Impact of Covid-19 on Australia's Tourism & Hospitality Industry and Strategic Recommendations for R

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There are now more than 1.4 billion international travellers globally, spending US$1.5 trillion per year. In 2018-19, 9.3 million international visitors arrived in Australia, an increase of 3.0 per cent compared to the previous year. Australia is currently one of the highest yielding destinations in the world, with international visitors spending $44.6 billion in 2018-19 compared to the previous year, a growth of 5 per cent.

And then Covid-19 hit; A public health issue first and foremost, Covid-19 presents shattering economic challenges to Australia and the country’s tourism and hospitality industry was hit quickest and hardest. Shut for 4 months since mid-March and then opening by degrees – with social distancing rules in place – Australia’s air and sea carriers, hotel and accommodation providers, attractions, tour operators, restaurants, and many others face a challenge like no other. With 26% of Australia’s tourism economy based on international visitation, and little realistically expected in 2020…. Such an existential challenge to Australia’s tourism sector requires a comprehensive strategy in order to recover, rebuild and renew. Tourism Australia is the Australian Government agency responsible for promoting Australian locations as business and leisure travel destinations. To revive Australia’s economy, Tourism Australia state that they must commit to a safe and sustainable three-step return of both domestic and international travel.

Important instructions

WITHIN ONE BRIEFING DOCUMENT, ANSWER THE FOLLOWING TWO QUESTIONS:

ASSIGNMENT QUESTION 1:

Outline and evaluate the impact of the Covid-19 pandemic on Australia’s Tourism & Hospitality Industry. (40 marks)

POINTS TO CONSIDER:

• Overseas visitors

• Fares to Australian carriers

• Domestic Visits

• New Zealand Visits

• Data to substantiate your evaluation

ASSIGNMENT QUESTION 2:

Outline and assess one or two of the key strategic recommendations that Tourism Australia have suggested in their revival plan post Covid-19. (60 marks)

POINTS TO CONSIDER:

Address at least 1 or 2 key strategic recommendations:

• Stimulating demand for Australian Tourism

• Re-establishing Australia’s connectivity

• A competitive tourism economy

• Delivering a motivated and skilled workforce

• Securing appropriate funding

• Ensuring concerted Government focus

• Data to substantiate your assessment

• Concept to assist with the strategic decision making: TOWS Strategic Matrix

ASSESSMENT CRITERIA

• Knowledge and understanding of global issues relating to the Hospitality and Tourism industry

• Knowledge and understanding of the impact of global issues.

• Ability to assess key strategic recommendations for short- and long-term strategies to minimise the impact of the issue.

Domestic and trans-Tasman travel will be a welcome kick-start, but alone won’t get the job done.

For every thousand dollars a domestic traveller spends in Australia, an international traveller spends seven thousand. For every week our international borders remain closed, it costs the economy $1 billion.

With at least a million jobs directly linked to travel, tourism and international education, we won’t see a full recovery in jobs or the broader economy until we open the door to international visitors.

The good news is there is a silver lining. The federal and state governments have been right to prioritise the health impacts of coronavirus. We’ve crushed the curve and achieved something few countries can match.

This success should be parlayed into our economic recovery.

Australia already has a terrific reputation with international travellers – our response to coronavirus will boost that.

Our global message should be that we are the safest place to holiday, the safest place to come to university, the safest place to live and work. We have an enormous opportunity to grab market share and turbocharge our economic recovery, but we need to get the borders open to achieve that.

So what does restoring international travel look like in practical terms?

First, we need to establish “proof of concept” by opening our domestic borders and establishing that it is safe to travel. Airports and airlines are working together with health experts to create protocols that will make it safe to get back in the air, looking at things like temperature screening and hospital-grade cleaning.