Impact of Covid-19 on Australia's Tourism & Hospitality Industry and Tourism Australia's Revival Pla

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In the financial year 2018–19, Australia generated $60.8 billion in direct tourism gross domestic product (GDP). This represents a growth of 3.5 per cent over the previous year – faster than the national GDP growth. Tourism also directly employed 666,000 Australians making up 5 per cent of Australia’s workforce; 44 cents of every tourism dollar were spent in regional destinations and tourism was Australia’s fourth largest exporting industry, accounting for 8.2 per cent of Australia’s exports earnings.

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 inAustralia, 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 acomprehensive strategy in order to recover, rebuild and renew. Tourism Australia isthe 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.

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.