Major Issues of Australian Tourism Industry-Samples for Students

Question: Discuss about the various issues that have affected Australias tourism industry. Answer: Introduction: The report discusses various issues that have affected Australias tourism industry. There is different crisis like increasing natural disaster and diseases that can be potential threats to the tourism sector of any country but there are some specific issues like employment and increasing competition that has far reaching impact on the hospitality and tourism sector in Australia (Australia.gov.au 2017). The operational context: The survey found that the hospitality sector of Australia has faced a high growth in last decade. People from all around the world has been preferring to visit the natural beauty of the Australian islands. This has increased the competition level among the various hospitality companies and related business. In fact, the hospitality business survey has recorded 73% increase in competition. The young foodie culture is also responsible for this increased competition. This neck-to neck competition among the companies has affected the sector as it is facing lesser demand for services (Singal, 2015). The employee turnover is one of the primary problem in the tourism and hospitality sector of Australia. Due to various reasons a considerable amount of labour leave the sector per year. This hampers the operation as well as development of the business. The problem of employee retention in the organization has become difficult which also effect on the work culture. The human resource context: Tourism and hospitality industry is considered to be the sunniest sector with lesser risk but the fast increasing competition has potentially affected the human resource sector. As mentioned before, the employee retention is a huge problem and this competition has opened the way for more employee turnover. The companies are losing productivity because the employees who were recruited, trained and given all facilities, are leaving ne company for more facilities. This continuous shift among the companies is responsible for killing the company culture by creating a negative workforce (Li and Huang 2017). According to the reports published by the Cornell Centre for Australian Hospitality Research Studies, the approach of the management and the attitude of the co-workers has great impact on the employee retention. Therefore, the contagion effect has played an important role in the hospitality sector where the overall attitude of the workforce cannot be avoided. Turnover resulted in affecting productivity as well as profit management. The financial context: The hospitality sector is facing a terrible competitiveness among the companies. The research reveals the continued success largely depends upon the ability to compete effectively in the markets. Competition among the organizations have reduced their fee structures, theoretically causing the customers to lower fees as well as prices, which are adversely affecting their profits (Manhas and Tukamushaba 2015). New competition along with existing competition is putting pressure to follow different business model or update model that includes technology for remaining competitive and surviving in the competitive market of Australian hospitality sector. The research has revealed that the increase competition among the companies has led to more than 50% revenue loss for the hospitality business. For increasing competition, the sector has been suffering financially because the companies are bearing costs for requiting, providing training, on boarding and pre-departure costs. According to the Deloitte Hospitality report, ever companies spend 33 percent of their revenues on the labour costs alone (Kim and Lee 2013). Therefore, the companies ate facing a huge financial lose in human resource sector. The product and markets context conclusion: For surviving in the highly competitive hospitality industry of Australia effective performance in terms of service and customer satisfaction are essential. As the customer demand for services no longer ensues automatically in the market, the organizations are pressurised to offer more favourable terms as well as services for customer satisfaction. The compaction has increased pressure for meeting the customer expectations, retaining them thus sustain profits. For these, they have been investing in requiting skilled labours, update themselves technologically, adding luxurious physical facilities and change infrastructure (Baker et al 2016). These are eventually affecting the profit of the organizations. This sector is one of the top job creators that requires various degrees of expertise. Therefore, it provides quick entry for women, youth as well as migrant workers. On the other hand, it needs to maintain quality. People and Quality strategy involves prioritisation of the customer needs, is putting pressure on the organizations for developing the corporate quality as well as employee philosophy by training as well as empowering the staff so that they can enhance the service or products as well as provide competitive advantage (McPhail et al 2015). Conclusion: Therefore, it can be concluded that The tourism and hospitality sector of Australia is very much labour intensive as well as an essential source of employment. Increasing competition and problem in employee retention needs to be managed immediately otherwise these problems will continue harming the industry. References: Australia.gov.au (2017).Tourism | australia.gov.au. [online] Australia.gov.au. 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