Reforms in Tourism Industry Australia

Running head: REFORMS IN TOURISM INDUSTRY: AUSTRALIA
REFORMS IN TOURISM INDUSTRY: AUSTRALIA
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REFORMS IN TOURISM INDUSTRY: AUSTRALIA
TABLE OF CONTENT
Introduction......................................................................................................................................3
Economic Analysis of Australian Tourism Industry:......................................................................4
Trends:.........................................................................................................................................4
Economic analysis:......................................................................................................................5
Recommendations............................................................................................................................6
Reference:........................................................................................................................................9

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
Introduction:
National geographic location of Australia and significantly unique wildlife make it
attractive destination for national as well international visitors. This has consolidated the
emergence and growth of tourism industry in Australian economy. The industry contributes 3%
to the Australian national GDP and 73% to the total GDP derived from tourism directly. The
industry is source of employment to 580,000 Australian populations capturing almost 5% of the
total workforce as per the data of 2014-15. It also provides part time employment to 43% of the
employed people (Amelung and Nicholls 2014). The nation records arrival of 7.4 million visitors
annually. Tourism industry makes contribution of 8% in the total national export earnings.
The article by Ann Sherry published in the Daily Telegraph, 2015 explained elaborately
the situation tourism industry facing in the country. The report highlighted how this industry
surpassed the resource sector and turned into biggest sector contributing to national growth and
that further necessitates channelization of resources, ideas and best policies to materialize the
untapped potential of the industry (Sherry 2015).
These facts rightly shape the importance of the industry in national economic growth.
The paper aims to present the trend in the industry, analyze its impact on national economic
health and justify the reforms adopted with making proper explanation of the recommendations
and suggestions.

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
Economic Analysis of Australian Tourism Industry:
Trends:
The recent increasing business in tourism industry reflects its immunity from the national
economic challenges as well as natural disasters. There has been a rising trend in the
consumption pattern increased by more than 4.5% owing to large number of overseas visitors
coming into the nation. The strong Australian dollar led to less departure by the resident and
more domestic consumption in the industry increased by almost 9.7% though the pace of
domestic consumption growth is half the pace that of the international visitors by the end of
2010-11 (Amelung and Nicholls 2014). As per the released statement of government that reveals
the potential of tourism industry to be achieved by 2020 the industry is expected to grow
remarkably and reach a worth up to $270 billion by 2030. The emergence of Chinese market that
acts as biggest contributor to Australia tourism and the emerging local markets as well would
make the industry grow conspicuously. Chinese population tops the chat of frequent and highest
number of visitors who are expected to spend even higher. Data reveals from 2006 the growth in
Chinese visitors has doubled reaching 626,400 people by the end of 2012. Australia’s fastest
growing market for destination for tourism is China as per the published daily report in 2013.
Among the states and territories of Australia, NSW has huge potential of capturing higher
visitors and nurtures the gross state product by contributing almost $15 billion to it. The growing
trend and important contribution of the sector has evoked interest in the national government to
utilize the resources and channelize in this sector. This has initiated the reform policy authority
to expand and include more states and cities like Sydney under the Potential Tourism plan.

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
Economic analysis:
The tourism industry of Australia has recorded enormous growth and development just within
last two decades. The number of international tourist in 1992 has been 2.4 billion which grew
almost triple in 2012 reaching 7.4 million (Seetaram 2012). There have been significant changes
in the structure and composition of the industry. It has encountered extended market in Asia
especially in India and China which happens to be the source of highest spending visitors.
Increasing tourism consolidates the international ties among these countries as well. Stricter and
revised economic and political policies of developed nations like UK, Japan and USA there has
been significant fall in the tourists and visitors as well making the country loose global market
share of Australian international tourism by 0.6% in 2013 (Austrade.gov.au 2017).
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
4.5
4.9 4.9 4.8 4.7
5.2 5.5 5.5 5.6 5.6 5.5 5.8 5.8 6.0 6.4
6.9
7.4
International tourism, number of arrivals in
Australia (in Millions)
International
tourism, number of
arrivals in Australia
(in Millions)
Linear
(International
tourism, number of
arrivals in Australia
(in Millions))
Figure 1: Number of arrivals of international tourists in Australia (1999 - 2015)

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
(Source: World Bank, 2017)
The data reveals the regional places of the country has experienced increased visits even though
the changed source countries of tourists lead to decreased proportion of global tourism events in
the regional places. Between 2006 and 2014, there has been 5% fall in expenditure as well as
20% fall in the number of the international tourists coming to these regional destinations
(Seetaram 2012). From the theory of demand and supply this trend can be justified. The trend of
demand is falling on the face of strong Australian dollar and national policies of source countries
along with their political factors determine the decreasing demand. Policies, schemes promoting,
and encouraging tourism can boost the demand of the sector and this requires supply to be
increased in terms of quality and facilities provided by the industry as a whole. Moreover the
increasing globalization rate propelled the tourism in the nation as migration to Australia
increases. Greater tourism prospects carry scope and opportunity of employment for the national
people. This explains the growth of the industry as well as the national GDP and state gross
products having higher implication on economic prosperity.
Recommendations
Irrespective of the current situation of development in tourism industry of Australia , there has
been requirement of brining reform to the sector in order to promote more growth tapping the
underlying potential. The notable reform in this growing industry has been drafted by the
department of tourism collaborating with Government of Australia in form of launching Tourism
2020 plan. The plan had a vision of making the overnight spending of visitors to be double.

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
The plan has been launched to overcome the challenging element operative within the industry
by eliminating and replacing them with more opportunities. If followed the strategic movement.
The industry has potential to reach $280 billion in 2020 from the $140 billion in 2015
(Tourism.australia.com, 2017). Following changes and actions in terms of policies can help the
government materialize the target set by the department to flourish the industrial performance.
 Planning and investing are essential to channelize high impact techniques of market.
Implementation of innovative ideas requires investment and planning too.
 Increasing the capacity of retaining the visitors by increasing availability of quality rooms
of international standard.
 Improving the access and flexibility of the services provided by the integrated system
 Increasing the capacity of aviation is important change. Where domestic capacity can be
increased up to 30% from 21%, the international aviation capacity can reach 55% from
the present 38%. This indicates addition of 1.8 million in-bound seats and also 120
flights of A381 should be introduced.
 Improving and hastening the Visa services are important factor to be taken care of by
Government
 Introducing Visitor’s Opal card for the international visitors by the department of
tourism in order to make the local travelling easier
 Employing additional 149,000 people by the end of 2020 to serve the increased demand
 Developing the skills of the workforce through vocational training.

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
 Implementation of effective infrastructure that must integrate national and state
tourism agenda. Ensuring private investment is necessary for this.
 Identification of opportunities and efficiencies can increase the partnership of the
industry. This actually extends the market activities and makes the national tourism
attractive for the international visitors

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
Reference:
Amelung, B. and Nicholls, S., 2014. Implications of climate change for tourism in
Australia. Tourism Management, 41, pp.228-244.
Dwyer, L., Forsyth, P., Spurr, R. and Hoque, S., 2013. Economic impacts of a carbon tax on the
Australian tourism industry. Journal of Travel Research, 52(2), pp.143-155.
Goodall, B. and Ashworth, G. eds., 2013. Marketing in the Tourism Industry (RLE Tourism):
The Promotion of Destination Regions. Routledge.
Ruhanen, L.M., Mclennan, C.L.J. and Moyle, B.D., 2013. Strategic issues in the Australian
tourism industry: A 10-year analysis of national strategies and plans. Asia Pacific Journal of
Tourism Research, 18(3), pp.220-240.
Seetaram, N., 2012. Immigration and international inbound tourism: Empirical evidence from
Australia. Tourism Management, 33(6), pp.1535-1543.
Sherry, A. (2015). Australia needs to think big about tourism. Dailytelegraph.com.au. Retrieved
3 September 2017, from http://www.dailytelegraph.com.au/news/nsw/australias-tourism-
industry-needs-innovation-and-big-ideas-to-continue-to-grow/news-story/
53078ef6405ad0c433612722c6fdbde7
Techera, E.J. and Klein, N., 2013. The role of law in shark-based eco-tourism: lessons from Australia. Marine
Policy, 39, pp.21-28.

REFORMS IN TOURISM INDUSTRY: AUSTRALIA
World Bank. 2017. TCdata360: International tourism, number of arrivals. TCdata360. Retrieved
4 September 2017, from https://tcdata360.worldbank.org/indicators/ST.INT.ARVL?
country=BRA&indicator=1841&viz=line_chart&years=1995,2015#