Changes in organisational structure of New Zealand tourism

Running Head: TRAVEL AND TOURISM 1
Changes in organisational structure of New Zealand tourism

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Part A: Analyse and discuss how management theory and organizational structure have
changed in the Tourism and Hospitality industry over the past five decades
Being an industry that works for all round 365 days, and 24*7, tourism and hospitality
industry is rapidly growing, and offer employment to around 214 million people is highly
responsible for the 10.2% of the global gross domestic product as well as World Tourism
Organization has predicted that global tourist arrivals might come up to 1.56 million by the
year 2020. In New Zealand, the tourist is the vital industry (OECD, 2014). It holds the key
results over the economy of the country in the context of employment, and simultaneously, it
offers the key percent in its workforce that comes to approximately 9.6% of the entire
workforce within New Zealand. It also contributes its share in Gross Domestic Product of the
country (OECD, 2014).
In New Zealand, the growth of tourism is due to the result of various alternatives,
which are provided by tourism and hospitality industry around the globe. Few of the choices
are related to accommodation, which is provided by New Zealand, such as Holiday Homes,
Apartments, Homestays, Beach Houses, Nature retreats, Motels, Vineyards accommodation,
Backpackers, Farm stays Hotels, Holiday parks, Health spas, Homestays, Bed and breakfast,
and Resorts (Pearce, 2015).
The arrival of international visitors is as per the Tourism Research Council, New
Zealand that had mentioned that 2.4 million visitor’s acme in the year 2015. Similarly, at the
same time, international tourism expenditure was predicted to get increase by $1.3 billion and
increased up to $7.5 billion (Pearce, 2015). This made the tourism industry as the highest
overseas exchange of New Zealand. In the last five years, New Zealand with the floral and
white water streams and snow-capped mountains has become the most fashionable

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destination for tourist. Around 2.35 million of the overseas visitors has visited New Zealand
in the year 2015 (Pearce, 2015).
The rise in different hotel ownership, as well as strong branding in the 90’s as well as
in starting of the 20s, has profoundly impacted the hospitality industry, mainly the
organizational structure (Pearce, 2015). Furthermore, in this time, these changes are
appropriate, but there are many other factors too that are contributing to the changing nature
of both tourism and hospitality industry.
In the year 2012, four government ministries came up as a business ministry as well
as employment and innovation. The new ministry that set up itself at the centre of the
government economic plan supported in driving the agenda of business growth by
implementing the combined policies for building the globally and competitively focused
economy (Schubert, Brida & Risso, 2011). This kind of structural change is encouraged as
well as facilitated towards strong relation among immigration and tourism with the newly
formed ministry.
The policy of tourism unit suggests government over how they can better develop the
correct environment for improving the growth and productivity in tourism and hospitality
sector and also increased the contribution of sector towards the economy of New Zealand.
Other units connected with tourism were sector performance collection, analysis as well as
publishing the information of tourism; system performance and institutions, which monitor
the New Zealand tourism; evaluation, research and analysis units, which try to examine the
government initiative effectiveness affecting tourism (Schubert, Brida & Risso, 2011).
New Zealand tourism and hospitality is referred as a crown entity, which is highly
responsible towards promoting the country in overseas market as the famous and exotic
tourism destination. The critical tool used for this is a marketing campaign, “100% Pure New

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Zealand” that evolved in the last decade, and made New Zealand as the most respected and
popular tourism brand around the world. Along with this other campaigns like, “100%
Middle-Earth”, won many awards and underpinned the countries marketing strategy of
changing global attention towards New Zealand from Hobbit to travel (Wang & Pizam,
2013).
There are around twenty nine Regional Tourism Organizations (RTO), which are both
owned as well as operated by the local and regional government of New Zealand and is
assisted by the industry of tourism. RTO is responsible for conducting marketing activities of
regional destinations of New Zealand (Wang & Pizam, 2013).
In the last ten years, global tourism has grown steadily from unimportant to 5% of the
GDP of New Zealand. Hospitality is highly indispensable towards tourism success among
categorized constituents like food and beverage and accommodation services that are highly
contrasted. Income through accommodation is dependent on the visitors, around 95% and
food and beverage source most of the income to approximately 59%, and 41% of visitors
(Pearce, 2014). With such kind of dependency over the demand of visitors, the performance