Critical Analysis of a Case Study of Tourism and Destination Sustainability

Posted: January 4th, 2023

Critical Analysis of a Case Study of Tourism and Destination Sustainability

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Critical Analysis of a Case Study of Tourism and Destination Sustainability

1. Identification of the Impacts

When evaluating tourism in Australia, it is evident that this industry contributes significantly to the Australian community. According to the statistics, tourism generates an $115 million approximately every day. The industry poses different impacts in Australia. Firstly, it offers employment opportunities for Australians and expatriates (Australian Chamber of Commerce and Industry, 2019). As of 2013, the industry’s workforce increased by 11400 with a total of 543,615 persons operating within this sector. Some of the jobs available include hospitality work, tour guide and recreational activity workers (Australian Chamber of Commerce and Industry, 2019). One of the main disadvantages observed in employment creation is that tourism is usually seasonal. This is particularly dependent on the location and the tourism activities engaged within the region. It is also important to note that with tourism spreading through the rural areas of Australia, there is more job creation and development in these locations.

In terms of build capital, tourism has led to the development of businesses, such as travel agencies, restaurants, cafes, taverns, clubs and casinos in addition to playing an important role in the advancement of water and air transport industries (Australian Chamber of Commerce and Industry, 2019). A downside associated with this growth is overcrowding which often results from the overstimulation of local businesses and employment provisioning. Locations experiencing congestion include Uluru with the launch of more services by flight operators to meet the tourism demand from both local and foreign tourists.

Similarly, on the topic of natural capital, tourism has motivated locals and residents to engage in environment-conservation practices. This motivation is through resident pride which has increasingly escalated with the expansion of tourism in Australia (Tourism and Transport Forum, 2019). However, it is imperative to note that with some areas being heavily frequented by tourists, the environmental impact is being felt due to the increase of littering. A location which is significantly affected is the Sydney Bondi Beach (Australian Chamber of Commerce and Industry, 2019). Crime is also on the rise. With a higher number of foreign tourists visiting varied parts of Australia, antisocial behavior is rampant with activities such as illegal drug use, crime and alcohol abuse becoming more prevalent in tourist destinations.

 Regarding culture, tourism in Australia has led to the popularization and growth of restaurants dealing in ethnic cuisine. An elaborate example is the Gold Coast where Korean restaurants are more popular (Tourism and Transport Forum, 2019). The upward mobility experienced by different restaurant chains is attributed to ethnic cuisine that allows foreign tourists to access familiar tastes while they are far away from their native country. From a cultural perspective, tourism has driven the commercialization of traditional ceremonies, craft and sacred sites such as Climbing Uluru. This process is considered from both a positive and negative angle. The income generated from cultural activities contributes to the overall revenue generated from tourism, thereby boosting the Australian economy. However, it has also diminished cultural value as some of the locations are sacred to the indigenous people. This discourse will apply Australian tourism as a case study to evaluate the impact of this industry on social capital and the development and implementation of policies that are effective in reinforcing more stability and sustainability in this sector.

• Analysis of the factors and processes that contribute to these impacts
• Built capital

The transport industry has undergone evolutionary change, and this is attributed to tourism in Australia. This is a primary benefit due to the build capital. Sydney receives millions of tourists every year which has necessitated the government to invest extensively in the transport system as visitors require effective commute option to different destinations (NSW Government, 2019). To achieve this, various technologies are applied in developing systems such as the Opal cards available to both tourists and locals. This particular mechanism introduced by the Minister of Transport, has facilitated easier travel for tourists as they are convenient and affordable (NSW Government, n.d.). Additionally, the tourists are able to reach popular destinations in all the regions and across Sydney. With the increasing rate of tourism in Australia, the government seeks to introduce more cards to expand accessibility throughout the nation, thereby providing even more convenience to tourists. In addition to this, both retailers in international and domestic airport terminals have embraced this transport mechanism by encouraging the purchase of opal cards to the incoming tourists (Paris, 2018). According to the interviewed visitors, these cards are highly beneficial as they provide discounts such as the 30 percent of peak, and three-week travel every time the weekly target is met (NSW Government, n.d.). This electronic ticketing system is one of the biggest in the world, further streamlining Sydney’s transport as the customers are unlimited, and they can easily enjoy public transport without any fear of queuing.

• Natural capital

On analyzing tourism and its contribution to the nature capital in Sydney, this industry has had a minimal effect in motivating the government to prepare for climate change that is projected to have a significant and adverse impact on tourism. On a global scale, the tourism industry in Sydney is the least prepared in crisis and disaster management, specifically structured to manage climate change outcomes. According to a report compiled by an advocacy group, the exponential growth observed in the tourism industry and the increased financial resources are not directed into implementing effective measures to protect the natural resources considered as the big tourist attractions in Australia.  These features include the wildlife, the beaches, unspoiled natural wilderness, the Great Barrier Reef and the National Park that is home to an extensive rainforest. These natural ecosystems are under an impending threat of climatic change. As the government is under playing and ignoring this projected risk, tourism is perceived as the contributing factor to endangering the eco-system.

A recent event justifying the government’s trivialization on the importance of climate change management measures is ignoring the recommendation from climate scientists. The conflict between the head of Queensland Association of Marine Park tourism operators and Terry Hughes, a climate scientist is a case in point. Hughes is stressing the need for research funding to analyze the increased water temperature that is harmful to the Reef, while the government is doing nothing to address the climate change effect that is threatening to destroy the natural tourist destinations. Tourism is the main causative factor contributing to government negligence or climatic change as more attention is focused on growing the industry while minimizing the risk to the natural environment and its resources.  For instance, the general assumption is that tourists can also engage in other activities, such as exploring the country’s cultural heritage by visiting places, such as the Sydney Opera House.

• Cultural capital

Tourism in Sydney has a different impact on the cultural capital. The interaction between international visitors and Australian hosts compounds this effect in areas such as visitor attractions, accommodation, places of trade and so on. Given the cultural diversification of the Sydney community, it is important to consider that a significant portion of this population is non-English speaking, thereby causing a cultural barrier to tourism (Tourism and Transport Forum, 2019). Sydney receives two categories of visitors from different parts of the world, including overseas visitors and those from Asian countries which comprise two-thirds of the entire tourist population. With such a diversified tourist population, the varied cultural backgrounds are likely to clash between Australian hosts and their tourist guests (Packer, Ballantyne, & Uzzell, 2019). According to research, the greater the cultural difference, the higher the probability of conflict as customers often demonstrate their varied expectations motivated by culture as per the service encounters and experience (Tourism and Transport Forum, 2019). For instance. Japanese tourists often expect the host to meet and greet the visitor to create a hospitable environment. Additionally, the Japanese culture favors formality with the staff, such as being respectful and unobtrusive during the service delivery (Tourism Research Australia, 2019). An elaborate example of cultural misunderstandings that occur in Australian tourism is between Australians and Americans. Some American tourists often perceive Australian staff as possessing a disrespectful attitude. On the other hand, Australian workers forward complaints that Americans are condescending and lack basic courtesy in their interactions, such as ‘thank you’ and ‘please’ while requesting for a service.

In contributing to the growth of Australian tourism, art experiences derived from Australian culture and its diversity have supported local economies by engaging international visitors with the exquisite uniqueness of Australian culture (Australia Council for the Arts, 2018). According to Tourism Research Australia (2019), art has a great potential in supporting and driving tourism based on the increased engagement it provides to foreign tourists who are contributing extensively to the country’s success and well-being. This statement is supported by the statistics collected in 2017 indicating that Asia comprised the largest population of tourists travelling to Sydney for artwork and museum visitations (Australia Council for the Arts, 2018). The most popular forms of culture promoting international arts tourism include galleries and museums which are readily accessible and considered highly engaging for the tourists.  According to the 2017 data, out of 10 international visitors, three tourists visit either a gallery or a museum while they are on their tourist venture (Australia Council for the Arts, 2018). From this statistic, it is evident that culture also has a positive impact in driving tourism in the Australian setting.

• Human Capital

The tourism industry is accountable for eight percent of employment in Sydney. The main challenge affecting human capital is the availability of labor and skilled workers. For instance, in the Austrade project conducted in October 2015, there was a deficiency of 150000 workers, demonstrating a major gap in skills required for the tourism industry and related businesses (Bailey & Smith, 2017). Currently, human capital is still deficient as there are 38004 vacant positions in various tourism enterprises and the industrial sector (Tourism Research Australia, 2019). The vacancies are attributed to skill deficiency and retention difficulties in addition to challenges in recruitment. Labor demand is often fulfilled by the commitment of the involved industry in collaboration with the government to establish skills and training development in addition to lucrative remuneration arrangements, career paths, career promotion, conducive work environment and the availability of temporary and skilled entry level positions (Fairley, 2018). These are some of the issues facing the Australian tourism industry necessitating the government to enact ways to alleviate the skill and labor shortage that is an impediment in the proliferation of the tourism industry (Packer, Ballantyne, & Uzzell, 2019). Notably, this shortage is mostly observed in regional locations, particularly in the hospitality and tourism sectors (Bailey & Smith, 2017). Within any given industry, the government is required to allocate the necessary funds to facilitate vocational education and training of the labor force to open up the fundamental pathway of imparting skills and knowledge to the ready job market (Fairley, 2018). This in turn contributes significantly to the availability of workers in both leisure and business enterprises within the tourism, further boosting the national economy and reducing the unemployment rate.

E. Financial capital

Ever since the global recession that commenced from 2008, various countries have experienced worldwide economic difficulties. However, the tourism industry is monumental in shielding Australia from this devastating impact. According to a government report, tourism and travel are the sectors helping the Australian economy (Reid, 2018). This industry employs an estimated six million people contributing 3.1 percent GDP (Ministry of Resources, Energy and Tourism, 2019). Despite, the deteriorating economic and political stability experienced globally, this sector has prevented Sydney from experiencing the adverse effects of recession. It has further reinforced international relations between Australia and China with China being the greatest source of tourists (Australian Government, 2017). The current escalation of Australian tourism is attributed to the historic free trade agreement between China and Australia, thereby becoming an approved destination for Chinese citizens and tourists (Tourism Research Australia, 2019). In 2016, a million plus tourists comprised Chinese nationals (Ministry of Resources, Energy and Tourism, 2019). This number is expected to experience exponential growth in the coming years as projected by the Australian Bureau of Statistics. The economic stability in Sydney has significantly improved due to the capitalization of higher numbers of Chinese visitors (Tourism Research Australia, 2019). Within the employment sector, the level of competence demonstrated by the workforce in availing satisfactory customer service is enhanced through training programs aimed at gelling the cu ltural differences between the two countries (Ministry of Resources, Energy and Tourism, 2019). The core objective associated with this activity is in the development of a lucrative Chinese-oriented tourism sector. It is achieved through extensive training of staff and encouraging tour operators to integrate measures that ensure the visitors are well-received (Reid, 2018). The government has also contributed in reinforcing the international relationship between Australia and China on the overseas platform to ensure the tourism sector remains fortified and robust in supporting the economy.

F. Social Capital

In comparison to other states, Sydney does not experience over-tourism which is detrimental as it asserts pressure on the local communities and the natural features. However, the social capital is greatly affected by the outcomes of this economic activity based on the complaints forwarded by locals, such as congested roads, misbehavior from tourists and housing affordability (Shafiullah, Okafor, & Khalid, 2018). There is a great need to reorient this venture for the welfare of local communities. In locations such as Lirrwi, the Yolngu community has demonstrated great receptivity to tourism, further promoting such leisure activities. This is achieved through a set of guiding principles where the welfare of the country is prioritized, limiting the overall control of tourism on the events in the country (Packer, Ballantyne, & Uzzell, 2019). From this example, the integration of local community regulations and terms is a positive impact of social capital. On the other hand, Melborne has highlighted the collaboration of resident wellbeing, CBD revitalization and tourist experience that can be intertwined to drive positive outcomes (Shafiullah, Okafor, & Khalid, 2018). In this setting, tourism has blended both these aspects to ensure equitable sharing of resources between the visitors and local communities.

G. Political Capital

Tourism has enhanced the relationships between tourist-originating countries and Sydney. With the strengthened interaction between China and Australia, it has contributed to increased number of Asian tourists frequenting Australia (Mutuku, 2018). This union has also further reinforced the establishment of policies to transform the tourism industry by integrating more accommodative and Asian-oriented culture to further promote the sector. However, in policy-making, the government failed to implement the policies that seek to offer more protection to the tourist destinations to ensure they are sustained for future tourism activities. One of the core issues affecting indigenous communities pertaining to tourism policies is ineffective risk management measures in preserving the varied touristic features such as the Uluru (Mutuku, 2018). This has contributed significantly to the deterioration of these locations. Communities residing near tourist beaches have reported increased pollution that has threatened to disrupt the scenic landscape (Packer, Ballantyne, & Uzzell, 2019). The federal government is responsible for these debilitating outcomes due to direct neglect on policy-making that is supposed to address pollution by enacting protocols that are elemental in dealing with climate change as demonstrated by other nations.

• Suggested Policies for Improving the Sustainability of  this Tourist Destination

The tourism industry in Australia demands increased productivity, resilience and quality to match the other industrial sectors and gain a competitive advantage over the other competitor countries (Ministry of Resources, Energy and Tourism, 2019). Additionally, it is critical in opening up the tourism industry and the ability of its operators to avail services with the consumers’ money (Australian Government, 2017). To reinforce its competitive advantage, the government’s implementation of this policy will be crucial in enhancing innovation, quality and productivity. This policy will focus on three facets. Firstly, it will involve the provision of the necessary resources to drive marketing campaigns promoting tourism quality (Mutuku, 2018). This will serve as an effective model of raising consumer awareness and enabling them to understand the features of high-quality accredited operators within the tourism industry. The second facet will focus on availing sufficient assistance to businesses operating within the tourism to boost profitability and productivity (Ministry of Resources, Energy and Tourism, 2019). This endeavor will be facilitated in conjunction with the Australian government’s Enterprise Connect program (Australian Chamber of Commerce and Industry, 2019). The businesses will be allowed access to tourism quality grants based on verified requests, indicating the resource allocation will be directed towards improving the tourist services provided to both foreign and domestic travellers. The third component is the introduction of policy tools available to tourism operators in undertaking effective risk planning and business management within the industry (Australian Government, 2017). The three highlighted features will be measured in terms of policy performance evaluating increments in tourism sector in productivity conducted by the TRA. The additional measurements variable will be the increased number of businesses promoted by the tourist quality model, thereby allowing for business accreditation by the TQCA.

4. An Overview of Lessons Learnt for this Case Study for Other Tourism Destinations

In terms of sustainability, the policies in this case study meet the demands of the Australian tourism industry and the domestic community in various forms. Firstly, delivery of grants to tourism operators and government administration will create a shared responsibility within the tourism industry driven towards stabilizing the economy while also ensuring the sustainability of tourism activities in different regions within the country. The uptake of tourism quality accreditation requirements by the tourism operators also demonstrates the willingness to work in collaboration with the government to support effective tourism administration and marketing throughout the industries framework (Kourentzes & Athanasopoulos, 2019). Small businesses invested in tourism play a significant role in highlighting the key concerns at the grassroots, such as environmental pollution and ineffective administration regulations affecting the overall operations. With the incorporation of an Enterprise Connect program, it will allow these SMEs to grow the entrepreneurial capacities within the industry, further providing the necessary resources required in creating a robust tourism industry devoid of the current challenges being faced by all the stakeholders. Another component of this policy is the development of resilience within the sector through a committee named Resilience Working Group that aims to integrate a climatic change adoption program which engages all businesses within the tourism industry (Kourentzes & Athanasopoulos, 2019). This is critically important, given the current state of crisis management in Australia regarding the protection of tourist destinations from the impending danger posed by climatic change.

Research is elemental in any industry setting as it revolves around crucial information necessary to enhance industrial processes, boost productivity, and contribute to innovation. This policy that focuses on building the industry is characterised by quality, productivity, and resilience (Kourentzes & Athanasopoulos, 2019). In addition, the plan is conscious of research as a foundational body to determine the measures necessary to encourage businesses within the tourism industry to engage and implement services that provide high quality service to both domestic and foreign tourists in Australia. In addressing culture capital, this scheme meets the demand of the cultural needs of tourists by facilitating meaningful linkages between the Australian government’s cultural policy and indigenous culture and arts to preserve cultural heritage as a tourist attraction.

Appendix

 References

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