GDP and Economic Growth in Australian Tourism Industry

Explore the significant contribution of the tourism industry to Australia's GDP, analyzing growth trends, direct and indirect impacts, and future projections. Understand the role of fiscal policies, unemployment rates, and NBN policies in shaping the industry's landscape.

GDP and the Economic Growth in the Australian tourism industry
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Contents
Introduction....................................................................................................................................3
GDP and the Economic Growth in the Australian tourism industry.......................................4
Unemployment Rate of Australia for the last 5 years................................................................7
Fiscal Policy of Current Australian Government.......................................................................9
NBN policy of Australia..............................................................................................................11
The Plans of National Broadband Network..........................................................................12
Conclusion....................................................................................................................................13
References.....................................................................................................................................14
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Introduction
This report discovers the process of recovery of the tourism in the Australian. Australian is one
of the prominent industries in the sector of tourism. It breakdowns all record of an economy in
the travel destination various times. During the year of 2014-15, the tourism in Australian
granted the capital to the economic sector of the Australian about $107 billion. Its growth is
always blowing among all countries in every sector but especially in the tourism sector. As the
reported study that Australian has a great record in both tourism international as well as
domestic. They directly give their high amount to the national Gross Domestic Product (GDP)
about 2.7 percent. It's a very huge contribution to the industry of Australia. They earn a higher
growth in the form of economic, prominent and success with the help of tourism. The tourism
does not only grant to the Gross Domestic Product but also grant to the national exports and
other jobs in Australia regarding 8.2 percent and 4.6 percent respectively. On comparing, the
GDP of Tourism is higher the GDP of Agriculture. The zone of agriculture, fisheries, and
forestry are the small industries in Australia. After tourism, there are also several industries in
Australia that play the greatest role in the form economic such as Education, Training center,
restaurant, clubs and the water and transport resources and their contribution is in the following
way to the government of Australian:-
 In the view of Education and training center, it is about 7.8 percent to $2.7 billion.
 Regarding restaurants, it is about 5.7 percent to $ 4.4 billion.
 The water and transport resources grant about 3.5 percent to $ 5.8 billion.
 The government earns about 4.9 percent to $2.5 billion from the clubs, taverns,
and pubs.
This report also analysis that Australian is also considered as the traditional and blooming
country in the world.
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GDP and the Economic Growth in the Australian tourism industry
It is a well-known fact that the tourism industry contributes a lot to the growth and development
of the economy of the particular nation. Like that of, the tourism industry of Australia is a very
huge industry. And hence, it is understood that the classification of the industries is done on the
basis of the scale of production in the economy (Vanhove, 2017). The tourism industry is among
one of the unique segments of the economy in which the production is measured on the basis of
the consumption and the spending on the visitors and the tourists. The details of the industry
relating to the growth and the development can be seen and analyzed in the ABS (Australian
Bureau of the Statistics) which has shown its TSA (Tourism Satellite Account of Australia)
which though gives the complete details relating to the direct contribution of the industry in the
sector of travel and tourism industry. This means the consumption done by the tourists in the
economy is developing (Dizioli, et. al., 2017).
(Figure: 1)
(Source: Tourism GDP by Territory/State, 2012)
The contribution to the GDP of the nation is done through the direct as well as the indirect
methods in which if it is talked about the direction. The travel and the tourism industry in
Australia contribute to the GDP in the following ways:
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 It includes the spending on the sector in the form of infrastructure relating to the hotels
and the purchasing of the new aircrafts and the planes for the transportation mode to the
visitors which will, in turn, give the results after being consumed by the tourists and the
amount though received will contribute in the GDP of the nation.
 It also includes the amount which the government spends on this sector in order to get
better results that may help in the GDP growth in the economy (Vanhove, 2017).
 The purchase of the products and many other things used for the refreshments and for
attracting the customers is also included in this sector and contributes much in the GDP
of the travel and the tourism.
If it is talked about the actual percent, then the travel and the tourism industry of
Australia contributed to around 2.9 percent in the GDP which is said to be AUD49.7bn.
Afterward, in the year 2017, it increased to 4 percent which is AUD51.7bn. This Output
in the travel and the tourism industry is obtained from the travel agents, airlines, hotels,
transportation and many other methods and products used for refreshing and attracting
the maximum number of tourists or the visitors in the economy (Walton, et. al., 2013).
The target of the industry to directly contribute to the GDP of the Australian economy is
around 2.6 percent to 3 percent which is AUD66.6bn in the coming years up to the year
2027.
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Fig. 2 (Source: Australia- Travel & Tourism direct contribution to GDP, 2016)
The total contribution of travel and tourism ion the year 2016 was AUD183.2bn which
WAS expected to grow in the year 2017 to a limit of 3.3 percent which would be
AUD189.2bn approx. 11 percent to the GDP.
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Fig 3. (Source: Australia- Travel & Tourism Total contribution to GDP, 2016)
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Unemployment Rate of Australia for the last 5 years
Unemployment is the situation in the economy or the condition when the people are willing to
work and have the productive potential to work but are not getting the jobs or the work in the
market due to some adverse conditions in the market. People can find a great number of job
opportunities in the sector or the industry of travel and tourism in the economy but that too
requires a lot of efforts and expertise that is very essential for the well being of this travel and
tourism industry (Walton, et. al., 2013).
The rate of unemployment in Australia was said to be 5.6 percent in the year 2018 which was
expected to be 5.5 percent analyzing the market conditions. This was analyzed to be the highest
rate of the unemployment rate since the month of July as there was also the addition of around
22,600 types of jobs in this sector but then also the number of unemployed in the economy
increased to around 10,600 (Brotherhood of St Laurence, 2017). The rate of unemployment in
Australia from the past 5 years is around 6.88 percent till 2018.
A lot of steps are taken by the government in order to reduce the count of the
unemployment rate in this industry of travel and tourism from the last five years but the
most effective were the adaption of the 2 important strategies along with the several
policies used to solve the situation. Those important strategies are:
 The first policy was in favor of the demand side which was undertaken in order
to solve the issue of deficient unemployment on demand side which is a part of
the unemployment caused by the recession in the economy (Makin, 2016).
 The second strategy is regarding the policies which are adapted in order to reduce
the issue of the structural unemployment in the economy.
 The next policy of the government is regarding the fiscal policy in which the
government aims at cutting the rate of taxes in order to have boost up or increase
in the aggregate demand in the economy (Daley and Wood, 2015).
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 The next policy is regarding the monetary policy of the government in which the
government aims at cutting g the rate of internets in the organization in order to
increase the demands in the market which would surely require more Labour for
working (Willis, 2017).
 The market of the Labour force is made more flexible by the government so that
it would become easier to hire and also fire the workers as required by the
organization of the travel and tourism.
 It is also an important policy of the government in order to reduce the structural
unemployment in the organization regarding organizing and making training and
educational help centers (Makin, 2016).
 The government has reduced the wages in the travel and the tourism industry in
order to reduce the real wages based unemployment problem in the economy.
 The government has also made a lot of policies in order to provide subsidies to
the firms in order to increase the growth level and to expand the organization in
order to increase the job opportunities in the more depressed areas of the
economy (Vanhove, 2017).
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Fig 4 (Source: Youth Unemployment rate, 2015)
Fiscal Policy of Current Australian Government
Fiscal policy refers to the policy of the government in which there is the use of the revenues by
the government which is mainly in the form of taxes along with its expenditure. The spending is
done in order to gain positive impact on the travel and tourism sector of the economy (Daley and
Wood, 2015). It is assumed that Australia is among the country which is attaining its economic
growth continuously from the last 26 years. It faced the global crises in economic depression in
the year 2008 and attained the growth level in the form of the increase in the GDP contribution
for the growth and development of the economy (Vanhove, 2017).
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Fig 5 (Source: GDP growth in the last 10 years, 2015)
The main aim of the Australian government in the reform techniques of the fiscal policy is to
gain the growth rate and the various reforms in the travel and tourism industry (Dizioli, et. al.,
2017). It also includes the funding in the various services provided by the government. It also
contributes to driving the industry in the direction of the growth, innovation, productivity and
more competitiveness which is very essential for the industry.
In the year 2014, it has released The Future of Tax: Australia’s Current Tax System in order to
have a better contribution to the growth prospects of the travel and tourism industry of the
economy.
Tax is considered as an important part of the fiscal policy of the government which includes all
the detail about the revenues and the expenditure of the government.
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The economic policy relating to the fiscal policy of the government in the current year in the
Australian economy which helps in delivering a predictable and the stable growth rate in the
travel and the tourism industry (Daley and Wood, 2015).
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NBN policy of Australia
NBN stands for National Broadband Network. It is working on that platform flow through the
open areas such as Radio, and those communications containing wired network (Sorensen and
Medina, 2016). NBN provides various facilities in Australia. NBN has contained one component
RSPs. RSPs provides the facility for using the access to the internet and also provides the
communication with NBN for the explosion on the internet and also sell their services to the
users with full privacy and protectively.
They are providing their internet protocol by broadband. As it is cleared in every passage,
Australian is a developed country. The citizens in Australian fully depend upon the internet.
Their every work is joined with these services. If a little breakdown occurs with this internet,
they become very worried. Therefore, the government of Australia hires the best brand services
of Australia. Due to which, they can easily use the internet services and does not face any
problem regarding the internet.
(Figure: 6)
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(Source: Getting the Information From Australian Brand, 2010)
The Plans of National Broadband Network
National Broadband Network provides various services to Australia for the best use of the
internet without facing any distraction. They have 4 plans for the best internet. They are:-
 Broadband
NBN is the best company in Australia. It is specially constructed to protect the extra
expenditure of government. The major aim of this organization is to supply the high
accessing of data to all whether it is personal user or the organization. Their aim is to
improve their services and connects more connection to the personal users and the
organization also.
 Administration
The NBN has very broad networking (Sorensen and Medina, 2016). Due to which, they
provide their co-operating networking among all the area, called NBN CO Limited (NBN
Co). This service is managed every project related to the internet, and the problems that
producing from it. They have various services such as Broadband, Portfolio under the
digital economy and communications. They all are reporting to the ministers of
broadband, digital economy, finance, portfolio, and communication.
 Funding
NBN funding depends upon the expectations. The term “expectations” define the demand
of the user. AS much the demand of the user grows, they get as much higher connection
and connectivity. They can earn high and their funding increases and they can provide
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some funds to the government also. The funding is only dependent according to your
performance.
 Rollout
In this section of NBN, NBN provides some co-operative networking. These co-operating
networking work on the different types of web-pages and find the improving stability
(Sorensen and Medina, 2016). These planes of the NBN are in the knowledge of the
government. Families and organization will enjoy their work and new creative planes.
They are providing their services according to the capital. As much user takes high
planes, they will get the best services.
Conclusion
It can be easily seen that Australian has a very great future for the tourism sector in the upcoming
year on the prediction of TRA. Their prediction for the Australian tourism is 50 percent and in
the form of billion, it is about $51. The TRA makes some strategies for the time of 2020 and if
they reach on these strategies and also fulfill them. They will definitely cross the GDP according
to the TRA's prediction. In Asia, China and India, they are generating the economic on the basis
of the customer's experiences. An Australia is also considered as the fast country in the digital
revolution. They are invented different and new technologies. They believe in inventions. They
respect the hard working persons (Willis, 2017). For the hard-working people, they are opening
the new business and also their branches in the different areas. So, they can get their jobs easily
and showcase their skills and invent some unique and creative techniques. This theory mentions
the strategies of 2020 for the tourism sector is made by the National Long-Term Tourism
Strategy. It has 6 strategies. They are following:-
1) The Growing Demand from Asia
2) Competitive Digital Capability
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3) Investment and Implement regularly according to the agenda
4) The growth has been supported by Tourism Transport Environment
5) Resilience, productivity, and quality
6) Supply should be provided completely to the labor and also support their skills and
labors.
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References
1. Brotherhood of St Laurence, 2017. Reality bites: Australia's youth unemployment in a
millennial era.
2. Daley, J. and Wood, D., 2015. Fiscal challenges for Australia. Grattan Institute.
3. Dizioli, A., Karam, M.P.D., Muir, M.D.V., and Steinlein, S., 2017. Australia’s Fiscal
Framework: Revisiting Options for a Fiscal Anchor. International Monetary Fund.
4. Makin, T., 2016. The effectiveness of federal fiscal policy: a review. Treasury External
Paper, 1.
5. Sorensen, L. and Medina, A., 2016. The End of Australia’s National Broadband Network.
6. Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice.
Routledge.
7. Walton, P., Kop, T., Spriggs, D. and Fitzgerald, B., 2013. A digital inclusion:
Empowering all Australians. Australian Journal of Telecommunications and the Digital
Economy, 1(1), p.9.
8. Willis, P., 2017. Learning to labor: How working class kids get working class jobs.
Routledge.
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