Adelaide Hills Tourism Service Industry - Case Study Example

Adelaide Hills Tourism Service industry Student’s Name Course Tutor’s Name Date: Destination and main attributes Often described as a high-value, picturesque, and leafy landscaped tourism destination, Adelaide Hills (A-Hills) is located close to the city of Adelaide, something that makes it ideal for day trippers and resident visitors. The former can drive to and from A-Hills in half an hour, while the latter are often accommodated in what Milbank (2010, p. 2) describes as “high quality restaurants and accommodation”. The major tourism attractions in A-Hills include wildlife, cycling and walking trails, heritage arts and historic townships. Additionally, A-Hills sits in the middle is South Australia’s wine region, hence meaning that wine lovers can savour some of the taste made in the region. According to Milbank (2010), 59% of A-Hills’s tourism income is generated by day trippers. Tourism Research Australia (TRA) defines a day tripper as a person aged above 15 years, who makes a trip of approximately 40 kilometres away, and spends at least four hours in their destination, but does not spend the night. According to Milbank (2010), 67% of all day trippers to AH are from the city of Adelaide. Key performance indicators Like other tourism destinations, the key performance indicators (KPIs) of tourism’s performance in A-Hills gauge the destination’s relative performance towards enhancing their tourism arrivals. Borrowing from a Deloitte (2012) report made regarding the Canadian tourism industry, one would assume that A-Hills would use the following as KPIs: The number of potential tourists who identify A-Hills as a place they would like to visit in a given period Rankings of A-Hills in online search platforms for travel (especially now that tourists are increasingly using online searches to identify destinations) The marketing investments made by the relevant authorities, especially considering the need for creating awareness about the tourism opportunities in A-Hills Total visitor entries in different tourisms establishments Hotel occupancy rates Key economic indicators regarding tourism-related GDP, employment created via tourism-related activities, and the relevant revenues generated from tourism. Economic analysis In 2008/2009, it was estimated that tourism expenditure in A-hills was $116 million (South Australian Tourism Commission (SATC) 2012). In aggregate however, Milbank (2010) found out that the expenditure generated an estimated “$73 million of Gross Regional Product (GRP)”. With the regional total GRP at the time estimated at $2, 089 million, tourism hence represented a 3.5 percent share. In the same period, Milbank (2010) observes that tourism generated an estimated 859 full-time jobs and 115 part-time jobs. Overall, the economic impact of tourism through market-driven activities was estimated to have been felt by 1,643 people across industries such as food production, road transport, recreation, cultural, retail trade, accommodation, wholesale trade, and restaurants and cafes. Social analysis As indicated by Clayton (n.d.), the social contacts between residents of a tourism area and the tourist often result in mutual understanding, appreciations, awareness, tolerance, family bonding, learning, liking and respect. Like everywhere else, it would be expected that A-Hills residents learn about different cultures as exhibited by the tourist without leaving their localities, while tourists learn about the host societies. Social institutions and infrastructure benefit from tourism especially since the revenue generated through tourism can go into social projects such as schools and libraries, healthcare and healthcare facilities, roads and telecommunications among others. If the local culture attracts tourists, Clayton (n.d.) observes that a lot of effort goes into preserving the same culture to ensure that it is sustained into the future. Environmental analysis The A-Hills environment has been describes as green and rural (SATC 2011). However, it is quite clear that policy makers are well aware of the implication that unsustainable tourism practices have on host environments. For such reasons, Milbank (2010) while seeking opinions from different stakeholders proposed the formation of a custodianship position for the A-Hills region. The custodianship would be responsible for ensuring that the region has “environmentally sustainable policies and practices within the tourism industry in the region, with a focus on both operators and visitors” (Milbank 2010, p. 8). Additionally, the custodianship was charged with the responsibility of advocating for a “clean green rural environment” and using data to create an understanding among residents that job creations in the region would be more environmentally friendly than seeking jobs in the city and having to commute daily (Milbank 2010, p. 8). Planning effective consultation and collaboration with all stakeholders A stakeholder is defined as “...any group or individual who can affect or who is affected by the achievement of the organisation’s objectives (Freeman 1984, p. 25). Following this definition, it is therefore apparent that tourist operators, the Commonwealth, state and local governments, the wider A-Hills community, and the tourists are the main stakeholders in A-Hills tourism as indicated by SATC (2011). Effective communication would therefore need to involve the different stakeholders at all levels, in order to secure their support, and benefit from their input in developing a tourism strategy that is ideal for A-Hills. Ongoing activities for consultation and collaboration include the publication of consultation drafts of the Adelaide Hills Regional Tourism Strategic Plan 2010-2015 as indicated at http://satic.com.au/images/uploads/industry_resources/adelaidehillsdraftplan.pdf. To engage different stakeholders, the steering group invited feedback on the main focus areas and objectives. After consultations, the finalised strategic plan was then published online, thus enabling any interested stakeholder to access it as seen at http://www.tourism.sa.gov.au/assets/documents/About%20SATC/adelaide-hills-tourism-plan-2011-2014.pdf. As Timur and Getz (2008, p. 446) observe, many development situations in tourism development (and elsewhere), are “characterised by a complex web of interests and trade-offs between interacting sets of diverse stakeholders”. In other words, each stakeholder’s interests have to be considered by understanding the links that exist therein. For example, A-Hills ought to consider the interests of conservationists, the local population, the government and the tourists. When managing stakeholders’ interests, Timur and Getz (2008, p. 447) further observe the need to recognise that a destination (e.g. A-Hills) “is a system which consists of relations that are likely to influence destination stakeholders’ opportunities, constraints, behaviour or values”. Gauging the engagement of tourism stakeholders in A-Hills by SATC, it would appear that the tourism commission realises the need to secure the input and support of all parties involved. Attracting investment and infrastructure project To attract investments into a destination, A-Hills would have to convince the investors that tourism has the capacity to give them a return on investment (ROI) in order for them to make any business sense of the situation. Already, SATC and other A-Hills stakeholders have projected that the tourism industry in the region will continue growing and will probably have grown by 45 % by 2020 (SATC & Adelaide Hills Tourism 2012). As the situation stands, A-Hills provides accommodation (most of which is 3-star rated) and a sizeable number of operators, who according to SATC (2011) are not adequate enough to market A-Hills to a wider range of clients. In the current project, SATC and Adelaide Hills Tourism (2012) have identified the focus areas that need immediate action by investors. Such include food and wine; nature and landscapes; arts and culture and towns and villages. Adelaide Hills and Mt Barker Councils have already been identified as being responsible for ensuring that the commercial experiences in the four identified areas are developed immediately (i.e. within two years). The two councils were also given the responsibility of ensuring that 25 rooms in their respective jurisdictions were upgraded to a 4-star rating, up from the current 3-star rating within two years. Another focus in the current project area that A-Hills seek to attract investment is in encouraging more operators to join the region and market the same to their clients. Specifically SATC and Adelaide Hills Tourism (2012) indicates that they were targeting to have gotten 12 more operators by 2012, and that such operators would become accredited. A-Hills appear to have understood that operators are not convinced about the short-term viability of the destination, hence their reluctance to market the same to their clients. To fill the existing confidence gap that such operators have, SATC & Adelaide Hills Tourism (2012) has proposed several programs, key among them being a requirement for SATC to launch a tourism training website in the region that will enable operators to acquire the skills needed to get accreditation. The South Australian Tourism Industry Council (SATIC) was given the responsibility of ensuring that the website was launched, and that it had the necessary materials for the identified purpose. SATIC’s website clearly indicates that its mission is “to engage, represent, strengthen and empower the South Australian industry”, and was hence best fitted for the responsibilities of encouraging tour operators to invest in A-Hills (SATIC 2013, n.pag). Investment funding sources for A-Hills come from different sources. One of the most essential sources is the SATC Tourism Development Fund, which offers funds to councils that apply for the same. The second most essential source of funding is from private investors who can range from individuals, groups, or corporate organisations. According to the Australian Trade Commission (2013), private investors interested in any part of South Australian have the benefit of extensive support offered by SATC, and although such support is not monetary, it saves the investors valuable resources that they would otherwise have spent investigating the market. Specifically, SATC offers investors data and research regarding markets that interest them, project feasibility data, case management, and also engages them in a familiarisation programme. SATC also gives investors information regarding federal and state funding. Workforce planning Adelaide Hills, just like other regions in South Australia has a head start in workforce planning courtesy of the Food, Tourism and Hospitality Industry Skills Advisory Council (FTH Skills Council). To match workforce supply and demand, A-Hills needs to compare its current and future human resource capacity against current and future demand for the same. As FTH Skills Council (2008, p. 4) puts it, workforce planning is about establishing “‘where you’re going’; and ‘what you will need to get there’ – and then take action to ensure you’re ready”. The considerations that A-Hills must be aware of while engaging in workforce planning include: workforce demographics (e.g. age, educational levels/skills); the external operating environment; current and future business needs; “internal systems and processes”; and the needs and expectations of the workforce (FTH Skills Council 2008, p.5). Current statistics indicate that for every six working people in SA, there is one aged person. However, the statistics indicate that by 2031, there will be an aged person for every working person. In other words, the SA population is aging at a high rate, and the young population is growing at a slower pace. Notably, the tourism industry in the larger SA (including A-Hills) is projected to grow, hence meaning that there is bound to be skills shortage in future. Additionally, and as indicated by FTH Skills Council (2008), other industries will be competing for the same workforce as the tourism industry. FTH Skills Council (2008) advises A-Hills to adopt recruitment and training options that are targeted, specific and based on a gap analysis. Specifically, recruitment should consider hiring the right (needed) talent for the job, and possibly someone who can fit into the organisation’s succession planning. In training, A-Hills can consider giving training to enhance specific aspects in the job, and/or to support employees interested in undertaking training for roles that are different from their current roles. Growing the industry: Long-term strategies As indicated in this paper, A-Hills tourism is significantly a day-tripper’s destination. As a result, most investments do not focus on providing accommodation services. As the industry grows as projected by SATC (2011) however, there is bound to be an increased demand for accommodation hence the need for the industry to enhance its accommodation capacity. Additionally and as indicated by SATC (2011), A-Hills needs to attract more tour operators hence the need to create a viable market for them. Even existing operators need to be encouraged to seek accreditation, something that SATIC has been given the responsibility to oversee. As indicated in the workforce planning above, SA will most likely experience skills shortages in future, especially at a time when the tourism industry will need an increased labour capacity. Strategically therefore, the industry needs to identify ways of obtaining and retaining talent in future. The industry might even consider importing personnel from other regions. Adopting environment-friendly and sustainable practices is also a strategic decision that A-Hills will have to make. While it is generally agreeable that tourism has economic benefits to the host communities, it is also clear that such benefits can only be sustained if the same attractions that bring in tourists are not destroyed. This means that natural areas of tourism nature need to be protected, and cultures need to be preserved. References Australian Trade Commission 2013, ‘Tourism Australia: South Australia (SA)’, viewed 11 March 2013, . Clayton, D n.d., ‘The social & cultural impacts of tourism’, Tourism Fact Sheets Gawler Visitor Information Centre, viewed 11 March 2013, Deloitte 2012, ‘Joint development of a high-level KPI report for the BC tourism Industry’, Tourism Industry Association of BC, viewed 11 March 2013, . Food Tourism and Hospitality Industry Advisory Council (FTH Council) 2008, ‘Food, tourism & hospitality: workforce planning guide’, pp. 1-20, viewed 11 March 2013, . Freeman, E R 1984, Strategic management: a stakeholder approach, Pitman Publishing, Boston: Massachusetts. Milbank, J 2010, ‘Adelaide Hills - Regional tourism strategic plan 2010-2015’, Consultation Draft, August, pp. 1-13, viewed 11 March 2013, . SATC & Adelaide Hills Tourism 2012, ‘The Adelaide Hills: Presentation action plan 2012-2015’, May, pp. 1-5, viewed 11 March 2013, . South Australian Tourism Commission (SATC) 2011, ‘Adelaide Hills regional strategic tourism plan 2011-2014’, viewed 11 March 2013, . South Australian Tourism Industry Council (SATIC) 2013, viewed 11 March 2013, Timur, S & Getz, D 2008, ‘A network perspective on managing stakeholders for sustainable urban tourism’, International Journal of Contemporary Hospitality Management, vol. 20, no. 4, pp. 445-461. Read More