Hospitality and Tourism Industry Economy in Australia - Essay Example

Hospitality and Tourism Industry Economy in Australia Table of Contents Table of Contents 2 Introduction 3 2. Discussion 4 3. Analysis 7 5. Conclusion 10 6. Recommendations 10 References 12 1. Introduction A hospitality or tourism industry is recognised as one of the most booming sector in this age of competitive market scenario. This is mainly due to the changing life style of the individual of this recent era. Now a day, maximum extent of the individual desire to enjoy their days of relaxation in any wonderful and attractive place so as, to reduce their entire day’s work load and monotonous behaviours. This acted as a boon for the industry thereby amplifying its range of market share and total sales in the market among others. Moreover, it also helped in increasing its total growth by almost 9% in 2013 as compared to previous years as presented in the below graph. Although, this segment comprises of a cluster of small firms or hotels that offers extremely attractive holiday packages to spend leisure or recreational times, religion or health, business and professional purposes at a quite affordable ranges. Due to this, its competitiveness enhanced to a significant rate as compared to others. Thus, from the above graphs, it might be depicted that the outlook of hospitality or tourism industry in Australia changed to a certain extent. The entire credit of such a market scenario of hospitality and tourism industry of Australia is due to the changing demographics. However, in-spite of benefits, it also had to face varied types of challenges as well. This paper mainly focuses about the challenges regarding the type of jobs and talents required for the individual getting engaged in the hospitality and tourism industry in Australia due to changing demographics. Along with this, it also describes the appropriate human resource approaches essential to retain the employees as well as to attract new talented ones towards the industry of tourism. 2. Discussion In this today’s era, maximum extent of the employees desire to establish his or her own identity and image in the organization or industry, engaged with. This is mainly due to the changes of the attitudes and behaviours of the generation x and y candidates as compared to baby boomers. So, in order to retain the employees of generation x and y within the organization or industries for a longer period of time, varied types of human resource approaches are maintained. These approaches might lead to the betterment of this industry. So, they are described below one by one. Succession Management- according to Philips (2012), it is a constant process of identifying, assessing and developing varied leaders within the organization so as to improve the level of performance, dedication and morale. Along with this, it also helps in planning of the requisite talents, retention process and knowledge assessment of the employees so as to enhance the organizational or industry sales or profit margin to a certain extent. Moreover, with the help of this process, the candidates of generation x or generation y may be best tackled. As this process, helps in specifying the required knowledge or skills of the employees so as to achieve the forecasted goals and objectives of the industry. Not only this, this approach also helps in improving the inner skills and talents by getting engaged with numerous other senior individual. This is highly appreciated by the generation x and y employees as compared to baby boomers. As a result, it helps in improving the morale and devotion level towards attainment of organizational goals (Ross & et al, 2010). This also helps in enhancing the rate of retention of the experienced and talented generation y employees in the industry thereby amplifying its prospects. So, it is extremely essential for the management of the employees of this industry (Philip, 2012, P.321). Similarly, pay and benefit approach is also another important one for the industry of hospitality and tourism as it might prove effective to retain the generation x and y employees for longer period of time (Philips & Connell, 2003, P: 347). With the help of this approach, the rate of compensation of the employees is also enhanced on the basis of the education and knowledge. Other than this, it also helps in presenting varied other types of benefits (both monetary and others) to the employees thereby amplifying their inner commitment level and confidence level as well. This might help the employees to achieve the goals of the industry as a whole (Rhodda, 2006). Therefore, due to the introduction of these approaches, it helps the employees to reduce the rate of switch over costs thereby helping the organization to improve its effectiveness in the long run (Swan & Margulies, 1991, P: 452). Apart from this, work force redeployment is also another essential requirement to retain the generation x and y employees as compared to other employees. It is the process to move to other jobs within the organization so as to acquire many other inner skills and talents. This helps in improving the level of motivation and performance of the employees. It is extremely essential human resource approach necessary for the betterment of the organization and employee as well. Side by side, high level of supporting is also essential so as to enhance the rate of retention of the x and y generation employees. Due to which, the level of employment within this industry enhanced doing due to introduction of varied posts of jobs entirely based on their education (Wang, 2008). Not only this, in order to retain the generation x and y employees within the industry of hospitality and tourism, flexibility of work might also be introduced. This might help the employees to work freely within the organization and also improve its level of presentation of services to its customers (Tourism.gov, 2011). This is because, the employee would become entirely free from all sorts of duties and responsibilities f his or her family. And then, he or she might serve the customers in a better way. So, flexible work is extremely essential both for the employee and the organization (Rathore, 2012). Hence, it might be depicted from the above mentioned human resource approaches that in order to maintain the competitiveness and dominance in the market among other segments, employee retention is extremely essential. 3. Analysis As per the information and facts, it might be stated that generation x and y employees are extremely talented, technology savvy and dedicative towards his or her working responsibilities. Apart from this, they are also extremely educated and multi-cultured in nature, and so their devotion is extremely essential foe the hospitality and tourism industries economy in Australia. Moreover, it also created varied new posts as well on the basis of the educational experiences and knowledge that proved effective for the industry as a whole (Serviceskills, n. d.). Other than this, the generation x and y employees are also highly cooperative and socially interactive. Due to which, they might also communicate with the other employees of the organization so as to establish their identity and interest as well. Side by side, as these employees are extremely devoted, so they try to offer effective hospitality services to its customers thereby enhancing the organization’s loyalty and image in the market among others. Due to which, the rate of challenges present in the hospitality and tourism industry of Australia also reduced to some extent among other neighbouring ones. So, it also helped to enhance the economic standard of the country by amplifying the rate of tourists (National Skill development Corporation, n. d.). Hence, it might be stated that retention of the employees of the tourism organization or industry may be possible only by varied human resource approaches. Improvement of the tourism industry of Australia This is extremely beneficial for the industry to survive successfully in this aggressive market. But it is possible only due to recruitment and retention of the experienced and talented employees within the industry of tourism and hospitality. Only then, the sector might flourish among other segments (Jensen, 2001). Consequently, due to the booming nature of tourism industry, the rate of disposable incomes within the employees and other citizens of Australia increased thereby improving their living standard. It also helped in enhancing the gross domestic products and net domestic products of Australia among other neighbouring countries. So, it is extremely necessary for any industry or organization to adopt the current trends or talents so as to improve its portfolio and reputation in the market among others. As a result, its challenges might also get reduced significantly (Durai & Pravin, n.d., p.347). 4. Research As per the facts depicted in analysis and discussion, the hospitality and tourism industry expanded rapidly in the past few years and is also expected to expand at faster pace in the coming years. It is mainly due to the support of the government, and also due to the high-end services by the skilled employees. This helped in fulfilment of the requirements and demands of the customers resulting in amplification of the level of trust and loyalty over the brand (Deb, 2006, p.246). According to the World Travel and Tourism Council, it is estimated that the ‘Travel and Tourism’ (T&T) industry of Australia might get enhanced thereby improving the economic standard of the country and its citizens as well. It may be possible only by retention of talented and skilled generation x and y employees in the industry or organization. However, it might be possible, if the working environment within this industry becomes flexible along with high salary and incentive benefits for the experienced employees. This might help in enhancement of the morale of the employees towards their assigned duties and responsibilities (Eae.alberta.ca, n. d.). Thus, if these talented employees are retained then the T&T industry might grow by 8.9% in the coming years among others (Dibble, 1999, p.345 ). 4.1 Projected size of tourism industry The size of the hospitality and tourism industry is expected to enhance with a considerable rate with a CAGR of 15%. This might help in economic development of the country of Australia. 4.2 Possible skills and talents required in employees The hospitality and tourism industry needs employees comprising of skills described below. Technical skills- managing guests, billing, handling calls, coordinating with guests (Cedefop, 2005). Soft skills-communication, team management, team work skills, good attitude, behavioural skills, devotion of work, time management skills (Tianz.org, 2004). Educational degree- MSC in hospitality or tourism industry (Baum & et al, 1997). Thus, due to the presence of the above mentioned skills within the employees of generation x and y, their supremacy is extremely high in these industries. Only these skills are essential for hospitality and tourism industry to improve the image and value of the industry among other sectors (Arlt-lectures, 2006). 5. Conclusion Conclusively, it might be stated that improved skills and knowledge are extremely essential to maintain the equity and brand value of the segment in the market. Therefore, to do so, it is extremely essential to engage talented and educated y generation employees in the organizations of tourism of Australia. So, that hospitality and tourism might help in enhancing the per capital income, economic standard, living conditions, disposable income of the employees of Australian economy. 6. Recommendations In order to decline the challenges faced by the hospitality and tourism industry of Australia, it is essential to under-take proper planning and scheduling of the duties and responsibilities within its employees so as to make it successful. Apart from this, job rotation is also essential for the employees, as it might help in attainment of different skills that may prove effective in long run. Moreover, the attitude of monotonous work might also get reduced significantly thereby improving its performance and dedication towards work. Moreover, varied types of training programs and workshops also need to be introduced so as to enhance their inner skill, essential for work. So, this might help in reduction of the challenges in the hospitality and tourism industry and might also improve its strengths and reduce the weaknesses. References Arlt-lectures. (2006). Human resource management and the tourism and hospitality industry: An introduction. [Online]Available at: http://arlt-lectures.com/nickson1.pdf [Accessed on 1st October, 2013]. Baum, T. & et al. (1997). Policy dimensions of human resource management in the tourism and hospitality industries. [Online]Available at: https://ulib.derby.ac.uk/ecdu/CourseRes/dbs/manapeop/baum.pdf [Accessed on 1st October, 2013]. Cedefop. (2005). Trends and skill needs in tourism. [Online]Available at: http://www.cedefop.europa.eu/EN/Files/5161_en.pdf Accessed on 1st October, 2013]. Deb, T. (2006). Strategic approach to human resource management. New Delhi: Atlantic Publishers & Dist. Dibble, S. (1999). Keeping your valuable employees: retention strategies for your organization. New York: John Wiley & Sons. Durai & Pravin. D. (No. Date). Human resource management. London: Pearson Education. Eae.alberta.ca. (No. Date). A Workforce Strategy for Alberta’s Tourism and Hospitality Industry. [Online]Available at: http://eae.alberta.ca/documents/WIA/WIA-BETW_tourism_strategy.pdf [Accessed on 1st October, 2013]. Jensen, J. F. (2001). Tourism and employment. [Online]Available at: http://ec.europa.eu/enterprise/sectors/tourism/files/working_groups/finalreportb_june2001_en.pdf [Accessed on 1st October, 2013]. National Skill development Corporation. (No Date). Human Resource and Skill Requirements in the Tourism Industry. [Online]Available at: http://www.nsdcindia.org/pdf/tourism.pdf [Accessed on 1st October, 2013]. Philips, J, M. (2012). Human Resource Management (Phillips), 1st ed. Stamford: Cengage Learning. Philips, J. J. & Connell, A. O. (2003). Managing employee retention. London: Routledge. Rathore, N. (2012). A study on mapping of human resource skill gaps in tourism industry. International journal of marketing, financial services & management research,vol.1 no. 2, issue: 2277 3622 Rhodda, S. (2006). The need for a human resources development officer for the tourism industry on the west coast: A discussion. [Online]Available at: http://taipoutinipolytech.ac.nz/publications/RationaHROforWebsits.pdf [Accessed on 1st October, 2013]. Ross, L. & et al. (2010). Human resources and tourism: skills, culture and industry. [Online]Available at: http://eprints.jcu.edu.au/15180/ [Accessed on 1st October, 2013]. Serviceskills. (No. Date). Tourism and hospitality. [Online]Available at: http://www.serviceskills.com.au/sites/default/files/THEDevStrat_Web.pdf [Accessed on 1st October, 2013]. Swan. S. W. & Margulies, P. (1991). How to do a superior performance appraisal. New York: Wiley. Tianz.org. (2004). Tourism & Hospitality Workforce Strategy. [Online]Available at: http://www.tianz.org.nz/content/library/TourismHospWkbkLR1.pdf [Accessed on 1st October, 2013]. Tourism.gov. (2011). Strategic human resource development plan for the tourism industry. [Online]Available at: http://www.tourism.gov.mv/downloads/hrd_workshop_2011/HR_strategy_Draft.pdf [Accessed on 1st October, 2013]. Wang, J. (2008). Is tourism education meeting the needs of the tourism industry? An Australian case study. [Online]Available at: http://www.canberra.edu.au/researchrepository/file/1d7eef38-6d47-552b-673e-adb17f0c721a/1/full_text.pdf [Accessed on 1st October, 2013]. Read More