Feasibility Analysis of Tourism in Australia - Case Study Example

Running Head: Feasibility Analysis Name: Course: Lecturer: Institution: Date: Introduction According to Tribe, (2011), there are several business opportunities coming up in the tourism and hospitality industry due to improved performance of the tourism sector within the country. To take advantage of the existing business opportunity I have decided to start silver safaris tours and travel. This is a business that will facilitate transportation and accommodation of both local and international tourists. The business will take care of tourists travel needs once they start their tour and also facilitate their accommodation from the time they begin their tour. The business will offer a range of travel options for the clients to facilitate their movement to the site of tourist attraction that they desire to visit. The organization will also facilitate security of their clients, ones they start their tour till the tour ends by providing them with tour guides and ensuring that they travel using designated means to the tourism sites. The business also offers accommodation facilities for their customers to ensure that they are comfortable throughout their tour (Middleton, & Clarke, 2012). The accommodation facilities provided cater for individual customers, groups and even families. It will cater for customer’s meals, comfort and a place to rest after a busy day in the tourism sites, the meals are provided through collaboration with specific hospitality services providers. The accommodation facilities are such that they are able to allow customers to hold business meetings for those touring as business partners. The accommodation facility also provides for customers recreation needs since it has a golf pitch, there is entertainment through live bands in an entertainment hall, there is also a room to watch football and also gym facilities as well as SPA services so that individuals are able to have real relaxation during their tour (Divisekera, 2010).They also have facilities that cater for children’s welfare for those families who carry that carry along their children in their travel. The business will operated as a partnership between two people so that the profits will be shared equally between the partners in an agreed profit sharing ratio of 2:1 (Bartling, & von Siemens, 2010). Since both of us are not well equipped to manage the business we shall employ a management team of people qualified in tours and travel and with some knowledge in hospitality management, this will facilitate efficiency and professionalism in operations. Since the major focus of the business is facilitating tours and travel needs of our customers we will collaborate with various service providers in the hospitality sector to ensure that customer’s accommodation is well facilitated. In the business premises we have also rented out some rooms to other service providers to ensure that our customers are catered for from a wider range so that their experience in tourism through our services is the best for instance their health and financial services among others. As supported by Goodall, & Ashworth, (2013), to enhance the competitive advantage of the business and ensure that it is focused in operations a feasibility analysis of the business has been carried out and presented as below, this enhance in keeping the business focused and thus ensure that the business is unique and attains customer satisfaction. Overview of the industry Tourism in Australia has grown immensely resulting to growth in the nations GDP thus resulting in growth in the industry as pointed out by Assaf, & Agbola, (2011), this is because most locals have embraced tourism and from the international perspective most people find Australia attractive for them to travel to for tours especially as families and business partners for retreats. There has been a significant increase in income generated from tourism activities in the country over the years which has resulted in government being involved in the expansion of the industry thus creating more avenues for individuals to venture into businesses in the industry. Availability of good geographical site and natural sceneries in the country for tourist attraction as well as the reputation with tourist services provided in Australia, internationals tourist have continued to seek the services of the industry and thus facilitating grow and creating opportunities for investment in the industry. Most of the tourists visiting Australia visit the coastal regions of the country which makes appropriate for the business to be located near the coastal regions of Australia so that customers will easily access to our services. The growth that has been experienced in the industry consistently over the years has facilitated improvement of the sector through increased capital investment and re-investment by individuals in the industry (Ziegler, et al 2012). There has also been increase in the range of services provided in the industry and employment of well trained staff so that tourists want to always come back in the country. There has also been integration of new products within the industry which has facilitated its expansion and increase in opportunities for investment within the industry. Trends in the industry Most of the international tourists in Australia are from china, over the years the number of tourists has grown to about 1.4 million tourists annually and the number is expected to increase to 2million by 2010. After the global financial crisis the Australian tourism industry experienced a declined which has affected it till 2011 when it started experiences growth which has remained till now. The industry is expected to grow further by at least 2.5% every year Assaker, et al (2011). Domestic tourism contributes to larger percentage in the industry compared to international tourism and so thus a difference in their growth rates. The industry has its 2020 growth target where the industry expects to register substantial growth in both local and international tourism thus providing avenue for investment into the industry so as to be part of the growth by generating revenue. As supported by Bornhorst, et al (2010), Chinese tourists are expected to increase to around 1.4 million people. That will result in an increase in expenditure and revenue expected in the industry. There is also expected to be an increase in overnight visitors in the country by 4% yearly which will result in growth in the tourism and hospitality industry from both the local and international perspective. The market size has been growing by 1.1% in the industry and is expected to grow further by 1.2%. Key driving forces in the industry There is increased growth in local tourism due to enhanced per capita income among individuals so that most of them do not find it a challenge spending in luxury in tours and travel (Witt, et al 2013). There are also increased social interactions among families and friends in the work place so that most will prefer to travel to various tourist attractions sites like in Australia to strengthen their social ties. Increased use of online sale services has made it convenient for tourists to organize for their tours and travel at the comfort of their homes or workplace and at their own convenience thus making it possible for tourists to access various services packaged for tourists, thus a boost to the tourism industry. This has also resulted to reduction in costs of travelling and has also enhanced proper planning. Due to growth in the Australian economy after the global financial crisis there has been growth in the cruise industry which has attracted the baby boomers are ready to take holidays and as much time for leisure as possible thus contributing to improved performance in the industry Benckendorff, et al (2010). According to Pickering, (2011), availability of good infrastructure, security and the geographical location of Australia have been so strategic in contributing to growth of the industry and facilitating in cultivating a spirit of tourism among the local and international tourists. There are so many developments that have been introduced in the Australian airline travel which have facilitated travel plans to the airports where we will get to connect with the tourists that have book tour and travel as well as accommodation with our organization. The country has release high growth prospects for the industry by 2020 which makes it a viable sector for investment. Globalization has also reduced the physical distance between nations and has increased the urge in people to explore different parts of the world so that tourism has become part of people’s lifestyle (Hjalager, 2010). Products and service provided The products and services available for our customers in silver safaris tours and travel include; The major services provided by the business will be tours and travel services where our gets will get the pleasure to be pick from a given terminal and have their travelling needs catered for during the entire period of their tour. This will include them having guided tour and visit to various sites to enhance their security. They will be provided with vehicles that will cater for their movement thought the travel period. The guest will also have their accommodation needs catered for courtesy of our business. We will have in place various rooms that can cater for individual or family needs. The rooms are secure, spacious and modernized with internets facilities; spa and other amenities are provided. Access to the rooms shall be granted to only those people cleared and assigned the specific rooms to enhance security. There is also available entertainment through television and live bands. The business will also provide various recreational facilities such as skiing, golf, gym, swimming boat riding and beach sports. Silver safaris will also have a high tide diving pool as one of the magnificent recreation points for the business. There is also a kid’s city that is equipped with recreational facilities appropriate for the children that visit the business premises. The business in liaison with catering and hospitality service providers offers meals and drinks as requested by the guest. Breakfast and soft drinks during entertainment will be provided by the business, this will facilitate branding and packaging of our business. The business will also partner with other service providers so that they will rent some rooms in the business premises thus allowing the guests to access other goods and services that they may require outside what we offer. Product and service differentiation Our business’s major focus is allowing safe and comfortable travel for tourists; this will be facilitated by having a wide range of vehicles that will facilitate the same. There is a variety of vehicles that can facilitate in catering for individual, family and group needs. The recreational facilities provided by the business are a package to ensure that our guests do not only involve themselves in travel but also get time to relax through recreation. There are range activities available in the premise to cater for customer’s different interest due to gender, age and hobby differences. For business groups that book to use our services there are rooms available for them to hold business meetings or conferences without interruptions. Competitive advantage Due to increase growth and further anticipation in growth in the tourism industry many businesses have come up to provide tours and travel services to their guests. To outstand our many competitors our business will not only offer tour and travel service but also provide recreation and adequately equipped rooms. For any person who uses our tours and travel services they will not pay for breakfast and drinks provided during entertainment. Our prices will also be based on market forces so that we shall have lower prices compared to our competitors. Operational objectives Our business will run throughout the year targeting both the low and high season. We expect that our operations will be tight during holidays and summers and in December due to much partying, most business partners groups are less busy and children are away from schools. Thus we shall have our operation plan drawn for the whole year to facilitate resource managements, to maximize on different business seasons and eventually lower the cost of operation and increase the chances of growth and profitability. The business will also 24’hour to ensure that our guests are catered for at their convenience. Silver springs location Our business will be located in the coastal region of Melbourne and will also offer outside services to guests in New Zealand. This will help the business maximize on the fact that our guest mostly visit tourists site in the costal part of Australia. There is also well established infrastructure that will facilitate linking the guest to our premises without difficulty. Most of our guests come tours to take time away from their normal life situations thus locating the business in the coast will help tourist enjoy a very different environment from what they are used to and will also enhance their participation in various recreational services. Premise description To ensure that silver safaris provide adequate space for the guests and cater for all their likely needs, the business will be built on 25 hectares of land inherited from my grandfather. It will have in built business premises, recreational facilities, accommodation rooms, rooms for renting to other service providers, packing space, golf pitch, conference hall, swimming pool with a high tide splash. The premise will be built through finances contributed by the parties, loans acquired to finance the project and sale of some property such as trees initially planted in the land. Business flowchart The range of products that will be offered by our business to our guests will follow a planned flow for easy facilitation and appropriate planning. Guest will start with online booking which will express their desire to use our services and products. The guest will also provide details on the time and day they will expect to be picked from the airport using our vehicles since we majorly over tour and travel services but link them with accommodation products and services to differentiate our business. The guest is also booked for our accommodation services and assigned a tour guide who will facilitate their tours. They are only provided with breakfast and drinks during entertainment in our business but the rest they liaise with the hospitality businesses within the rented premises. The flowchart can be shown as below; Customer collected at the airport and take to our premises At the reception desk Catering services Facilities to be used For effective running of the business the management of the business will ensure adequate furniture, utensils, vehicles, clean water, adequate parking space, an ample office space from which management functions will be carried out. The business will also acquire sporting facilities, television and ensure proper lighting in the area. Security in the premise is essential because of the resources available there and for the sake of our guests. Asset management For effective maintenance of fixed assets in the business the business will use their computers to maintain a fixed asset register that will facilitate monitoring of the assets. Proper valuation of the assets will be conducted yearly to ensure that the business does not maintain obsolete assets thus lowering the value of the business in the long run. Inventory will be maintained through first in first out method so as to facilitate accountability on use of materials (Pullman, & Rodgers, 2010). Supplier’s information The business will acquire materials from suppliers on large scale basis to take advantage of economies of large scale buying. This supplies motor vehicle and fuel suppliers, food stuffs, furniture, detergents and room accessories such as beddings, footwear among others. To acquire suppliers that are cheaper yet offering quality the company will deal with tenders where the highest bidders will be given the supply contract for a given period. The business will also maintain proper recording of the suppliers for proper coordination (Pegg, et al 2012). Since our business performance will vary with seasons we shall ensure that our performance is not greatly affected in the low seasons by varying our prices and liaising with other organizations so that they give us contracts to transport their guests (Page, 2012). We will also engage in more of recreational services for local tourists so that they can even use our services for few hours. Regulations Our business will operate within a legal framework, thus, it will acquire a trading license to ensure that their operations are legal. The business will file for value added tax to ensure it is tax compliant. As required by the workers act the business will ensure health and safety regulations are enhanced within the workplace to reduce injuries and facilitate better working relationships. Human resource planning The business will recruit staff with different skills to suit their varied needs in the business. Open interviews will be conducted to ensure equal chances are given to all that are qualified. The business will require tour guides, receptionists, drivers, cleaners, security personnel, procurement personnel, accountant, cahiers and sales and marketing personnel among others as summarized below. Personnel Numbers projected Proposed remuneration package Accountants 3 $1500 Plant Engineers 3 $1800 cashiers 2 $400 Security guards 10 $1800 Catering 5 $1100 Janitors 10 $2000 Sales and Marketing personnel 5 $2100 + 5% commission Procurement officers 4 $2000 Tour guides 9 $1800 Drivers 15 $3500 Entertainment coordinator 2 $1000 Total 68 The employees will be employed on permanent terms and no employee will be required to sign performance contracts; they will be involved in induction programs as well as on job trainings to adequately equip them in their jobs. Workman’s compensation will be provided, leaves, and appropriate working environment to keep the employees motivated (Law, et al 2010). Technical feasibility As analyzed in our feasibility study the tourism industry is ripe with investment opportunity and growth prospects that will favor our business. Thus, it is important that we lay down the appropriate strategies so that construction kicks off so that the business is in operation soonest possible. We project a budget of 3 million shillings for the business to be ready to operate after our own contribution and sale of some assets we realized we will only loan out 900,000 from a bank which we will be able to pay back once the business which we are so much hopeful about is in operation. As thus we are planning to begin the process of putting up the premises next month. References Assaf, A, G, & Agbola, F, W, (2011),modelling the performance of Australian hotels: a DEA double bootstrap approach, Tourism Economics, 17(1), 73-89. 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Tribe, J, (2011), the economics of recreation, leisure and tourism, Taylor & Francis. Witt, S, F, Brooke, M, Z, & Buckley, P, J, (2013), the management of international tourism,Routledge. Ziegler, J, Dearden, P, & Rollins, R, (2012), but are tourists satisfied? Importance-performance analysis of the whale shark tourism industry on Isla Holbox, Mexico, Tourism Management, 33(3), 692-701. Read More