OVERVIEW couple of years, tourism of Australia has given

OVERVIEW

This study brings forth tourism industry in
Australia and its benefits to local economy into lime light. The study
discusses about how tourism industry of Australia increasing the employment
rate, supporting increased spending in local community and helping in
diversification. It also compels authorities to raise infrastructural
development, keep societal advantages and promote environmental advantages. Further,
tourism industry also creates new opportunities for the advancement of economy.
Tourism industry of Australia has contributed about 4.7 percent of employment in
the year 2014-2015as per report of Bruce Leaver. It can be stated that tourism
industry of Australia helped local economy to thrive many fold.

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From couple of years,
tourism of Australia has given a major boast to the economy of Australia. It is amazing to note that 3.0 percent of GDP was
only contributed through the means of Australian tourism. And this was particularly
observed in the year of 2014-2015. In other words, 47.5 billion dollars were added
to Australian economy due to tourism; which itself is a great manifestation of importance
of tourism. It is not just the International tourism, but domestic tourism has also
contributed to Australian economy to the maximum.

It
is evident from the figures that how tourism industry is holds significance for
Australia Economy. In the year 2015, there were 7.4 million visitor arrivals in
Australia. Besides that, tourism industry employed 580,800 (Five Lac Eighty
Thousand, Eight Hundred) people in Australia in 2014-15 which is about 5
percent of the total workforce. Among these figuresabout 43.7% persons were
employed in tourism as part-time employers. The story also identified that tourism
industry also contributed 8.0 percent of Australia’s total export earnings in the
year 2010-11.

Figure 1: Number of Groups Surveyed by Visitor
Segments

Popular
Australian tourism destinations include the Coastal cities of Sydney, Brisbane and Melbourne.In
addition, Queensland, the Gold
Coast and the Great
Barrier Reef are the other high-profile destinations
including regional, the world’s largest reef. Uluru and the Australian
outback are other popular locations, as is
the Tasmanian
wilderness. The unique Australian wildlife is also
another significant point of interest in the country’s tourism.

BENEFITS OF TOURISM
INDUSTRY OF AUSTARIAL TO LOCAL ECONOMY

Augmented Employment Rate

Frans Lanting has rightly said. “Tourism is important because it can create sustainable
local economies. I’d much rather have 1,000 tourists going up the Tambopata
than 1,000 gold miners.” The worth of tourism can be deduced in the light of
Frans’ quote. It is preferring “One Thousand” tourists over the same number of
gold miners. It is because tourism generates revenue which multiplies itself in
years to come. Besides to maintain tourism all other factors of a local economy
are given due consideration. Such as environment is among the major factors;
which is considered much. Contrary gold miners or gold diggers can pollute the
environment on the pretext of revenue generation. Moreover, it creates
thousands of jobs for the local populace. These include positions like tour
guides to tourists; increment in hotel staff and hotels is also the outcome of
increased tourism. Furthermore, expansion in the business of coach services and
restaurants, beach sideways is also the direct result of tourism.

This has been the case of
Australia in last three to four years. As per tourism statistics of Australia;
almost 741, 500 (Seven Lac, Forty One Thousand and Five Hundred) visitors
arrived in Australia during month of October which showed an increment of 6.6
percent compared to the same period of the previous year. Tourism Australia
website further quotes; this whole phenomenon brought around 8.7 million
visitor arrivals for year ending October 2017, the increment is analogous to 7.1
percent relative to previous year. In addition to this leisure arrivals
including arrivals during holidays and visual flight rule arrivals continued to
thrive and attracted much international arrivals growth, with an increase of
7.6 percent over the 12 months period.

Additionally, it gives boast
to local consumption as well, besides giving lump sum amount of wages to local
staff. Retail and food production are other two areas which get huge benefits
of tourism in Australia. Conclusively, it can be said that tourism sector has
brought manifold benefits to economy of Australia in last decade as it hits
every corner of the life.

 

Figure 2: Tourism Share

 

Increased Spending On Local Community

Tourism in Australia has greatly helped local
community to make progress by leaps and bounds. It has helped local economy
whose trickledown effect can be felt in every strata of the Australian society.
First, it has poured the money in the local community. Such as when tourists
come to visit Australia they need hotels to rest in, restaurants to entertain
at and to fulfill their wide variety of basic human requirements. They go out
to purchase eatable items such as food, beverages and many more things like
that, which eventually help Australian economy to grow and give a positive
boast to economic growth rate. The study is also the precursor of the fact that
after tougher visa regimes Australia has been among the very few countries
which have overwhelmingly welcomed people from different parts of the world. It
is therefore their local community has strengthened and flourishes more and
more with the passage of time.

Second, they also do shopping, hairdressing
and avail many medical and transportation services along with souvenirs and
amusements which also help in increasing economic growth rate. This way
Australian goods also get acknowledged in other parts of the globe as well
which directly or indirectly helps Australian economy to grow. In addition to
this, dollars earned through the help of tourism by businesses or individuals
are re-injected into local economy to further augment the economic growth.

It is therefore, tourism revenues are often
referred to as having a multiplier effect, because a large percentage of every
tourist dollar earned is reintroduced back into the economy, again and again.
Henceforth, we can say tourism helps local economy to many fold.

Figure 3: Conceptual Model of Tourism, Development
and Community Benefits

 

Helps in Promoting Diversification

 

Tourism helps in promoting cultural diversification. When people
visit Australia, they bring with themselves many economic opportunities. These
economic opportunities get wider spectrum when local people of Australia help
them and make them to feel comfortable. They intermingle with them and
eventually Australian culture gets a wider scope to flourish.

 

Diversification by Tourism helps in International business
within a globally connected marketplace

Many of the visitors, who
visit Australia for visit, change their idea and get permanently settled over
here. This way they bring diversification into culture as well as business. As
then there would be a culturally different staff and labor to work for the
economy. This will eventually further attract the more visitors as they would
feel comfortable in interacting with the people of the same origin, language
and ethnicity. This phenomenon also helps in increased FDI (Foreign Direct
Investment).

Education sector

Cultural
diversity provides a competitive advantage in attracting international
students. In Australia that has been achieved with the help of Tourism.
Education is Australia’s fourth largest export and largest service industry
export, contributing $17 billion in 2014 across Australia and $5.265 billion in
Victoria. Cohesive cultural diversity contributes to the appeal of Australia as
an education destination, and thereby to the continued growth of Australia’s
education sector.

Raised Infrastructural Development

Investment in tourism-related infrastructure,
such as transport infrastructure, accommodation, and recreational, cultural and
heritage assets, is crucial to the ongoing success of Australia’s international
tourism industry. Governments provide (or facilitate the provision of) a wide
range of this infrastructure.

It is therefore government of Australia is
taken keen interest in developing tourism related infrastructure. Henceforth to
facilitate the visitors, Australian government is investing in airport and
seaport infrastructure, restaurants, and accommodation. They are also working
to attract International tourism can by investing in those areas which can
attract a visitor related such as theme parks, wildlife parks and zoos,
heritage buildings, museums and art galleries. Such a huge consideration is
because just in the year of 2013- 2014, under 2 million international visitors
visited museums and art galleries in 2013-14, while just over 2 million visited
wildlife parks and zoos. As well as n 2013-14, about another three million
international visitors visited state parks of Australia. So, this shows that
Australian government must invest more in areas such as walking tracks and
signage. Besides that, provision of suitable accommodation is also necessary
and it also requires much attention.

 

Figure 4: Value of proposed tourism investments

ANALYSIS OF TOURISM INDUSTRY OF AUSTRALIA

In
the last two decades tourism industry of Australia has seen a great progress.
It is evident from the fact international visitor of Australia are increasing
day by day. They have almost doubled in this duration. The numbers even show a
rise of 2.5 million of visitors in 1992 to 6.7 million of visitors in the year
of 2014. The numbers further go astonishing when we look into the year of 2017
as in this year number of tourists has increased up to 7.6 million. This has
led to the change in composition of industry as well.  

The
major contributors of Australian tourism are the Asian stakeholders. These
comprises on the countries like China and India. China has chased the New
Zealand and has become second largest mean of tourism for Australia. However,
there has been some decline in international tourism of Australia from those
countries which previously played a significant role. These countries are like,
Japan, Unites States of America (US) and in the last United Kingdom (UK).

            Regional visitation has increased in
Australia which shows a significant growth in the tourism industry of
Australia. But there is some bleak picture as well which is due to the change
in the composition of source countries. This composition has contributed to a
decline of about 5 percentage points between 2006 and 2014 in the proportion of
expenditure and the proportion of international visitors travelling to regional
areas of Australia. Moreover, in Tropical North Queensland there has been an
overall decline in international tourism activity in some regions — in Tropical
North Queensland there has been a decline of 20 per cent decline in the number
of international visitors travelling to the region, particularly from the areas
like Japan. Furthermore, there has been a decline of about 40 percent in real
expenditure between 2006 and 2014.

The
innovation and adaption level of tourism industry of Australia will depict how
this sector is going to prosper. Besides that, how this sector thrives in
attracting more international visitor. Government is also playing a vital role
in improving tourism industry of Australia. It has formulated many policies for
tourism sector of Australia. Moreover,many reforms has also been incorporated.
Broadly speaking this shows the positive intension of Australian government to
make the tourism sector prosperous.Many national or state parks whose
construction and rehabilitation was hampered by the lack of funds and continuous
funding shortfalls has been over taken by the government for improvement and
significant changes have been made.

There is another way by which Australian tourism sector can be made
more attractive. This technique is about engaging private investment as well.
This will provide an additional source of funding and facilitate innovation in
the provision of tourism-related infrastructure. Developers and business
communities find way difficult to work on poorly designed proposals related to
tourism infrastructure. Henceforth, this area must also be targeted by the
government. It is in dire need that this proposal must be persistently and
continuously be review by Government officials and authorities. This way will
bring innovation to tourism industry of Australia. There is a need for
governments to be involved in attracting international visitors to Australia by
the provision of international destination marketing and support for major
events.

CHALLENGES FACED BY AUSTRALIAN TOURISM INDUSTRY

Outdated, obsolete, tired and inadequate infrastructure
has raised concerns about the tourism industry of Australia. These concerns are
inclusive of lack of short – term accommodations and cruise ship terminals. As
well as less focused national parks. If concerned authorities want to boast
tourism culture as well sector of Australia they must pay attention to the
implementation of best practices. These are the inclusive of project selection,
process selection keeping in consideration the transparent cost – benefit
analysis. This way tourism sector Australia will once again would be demand.One
way to accomplish this strategy is to involve private sector, by involving
unsolicited bid processes. This will help in greater use of cost recovery as
well. Conclusively we can say that though Tourism sector of Australia is thriving,
but a bit more focused effort can help it a lot. This effort can be put by
government officials. If the target is achieved, then Australian tourism sector
would help the local economy up to great extent. Moreover, it helps in cultural
diversification. Besides that, overall economic layout of Australia will
improve.