Tourism Industry of Australia: A Study of Grace Building Sydney and Hotel Canberra

This report discusses the business operation of two important hotels situated in Australia namely Grace Building Sydney and Hotel Canberra. It has discussed background of the companies and their PESTLE and SWOT. The competitive environment of these two organizations has also been analyzed so that the advantages and response of these two business can be understood.

Running head: TOURISM AUSTRALIA
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Executive summary
This report has discussed the business operation of two important hotels situated in Australia
namely Grace Building Sydney and Hotel Canberra. It has discussed background of the
companies and their PESTLE and SWOT. The competitive environment of these two
organizations has also been analysed so that the advantages and response of these two
business can be understood. The paper concludes with the operational environment of these
two hotels.

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Table of Contents
Introduction:...............................................................................................................................4
Background of the companies:...................................................................................................4
PESTLE and SWOT of Grace Building:...................................................................................5
SWOT analysis:.........................................................................................................................6
PESTLE and SWOT of Hotel Canberra:...................................................................................7
Competitive environment:..........................................................................................................8
Operational environment:.........................................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................12

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Introduction:
The aim of this paper is to discuss the industry situation of Hospitality and Tourism
industry of Australia. The industry has been successfully operating in the world tourism
business and attracting huge number of tourists from different parts of the world. In this
regard two important business organisations namely Grace building Sydney and Hyatt Hotel
Canberra have been analysed. Through the PESTEL and SWOT Analysis of these two hotels
in the Hospitality and Tourism Industry of Australia, it has been understood the graph of
tourist visit in the different parts of the country is constantly increasing.
The government of Australia plays a major role in ensuring proper tourism standards
to have effective sustainability in the market. Guiding and management body for fair trade
and strong corporate laws protect the interests of the employees In addition to this, the scope
of growth in the competition is also very effective to understand the weakness of the
operations and where the companies need to be more proficient to maintain the heritage of
reputation (Divisekera and Nguyen 2018). Therefore, this paper has discussed the
competitive and operational environment of these two companies so that the success factors
can be understood and the actual situation of the tourism and hospitality industry can
effectively be understood.
Background of the companies:
The Grace building Sydney is a heritage building that houses a hotel Cafe a bar and
restaurant. This is situated in the Sydney Central business district in Australia. the grace
building search different purposes since its opening and has been sublet to the Australian
Commonwealth government in 1940 (Gracehotel.com.au 2019). this became the headquarter
of United States Armed force under the American government during the Pacific War . It was
compulsory acquired by the Commonwealth after which an extensive renovation took place

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that changed the features of this building. Since 1997 the Grace building has been operating
to be a luxury hotel. This hotel is a unique example of commercial Gothic complete with
flying buttresses and pointed Windows. Despite the fact that the physical condition of this
hotel is good but archaeological potential has lowered because of this renovation.
Hotel Canberra is also a famous hotel in Australia. This is a major hotel in the
national capital Canberra. This hotel is also known as Hyatt Hotel Canberra. This building
was built to house the politicians in 1927 when the federal parliament had moved from
Melbourne to Canberra (Hyatt.com 2019). This project was began in 1982 to extend the
hotel and reopened in 1988 as the new Hyatt Hotel Canberra. This weekend the one and only
international five star hotel in Canberra. It has exclusive dining, Promenade facilities, huge
rooms for the international guests these two hotels have all the facilities of 5 star hotels
including Business Centre fitness centre pool and delicious dining facilities. Both of these
two hotels contribute a huge amount of revenue in the tourism industrial Australia as the
international guests from different parts of the world visit this hotels for their business or
family trips.
PESTLE and SWOT of Grace Building:
Factors Elements Influence
Political
Factors
 Political factor like stability of the
government in Sydney has a direct impact in
the tourism industry of Australia.
 Government engages in surveillance in any
business related to tourism
 Well hidden corruption
 Strict regulation for business (McPhail et al.
2015)
 Hotel Grace building gets full support from
the local and national administration
High influence

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Economic
Factors
 Diversified and developing economy
 Positive changes in the interest rates
 Scope for the tourism companies seek
investment from the government through
different programs
 Huge lucrative market
 High buying capacity
 Growing GDP rate (Bohle et al. 2017)
 Impact of Brexit
High influence
Social Factors  Exceptional cultural diversity
 Highly educated and skills human workforce
 High standard of life
 Supportive working culture
Low influence
Legal Factors  Legal sport for fair trading
 Regulation for maintaining standard of
service (McPhail et al. 2015)
 Strict regulation of employee rights
 Support for privacy law
High influence
Technological
factors
 The major target is to attract the
international markets by creating
innovations and advancements to the
tourism on all aspects.
 Cyber security concern
 Huge use of technology in the market of
tourism
 Online booking and other facilities
Low influence
Environmenta
l factors
 Strict environment law
 Maintaining sustainable development
through protection of the forest and water
bodies of the country (Goh, Nguyen and
Law 2017)
 Strict waste management process
 Growth of sustainable hospitality
Low influence
SWOT analysis:
Strengths Weaknesses
 Excusive strategic position  Low product differentiation

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 Long history of service
 Grand customer loyalty for
generations support of the
government (Goh, Nguyen and
Law 2017)
 Diverse exposure to hotel
management
 Low variation in service
 Huge competitive market
 Low external decoration to attract
international tourists
Opportunities Threats
 High quality of service
 Exceptionally well conversed
workers
 All types of modern facilities
 Scope for arranging business trips
 Excessive competition
 Expense to run hotel
 Blow of political insurgency
PESTLE and SWOT of Hotel Canberra:
Factors Elements Influence
Political
Factors
 The hotel is situated in the capital of the
county
 Huge support from the Australian and US
government (Lashley 2016).
 The government invests huge in restoring
attractive places
 Arrange event for promoting business
tourism
High influence
Economic
Factors
 Australia is the 13th largest economy of the
world
 High tax implementation (Rees, Smith and
Hall 2016)
 Huge business investment
 Low company tax rate
 Higher rate applies for high individual
income.
Hugh influence
Social Factors  One of the best countries to live in terms of
wealth, heath, quality of life and education
 Highly skilled human workforce
 High standard of life
 Multicultural society
 People are hardworking and outward
looking
 Spending sift from the services to
experience
Low influence

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Legal factors  Guiding and management body for fair
trade
 Current and existential national security risk
for employees
 Strong corporate laws
Low influence
Technological
Factors
 Huge investment in the automation process
 Promotion of hotels through online
 Communication process through social
media platform
 Cheap yet efficient technological support
Low influence
Environmental
factors
 Strong legalities of resource management
and waste disposal
 Sustainable growth by maintaining effects
of heavy tourism
Low influence
SWOT analysis:
Strengths Weaknesses
 Strong brand portfolio
 Extremely loyal group of customers
 Properties in the strategic locations
 Huge market share (Courvisanos,
Jain and Mardaneh 2016.)
 Low brand differentiation
 Huge pressure of competition
 Inability to ensure technological
support in marketing and service
Opportunities Threats
 Light business model
 Emerging tourism in most unusual
places
 Increasing number of international
tourists
 Emerging education and health
conscious tourists
 Intense competition
 Threat of terrorism and natural
calamity
 Threat for nontraditional lodging
option.
Competitive environment:
Tourism has always been one of the most important industries in in the growth of
Australia. The economy significantly benefits from this particular industry and generate jobs.
The growth in the communities throughout the country is made possible through tourism as
this has potential to be one of the key strengths of the country and provide a supercharged to
growth to the economy (Carr, Drennan and Andrews 2016). This is the reason why the

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competitiveness of this industry is highest among all. The tourism industry of Australia has
become increasingly important for its economy because the industry revenue has been
projected to grow by 3.5 annually over the 5 years through 2018 to 2019. This will be
reaching 134 billion USD by the end of 2019. The tourism demand is so high that the number
of hotels and restaurants are always increasing. This focuses on the high yield visitor and
plays the role to grow demand as well as faster competitiveness in the industry stock the
Australian tourism industry aims to gain a sustainable growth through partnership marketing
among the Global consumers (Solnet et al. 2016). Through the demand driving campaigns
these companies attract new customers and provide the flexible and long lasting experience in
this highly competitive and fast changing tourism environment of Australia. The competition
in hospitality and tourism sector is high because there is low market entry barrier and high
bargaining power of the suppliers. This reduces the score for successful operation of these
companies in the Australian market. Despite the fact that these two organisations are situated
in two different cities of the country one is Sydney and another is Canberra but the situation
of competitiveness are always the same (Mahshi, Kralj and Arcodia 2018). The Grace
building is situated in the Sydney region of Australia therefore is exposed to the competition
of the hotels which offers service to the consumers mainly visiting the place for business
trips. On the other hand Hotel Hyatt is situated in the capital region of Australia which makes
it vulnerable of competitiveness as it is the centre of business culture and administration.
The main competitors of Grace building and Hotel Canberra are Australia Hotel,
Exchange hotel, Dick's Hotel, Cremorne Point Manor, white bay hotel, sate city Casino and
Victoria hotel. The competitiveness in the tourism and hospitality industry has increased
because of the top attractions in the country stuff Australia is a place where the tourist visit
for exclusive experience of natural beauty and cultural attractions. this is a place of
mountains and innumerable beaches which attract the international and national tourists to

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visit in these areas in addition to this Australia has big forests which is consisted of
exceptional flora and fauna that are not found in other parts of the world (Divisekera and
Nguyen 2018). The Underwater World is another place where the main attractions are the
coral reefs and different aquatic animals. The Government of Australia has exceptionally
invested in the promotion of these places to the national and International consumers. For
these reasons a large number of hotels have developed in these areas. there are three types of
hotels that the consumers find according to their budget therefore there is no problem for
food and lodge according to the expense set for a family or business group.
Operational environment:
The operational environment is also exceptional in the Australian tourism and
hospitality industry. the government focuses on promoting sustainable growth to these
organisations associated with tourism they have invested hugely in developing infrastructure
for which the hotels and other organisations associated with tourism face no problem while
welcoming the guests from different parts of the world . Starting from renovation to
restructuring of these hotels the traditional operation has been amalgamated with modern
facilities. In addition to this both Grace Hotel as well as Hotel Canberra have a long history
of operation in the tourism industry of Australia. Both of these have been serving for five
decades in in the industry there for have a wide range of customer base who are loyal to these
hotels for generations. The Strategies for utilising technological growth in the country has
also supported the operations of these two hotels. Starting from communicating with the
potential customers to maintained connection with these groups have supported these two
organisations for sustaining long. the cultural diversity which is another factor attracting the
Tourist groups around the world have proper full operation with these hotels so that the
community gets help through employment and the organisation gets diversity in the human
workforce. However, sensibility and the skills of the human workforce effectively manipulate

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the growth of the profitability of these companies associated growth the tourism and
hospitality industry of Australia but overall growth has been identified in the recent years.
Conclusion:
Therefore it can be concluded that the Australian tourism and hospitality market has been
recording growth each year as the policies of the government here is very innovative and
strong. As compared to the other factors of Australian tourism industry pressure of economy
and polity have a direct impact in the Australian tourism. The major focus of the tourism
system is to create innovations and advancements to attract the tourists from the different arts
of the world. Tourism strategy of the nation that may attract the international markets are
needed for the growth of this industry. It is the government of Australia which supports and
helps the tourism system to have better sustainability in the competitive market.

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