Analysis of the Australian Tourism Industry: Innovation and Challenges

This report offers a comprehensive analysis of the Australian tourism sector, examining its economic contribution, particularly its impact on the GDP and service exports. It delves into the effects of the COVID-19 pandemic on key sectors such as accommodation, food & beverage, and travel, highlighting the challenges they face. The report applies the Applied Creativity and Innovation Model to analyze these sectors, providing insights into potential solutions. Furthermore, it proposes an innovative startup business idea within the food and beverage sector, featuring a restaurant concept that leverages technology and prioritizes safety through table trains, robots, and contactless ordering. The report concludes by summarizing the key findings and emphasizing the need for innovation in the face of industry challenges.

Application of the
Applied Creativity &
Innovation Model

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Research and present contribution of the tourism sector to Australia: its contribution to the GDP
(economy) and how much does it represent to the total service exports?................................................3
2. Research and discuss Accommodation, Food & Beverage and the Travel sectors within the Tourism
and Hospitality Industry which are directly or indirectly impacted.........................................................4
3. Discuss the challenges facing these sectors.........................................................................................5
4. Use the Applied Creativity and Innovation Model as a basis, when analysing these sectors...............6
5. An innovative start-up business idea in any of the 5 Sectors (accommodation, F&B, Recreation &
Entertainment, Transportation and Travel Services) of the Tourism Industry in Australia......................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Tourism industry is considered as total of all the businesses which directly offer goods
and services that facilitate business as well as they provide leisure as well as pleasure practices
away from the environment of home. There are numbers of sectors comprised in the tourism
industry such as booking and reservation, hospitality industry, food and beverages,
accommodation, transportation, tourism products and destination and many more. The main aim
of conducting this report to determine crisis occur at the tourism economy due to the
Coronavirus pandemic (Birdi, 2020). In respect of this there is evaluation with different topics
such as contribution of tourism sector to Australia including GDP rate, total service exports and
so on. Moreover it also include impact of Coronavirus pandemic on the accommodation, travel
sector and food and beverage as well as it also include challenges faced by respective sector.
Along with this, it also includes implication of creativity and innovation models as well as it
include a new business idea for respective sector.
MAIN BODY
1. Research and present contribution of the tourism sector to Australia: its contribution to the
GDP (economy) and how much does it represent to the total service exports?
According to the article given on the Tourism Australia, 2020, Australia tourism
generated $ 60.8 billion in respect to the tourism gross domestic products (GDP) in the financial
year of 2018 -19. It represent that the growth of 3.5 percent over the prior year is the faster than
the GDP growth rate notional level. In addition to this, tourism of respective nation directly
provides employment to the 666000 Australians which lead to development of 5 percent of the
Australia’s personnel (Cao, Shang and Meng, 2020). Moreover, 44 percent of the tourism funds
or dollars are spent in the regional destinations as well as tourism was considered as the
Australia’s fourths biggest exporting sector, as per the accounting 8.2 percent of the Australia’s
exports earning. Along with this, there are currently more than the 1.4 billion international
travelers who travel globally which amount of spending are nearby US $1.5 trillion every year.
According to the statistics of 2018 and 2019, there are 9.3 million international travelers who
arrived at the Australia, which is considered as enhancement of 3.0 percent as compare to the last

year. The respective nation is considered as the highest yielding destinations around the world
which encourage international travelers to spend $44.6 billion in year 2018-19 as compare to the
prior year that show growth of the 5 percent. This show that, Australia’s tourism sector is very
beneficial for the country economy such as it generates jobs or employment, increase investment
for the nation business, enhance the market shares and many more. In addition to this, it also
increases the export rate of the nation which increases the economic ratio successfully.
Figure 1THE ECONOMIC IMPORTANCE OF TOURISM
Source: THE ECONOMIC IMPORTANCE OF TOURISM, 2020

2. Research and discuss Accommodation, Food & Beverage and the Travel sectors within the
Tourism and Hospitality Industry which are directly or indirectly impacted.
COVID 19 is also known as the Coronavirus which is spread all around the world as well
as it also impacted all industries all over the nations due to which numbers of job lose take place
as well as it also leads to decrease in economy of nation and company. Due to respective virus
one industry is majorly get impact directly i.e. hospitality industry which include numbers of sub
divisions within the Tourism such as Accommodation, Food & Beverage, the Travel sectors and
many others (Ferreira, Coelho and Moutinho, 2020). This is generally happen because due to
COVID 19 lockdown was conducted all around the world which directly leads to decrease in the
travelling at national as well as international level. this situation will directly or indirectly impact
on the other section of the hospitality sector such as due to Coronavirus customer’s preference
get change which leads to decrease in the sales at the restaurants, cafes and hotel as people want
to maintain social distancing as well as they are more preferred home cooked food and drinks. In
addition to this COVID 19 also impacted on the accommodation sector which is also known as
hotels as when traveling of visitors get decrease then directly there is decease in the
accommodation rate. Due to the COVID 19 every country strict their national boundaries that
they are not permitting easily to other nation members so that will also directly in directly impact
on the travel and tourism sector. As the numbers of international or national tourist get decreased
which leads to reduction in sales as well as market value.
3. Discuss the challenges facing these sectors
Due to COVID 19 Accommodation, Food & Beverage, Travel sectors and hospitality
industry get impacted which leads to decrease in their business, sales as well as profitability
ratio. In addition to this, these industries also experienced numbers of challenges while operating
their business operations as well as functions during the COVID 19 situation. Some of the main
challenges which are experienced by Accommodation, Food & Beverage, the Travel sectors and
hospitality sector are mentioned below:-
 The first challenge is related to the movement of tourism as due to COVID 19 people are
not able to move from one location to another event nation or international level. So it is
challenge for the respective industries companies to attract customers and start their
business in effective manner (Hong and Song, 2020). Moreover it is also challenging for

these industries company to maintain proper social distancing because there are huge
numbers of worker conduct work in respective industry.
 It is also challenging for the respective sector companies to conduct business practices
and operating in normal manner because now it is not possible to hire employees for
each and every work. So in respect of preventing themselves as well as their guest
respective industries companies need to set robots for the different practices and
operations as that will help in maintaining distance (Liu, Feng and Wang, 2020).
Moreover when these companies will start operating they need to change their
infrastructure as well as they also needs to provide some essential items to staffs such as
mask sanitizer and so on.
These are the main challenges which are faced by companies operating in
Accommodation, Food & Beverage, the Travel sectors and hospitality sector due to COVID 19.
4. Use the Applied Creativity and Innovation Model as a basis, when analysing these sectors.
In order to resolve issues or challenges every company need to adopt for the creative as
well as innovative ideas as that will help in determining best solution according to the situation
in effective and appropriate manner. For this they may adopt different models, strategies and
techniques as that help in developing proper strategies and plan successfully. in respect of
respective project which is based on impact of COVID 19 on hospitality sector, for which
creative and innovation model is used which explanation is given below:-
 Identify the challenges – At this stage management of respective industry will determine
the challenges which are faced by them due to COVID 19 such as decrease in tourism
rate, follow guideline of government and many more.
 State the situation – At this stage management need to understand the whole situation as
that will help them in developing proper decision in effective manner (Madsen, 2020).
Moreover at this stage they will also conduct proper research activities to deeply
understand of each and every aspect.
 Ideation – At this stage management of a company will develop strategies as well as
plans so that they can resolve challenges or faced it in the proper manner so that they
again able to earn profit by increasing their sales effectively.

 Explore a few possible solutions – In this manager will identify the best solution from the
bunch of strategies so that they can faced challenges related to COVID 19 in effective
manner.
 Implement the chosen solutions – It is the last stage at which management of respective
industries need to implement the strategies such as adopting robots for work, conduct
proper sanitization of workplace and so on (Meinel and et.al., 2020).
By adopting this creative and innovative model Accommodation, Food & Beverage, the
Travel sectors and hospitality sector able to handle impact of COVID 19 into the best way.
5. An innovative start-up business idea in any of the 5 Sectors (accommodation, F&B,
Recreation & Entertainment, Transportation and Travel Services) of the Tourism Industry in
Australia.
The innovative business idea is based on the food and beverage sector, according to the
new idea there will be opening a new restaurant which is totally faced in respect of COVID 19 as
in it food will be served by table train and robots. In addition to this near the table there will be a
screen through which customer may order food as well as at the entrance of the restaurant there
will be a robot that will check the temperature of the customer as well as customer need to go
through from a cannel which sprays sanitizer (Ogbeibu and et.al., 2020). Along with this, at the
respective restaurant seating arrangement is set according to cabins so that social distancing will
be maintained properly. The display of whole business model is displayed by the business canvas
model, which is described below:-
Key partners Key activities Value
propositions
Customer
relationships
Customer
segments
Food vendors,
staffs, supplier of
robots and table
train.
Offer quality
food and
beverage by
provide
providing
protection from
COVID 19.
Provide services
by preventing
from COVID 19.
By providing
quality and safe
services.
All age group
people and
middle, upper
middle and upper
class people.
Key resources Channels

Robots, table
train, food and
beverage
resources, staffs.
Social media,
poster,
advertisement on
TV.
Cost structure Revenue Streams
Staffs and robots and table train cost. Customer pay for the services.
CONCLUSION
Through the evaluation of above mentioned points it can be summarized that for due to
COVID 19 or Coronavirus pandemic every sector get impacted around the world because they
not able to conduct their business operations as well as functions in effective manner. Along with
this, from all sector most affected sector is considered as tourism industry because due to
Coronavirus pandemic there is very limited movement of people at the local, national and
international level. That leads to the decrease in sales, profitability and revenue, in respect of
Australia tourism sector which include numbers of services such as booking and reservation,
hospitality industry, food and beverages, accommodation, transportation, tourism products and
destination and many more get impacted negatively. Moreover, companies operating in respective
sector experienced numbers of challenges while operating their business function and operation due to
Coronavirus pandemic.

REFERENCES
Books and Journals
Birdi, K., 2020. Insights on impact from the development, delivery, and evaluation of the
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Cao, C., Shang, L. and Meng, Q., 2020. Applying the Job Demands-Resources Model to
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Ferreira, J., Coelho, A. and Moutinho, L., 2020. Dynamic capabilities, creativity and innovation
capability and their impact on competitive advantage and firm performance: The
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Hong, O. and Song, J., 2020. A componential model of Science Classroom Creativity (SCC) for
understanding collective creativity in the science classroom. Thinking Skills and
Creativity, p.100698.
Liu, Z., Feng, J. and Wang, J., 2020. Resource-Constrained Innovation Method for
Sustainability: Application of Morphological Analysis and TRIZ Inventive
Principles. Sustainability. 12(3). p.917.
Madsen, H.L., 2020. Business model innovation and the global ecosystem for sustainable
development. Journal of Cleaner Production. 247. p.119102.
Meinel, M. and et.al., 2020. Does applying design thinking result in better new product concepts
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Ogbeibu, S. and et.al., 2020. Technological turbulence and greening of team creativity, product
innovation, and human resource management: Implications for sustainability. Journal
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Online
THE ECONOMIC IMPORTANCE OF TOURISM. 2020. [Online]. Available through:<
https://www.tourism.australia.com/en/markets-and-stats/tourism-statistics/the-
economic-importance-of-tourism.html#:~:text=In%20the%20financial%20year
%202018,per%20cent%20of%20Australia's%20workforce.>.