers

Running head: ECONOMICS FOR MANAGERS
Economics for managers
Name of the student
Name of the University
Author note

1ECONOMICS FOR MANAGERS
Table of Contents
Answer2.....................................................................................................................................4
Answer 3....................................................................................................................................6
Answer 4....................................................................................................................................8
Reference list............................................................................................................................12

2ECONOMICS FOR MANAGERS
Increase in tourism
Increase in jobs
Answer1
Figure 1 Complementary goods
The article The Tourism Investment Monitor tries to evaluate the economic status of
Australia. This particular article also analyzes the significant contributors to the Australian
economy and also some of the major sectors that have contributed to the growth of the
economy like the tourism industry. Till the year of 2014, Australia have been known to
experience a huge economic growth for the past two decades. This particular article shows
the numbers and the values of the major projects in the investment od the Australian tourism
pipeline. 204 projects have been undertaken by the tourism investment in Australia where the
total investment pipeline amounted to $37.8b billion. It has been found out that the business,
recreation and the arts services accounted for a value of about $17 billion. The aviation
infrastructure projects accounted for 10 million and the accommodation projects also valued
at $10.8 billion. The article also stated that investment remained strong in each of the three

3ECONOMICS FOR MANAGERS
min sectors comprising of aviation infrastructure projects, business services, accommodation
projects. The strength of the investment pipeline is known to be supported by the foreign
investors of Australia around the accommodation projects. The tourism in Australia is known
to be a standout performer in the economy of Australia which provides an attractive
environment for the investors. The prospects of the future investment states that the industry
has a strong demand from the international visitors. The Tourism Forecasts also suggests that
the tourism expenditure will be growing at a rate of 6.3% per annum for reaching $224.8
billion by the year 2027. The increase in the growth of the visitors is known to create a
demand for more than available seats of the airlines, Australian educational institutions and
hotels. Large amount of investment in Australian tourism industry is needed in the future in
order to keep the market in equilibrium. The methodology of the tourism investment pipeline
has been designed to track the investment projects which are known to be valued over $20
million. When the accommodation investment is known there will be a continued shift
towards the mixed-use projects which will combine accommodation of tourism with the other
non-tourism components. The article states that the places Queensland and Victoria were the
most popular for the mixed used developments with availability of more rooms in the
projects. According to the United National Conference on Trade and Development, World
Investment Report of 2017, Australia have known to receive US$48 billion as the inward
foreign direct investment in the previous year. In case of the aviation infrastructure, in the
year of 2016 -2017 it was worth $10 billion which had been spread across the 19 projects.
The aviation infrastructure projects comprise of the Perth International and domestic terminal
upgrades, Brisbane Airport domestic terminal expansion and the Melbourne Airport
construction of a third runway. In the year of 2017, only projects of valuation $3.2 billion
were found to be under construction. The total amount proposed for the aviation
infrastructure for the purpose of the tourism was $10.1 billion, out of which $6.9 billion had