External Environmental Analysis: Flavourhood Tours

Running head: EXTERNAL ENVIRONMENTAL ANALYSIS: FLAVOURHOOD TOURS
EXTERNAL ENVIRONMENTAL ANALYSIS: FLAVOURHOOD TOURS
Name of the Student
Name of the University
Author Note

1EXTERNAL ENVIRONMENTAL ANALYSIS: FLAVOURHOOD TOURS
PESTLE Analysis: Flavourhood tours
There are significant external factors that can affect the business prospects of
Flavourhood Tours. Food tourism is a new segment of tourism which is booming. The food and
wine culture in Australia is famous internationally and are proving to be important tourists
attractions (Abc.net.au. 2019). However, food tourism being a part of tourism industry comes
heavily under the impacts of the macroeconomic factors which would be considered using the
PESTLE analysis.
Political
Australia is politically very stables and this factor is one of the key drivers of different
segments of the tourism industry like the food tourism. The Government of Australia promotes
tourism through its dedicated body called Tourism Australia which in turn works under the
direction of the Ministry of Foreign Affairs (Australia.gov.au. 2019). The government forms
laws regarding tourism which in turn is heavily dependent on the bilateral relationship of
Canberra with various countries. The government has strong bilateral relationships with both
developed and developing nations which result in immense inflow of tourists. The Government
of Australia has also formed intellectual property protection laws to protect the originality of
designs and product formulae. IP Australia is the department of Government of Australia which
oversees acquisitions and protection of intangible assets like copyrights, trademarks and patents.
This ensures that the companies in Australia including tourism companies are able to retain and
use their intellectual properties for their own business operations (Austrade.gov.au. 2019).
However, it can also be pointed out that political tensions and terrorist are threats looming over
tourism in Australia (Mason 2015).

2EXTERNAL ENVIRONMENTAL ANALYSIS: FLAVOURHOOD TOURS
Economic
Australia is economically a moderately stable country. It is the world’s 13th largest
economy. The growth of the economy however has been slow in the recent years. As per 2017
records the growth rate of the economy is 2.4 per cent, which was below the normal
expectations. In 2018, however, the economy growth was almost 3 per cent (Ellis 2018).
Taxation of the government is fairly large. The tourism industry of the country is large and
booming. The industry supports 100 thousand jobs in the country. The recent worth of revenue
generated by the country’s tourism sector is more than 41 billion dollars (Tra.gov.au. 2019).
Figure 1. Graph showing exchange rate of AUD to USD
(Source: Rba.gov.au. 2019)