Current and Emerging Issues in Hospitality and Tourism - Essay Example

Current and Emerging Issues in Hospitality and Tourism Name Institution Tutor Date Introduction The hospitality and tourism sector is a major contributor to the Australian economy. The sector provide various goods, leisure and personal services to both overseas and domestic customers. The industry is often affected by continuous changes in international and national expectations and demands of the customers. Activities in the sector are also shaped by the highly increasing global market. In essence, there have been several trends and emerging issues in hospitality and tourism industry in Australia. This paper seeks to explore the effects of the global financial crisis, the shortage of labor and skills and changes in the Australian demographics on hospitality and tourism industries in Australia. Shortage of labor and skills The hospitality and tourism industry in Australia is continuously experiencing a shortage of qualified skilled labor. This menace is likely to continue and adversely affect the sector. In general, the hospitality and tourism industry in Australia has a labor shortage of around 36,000 employees. The industry also has workers vacancy rate more than four times than that of the national average. This prevents some parts of the industry from offering efficient services to both domestic and global customers. With the expanding tourism and hospitality industry in Australia, additional 100,000 workers will be required to take various positions within the industry. The reality is that these positions cannot be filled by the local sources alone. The industry should strive to use overseas workers to help the industry obtained skilled labor. As the Australian industry continues to grow, there is need to adopt strategic planning to enable the industry to obtain the skilled staff that can ensure sustainable and productive operations of the industries (Kapiki, 2012). Shortage of labor and skilled workers has been instigated by a high rate of turnover of the staff which is influenced by factors such as the nature of work in the industry which is sometimes physically strenuous and stressful. Moreover, employment conditions are usually part-time and casual hence the workers lack the working benefits and conditions that full-time workers enjoy. The industry is also characterized by long working hours whereby the employees are expected to work over the weekends, in the evenings and during festive periods like Easter, New Year and Christmas (Dwyer, 2007). Such conditions have resulted to a decline in the number of employees therefore influencing the existing labor shortage. The Australian government is at the forefront in ensuring the problem is adequately controlled. The government has undertaken various measures and strategies to improve skills and labor shortage in the tourism and hospitality industry. The first strategy is by employing workers from overseas. The government has also emphasized the employment of the disabled and the indigenous workers. Additionally, the government has increased the employees’ incentives to take apprentices. For the tourism and hospitality industry to succeed in obtaining skilled and qualified personnel, the industry should work together to promote and create the plethora of various careers, allowing individuals from different cohorts to undertake the career. The industry should also skill and train their workers on a broad range of jobs that exist in the industry (Dwyer, 2007). Global financial crisis There is no agreed definition of a crisis; however, in explaining crisis, the definition should include three components, that is: the event or factor that is causing a significant change or having the capacity to cause a major change, the inability to cope up with the changes and a threat to the industry or organization. Causes of the crisis in tourism and hospitality in Australia can be traced to the socio-cultural, political, and economic developments that influence the demand and supply in the country. Economic recession and downturn, loss of market confidence, fluctuating exchange rates and a decrease in investments can lead to a crisis in tourism (Global Financial Crisis Bulleting, 2009). Impacts of economic crisis on Australian tourism and hospitality industries Australia is currently affected by the financial crisis that started in 2007. The Australian tourism sector like other industries is facing several challenges due to the global financial crisis. The tourism and hospitality sector is affected by the decreased spending of the customers and the shrinking capital market. Various tourism and hospitality industries have reported a downturn in their sales, events, foodservice and other related tourism products. This has made some industries to stop their operations due to constant losses. The decline in sales not only resulted from few consumers in the restaurants, hotels, renovation centers and conference center but also from a major reduction in the expenditure per guest. Tourism operators have stated that the tourism industry is due to fall since most individuals opt to stay at home during holidays in order for them to save money as a result of the gloomy outlook for the economy. The economic crisis has made individuals fear to spend (Global Financial Crisis Bulleting, 2009). Mathew Hingerty, the Australian Tourism managing director, hinted that the inbound number of tourist visiting the country remained flat. Global tourism in Australia declined by 4.3 in the year 2009 due to the adverse effects of the global financial crisis on leisure and business travel. The financial crisis is likely to cause a cocooning effect with both the Australian customers and international customers less inclined to move too far places. As a result of the cocooning effect, centers away from the major population centers such as the Tropical North Queensland will be adversely affected by the crisis than areas close to the major cities. Such areas are vulnerable due to their high reliance on the inbound tourism. For instance affected areas include: the Uluru region where international guests account for fifty-seven percent and in the Tropical North Queensland, where the international visitors’ accounts for fifty-one percent (Global Financial Crisis Bulleting, 2009). For the Australian tourism and hospitality industry to survive the financial crisis, the Australian tourism sector should increase the value of its products and communicate it more effectively. There should be a joint industry/government tourism recovery plan that can help save jobs in Australia, reduce the length and depth of downturn and help in stimulating various economic activities within Australia. Various industries have started to deploy the new strategy. The industries are improving the product value and their competitiveness through discounting of prices and providing special offers this helps to lever the already weakening Australian dollar. Consequently, the industries need the intervention of the government in protecting its international market share and in stimulating domestic tourism (Global Financial Crisis Bulleting, 2009). Changes in Australian demographics Demographic changes in Australia have a great effect on the hospitality and tourism sector in Australia. The current changes in demographic in Australia have significant impacts on the tourism and hospitality industry. Regarding provision of services and products, the hoteliers should start a plan and strategy that can address multi-generational needs, desires and wants. There exist a high number of baby boomers in Australia. Hoteliers should provide proper amenities and designs that can cater for the needs and requirements of these consumers. They should also be in a position to provide the needs of young travelers who are profoundly rooted in new designs and technologies. The two generations offers a significant challenge to the tourism sector. The two generations needs different products and services. The hoteliers should consider the need for every generation and satisfy them adequately (Nagle, 2002). Australia is highly experiencing a high number of baby boomers, along with economic, social and policy change. The country is at a very crucial demographic turning point since the aging cohort of 5.5 million individuals born between 1946 and 1965 is turning 65 years. This milestone means that the hoteliers need to change the traditional way of connecting to the senior market. The baby boomers are likely to redefine the traditional concepts of aging. The hoteliers should consolidate the needs of these two generations and provides for their various needs. The first way to implement change is by the adoption of a universal approach that encompasses brighter lighting, lower beds, larger fonts, yet hip, fresh and high tech. This enables the young generation to be drawn to their preferred design. Again, the sector can offer various choices that provide the customers with options. Through this, multi-generational groups can identify the best product that appeals to them. Consequently, the hoteliers should consider high-tech guest rooms because technology has taken over the world whereby internet access, flat screen TVs, wireless networks are the talk of today (Dwyer, 2007). Relationship among the talked concepts The concepts relate to each other. For instance, the changing demographics in Australia leading to more baby boomers results to the shortage and lack of skills for the tourism sector. The aging populations is not able to work in the tourism and hospitality industry making the industry lack adequate labor. Old age deprives the industry, skilled workers. Individuals who have relevant skills are unable to work due to their old age. Consequently, there exist a relationship between the changing demographics and the financial crisis. The baby boomers are to be cared for by the young generation, but with the economic crisis, it is very difficult to provide for the baby boomers. Conclusion   Hospitality and tourism can be a driving force in recovering the Australian economy. Tourism and hospitality creates more job opportunities and brings revenue to the country. There exist several issues that influence the tourism sector. Such issues adversely impact the tourism sector and should be well addressed. There should be various measures than can be used to restructure, boost and improve the Australian tourism and hospitality sector. Such measures include seeking for workers overseas, taking into considerations every need of the multi-generations and enhance the quality of goods and products. Moreover, tourism and hospitality can be the Australian government’s tool in its effort to achieve environmental and social policy targets. References Dwyer, L.,2007, Megatrends underpinning tourism to 2020: analysis of key drivers for change. Griffith University, Qld, Sustainable Tourism CRC Global Financial Crisis Bulleting, 2009, Impacts Of Economic Crisis Hospitality, Leisure And Travel Industry. Retrieved from http://www.protiviti.com/ Kapiki, S, 2012, Current and Future Trends in Tourism and Hospitality. International Journal of Economic Practices and Theories, Vol. 2, No. 1. Nagle, G.,2002, Tourism, leisure, and recreation. Cheltenham, Nelson & Sons. Read More