Destination Competitiveness Analysis of Sydney: TOUR3009 Report

This report provides a comprehensive analysis of Sydney's tourism industry, focusing on destination competitiveness. It begins with an introduction to destination competitiveness and an overview of Sydney as the chosen destination. The report then delves into a discussion of destination resources and situational analysis, comparing traditional attractions like Bondi Beach with emerging attractions such as Sydney City of Film, incorporating STEP factors (Socio-demographic, Technological, Economic, Environmental, and Political-legal) to assess competitiveness. A detailed analysis of destination positioning, product diversity, and visitor experience is presented, highlighting the differentiation strategy employed by film tourism and the various experiences offered to tourists. The report further explores strategic directions and challenges, including managing competition and crises, with specific attention to the film tourism sector. The conclusion emphasizes the roles of both traditional and emerging tourism sectors in enhancing Sydney's appeal as a major tourist destination, particularly highlighting the significance of reputational resources. The report references various academic sources to support its findings and analysis.

Running head: ANALYSIS OF DESTINATION MANAGEMENT
ANALYSIS OF DESTINATION MANAGEMENT
Name of the Student
Name of the University
Author Note

1ANALYSIS OF DESTINATION MANAGEMENT
Introduction – a brief summary of the assignment overview on destination competitiveness;
a brief background on the selected destination
Destination competitiveness can be defined as the general concept that is able to
encompass the price differentials coupled with the exchange rate based movements, levels of
productivity of different components that are a part of the tourist industry. The qualitative factors
that have an impact attractiveness of the tourism destination are also a part of the destination
competitiveness aspect. Destination competitiveness is also related to the ability that a particular
destination has with respect to the delivery of services and goods are able to perform better in
comparison to the other destinations (Abascal, Fluker and Jiang 2016).
The tourism destination that has been taken into consideration for analysis in the essay is
Sydney. Sydney is mainly state capital of New South Wales and one of the most highly
populated city of Australia and Oceania as well. The destination is mainly located on the east
coast of Australia and the metropolis mainly surrounds Port Jackson extending up to 70 km
(Ball, Bryant and Mau 2018).
Discussion
2.1. Destination resources and situational analysis for traditional vs emerging tourism
attractions (i.e. special interest tourism)
Sydney is considered to be one of the world’s most global, connected and green cities. It
is Australia’s leading city and is also considered to be the gateway to Asia. Sydney has been a
chosen destination for the business leaders, international corporations, students and tourists as
well. Sydney has also provided headquarters for around 40% of the Australian corporations that
have gained their position among the top 500 companies in the country (Balli and Tsui 2016).

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Sydney has proved to be a major tourism attraction in Australia and has been able to
attract huge number of tourists throughout the year. The vibrant nature of the capital of New
South Wales has become a perfect destination for the tourists who visit the place from different
parts of the world. The traditional tourism destination that is able to attract tourists towards
Sydney is the Bondi Beach (Bayram 2019). Different activities that can be performed by tourists
in the beach include the fantastic cafes, restaurants and incredible surfing as well. The emerging
tourism destination on the other hand that has been able to attract the tourists from different parts
of the world is the Sydney City of Film. The tourism sector aims at promoting enjoyment of the
screen culture by the tourists and the Sydneysiders as well (Sydney.com, 2020).
The STEP factor can be taken into consideration for the purpose of analyzing the
competitiveness of Sydney with respect to the emerging tourism sector –
▪Socio-demographic/cultural factors Small population of Sydney is considered to be a major social factor that has an
impact on the tourism sector of the country.
 The multicultural and multiracial nature of the society is able to attract tourists
from different parts of the world (Croy 2018).
▪Technological factors
 The technological innovations that in Sydney have been able to support the
growth of tourism sector.
 Research and development has been funded by government of Sydney and this
has led to proper development of tourism activities (Huveneers et al. 2017).
▪Economic factors

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 Australia has been able to hold the 13th spot with respect to size of the economy in
the world with contribution provided by organizations in Sydney.
 Sydney has imported many key products from various countries in order to
maintain the operations of various industries (Kim and Kim 2018).
▪Environmental factors
 Sydney is a beautiful country that consists of various attractions like forests,
mountains and stunning beaches.
 Water insecurity is also considered to be a major environmental factor that can
have an impact on tourism based activities (Muskat and Muskat 2016).
▪Political-legal factors
 The business climate and stable political situation in Sydney is considered to be a
major political factor that has an impact on tourism organizations.
 Government of Sydney is considered to be quite transparent in its operations and
the changes in various activities can have an impact on tourism sector (Perkins
and Khoo-Lattimore 2019).
2.2 Destination positioning analysis
Film tourism has been able to become a major part of the tourism activities that are
performed in Sydney, Australia. The tourists from different parts of the world are attracted
towards the emerging tourism sector of Australia that is mainly related to film tourism. The
differentiation positioning strategy has been implemented by the emerging tourism sector in
Australia and this is able to enhance its competitiveness in comparison to the other destinations
in the world. The film tourism based packages that have been formed by the tourism sector of

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Australia have been able to add value to the activities that are performed in the sector
(Sydney.com, 2020).
The differentiated positioning strategy has been helpful in providing a strong competitive
position to the film tourism sector of Sydney. The traditional tourism sector of Sydney had been
able to attract the tourists with the help of reputation based resources. The reputation of
destinations like Bondi Beach had provided a major position to Sydney in the tourism industry
(Sydney.com, 2020). Various other traditional destinations that have been able to attract tourists
based on reputational resources include Taronga Zoo Sydney, Sydney Opera House, Manly
Beach, Australian Museum, Queen Victoria Building, Captain Cook Cruises, Sydney Harbor
Island, Cockatoo Island, Royal Botanic Garden and the Domain and Capitol Theatre (Van Hoa,
Turner and Vu 2018).
2.3. Product diversity & visitor experience analysis
The film industry has become a major contributor in the tourism sector of Australia based
on the increase in usage of various locations for shooting different movies. The demand for
various shooting locations have started increasing in the last few years and this has further led to
the development of different areas. The increase in demands for film tourism based activities has
further been able to enhance the attraction levels of tourist destinations. The diversity of the
tourism destination or products offered by film tourism sector are able to enhance the number of
tourists towards the country (Yen and Croy 2016).
Different types of experiences are provided to the visitors by the emerging tourism sector
that are able to enhance its importance in a huge manner. The two major types of visitor
experiences that are offered to the tourists by the emerging include physical experience and

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emotional experience. The physical experiences have been based on the shooting of movies in
different locations or destinations in Australia. Physical experiences are mainly based on the
ways by which film tourism activities are able to fulfil needs and demands of the tourists
(Sydney.com, 2020).
On the other hand, emotional experiences are based on the connections that are developed
by the tourists based on their visit to different destinations. The competitive advantage can be
gained by the emerging tourism sector in Australia with the help of unique experiences that are
provided to the tourists who visit different areas of the emerging tourism sector. The experiences
will be able to fulfil the needs and demands of tourists with the packages that are offered to them
based on different destinations (Perkins and Khoo-Lattimore 2019). The visit of tourists in a
destination like Bondi Beach has been able to enhance the importance of Sydney and the tourism
based revenues that are gained by the country as well. The people of Australia have also
developed a huge emotional connect with this traditional tourism destination.
2.4. Strategic directions and challenging issues - managing competitions/crises
Answer to Question 1 - The emerging tourism product that has been taken into
consideration for analysis in the essay is film tourism in Sydney. Film tourism has been able to
attract tourists from different parts of the world with respect to the huge number of famous
movie shootings that have taken place in the destination (Ball, Bryant and Mau 2018). The
different areas in Sydney which are famous for the shooting of movies include, Colonial State
Bank for 'The Matrix', Bare Island for 'Mission Impossible 2', Martin Place for 'Superman
Returns', Strickland House for 'Australia' and Fox Studios for 'Star Wars: Attack of the Clones'
and 'Star Wars: Revenge of the Sith'.

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Answer to Question 2 – The challenges and risks faced by the emerging tourism can be
managed in an effective manner with the help of development proper packages that are offered to
the tourists. On the other hand, advertising and promotional activities can also play a key part in
enhancing awareness related to the products and packages that are offered to the tourists. The
competitive position of the emerging tourism sector can be managed in an effective manner with
the proper development of packages that are suitable for tourists visiting the country from
different countries (Abascal, Fluker and Jiang 2016).
Conclusion
The essay can be concluded by asserting that the traditional and emerging tourism sectors
are able to play a key part in enhancing the significance of Sydney as a major tourist destination.
The traditional tourism sectors are however able to attract more tourists to the country due to the
presence of huge reputational resources in comparison to the emerging tourism sectors.

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References
Abascal, T.E., Fluker, M. and Jiang, M., 2016. Domestic demand for Indigenous tourism in
Australia: Understanding intention to participate. Journal of Sustainable Tourism, 24(8-9),
pp.1350-1368.
Ball, D., Bryant, S.L. and Mau, R., 2018. The interplay between tourism and conservation on
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Balli, F. and Tsui, W.H.K., 2016. Tourism demand spillovers between Australia and New
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Bayram, G.E., 2019. 6 Setting a Brand Image through Film Tourism. Sustainable Destination
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Croy, W.G., 2018. Film tourism. Special Interest Tourism: Concepts, Contexts and Cases, 6,
p.85.
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