Analysis of Tourism's Impact on Melbourne's Development

This report provides a comprehensive analysis of the impact of tourism on Melbourne, Australia, focusing on its economic contributions and developmental effects. The study examines the significant role of the tourism industry in Melbourne's economic growth, highlighting key areas such as transportation, accommodation, and retail trade. Statistical data from 2015-2017 reveals substantial contributions to the Gross Regional Value (GRV) and Gross Regional Product (GRP), alongside notable employment figures in various sectors. Furthermore, the report explores both the positive and negative impacts of increased tourism, including the challenges of affordability and pollution. It discusses the government's initiatives to improve infrastructure, accommodation, and sustainable tourism policies, aiming to enhance the visitor experience while addressing potential drawbacks. The analysis incorporates data from various sources to provide a clear understanding of tourism's influence on Melbourne's economy and development.

Running Head: IMPACT OF TOURISM IN MELBOURNE
Impact of Tourism in Melbourne
Name of the Student:
Name of the University:
Author Note:

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Impact of Tourism in the Host city of Melbourne
Ross, G., 2016. Heritage lost or fortune found: issues and dilemmas concerning tourist
development within local communities. eTropic: electronic journal of studies in the
tropics, 5.
According to the article the author describes about the impact of tourism in Melbourne
and the host cities. Tourism industry has developed a vast growth and has played a systematic
role in contributing to the growth of economy as a whole. As per the statistical records it was
stated that tourism industry of Melbourne has the total contribution of 71.2% in the growth of
the overall economy. The growth of economy through the tourism system in the year 2015-
2017 was based on the following aspects which represents.
 Air, water and other transport has contributed over $820 million in the total GRV of
the nation and $897 million in direct GRP.
 Accommodation facility which includes the usage of 4-star and 5-star hotels along
with luxury hotels has gained the total earning of $744 million in direct GVA and the
total of $765 million in direct GRP.
 As compared to the retail trade, it was $637 in direct GRV along with the contribution
of $703 million in direct GRP and,
 The system of education and training in bringing awareness to the tourists was $680
million in direct GVA structure and $697 million under direct GRP.
Apart from the above mentioned income structure of tourism the other major area that
created an increase in the employment system of Melbourne as per the year 2015-2017
was based on the tourism related industries which includes café, restaurants, takeaway

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food services which have created 6720 full time employment opportunities along with the
count of 10,090 part time employed persons in the city. This includes generation of
employment under the area of retail, education and accommodation which was on a part
time and full time basis.
TOURISM INDUSTRY PART TIME EMPLOYED
(2015-2017)
FULL TIME EMPLOYED
(2015-2017)
Retail 5600 5980
Education 3440 5330
Accommodation 3290 5190
Figure: Employment Behavior Ratio
Source: (Rose 2017).
Along with the above mentioned factors positive impact of tourism in the host nations
of Melbourne. As compared to any other tourist places in the world Melbourne, Australia is
considered as one of the most opted place preferred by the tourist to visit. Along with having
several positive impacts of tourism in Melbourne, the state has also suffered some negative
impacts due to the increase in the number of visitors to the particular place to enjoy the
beauty. As the tourism industry started having a wide growth in the market the demand and
the price of products started increasing and this effected the survival of local people in terms
of affordability. As compared to the statistical data in the year 2014-2015 regarding the
document submitted by the Australian pollution control board it was stated the state is facing
high pollution issues due to the increase in the system of tourism and chaos caused by the

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tourist. The key identifying factor about the positive impact of tourism in Melbourne is that,
it has played an effective and systematic role in increasing the nation’s employment as it was
the most important crisis faced by the Australian regions which had a solution after the
growth of tourism industry on a higher margin. It has also contributed to the growth of the
economy as whole. The tourism industry generally has a major involvement in creating an
effective income generation system for the government through various sources.
Impact of Tourism in the Host city of Melbourne
Tourism.australia.com (2019). [online] Tourism.australia.com. Available at:
http://www.tourism.australia.com/content/dam/assets/document/1/7/2/c/6/2009238.pdf
[Accessed 9 Sep. 2019].
According to the author the article describes the economic Impact of tourism which
has played a major role in the city of Melbourne and in the host cities. The contribution of
tourism has created a rapid impact to the nation and also has brought several economic
changes to the society on all aspects. This can be regarded in absolute terms and contribution
to the region’s economy. As per the statistical data generated by the state and National
Tourism Development Satellite, the data clearly describes the changes that have been
generated under the GRP structure of the nation and also in the area of the employment
culture of Melbourne.
GRP structure as per the year 2015-2016 is shown as below:
 As per the records it was stated that direct tourism GRP of Melbourne was worth $8.1
billion in the year 2015-2016 (+10.1% compared to the data of 201-2015).

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 This depicts almost 2.8 percent GRP to the nation (compared with 3.7 percent for
regional Victoria).
 Including the total flow of effects, total worth of tourism GRP was $15.3 billion as
compared to the region’s economy (+10.0 percent compared to the year 2014-2015)
TOURISM GRP ( 2015-2017) Change on
(2014-2015)
DIRECT 8071 10.1%
INDIRECT 7263 9.7%
TOTAL TOURISM GRP 15,334 10.0%
TOTAL REGION GRP 286,564 4.0%
TOURISM DIRECT SHARE OF REGION
GRP
2.8% 0.2%
Figure: GRP Ratio
Source: (Lew and Cheer2017).
A brief statistical data considering the impact of tourism in the employment sector are
mentioned as follows:

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 As compared to the data of 2015-2016 it is stated that 81900 people were employed
directly by the tourism sector (+3.5 percent compared to the employment data in
2014-2015).
 From the above data it is understandable that there is a rapid growth of more than 3.5
percent in the employment sector of Melbourne (compared with 5.9 percent in
regional Victoria).
 Including the total flow of effects it is identified that 126.800 jobs were generated by
the tourism industry of Melbourne (5.7 Compared to the year 2014-2015).
TOURISM EMPLOYMENT ( 2015-2017)
Change on
(2014-2015)
DIRECT 81.9 3.5%
INDIRECT 44.9 10.0%
TOTAL TOURISM EMPLOYMENT 126.8 5.7%
TOTAL REGION EMPLOYMENT 2107.7 2.2%
TOURISM DIRECT SHARE OF REGION
EMPLOYMENT SYSTEM
3.9% 0.0%pts
Figure: Employment Structure
Source: (Char-lee, Becken and Watt 2016).

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Apart from the following records it was identified that Melbourne is ranked 12th
among the most visited places in the world, from which Victoria is considered to be the most
preferred place which has huge demand in the mind of tourist. As per the statistical data
Victoria has a share of 2.8 percent in the Melbourne economy. In terms of the total size of the
tourism industry in the state Melbourne supplies 71.2 percent of the state wide contribution to
the tourism GRP.
Development Issues in Melbourne
Char-lee, J. M., Becken, S., & Watt, M. 2016. Learning through a cluster approach:
lessons from the implementation of six Australian tourism business sustainability
programs. Journal of cleaner production, 111, 348-357.
In the above cited text it is stated about the development initiatives taken by the
Australian government to improve the system of tourism in Melbourne for the present and for
the future operations. To attract the mind of tourist and to ensure an effective tourism
activities in the future the major focus and responsibility is taken under the area of bringing
better innovation in the airline service that is rendered and operated in the region. The nation
is planning to introduce more airlines with huge facilities at affordable price margin, which is
based on targeting key state of a particular country. As compared to the systematic
advancement made in the airline industry the government has extended the service of some
key international flights to different parts of the world with high seating facilities. This may
increase the population of tourist visiting the nation and will help in creating more
advancement and innovation to the tourism industry and structure.

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Development issues in Melbourne
Vic.gov.au (2019). [online] Vic.gov.au. Available at:
https://www.vic.gov.au/sites/default/files/2018-12/Victorian%20Infrastructure
%20Plan.pdf [Accessed 9 Sep. 2019].
In the above cited text it is stated about the plan that is to be made to improve the
infrastructural system of Melbourne. As per study it is identified that the accommodation in
5- star and 4- star including the luxurious hotels are not as per the expectation of the tourist
and their population considering the price range and other services offered. Actions and
initiatives are taken by the state for this issue to create more advanced facilities for the tourist
towards this respective issue. As Melbourne is considered to be among the most visited
tourist region in the world the government and state has taken the responsibility to bring more
advancements in the accommodation system of 4- star and 5- star hotels. Construction of
more villas and luxurious hotels to enhance better systematic accommodation strategy by the
year 2020 is the major action plan taken and initiated by the government to create
effectiveness in the tourism industry. This is done on the basis of keeping a mindset that the
ongoing tourism system must not create a negative impact in the mind of tourist and must not
affect the state tourism structure of the region.

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Tourism policy issues in Melbourne
Miller, D., Merrilees, B. and Coghlan, A., 2015. Sustainable urban tourism:
understanding and developing visitor pro-environmental behaviours. Journal of
Sustainable Tourism, 23(1), pp.26-46.
In the above cited text the author describes about the tourism policies and initiatives
taken by the government to improve the system of tourism in the region of Melbourne. It is
stated that being a nation well known for its tourism activities the government of Australia
has introduced sustainable development policy for the nation.. It is believed that this policy
can help in creating better tourism structure and will bring a systematic impact in the tourism
industry. This innovation may include bringing adaptive changes in the transportation system
and accommodation facilities that are considered to be the key requirement for the tourist
which includes constructing and introducing more resorts and other visitor attraction places
like casinos and theme parks. The government has to give more focus under the area of some
tired and inadequate tourism related infrastructure, especially the national park of Melbourne
which is completely hampered by determined funding deficits. According to the operation of
Melbourne national park, greater user charging and private sector investment can provide
higher funding and can bring better innovation under the area of tourism and can create an
effective tourism related infrastructure for the region.

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References
Char-lee, J. M., Becken, S., & Watt, M. 2016. Learning through a cluster approach: lessons
from the implementation of six Australian tourism business sustainability programs. Journal
of cleaner production, 111, 348-357.
Miller, D., Merrilees, B. and Coghlan, A., 2015. Sustainable urban tourism: understanding
and developing visitor pro-environmental behaviours. Journal of Sustainable Tourism, 23(1),
pp.26-46.
Ross, G., 2016. Heritage lost or fortune found: issues and dilemmas concerning tourist
development within local communities. eTropic: electronic journal of studies in the
tropics, 5.
Tourism.australia.com 2019. [online] Tourism.australia.com. Available at:
http://www.tourism.australia.com/content/dam/assets/document/1/7/2/c/6/2009238.pdf
[Accessed 9 Sep. 2019].
Vic.gov.au 2019. [online] Vic.gov.au. Available at:
https://www.vic.gov.au/sites/default/files/2018-12/Victorian%20Infrastructure%20Plan.pdf
[Accessed 9 Sep. 2019].

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