2020 ACT Government Tourism and Travel Growth Strategy - Case Study Example

2020 ACT Government Tourism and Travel Growth Strategy Name: Tutor: Course: Date: Question: Educating users about optimizing use of New Technologies in the Tourism Industry Introduction This question raises the issue of optimization of use of new technologies in the Australian tourism industry by educating users. Australia is driving up visitor numbers from international and domestic target markets by investing in destination marketing activities. The country has adopted the 2020 Tourism Strategy requiring use of new technologies to provide a framework to inform tourist activities and programs in the region (ACT Government, 2014). The need to educate users on new technologies is based on the strategy of increasing from the current base of $1.58 billion, the value of the visitor economy to $2.5 billion by 2020. The essay establishes that Australian government has an obligation to sensitize users on new technologies such as mobile applications, internet and social media to increase the number of visitors seeking information about Australia as a tourist destination. It also recommends that the ACT government should finance the operators and ICT sector to enhance efficiency and effectiveness of the strategy. Background and importance of New Technologies in the Tourism Industry New technologies are advances that create new and powerful ways of using technology or solving thorny problems (Buhalis, 2000). Their use is becoming a mainstay in economic development of a nation by driving efficiency and effectiveness. Though new technologies have fairly diffused to the population, there is still need to educate users so as to meet the strategic objectives of a sector fully. Australian tourism sector gradually realizes the surge in the number of the visitors and guests to its beaches, outback and historical sites. To reach many potential visitors and drive growth, the government department of tourism launched 2020 tourism growth strategy that utilizes new technologies. Sigala et al. (2012) observes that the most common technology in use is the Web2.0 platform that draws a convergence of technology such as Wiki, Blogs and Ajax with societal trends like internet penetration. Web2.0 boom has made applications run just like desktop applications hence increasing fellow online consumer collaborations and exploding user-generated content. The drive to educate users of new technologies is because, by 2020, overnight visitor expenditure is expected to stand at $140 billion from $70 billion in 2010. In 2014, the ACT Government affirmed that some of the key priorities to achieve the national ‘stretch’ target of $140 billion include boosting productivity, addressing skills and labor shortages, increasing uptake of digital technology and new product investment. These factors ultimately impact on service quality and improved product. Rogers (1995) observed that in the rate of adoption theory, diffusion takes place in a gradual but a slow growth period which is then followed by a rapid and dramatic growth then gradual stabilization followed by a decline. Diffusion of new technologies is gradual at initial stage as training programs are rolled out in phases by the government department of tourism to enable easier search on tourism events, promotional events and road shows. It will then become rapid when many users have begun implementing and actualizing (Sigala et al. 2012). New technologies can reach users through the ordinary marketing and promotional means, and its diffusion level is also dependent on early adopters and late entrants. Users understand that the outcome of the ICT content convergent trends is the shift from print to digital. The global tourist e-village is the result of these trends that have seen the growth of e-tourist communities. Majority of users of new technologies are self-publishing and theme-based on videos, diaries blogs and trip which start from digital then to hard copy. Buhalis (2000) argues that tourists need richer media and user-generated content like podcasts, videos and images which are easier to share and create using new collaborative methods like blogs for suppliers and consumers. The dominant online world user group is generation-Y which maximizes sites such as blogs, opinions, video clips, groups and chat rooms (Sigala et al. 2012). This age group fundamentally becomes a target of live shows, TV ads and magazines of various types of new technologies and applications on how to access tourist operators and destinations. However, Bonchi et al. (2011) argues that some users have advanced knowledge on the use of some common platforms such as Second Life, YouTube, MySpace and Flickr with more than 70 million registered users. Majority of Australians are yet to engage them as tourist information mediums. Many still believe that the smartest e-destinations are linked to the traditional media such as travel guides, attraction, photos, transport, maps, trip planners and user reviews (Tourism Australia, 2012). For example, themed drives for special interest groups can be provided by drive trip planners may have attractions and accommodation integrated with multi-day drives. Use of new technologies reinforces the ability of traditional Visitor Information Centres to provide relevant information through official tourism digital channels such as Youtube, iPhone App, Escapes Newsletter, Holiday planners, Facebook and Sider Twitter (Bonchi et al. 2011). More than 2,003 tourism operators across Australia were surveyed in 2010 on their online capability. It was established that 71 percent had own website while 84 percent had an online presence. Also, 62 percent offered e-mail booking requests while 41 percent provided price checking and availability (ABS, 2011). Through own website, 27 percent provided instant confirmation bookings which show that online capability is deemed to go up in the next 12 months while online bookings will go up to 40 percent. This statistics confirms that users have increased their uptake on use of new technologies to access tourism information. Australians use the internet as their preferred method to book holidays and visits. It is evident from the poll consisting of 14,000 people aged above 14 years taking a leisure or holiday trip in the past 12 months. Compared to 28 percent in June 2007, it was found that 39 percent booked through the internet inferring that there has been an increase of 40 percent in the previous three years. A decline in phone booking or in-person is matched by a boost in online bookings matched with 29 to 25 percent drop in telephone bookings in June 2007 (ABS, 2011). In addition, three years ago the proportion booking in person had declined from the previous 20 percent to 17 percent although there was a slight increase in email bookings from 6 percent to 8 percent. From the above statistics, it shows that education of users on new technologies has brought on‐demand delivery of information and new levels of context‐awareness that is personalized and relevant. For the tourists, these technologies mean a new way of interacting with destination environments by way of gamification strategies and augmented reality applications. Mobile technologies such as Canberra iPhone applications has such interactions for tourist's sites, hotels, museums and beach fronts provided in an engaging and playful manner (Bonchi et al. 2011). Though, mobile applications are dubbed to encourage tourist unplanned behaviours, it has significant destination changes in tourist movements that suggest that there is a high persuasive potential. Impacts of New Technologies on the Australian 2020 Tourism Strategy New technologies are critical to capturing the drive‐through market for regional destinations and businesses off the beaten path as they are agents of the consumer. In order to become knowledgeable, tourism operators attempt to develop opportunities and needs within the tourism industry and also working relationships with key technology providers and developers (Tourism Australia, 2012). As the agents of the consumer within their business plan framework, new internet technologies have enhanced their power in the marketplace so that suppliers respond in their product development and analyze consumer preferences. According to Tesmer (2001) in the application of Individual Innovativeness Theory notes that there is a need to analyze the environment of early technology adopters by identifying its use and physical characteristics. Based on this theory, social media and technology are influencing ways in which consumers book travel, share and research hence a huge opportunity to expand the ACT 2020 tourism strategy. When more users stream in the digital channels more, consumers will be able to purchase mobile or internet applications in real time and connected to bookable ACT experiences. New adopted technologies will reduce the dependence on labor, given that the 2020 tourism Strategy will have to employ an additional 20,300 employees to deliver on the 2020 target with minimal productivity gains (Sigala et al. 2012). Currently underutilized in Australia is the adoption of visitor servicing technologies which if improved will integrate and improve digital information. These will be available through current websites will employ location servicing and mobile devices in Darwin Cruise Terminal, railway stations, town centers and key airports. Adoption of database management systems contained in the new technologies will stimulate tourism purchases and provide businesses with the capability of responding to individual preferences. Dwyer et al. (2005) affirms that educating users on the use of ICT technologies will also provide operators with an informed understanding of consumer needs due to data mining and research interaction. Based on personal preferences, it will allow for the increased proportion of tourist organizations, customization and differentiation (Cavlek, 2002). New technologies will increase the ability to add value for their customers and achieve the dual goals of lowering operating costs. Given that tourism is highly dependent on transport technology and information, it will drive scientific discoveries and innovations that are likely to develop and renew its services and products. Services using technology to provide competitive advantage and product value addition will continue to hinge and bring success of tourism enterprises (ACT Government, 2014). Successful tourism managers will be forced to gauge, perceive and imagine effects of emerging technology and science on distribution, supply and demand. According to Bonchi et al. (2011) when people embrace new technologies, they trigger technological revolution and evolution which will positively influence the industry business environment, industry sectors suppliers and visitors. Fully integrated reservations systems with user-friendly sites are essential online presence to target specific markets. Firms take advantage of online engaged communities by generating exciting and relevant content from Second Life, Twitter, Yahoo!, YouTube, Facebook, Flickr, WhatsApp and MySpace (Dwyer et al. 2005). Tourism and travel will become a buyer’s market since tourism operators will shift to the emotional benefits from the promotion of the functional benefits of their services and products (ABS, 2011). These emotional benefits are social-skill and reward confirmation, stress-alleviation, reverie and escape and status-enhancement. Value addition has grown in importance and is closely linked to high customer service and increased time pressures. Do-it-yourself attitude spreading is facing a counter-trend as certain customer groups more than before for excellent service, are willing to pay extra (Dwyer et al. 2005). Conclusion The essay has established that Australian government must educate users of new technologies on areas such as mobile, internet and social media in order to create a huge impact on the way they will book travel products, share and own purchase decisions (ATS Group Pty, 2001). The government requires within the next six years a marketing budget to spend on TV ads, road shows and online advertisement. This will encourage more users around the world to access Australian tourist information. Educating users on the use of new technologies will raise the tourism market share and create effective communication mediums that responsive to visitor needs and expectations. Through new technologies, the ACT government and tourism industry can work together to ensure that Australia connects tourists to the experiences and has a strong presence throughout the digital channels purchased in real time. Recommendations to the Government The advice to the ACT government is to; Provide faster and cheaper internet connectivity to enable organizational users and small businesses around the world to connect consumers directly and compete on an even footing with market leaders for market share. Tourism firms in Australia should be encouraged to identify changes in technology that will affect marketing of tourism, quality and growth. To their benefit rather than following the lead of others, operators should be proactive in orchestrating technology. Firms using electronic technology should accurately and readily identify niches and market segments to communicate and facilitate micro marketing. Destinations and savvy operators should strive to meet demand or risk losing market share and competitive advantage through road shows and posters. The government should proactively approach and provide incentives to companies that are franchising new entertainment or expanding and developing tourism products fitting all the market segments. ACT government and tourism operators to collaborate in selling and marketing experience and destination available in multi-channel environments to emerging markets. Reference list ACT Government 2014, 2020 Tourism Strategy: Growing Visitor economy 2014-2020, Economic Development Australia. ATS Group Pty Ltd 2001, Emerging Trends in the Tourism Sector and their Impact on Regional Tourism Attractions, ATS Group Pty Ltd. Australian Bureau of Statistics, 2011, Australian Social Trends 2010, Commonwealth of Australia, Canberra. Bonchi F Castillo C Gionis A & Jaimes A 2011, Social Network Analysis and Mining for Business Applications. 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