Impact of Service Sector on Tourism Business Operations in Sydney

This essay evaluates Sydney as a tourist destination region and the way the service sector has impacted its tourism business operations. It discusses the challenges and opportunities for Sydney's tourism sector and its efforts towards sustainability.

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Introduction
Tourism is recognised as social cultural and economic phenomena which entail the
movement of people to nations or places outside their customary environment for individualistic
or professional purposes. With sure dimension of the tourism sector it can be constructive to
categorise the tourism sector into broad industry groups by implementing universal classification
system such as accommodation, recreation and entertainment transportation, food and beverage
services and travel services (Vanhove 2017). This industry groups are based on the variance of
the labour processes for each sector. However for instance the types of labourers and resources
important for the operation of an accommodation business correspondent to the other sectors.
However while receiving tourism it is essentially critical to take into consideration the term
hospitality. Hospitality has been defined by few as the business of assisting people to develop a
sense of comfort and ease and enjoy themselves (Seiver and Matthews 2016). Thus hospitality
sector is identified as an amalgamation of the accommodation and food and beverages groupings
which combine as one of the largest segment of the industry. The following essay evaluates
Sydney as a tourist destination region and the way the service sector has impacted its tourism
business operations.
Discussion
Tourism across the world comprises award of over one trillion dollar annually and is
viewed as one of the elevating industry in every part of the world. Regions with the extensive
growth in terms of tourism dollars and revenues are America, Asia and the Pacific and Europe.
The tourism sector is a priority area of focus for the city of Sydney because of its significant
contribution to job creation and economic development along with an enhanced knowledge and
cultural awareness between nations (Sydney, Australia 2018). Sydney is recognised as Australia

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Premier tourism destination region as well as the gateway to New South Wales (NSW) attracting
over 10 million tourists in 2015 with around 4.5 million visitors staying directly in the city of
Sydney local government area (The Hotel Conversation 2018). It has been observed that Sydney
being Australia significant destination region has acquired substantial degree of prominence for
its beautiful natural Harbour, exceptional architectural landmarks and for hosting renowned
events and cultural attractions. BusinessMirror (2018) revealed that the broad range of
justifications for visiting employees Sydney at present receives an average of over 50% of all
global visitors to Australia further representing the cities position as the nation's sole global city.
The tourism industry creates a considerable impact on the economic structure of Sydney by
promoting the cities trade and communities. The direct cost of visitors arriving in Sydney has
contributed over $6 billion to the city’s economic profits in 2016. The Hotel Conversation (2018)
observe that the exceptional attribute of Sydney’s tourism sector relies on a broad industrial
domain underlying diverse industries such as transport, retail, accommodation, and recreational
as well as educational services.
Sydney's well known and vibrant 24/7 tourism sector facilitates the health and
significance of over 12000 businesses operating within the city and further contributes to the
development of vital employment opportunities (Sydney, Australia 2018). Over 7% of the local
government area of the city’s workforce has been engaged to its tourism sector which estimates a
base of over 30,000employees. Tourism as a result has been playing an immensely crucial role
for the city of Sydney because of its significant contribution towards job creation and further
generates highly needed economic stimulus through financially challenging phases. The
improved knowledge along with cultural awareness between countries have helped Sydney to
efficiently share information and knowledge about the country's history, culture, values,

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traditions, civilization as well as customs to wide range of foreign visitors (The Hotel
Conversation 2018). Furthermore the domestic and global prominence of Sydney as a great place
to visit invest trade and work and especially for stage events have benefited a broader
community base by enriching the diversity and cultural significance of the city and further
enhancing their lifestyles. (Navrátil et al. (2016) claim that regardless of the achievements which
Sydney has had till date for being Australia’s Premier tourist destination city it is important for
its tourism Sector to consider protecting its place on the world map as an important destination
for recreational, business, employment and educational services.
Us.sydney.com (2018) divulge that Sydney's tourism sector has been encountering series
of complexities and challenges at international national as well as local level. However the
Global and national challenges porting to Australians inclining towards foreign destinations
rather than exhibited interest towards their domestic tourist regions. In addition to this the
dampening impact of the global economic instability condensing commerce and leisure trips
along with the rising competition of new tourist markets in the Asia Pacific region has been
critical for Sydney’s tourism sector (Vanhove 2017). Furthermore the local challenges are
widespread and diverse which are primarily coping with lack of foreign accommodation services
in the city with varying industry forecasts revealing that between 5000 and 10,000 additional
hotel rooms are essentially required within the next 10 years in order to accomplish the demand
of increasing tourist numbers in Sydney (Abascal, Fluker and Jiang 2016). Tourism sector of
Sydney has been aiming for introducing environmental tourism in order to attain recently
developed sustainability goal within the sector along with the need to generate advanced and
unique experiences to magnetize new and retained customer base and further promote safety and
the vibrant night-time economical demands and needs of tourists businesses as well as local

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residence (BusinessMirror 2018).
Along with the existing barriers Sydney has further distinguished numerous areas of
avenues for expanding tourism within the region. While developing civilization these areas of
opportunities will significantly fortify the cities status as Australia's leading tourist destination
(Ang 2016). However the existing opportunities involve marketing strategies of the city of
Sydney towards improved and expanding market such as India, China as well as Korea. It has
been reported that the reestablishment of the Sydney International Convention Exhibition And
Entertainment Precinct (SICEEP) which will support the cities position as the leading
symposium and convention destination and further developing its wide ranging event services
attractions and tourist experiences in order to sustain the position amongst the best in the world
(Sydney, Australia 2018). It is further aiming to reach the increasing demands for environmental
accommodation and enhanced quality tourism services along with infrastructure which will
donate further potential for economic growth (Abascal, Fluker and Jiang 2016).
Universal approach of conceptualizing tourism is that of a systematic approach. Leiper’s
model of Whole Tourism System has been universally cited as an inclusive conceptualization of
tourism supported by system theoretical understanding (Weaver 2014). The model
conceptualizes tourism as an unambiguous system which comprises of five interconnected
determinants such as tourists identified as human elements, organisational element referred to in
tourist industries, tourist target region, transit direction as well as traveller generating areas.
These five elements however have been subjective to the impact of external environment
associated to economic social political and legal forces. Leiper identified a tourist destination
region where visitors favoured to stay for a period of time to experience leisure and frivolous
events associated to one or more attributes of the place that is identified as a perceived appeal of

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some kind (Getz and Page 2016). Tourist destinations are recognised as places nearby tourist
systems sustain specific kind of stability. However Leiper postulated tourist destination region as
a narrower geographical conceptualization whereby the constraint of tourist destination region
can be recognised as a feasible day tripping range pertaining to the visitors’ space entailing the
area which visitors might exhibit a propensity to visit for recreational services (Weaver 2014).
For tourism services involving various destinations whereby Independent Bicycle Tourism one
of the exceptional services of Sydney for tourists can be identified as a classic example. Ang
(2016) reveal that for visitors negotiating the Sydney City route the experience of traversing such
a transportation route has been considered to be significant than the final destination. However it
has also been proposed that for general traveller, basic destination such as its amalgamation of
events and attractions can be the primary target in their destination selection. For specific
interested section of visitors, the priority is positioned on the competence to pursue the particular
tourism service which they have been interested in rather than to the actual destination which
they visit that is perceived as a secondary area of concern (Getz and Page 2016).
Cityofsydney.nsw.gov.au (2018) stated that in 2016-2017 Sydney's accommodation and
entertainment sector was held accountable for over 20% of the city’s cumulative Greenhouse gas
emissions as well as 15% of drinking water consumption. The sustainable destination partnership
will essentially distinguish tourism business strategies in order to develop more environmental
attributes and further bringing together the leading hotels in the city and global recreation as well
as event brands. Sydney tourism participants efficiently give effort on the diverse range of
tourism projects which have undergone heightened growth in the consumption of energy from
renewable sources reduced waste diverted to landfill along with the mitigation in the
consumption of drinking water (Navrátil et al. 2016). As a result Australia is most recognized

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tourism destination region has proficiently engaged with the industry in order to reach the cities
highly ambitious carbon reduction objectives in association with tourism industry partners to
successfully enhance their environmental and greenery performance (BusinessMirror 2018). By
working a collaborative manner Sydney as a tourism destination has attained the sustainable
tourism principles which have reduced the level of carbon pollution and exemplify the
consumption of renewable energy and position Sydney on the tourism map as a sustainable
destination for leisure and business travellers (Sydney, Australia 2018).
Conclusion
By delving into the tourism development of Sydney I have attained a comprehensive
understanding about the way Sydney tourism sector has post highly significant environmental
influence through energy as well as water consumption on other accommodation sectors across
the world. In addition to this, I have also obtained the knowledge of the ranging challenges
which my chosen tourism destination region has been experiencing due to the elevating
information of the local population towards foreign destinations instead of promoting their
domestic tourism region and its exceptional conventions and events to the other parts of the
world. However this paper has given me thorough insight about Sydney as a prominent tourist
destination region and would further ease my understanding and help me to comprehend other
tourism development models and strategies for my future tourism modules.

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