Tourism's Economic Impact in Australia

The essay discusses the significant economic impact of tourism in Australia, highlighting its growth, job creation, and contributions to GDP. It emphasizes the direct and indirect effects of tourism on employment, particularly in sectors like hospitality and transport. The analysis includes comparisons with other industries and future job prospects for graduates in tourism and hospitality management. The essay also references various studies and reports to support its claims about the importance of tourism in both Australia and Japan.

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In just less than a year, Australia expenditure from tourism grew to $ 121.2 billion
surpassing that of mining sector which stood at $121 billion. From the above, it is a clear
indication that there are increases in international and domestic tourists something worth noting
that the industry is getting healthier. The research team responsible for tourism included local as
well as international visitors engaged in various activities such as gambling, flights, and
shopping (Ironside, 2017). Tourism is one of the many sectors considered as developing in most
parts of the world. It is also true that tourism has some implications in economic dimensions
such as the Gross Domestic Product and the development of local activities. According to one of
the reports by world tourism council, in 2014, the global GDP had grown to more than $ 7.5
trillion accounting for 10% of the global GDP. Tourism sector alone generates 277 million jobs
for the whole global economy. Increasingly, the sector is growing more than other dominating
sectors that control GDP such as the manufacturing and banking among others.
The growth of the tourism has facilitated to more jobs being created in both developing
and developed nations either directly or indirectly (Ironside, 2017). Jobs in sectors such as
transport and construction continue benefiting as a result of tourism development indirectly
(Smith, 2017). The year 2013 saw more than 100 million jobs being created directly in tourism
and travel around the globe. As such it is a small percentage of about 3% of the total rate of
employment. It is approximated that one job is created indirectly when eleven jobs are created
directly. According to this essay, the spiraling effects of tourism that are either direct or indirect
are given a detailed description.
According to Weaver and Lawton (2014), tourism not only impacts on employment
directly but also indirectly. The multiplier effects of direct and indirect job creation are analyzed
in this essay (Ironside, 2017). Also, a deep analysis of future careers is highlighted in this piece.

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Japan is one of the popular destinations due to its attractiveness as it is a combination of culture
and traditional value is a perfect example to be used in this context.
Tourism has been hailed due to the substantial contribution it makes in creating
employment opportunities either directly or indirectly. Direct job creation refers to the impact
created by tourism in generating jobs directly that are linked and related to tourism and
hospitality and other relevant sectors such as travel agents, resorts and spas, and industries
related to entertainment that engage tourism activities. It has been reported that tourism had
significant direct effects on creating employment in Japan. Tourism created direct jobs related to
tourism in 2014 and saw more than one million people get employed and that represented 1.8%
of total employment. In 2015, the number had increased to 6% signifying an increase and saw
more people getting engaged again in employment (Ironside, 2016). In 2025, it is expected and
projected that the tourism industry will have grown by a margin of 0.7% on a yearly basis and
jobs created directly will amount to more than 1.2 million people in less than a decade (Weaver
and Lawton, 2014). According to the Australian Department for employment, jobs created
directly by tourism are expected to be higher as compared to other sectors such as banking and
finance.
On the other hand, indirect jobs created by tourism involve the provision of goods and
services such as transportation and manufacturing of culinary (Ironside, 2016). One indirect
contribution of tourism is the supply chain created in distributing essential goods and services
that support tourism such as food, drinks and equipment used in hotels and also accommodation
facilities.

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In some countries nations such as Japan, it is estimated that for one million dollars created; it will
have a profound effect of creating six direct jobs and nine indirect jobs (Turner, 2015). One job
has a multiplier effect of creating three more jobs which are either indirect or induced. Tourism
in a country such as Japan is critical as it is superior to other sectors such as agriculture, mining,
and banking services in creating jobs. It is evident that tourism creates positive externalities by
creating indirect jobs as well as enhancing that there are direct jobs related to tourism in Japan
and also in a continent like Australia (Bulin, Miru and Roșca, 2014). Australia has shown
potential as a prospective tourist destination in providing excellent customer service and fantastic
tourist attractions.
The growth of the economy depends on significant contributions made by the growth
and development of tourism in the creation of jobs. As such, a future career for graduates in the
field of tourism and hospitality in Australia is expected (Ironside, 2016). Some of the reasons
behind such expectations and prospects are the fact that Australia has captivating and interesting
destinations to offer compared to other parts of the world. Places such as natural beaches with
white sands and clear waters are one of the attractions making tourists flock in a continent such
as Australia (Hastings, n.d.). Australia also has unique creatures such as the Kangaroos in the dry
land, jelly fish and the electric eel in the ocean are some of the amazing creatures in the tourist
attraction list (Weaver and Lawton, 2014). Some historical events and culture are also part of
tourist attractions. On the other hand, a country such as Japan is classified as a third world nation
and as such comes handy in creating jobs both directly and indirectly in tourism and hospitality.
Graduate students have more prospects if they understand English in countries such as Japan.
Such jobs include translation jobs, tour guides, and managers in restaurants where tourists visit.
In indirect employment, they are employed in sectors such as transport and supply chain in food

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and beverages. Japan has also been said to be a working environment and as such provides
motivation for the youths to work harder.
While tourism is experiencing growth, there are many opportunities awaiting meaning
there are many jobs that will be created directly and indirectly in Australia (Weaver and Lawton,
2014). As such Australia provides many prospects for those taking studies in Tourism and
hospitality management and as such it is a relief for many graduates internationally willing to
work in a well-endowed country such as Australia.

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References
Bulin, D., Miru, N. and Roșca, I. (2014). TOURISM INDUSTRY IN ROMANIA AND JAPAN – A
COMPARATIVE ANALYSIS. [online] Available at:
http://ftp://ftp.repec.org/opt/ReDIF/RePEc/rau/journl/FA14/REBE-FA14-A17.pdf [Accessed 18
Aug. 2017].
Hastings, W. (n.d.). 12 Top-Rated Tourist Attractions in Australia | PlanetWare. [online]
Planetware.com. Available at: http://www.planetware.com/tourist-attractions/australia-aus.htm
[Accessed 18 Aug. 2017].
Ironside, R. (2016). The $4 billion expansion of Australia’s tourism industry. [online]
NewsComAu. Available at: http://www.news.com.au/travel/travel-updates/asian-visitors-fuel-
388-billion-tourism-boom-in-australia/news-story/da804cfa485e47b2fa7944eb9ada312a
[Accessed 18 Aug. 2017].
Ironside, R. (2017). Tourism generating as much money as mining. [online] NewsComAu.
Available at: http://www.news.com.au/travel/travel-updates/is-tourism-australias-most-lucrative-
industry/news-story/36be54279607890e262e96444814f1ae [Accessed 18 Aug. 2017].
Smith, M. (2017). Australia braces for new tourism boom as flights surge. [online] Financial
Review. Available at: http://www.afr.com/business/tourism/australia-braces-for-new-tourism-
boom-as-flights-surge-20170706-gx6glx [Accessed 18 Aug. 2017].
Turner, R. (2015). Travel & Tourism Economic impact 2015 Japan. [online] Available at:
https://www.wttc.org/-/media/files/reports/economic%20impact%20research/countries
%202015/japan2015.pdf [Accessed 18 Aug. 2017].

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Weaver, D. and Lawton, L. (2039). Tourism management. Milton: Wiley.
Weaver, D. (n.d.). Sustainable tourism.