Challenges and Potentiality of Tourism Industry in New Zealand

Running head: MARKETING MANAGEMENT
Marketing management
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Executive Summary
The aim of this report is to discuss about the potentiality and major challenges being faced by the
tourism board of New Zealand. The report has thrown light on analysis of SWOT and PESTEL
analysis of New Zealand Country along with proper identification of the different kinds of
aspects such as analyzing the political, legal, economic, environmental along with social aspects
which has played a major role in managing the different operations of the organizations in
managing the different kinds of aspects which will be effective in nature. In addition, a few
major issues being faced by them are being identified and discussed. The recommended steps
discussed in this report will help in overcoming the identified issues and enhance the future
business potentiality significantly.

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Table of Contents
Introduction......................................................................................................................................4
Situational analysis of New Zealand...............................................................................................5
SWOT Analysis...........................................................................................................................5
PESTEL Analysis of New Zealand.............................................................................................6
Literature review..............................................................................................................................8
Evaluation of the country...............................................................................................................10
Environmental challenges..........................................................................................................10
Acute shortage of employees.....................................................................................................10
Pay issues...................................................................................................................................11
Increase in cost..........................................................................................................................11
Smaller access of destinations...................................................................................................12
Recommendations..........................................................................................................................12
Extensive marketing activities...................................................................................................12
Segmentation and targeting.......................................................................................................12
Diversified offerings strategy....................................................................................................14
Positioning strategy...................................................................................................................14
Branding strategy.......................................................................................................................15
Diversification strategy..............................................................................................................16
Market penetration strategy.......................................................................................................16

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Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................18

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Introduction
In the current global tourism scenario, sustainability is acting as important determining
factors. This is due to the reason that tourism industry is having the direct impact on the natural
tourist destinations (Ruhanen, 2013). In addition, with the increase in the competition between
the countries in portraying and position their tourist destinations over others, supplementary
issues are further given concentration for resolution (Battisti, Deakins & Perry, 2013). In the
recent time, governments are focusing more on enhancing their tourist destinations in order to
have more access to foreign reserves. In some of the countries such as New Zealand, tourism
industry contributes a significant amount in the gross domestic income. Tourism is an important
sector of the economy of New Zealand and has been able to contribute more than 12 Billion NZ
Dollars to the GDP of the country in 2016 (Tourism.org.nz., 2018). Thus, for them, this industry
is having much more importance. In addition, sustainability of the tourist destinations will
further ensure that revenue generation will be seamless.
New Zealand is one of the most popular tourist destinations in the world with having
picturesque landscapes and natural factors. It is reported that they have attracted more than 3.5
million international tourists in 2016, which makes them one of the biggest tourism industries in
the world (Becken, 2013). However, in the recent time, they are facing a few issues in their
tourism sector, which are reducing their competitiveness in the global market. In addition, these
issues are further affecting the sustainability of the tourist destinations of the country (balli,
Curry &Balli, 2015).
This report will discuss about the external and internal business factors affecting the New
Zealand tourism industry. This will help to identify the current scenario of the industry. In

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addition, this report will also discuss about the major issues and challenges being faced by the
tourism industry of New Zealand. In accordance to these issues, a few recommended steps will
be discussed, which will further help in enhancing the potentiality of the industry.
Situational analysis of New Zealand
According to Leekha, Chhabra and Sharma (2014), the situational analysis is essential in
nature and is conducted in order to understand the external as well as internal environment of the
organization. This is inclusive of the collection of the methods which is being used by the
managers in order toanalyse the internal along with external environment of the country New
Zealand in an effective manner (Burns, Bush & Sinha, 2014).
The SWOT and PESTLE analysis is essential in nature as this will be helpful in
understanding both the strengths, weaknesses, opportunities along with threats of the country.
Furthermore, as per the external factors which are concerned, this will provide proper
investigation on the differentpolitical, economic, social, technological along with legal and
environmental factors which play a major role in managing the different aspects.
SWOT Analysis
Strengths
There is huge support for the growth of the
international organizations which plays a
vital role in being setting up the business in
New Zealand
Furthermore, New Zealand has niche
growth in the market which will be
Weaknesses
The New Zealand dollar fluctuation can be
one major reason or weakness for the
different kinds of organizations or
business as this will not provide
competitive advantage to the different
companies which are planning to set up in