Tourism Industry Of Australia Essay

Question:

Discuss about the Reforms in Tourism Industry in Australia.

Answer:

Introduction

Growth of tourism industry makes a significant contribution in Australia’s national income. Some of the mostly visited tourist spots include Sydney Opera House, Great Barrier Reef, Sydney Harbour Bridge, Blue Mountains national Park, Melbourne and others. Nations having attractive tourist spots always focuses on the growth of tourism industry. Based on this single industry there are several other industries that also developed. The assignment makes an economic evaluation of the reform initiatives in Australian tourism industry.

Essence of the Story

Recently an article is published on Content realignment projects, launched by the Australian government to redesign the official website (Australia.com). The objective of the project is to help the tourist to navigate easily to the top tourist sites in Australia. Some new holiday destination is also added to the menu list. A partnership is made between Australia.com, Storyation, and Fairfax Media. The partnership helps to develop diversified official site and increases the visitors of the site.


After the launch of the project, the proportion of visitors has already increased by approximately 46% (adnews.com.au, 2017). The site has redesigned with displaying maps, pictures and providing quality contents to all the queries. New videos, articles are published to make the tourism industry well decorated. The success of the project is seen from a huge rise in the number of tourist operators.

Economic theories and Concept

Forward and backward linkages

The importance of any sector in the economy is determined in terms of its linkage effects with other sector of the economy. More diversified the relation more important is the sector. There are two types of linkage effect capturing the relation of any industry with other sectors in the economy- Forward linkage and backward linkage. An industry has a backward linkage with its suppliers (Chancharat & Somsawas, 2015). The backward linkage is explained in terms of its relation with sectors that consumed the product of the concerned industry.

Figure 1: Linkages of Tourism Industry

(Source: Goodall & Ashworth, 2013)

The tourism industry has both forward and back linkages with several other industries. A closely related industry with tourism is hospitality industry. The growth of tourism industry depends on facilities like transport, hotel, restaurant business and other related industries. Apart from these directly related industries, some non-tourism sectors also benefitted when tourists make purchase of their goods and services.

Tourism and foreign exchange reserve

Foreign exchange reserves play an important role in building international confidence of a nation. Export is the most vital source of earning foreign exchange. However, relying only on exports may not be a viable option always (Lamonica & Mattioli, 2015). Tourism industries provide additional security in this regard. Tourism accounts significant foreign exchange earnings in Australia.

Employment and Tourism

The economic importance of tourism industry is reflected in terms of generation employment opportunities. The economic development of a nation involves a lower unemployment rate. Tourism sector in Australia contributes in maintaining a low unemployment rate. Tourism sector generates nearly 4.6% of the direct employment in Australia (Rice, 2014).

Economic Growth

Percentage change in national income indicates the economic growth of the nation. Different measures are used to indicate national income. Gross Domestic Product (GDP), Gross National Product (GNP) or Net National Product (NNP) are some of these measures. Tourism contributes to both the GDP and GNP of the nation. In Australia 2.6% of GDP is contributed by tourism industry (Loulanski & Loulanski, 2011).

Recommendation

Tourism industry is an important sector of Australian economy. Policy makers have taken several steps to improve the tourism sector of the nation. However, many areas need improvement. First, cost is an important determinant of demand. Policy makers in this industry take steps to make Australia an affordable tourism destination. Tourists packages should be designed to attract all types of visitors. Proper promotion of tourist spots is important for attracting more visitors. The nearby regions of the mostly visited tourist spots should have sufficient numbers of hotels, lodge and have other necessary arrangements. In times of promoting tourism business, environment sustainability should be considered. Government and other organization related to tourism industry should promote sustainable reform for tourism industry

Conclusion

Content realignment project is a small step toward the reform of tourism sector. It helps in redesigning the official website. Before making any travel plan tourists always look for proper information about the destination place. Therefore, a proper website containing all these information is of the highest priority. Additional focus is needed for further progress of the sector. Tourism sector already make notable consideration in growth, development and generation of employment. With reforms taken at a broader scope will help to flourish the sector more.

References

Case study: Tourism Australia redefines content - AdNews. [online] Available at: [Accessed 17 Aug. 2017].

Chancharat, S., & Somsawas, J. (2015). Economics impacts of cross-border tourism. Journal of Environmental Management & Tourism, 6(1 (11)), 45.

Goodall, B., & Ashworth, G. (Eds.). (2013). Marketing in the Tourism Industry (RLE Tourism): The Promotion of Destination Regions. Routledge.

Lamonica, G. R., & Mattioli, E. (2015). Research Note: The Impact of the Tourism Industry on the World's Largest Economies—An Input—Output Analysis. Tourism Economics, 21(2), 419-426.

Loulanski, T., & Loulanski, V. (2011). The sustainable integration of cultural heritage and tourism: a meta-study. Journal of Sustainable Tourism, 19(7), 837-862.

Rice, P. (2014). Universal management: a proposal to change the direction of accessibility management in the Australian tourism industry to create benefits for all Australians and visitors to Australia. Review of Disability Studies: An International Journal, 2(2).

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