Global Hospitality and Tourism Issues: COVID-19 Impact Analysis

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This report examines the profound impact of the COVID-19 pandemic on the Australian tourism and hospitality industry, highlighting the significant decline in GDP and increased unemployment due to travel restrictions and business closures. It discusses the challenges faced by both international and domestic visitors, including flight cancellations and travel bans. The report also outlines strategic recommendations proposed by the Australian Tourism Department to address these issues, such as fostering international relations, ensuring tourist safety, enhancing marketing efforts, and prioritizing skilled workforce employment. Ultimately, the report underscores the importance of the tourism sector to Australia's economy and the necessity of implementing effective strategies for recovery and sustainable growth post-pandemic. Desklib provides access to similar solved assignments and resources for students.
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Global Hospitality and
Tourism Issues
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
QUESTION 1:Impact of COVID-19 pandemic on Australian tourism and hospitality industry
................................................................................................................................................3
QUESTION 2: Strategic recommendations suggested by the Australian Tourism...............5
CONCLUSION................................................................................................................................7
.........................................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.................................................................................................................8
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INTRODUCTION
Tourism means when people move form one place to another to visit some place or any
other destination which they are thinking from long period of time who are called the visitors.
This is the time when people wants to go away from their homes and want to spend the leisure
time with either with their friends or families(Hsu, 2018). On the other side when people visit to
other places the government of the country is also benefited as this becomes the source of money
for them. When people are coming from any place which might be existing or of some other
country, they are spending some money in that which is going directly in the government
treasure which was happening with tourism of Australia. They were having good growth in the
GDP because of this factor but with the coming of COVID-19 pandemic everything has been
changed. This report will cover two questions which includes the impact of COVID-19 on
Australian tourism and some strategic recommendations.
MAIN BODY
QUESTION 1:Impact of COVID-19 pandemic on Australian tourism and hospitality industry
According to Tourism Australia, tourism in Australia is considered be the most important
sector and the most likely one which is preferred by every individual. This is because the place is
the unique landscapes and people can have different sought of experience which they have never
taken in any of the places. There is different type of beauty in Australia having vibrant colours
with great culture and nature. Despite of the challenges which the country is facing they have
built the great atmosphere by which people from other places when come feel amazing and
peace(Zhu, Freeman and Cavusgil, 2018). There are many places in Australia whBeyond
COVID-19: Rise of domeich can be visited by the tourists and that includes Sydney, Melbourne
and many others. With the coming of large number of tourists the country GDP was rising and
the government with that was also making the But the country currently is facing the issue of
COVID-19 pandemic in which has made the decline in GDP of the country and for that people
are getting unemployed because in the tourism industry also there were many people who were
linked with this job profile.
The COVID- 19 pandemic has hit the country the hardest and because of this pandemic
several restrictions are placed on the international and domestic travels. The decline in the
business of travel and hospitality has resulted in the closure of domestic borders also. According
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to Australian Government- Department of Foreign Affairs and Trade, the overseas visitors which
were coming from other countries have been declined in great numbers and the reason is that the
tour operators have been declined because they were operating in the small business and in the
beginning when everything was closed these were the businesses which were suffering a
lot(Yang and et. al., 2021). Thus, when everything was started these businesses were not able to
operate due to the decline in the revenue and these operators were responsible to make the
bookings in the hotels and other places. These were the only option for the people who has to
make the booking from the other countries. The other factor by which people are not coming to
visit Australia is that the restrictions which has been placed by the government of the other
countries which includes the stoppage of international flights as there are chances of spread of
the virus.
The travel in Australia have become very difficult because of the outward travel ban if
the person wants to leave the Australia. The fares to Australia which means the booked flights if
cancelled will charge higher then it was in the earlier time which was before the time of COVID-
19 pandemic. The other thing is that if the person has made the booking of the flight and they
want to come in Australia and if that flight gets cancelled then there is no option but to bear the
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charges of the flights and it is not also a sure that the other flight will get booked(Bulin and et.
al., 2019). So, it becomes very difficult from the side of the person who has made the booking
because they might have to face the cancellation charges which is more then the charges before
the COVID-19 pandemic. The tickets can be made available after the cancellation in months
which makes it very difficult from the side of individuals.
The Domestic visits which includes the people who are living in the same country or
might be in another city of Australia are also facing the similar issues like that of the other
countries people which also make the travel very difficult for them. There are some of the
restrictions which are places by the government of the country on the travel to certain places
because of the spread of the virus(Ahmad, Bakar and Ahmad, 2018). The government is making
precautions because they want to reduce the spread of virus and at point of times they have made
the lock-down in some of the places due to higher rise of the pandemic cases. People are also
losing their jobs because of the current pandemic and because of which they are not liking to
spend their money in visiting in any of the place. They think that it will be important to spend the
money on things which are necessity.
The biggest market of visitor arrivals of Australia was New Zealand which is the second
largest market and the revenue which the Australia was earning was around $2.7 billion which is
in the year 2019(Adeola and Evans, 2019). People of New Zealand comes to Australia in a very
frequent manner and there they used to spend a lot of money which was added in the GDP of the
country. But after the current pandemic situation people are avoiding to come to the other places
and this has declined the ratio of earning by the government. In the present time some of the
restrictions have been opened by the government of the country but the numbers of visitors of
Australia have declined then it was in the earlier time of pandemic. The government of the
country is trying to make all the things better and normal but it will taking some time and might
be after the pandemic has gone.
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QUESTION 2: Strategic recommendations suggested by the Australian Tourism
COVID 19 has a severe impact on the world, leading to shutting down of many
industries. This is due to the imposed of lock down in which no person was allowed to step out
of their houses and leading individuals to work from their homes(Ruhanen and Bowles, 2020) .
COVID 19 created a huge influence on the tourism industry as many people were working and it
is their only source of earning and due to this, there was growth in their GDP which was elevated
to 3.5% in financial year 2018-19. The industry has faced a sudden halt in the restriction of
domestic mobility and international visitation. Tourism industry has employed more than
666,000 Australians which makes 5% of workforce of the Australia. This leads Australia to
become one of the highest yielding destination across the globe. There was a sudden shattering
of economy when COVID 19 outbreak takes place which leads the tourism industry to shut
down. This makes individuals unemployed and even many people attempted suicide because it is
their only source of income. Australian economy has been benefited by tourism industry where
it generates employment, growth and investments across the nation. Australia is one of the most
popular destination for New Zealand visitors which enhances the GDP of the country. Owing to
COVID 19, Australian tourism were not able to generate appropriate revenue, leading in sudden
declining of GDP of the nation. In order to recover from such issue, Australian government need
to take appropriate steps and make comprehensive strategies for tourism sector for both domestic
and international travel(Hung and et. al., 2019). The Australian tourism department has to take
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certain steps so that the travel can become in a better way. Some of the recommendations which
have been provided by the tourism department have been explained below-
It is important from the side of government that they provide the full focus on this issue
as for the country the travel and hospitality industry is considered to be the most
important part for the GDP of the country. It is because they are the one who are
responsible for making and developing the policies in relation with the COVID-19
pandemic and on the other side they have to work on for developing the better
relationship with the other countries(Jackson, 2019). This is because if they will be
providing the development of best relations with the other countries then the government
of that particular country will also make the promotion to visit Australia. This is all
about making and building of relations with the other countries during the time of
pandemic. The other thing is that of providing the full safety to people and for that they
have to provide the assurance in regard with the safety and clean atmosphere which they
will be providing to people.
According to World Travel and Tourism Council, 2019, the competitive economy in
tourism which will be provided by the departments of the government which are related
with the tourism is considered to be the most important one. For that they have to make
the offering to the people in larger and in broad way so that people can be excited enough
for the travel. The other important thing is that it is important to make the branding and
marketing of the places which can work the best for the Australia government. The
present time which is of pandemic has reduced the number of people for visiting the
places. For that it becomes very important to them to make some of the things which are
attractive and by which the people becomes forceful to make the visit of the place. The
development of new technology can also play an important role by which the place can
become more excellent(Cronjé and du Plessis, 2020). People are more attracted with the
places who are using technology which is matching with that particular place.
According to International Labour Organisation (ILO), the employment in the tourism
industry is also the another factor which can improve the position of the economy and on
the other hand might improve the GDP of the country which is provided with the tourism.
The travel and tourism industry is the biggest and it will also require people with good
skills and knowledge and who have the capability of doing the things in a better way.
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But with the coming of pandemic the jobs of many people have been lost and now when
things are in control so it is recommended to employ the people who are the skilled
workforce and are motivated enough to do their jobs. Employing the people who are the
skilled workforce and who have the concentration on doing the things in correct manner
then these type of people are considered to be the most important one. As they will be the
one who can take any of the challenges and on the other side they can build the tourism
sector.
CONCLUSION
From the above report it can be concluded that tourism and hospitality industry plays an
important role for the GDP of the country. It is because there are some countries who are mostly
dependent on this industry and with the coming of this pandemic everything has been changed.
In the COVID-19 pandemic social distancing, places with no crowds and people are also
avoiding to go to any place because there are chances of getting effected with the disease. Thus,
the pandemic has hit up in lot many ways and because of which the government of the countries
are taking certain measures which can help in overcoming with this challenge.
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REFERENCES
Books and Journals
Adeola, O. and Evans, O., 2019. Digital tourism: mobile phones, internet and tourism in
Africa. Tourism Recreation Research. 44(2). pp.190-202.
Ahmad, S.Z., Bakar, A.R.A. and Ahmad, N., 2018. An evaluation of teaching methods of
entrepreneurship in hospitality and tourism programs. The International Journal of
Management Education. 16(1). pp.14-25.
Bulin, D. and et. al., 2019, September. Ethical Issues in Hospitality: Management Implications
for Youth Tourism in Romania. In Griffiths School of Management and IT Annual
Conference on Business, Entrepreneurship and Ethics (pp. 69-102). Springer, Cham.
Cronjé, D.F. and du Plessis, E., 2020. A review on tourism destination competitiveness. Journal
of Hospitality and Tourism Management. 45. pp.256-265.
Hsu, C.H., 2018. Tourism education on and beyond the horizon. Tourism Management
Perspectives. 25. pp.181-183.
Hung, K. and et. al., 2019. An overview of cruise tourism research through comparison of cruise
studies published in English and Chinese. International Journal of Hospitality
Management. 77. pp.207-216.
Jackson, M., 2019. Utilizing attribution theory to develop new insights into tourism
experiences. Journal of Hospitality and Tourism Management. 38. pp.176-183.
Ruhanen, L. and Bowles, L., 2020. Student perspectives of responsible tourism behaviour: The
role of tourism education. Journal of Hospitality & Tourism Education. 32(4). pp.255-
265.
Yang, J. and et. al., 2021. Effects of rural revitalization on rural tourism. Journal of Hospitality
and Tourism Management. 47. pp.35-45.
Zhu, Y., Freeman, S. and Cavusgil, S.T., 2018. Service quality delivery in a cross-national
context. International Business Review. 27(5). pp.1022-1032.
Online
{The impact of COVID-19 on international travel, 2021} [Online] Available through:
<https://www.smartraveller.gov.au/COVID-19/impact-covid19-travel
>.
{TOURISM NEW ZEALAND, 2021} [Online] Available through:
<https://www.tourismnewzealand.com/markets-stats/markets/australia/
>.
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Five ways destinations can stay competitive,2019 [Online] Available through:
<https://worldtraveltourismcouncil.medium.com/five-ways-destinations-can-stay-
competitive-28c7ae676805
>.
Employment in the tourism industry to grow significantly, 2021 [Online] Available through:
<https://www.ilo.org/global/publications/world-of-work-magazine/articles/
WCMS_157893/lang--en/index.htm
>.
Australia in 8D, 2021 [Online] Available through: <https://www.australia.com/en-in
>.
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