Australian Tourism: Economic Impact and Future Prospects Report

This report provides a comprehensive analysis of the tourism sector in Australia. It begins with an executive summary and introduction that highlights the importance of tourism to the Australian economy, contributing to GDP and employment. The report examines the current trends, challenges, and opportunities within the industry, including the impact of domestic versus outbound tourism and the role of government and private sectors. A literature review provides a conceptual framework, and the methodology section outlines the research approach. The findings and conclusion section presents key insights, followed by recommendations for improvement and future growth. The report addresses problems such as less funding, less involvement of locals and high indigenous tourists traveling overseas, which lower the total earning of the industry. The study utilizes secondary research methodology to analyze the sector and offers strategies to maximize its competitive advantage globally. The report also includes a list of references and appendices for further details.

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By (Name)
Course
Instructor’s Name
Institutional Affiliation
The City and State
The Date

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Executive summary
The research study is intended to examine, analyse and evaluate the tourism sector of
Australia with the primary goal of creating a critical understanding of how the Australian
tourism sector can supplement the economic performance of Australia as a nation. The study
also aims at investigating the factors limiting the improvement, embracement and
development of tourism in Australia. To achieve the research aims and objectives, the study
adopted secondary research methodology, in which different literature reports were reviewed
in relation to the Australian tourism industry. The findings indicated that the country is
recently gaining a considerable advancement in the tourism industry. Some of the problems
identified included less funding to the industry, less involvement of the locals and high
indigenous tourists traveling overseas which lowers the total earning of the industry.
Contents
Introduction....................................................................................................................3
Problem statement..........................................................................................................4
Research aims.................................................................................................................5
Research objectives........................................................................................................6
Research objectives........................................................................................................6
Literature review/ the conceptual framework................................................................7
The trend of the tourism sector in Australia...................................................................9
The economic and social benefits of the tourism sector to Australia..........................11
The government and the tourism sector in Australia...................................................11
Methodology................................................................................................................13
Research findings and conclusion................................................................................14
Recommendation..........................................................................................................15
List of references..........................................................................................................16
Appendices...................................................................................................................18

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Introduction
In the current era, states and governments are constantly and optimistically looking
for ways of raising funds for their nations/ countries. On this note, the tourism and hospitality
industry has been seen by most governments as the most lucrative ventures of raising revenue
and foreign exchange in particular (Pham Nghiem and Dwyer 2017, p.276). Additionally, the
tourism industry has been considered among the best strategies of creating and promoting
international allies. As visitors come from other countries, stronger relations and ties are
created, which in turn helps in promoting globalization. It has also been noted that the
tourism industry in Australia contributes up to 2.7 percent of its GDP and an approximate 4.7
percent employment opportunities as reported by 2012 statistics. This has led to a significant
change in the tourism industry in the last few decades due to the fact that more attention is
being directed to it. In other words, nations are constantly looking for ways of gaining
competitive advantages over other nations in the tourism industry. According to reports, it
has been shown that Australia gained a considerable increase in the number of visitors in the
year 2016. The increase in visitor numbers has been associated to the increased expenditure
in the tourism industry by the Australian government (Tsui and Balli 2017, p.428)
Reports indicate that that there has been a persistent decline in the economic
performance of Australia and yet, on the other hand, there are still studies indicating that the
increasing performance of the Australian tourism sector. In simple terms, the tourism industry
has helped in boosting the Australian economy, more especially the 2015 and 2016 review
that showed a significant rise/ boom of the sector (Gardiner Grace and King 2014, p.720). It
implies that the country has positively recovered from the initial crisis that was initially
affecting the industry and the general outlook in the performance remains the key macro
drivers for the country’s development. The Australian tourism industry has greatly benefited

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from the boost in its performance, having an increase in the number of visitors more
particular china and other nations such India, south Korea and the united states among many
others. Additionally, the boost also comes from the home tourists within Australia.
Researchers have linked the lucrative improvement and development in the Australian
tourism to its location proximity, as the country is located next to the growing Asian market
as well as safe environment and appealing natural environment (Tsui and Balli 2017, p.429)
One of the main factors that had initially affected the Australian tourism industry
included the world financial crisis as well as the culmination of the mining boom attracting
low demands oversea. According the available literatures regarding the global crisis, many
businesses and sectors around the world were affected and it took time to recover.
Based on the preceding insight, it is typically true and justifiable that the tourism
industry has a significant impact to play in the development of the Australian economy.
Having noticed that the industry contributes to a particular portion of the GDP and employing
a considerable number of people within the country. The study will therefore aim at further
creating a critical understanding of how the Australian tourism sector can supplement the
economic performance of the industry. Additionally, the study also aims at investigating the
factors limiting the improvement, embracement and development of tourism in Australia
Problem statement
The tourism industry has significantly showed a positive and promising outcome in
the future. The sector is currently employing a large number of the Australian nationals
approximating to over 4 percent of the total population. This is clearly a good indication that
the sector is significantly able to provide even more opportunities for Australia as a nation. In
other words, the tourism sector has become a very sensitive segment that requires more

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attention. Nonetheless, the sector has been under persistent struggles for the last decades on
how to improve on its performance both locally and internationally. It was through several
policies that a considerable regain and growth is being realized. With such essence, it is
distinctive that further research be conducted so as to develop precautionary measures of
preventing the industry from going down (Lenzen et al. 2017, p. 295)
Additionally, Australia is located in a proximity that boarders new and upcoming
potential markets and Asia in particular. It is therefore important for the country to critically
analyse the possible optimistic and most appropriate ways of promoting the country’s tourism
sector in the promising market. Of current, technology is diversely changing the trend of
trade and it is equally important for the Australian tourism industry to adopt to the latest
technology models in order to favourably compete in the tourism and travel sector of the
world.
Research aims
This section clearly and explicably explains the intension for the research study. As it
has been noted, the tourism industry plays an important role in the development of Australia.
It is therefore of high importance to critically analyse, evaluate and identify the different
variables that affect the sector, the possible causes and how it can be addressed. This will
help in strategizing, and forecasting the possible remedies that can help in re-addressing the
issues. Firstly, it was initially identified that the drawing sector in Australia experienced a
continuous decline over the last few decades. The declines have been related to the
inadequate effort offered by the various concerned stakeholders in ensuring an ineffective
management of the tourism sector. Although a considerable pickup in the performance in the
tourism and travel sector has been realized, it is still significant to typically analyse, examine
and evaluate initial sources of the decline. The study also intended to critically analyse and

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evaluate the policies and strategies that have been adopted to help in the improvement of the
performance. Holding the fact that there was initially persistent decline, several inapplicable
policies could have been integrated into the tourism sector. The investigation will help in the
identification of such policies to avoid the repetition of the same in the future.
Research objectives
 what is the trend of tourism in Australia and what it indicates for the future of
Australia’s tourism sector?
 What are the main challenges faced by the tourism sector in Australia?
 What are the most optimistic and recommendable remedies for the challenges
faced?
 What are the opportunities available for the Australian tourism industry to
explore so as to maximize its competitive advantage globally?
 What are the respective roles meant to be played by the government and the
private sector in promoting the tourism industry in Australia?
 What are the strategies to be adopted so as to promote indigenous/ local
tourism with Australia?
Research objectives
With the aim of having a well strategized report from the research problem, the
research questions were formulated to form the research objectives. The study employed
attainable, measurable, specific and realist objectives as a strategy of ensuring reliability and
dependability of the final research outcome. The following are the research objectives
 To understand the trend of tourism in Australia and its implication in the
future of the Australian economy

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 To investigate the challenges faced by the tourism sector in Australia
 To cite the possible solutions or remedies for the Australian tourism sector
 To point out the available and unexploited opportunities within the Australian
tourism industry
 To examine the roles of the private and government sectors in the promotion
of tourism in Australia
 To investigate the ways in which the indigenous tourism can be encouraged or
improved within Australia
Literature review/ the conceptual framework.
There are infinitely many research studies which had initially been done in reference
to the performance of the tourism sector in Australia. This encompasses a small and relatively
small academic reports and a large report base that aimed at policy formulations and
amendments dedicated to the policy makers. additionally, the reviews aimed at providing an
anticipation and forecast of how the future tourism trend may look like. In other words, the
reports aimed at providing a reflection of the forth coming tourism sector and recommending
the optimistic policy adaptations that favours the growth through an in-depth analysis.
Different views, findings and recommendation have been put forth by different authors. This
section will therefore be reviewing some important literature reports related to the topic of the
research study from different context (Jarvis Stoeckl and Liu 2016, p.295)
Outbound tourism vs domestic tourism; it has been noted that there is a gradually
decreasing number of domestic overnight tourism over the years, as this activity has been
altered by the number of tourists travelling oversea. In other words, the research study notes
that there has been an alteration from the local tourists attending the local sceneries to opting
in travelling overseas/ other nations. This justifies the reason for the stagnant or rather

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sluggish growth in the number of local tourists in the last one decade, that is to say from 2006
to 2014. Nonetheless, the available statistics indicate that the local tourism activity has the
highest share of expenditures which guarantees the potential of creating and maintaining the
sustainability of the sector and even promoting the competitive advantage in the market
(Pham Nghiem and Dwyer 2018, p.126)
One of the main questions that have been raised in many research studies is the
reasons for the differences in the level of performance between the domestic tourism and the
inbound tourism. Preliminary findings associate the difference to the strong growth of the
Australian economy which grants its countrymen a high disposable income to spend in the
oversea travels and exotic retreats. Nonetheless, this does not provide any justifiable ground
in relation to the tourist’s willingness or unwillingness to participate in the indigenous
tourism. Keeping in mind that the tourism industry is continually boosting the Australian
economy, it is a reasonable ground for the concerned authorities of the Australian
government to conduct an in-depth survey to investigate the potential causes of the increasing
number of the indigenous tourists going overseas irrespective of the beautiful sceneries left at
home. This will provide the remedies of boosting the sector foe even a more lucrative
performance. still on the domestic and outbound tourism, researchers have attempted to
create a substitution relationship so as to establish the core grounds on which the differences
are anchored. Lim (2017) used a series of equations relating the two variables and the result of
the findings anticipates a significant substitution attributed by a series factors among which
included the tourism culture within the country and the average disposable income of the
locals. Dwyer et al. (2016), preferred to use an attribution-based theory in behaviour to
evaluate the trend of behaviour among the domestic tourist. This study revealed that there is
no specific cause for the local tourist to travel overseas as variant factors were highlighted.
Some prefer overseas by virtue of preference in travelling abroad while others believed that

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much is not being done at home. This is a justification for the sector stakeholders to increase
on the investment within the home sceneries. The research further identified ignorance of the
indigenous tourist in regard to the available parks within the country. A recommendation to
this issue could be the improvement of awareness both locally and internationally.
A research conducted by Dobson and Hooper (2015) showed that the tourism industry
has not been able to attain its full growth due to the less effort directed to the sector by the
local community. It is a combined responsibility of all nation members more especially those
in the local communities to have a unified goal of attracting more attention from the
international scene.
The trend of the tourism sector in Australia
As it can be viewed from the table below, the country has managed to continually
improve in the performance for the last two decades. In other words, there has been strategies
drawn to help in the improvement of the national tourism activities including the marketing.
Statistics show that there has been an increased output in the total spending of the tourists. An
approximated A$ 47 billion were raised in the year 2014/ 2015 as indicated by the Australian
bureau of statistic. A further improvement was realized in the calendar year 2016 where it
was reported that the total number of tourists that visited was approximately over 7 million.
This is an indication of a positive trend as compared to the early 2000 when the total number
of visitors only approximated to below a million.

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Country 2015 2014 2013 2005 2000
China 1, 310, 900 839, 000 708, 900 250, 000 120, 000
New Zealand 1, 309, 000 1, 241, 400 1, 100,
000 1, 098, 900 817, 000
United Kingdom 688, 400 652, 100 657, 600 708, 800 580, 400
United States 609, 900 553, 000 501, 100 446, 300 488, 100
Singapore 395, 800 372, 100 339, 800 266,100 285, 700
Japan 335, 500 326, 500 324, 400 685, 300 820, 000
Malaysia 338, 800 324, 500 278, 100 166, 000 152,100
South Korea 230, 100 204, 100 197, 500 250, 500 157, 400
Hong Kong 219, 700 201, 600 183, 500 159, 500 154,100
India 233,100 196,600 168,600 n/a n/a
Total
The economic and social benefits of the tourism sector to
Australia
The contribution of the tourism and travel sector is one of the most recognizable
sectors whose input cannot be underestimated. If a sector of a nation is to be valued for its

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contribution in the country’s GDP, it has to be monetized. A series of studies have attempted
to evaluate and monetize the tourism sector, some of whom used the ad hoc multiplier to
approximate the aggregate benefit of the sector to the economy. The tourism industry has
helped in the creation of jobs, as many Australian locals are working in different tourism
agencies, restaurants, hotels and corrie shops (Ma Liu Li and Chen 2016, p.58)
In relation to the statistics highlighted in the introductory section, the tourism sector
employs up to over 4% of the total Australian population. This typically implies that there are
considerable many people involved in the industry which consequently explains the reason
for the greater contribution to the country’s GDP.
The government and the tourism sector in Australia
The federal government of Australia has done all the ways possible to ensure
expansion of the tourism sector. It is also noted that the policy of the government about the
sector has enabled its expansion. Long term strategy for the modernization of sector has also
been designed by the Australian government. Such strategy includes diversification of the
tourism products, advancement in tourism destinations and integration of assets and effective
utilization among others. Structural changes have also been made to compliment the sector.
This has uplifted the tourism sector to a more sustainable level. Additionally, very important
consideration has been put on strategy formulation and effective planning of the sector by
involving both the public and private sectors to enable the sector reach a future plan of the
segment (Hardiman and Burgin 2017, p.732)
Deliberate attempts have been undertaken by the government to ensure long term
sustainability of the industry. Undertaking this, statistics have shown a deliberate growth in
the sector especially in the year 2010-2012 when the government announced its target plan

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for the sector to reach $120billion by the year 2020. According to the national tourism
statistics, tourism is believed to be the highest contributing sector in the country. Literature
review also shows that from the time of the country was colonized, sector had challenges that
retarded its growth but later started growing gradually. The country has also made successive
plans to ensure that international tourists are cared for in a most prestigious manner in order
to maintain the sector. The country gets tourists from all over the world annually that come in
the country especially from China, Japan, Malaysia, United states among others. A number of
forces have been proposed that will ultimately change the trend of the tourism sector in the
country such as the change in the social cultural discipline.
Research also indicates that there has been change in the volume outbound tourism as
compared to inbound tourism. Investigation in the domestic tourism has likewise been limited
and the mechanisms pricing of tourist products changed. This attracted government efforts to
invest more money in order to advance the sector in order to much the trend of consumer
wants in the country. Government policy of providing and modernizing the international
destinations in the country has significantly favoured its dream to have the sector attractive to
the international tourism standards. Attraction sites like Blue Mountains, bond beach, Sydney
Harbour Bridge and Sydney house have been the major ground for the development of the
tourism sector
Australia’s tourism region; Australia as a country is countered among the best gifte
countries with considerably many beautiful and attractive sceneries. As per the 2014 bureau
of statistics reports, it was shown that the country has an approximated 84 tourism attraction
centres. Within each tourism area, there are many statistical local areas where tourists could
explore. The major tourists’ destinations include but not limited to; the Harvey Bay, Sydney
opera house, Fraser islands, and the great barrier reefs among the many others. The Harvey