Tourism in the Australian Capital Territory - Case Study Example

Tourism in the ACT Name Name of Institution Tourism in the ACT Introduction Sustainability, sustainable business, and climate change are some of the most commonly used terms in modern day businesses. It is worth defining sustainability and sustainable business when attempting to evaluate the degree to which any industry is sustainable. The ACT Government (2009, p. 2) acknowledges that sustainability has numerous definitions. However, sustainability has three basic components with the first being the recognition of the interdependence between economic, social, and environmental well-being. The second component involves acknowledging the impact of our actions on others in a world that is interdependent (ACT Government 2009, p. 2). Finally, sustainability recognises that today’s needs should not be met at the expense of future generations (ACT Government 2009, p. 2). Therefore, a sustainable business/industry is one whose success is measured in terms of economic, environmental, and social factors as well as the usage of resources in a way that will retain value for current and future generations (Sanders & Wood 2014, p. 4). Despite opinions to the contrary, climate change is a real phenomenon that will impact the ACT and the wider country. It defines variations in the long term averages of climatic elements like temperature and precipitation as a result of human activities and natural causes (Fung, Lopez, & New 2011). A survey by the ACT Government’s Environment and Planning Directorate found that 88% of residents in the ACT believe that climate change is a real problem that needs resolution (ACT Government 2014, p. 5). When it comes to the impacts of climate change on the ACT, projections indicate that the territory will experience warmer and drier conditions. This will lead to an increase the frequency of bushfires and drought (ACT Government 2014, p. 4). This essay will utilise the definitions of climate change and sustainability to concentrate on the tourism sector in the ACT. The first step will be an appraisal of the degree to which the tourism industry in the territory is sustainable. The next step will involve detailing the strategic challenges that face tourism as a result of climate change. The main stakeholders, their roles, and levels of involvement will then be identified. This will be followed by a discussion on the possible strategic responses to the challenges that arise from climate change. The paper will conclude with the choice of a preferred approach to solving the identified challenges. Sustainability in the Tourism Industry in the ACT Tourism is a sector of the Australian economy that is witnessing remarkable growth. The industry thrived in 2013-14 with record visitors and expenditure despite a weak global economy and a strong Australian dollar (Tourism Research Australia 2014c, p. 3). It is worth noting that despite its advantages, tourism can also have a negative impact on society, cultures, economies, and the environment. These negative impacts can affect the sustainability of the sector in the short, medium, and long-term. For instance, a small town with a major tourist attraction can suffer from the loss of its cultural identity as a result of hosting numerous tourists who gradually water down local cultures. Similarly, the environment in such a town can be degraded owing to the strain of having to support a high number of visitors. In the long run, the small town will cease to be an attraction for tourists. According to UNESCO (2015), sustainable tourism defines tourism that respects the needs of local people as well as those of the travellers, the environment, and cultural heritage. It is evident that there is a clear relationship between the types of attractions and the degree to which a tourism sector is sustainable. The Australian Capital Territory offers a diverse range of attractions for both domestic and international tourists. First, it is the seat of government, and it holds several historical attractions for domestic tourists. According to Tourism Research Australia (2014a, p.3), the ACT’s key tourism pillars are food and wine, arts and culture, family fun, and outdoor adventure. When it comes to ranking, arts and culture attracts the highest number of visitors, with outdoor adventure having the least potential. Food and wine and family fun were the second and third ranked attractions for the region respectively (Tourism Research Australia 2014a, p. 5). According to Business Think (2010), Australia as a whole benefits from the fact that it is not a mass tourism destination. In this case, mass tourism defines large movements of people to the same destination at the same time (Gladstone 2013, p. 198). It is evident that the type of attractions in the ACT makes the tourism sector environmentally sustainable. As stated, the number of tourists visiting the capital has an impact on the sustainability of the sector. 3200 businesses in the territory directly engage in tourism, while the total number of annual visitors was 3,954,000 in 2013-14 (Tourism Research Australia 2014b). This number is low when compared to the number of businesses in the sector and visitors to other major cities and regions in Australia (Tourism Research Australia 2015a). By definition, sustainable tourism should support the needs of visitors as well as the local economy, culture, and environment. A study by Tourism Research Australia concluded that the ACT lacks an attraction that is compelling enough to attract more tourists. Furthermore, the region lacks a low-cost carrier that can make the ACT a cheap destination for tourists (Tourism Research Australia 2014a, p. 10). These factors lead to a conclusion that the tourism sector in the ACT is not economically sustainable as it cannot meet the current needs of local businesses and individuals who depend on the sector. However, this is a short-term challenge that can be solved by improved marketing strategies and the introduction of a low-cost carrier. Strategic Challenges to the Industry In addition to the challenge of attracting enough visitors, the tourism industry also faces several strategic challenges that arise from climate change. These challenges will affect the sector in the short, medium, and long-term. When it comes to the short-term, the weather is a crucial factor in the decision-making process on places to visit. Both domestic and international visitors study weather forecasts and recent weather events to predict whether they will have a comfortable stay. Climate change presents a big challenge in this regard as the ACT is expected to experience extreme weather conditions. The region will experience drier and warmer conditions leading to a rise in the frequency of heat waves, bush fires, and drought (ACT Government 2014, p. 4). On the other hand, the storm season that typically begins in September will bring more severe storms that might cause flash flooding and damage infrastructure. The implication of these inconsistencies in weather will be a reduction in the number of annual visitors to the ACT. When it comes to the medium-term, climate change will have knock-on effects in sectors related to the tourism. As stated, food and wine attracts a large share of visitors to the ACT. This attraction relies on agriculture, a sector that is extremely vulnerable to climate change. Farmers who supply food and wine establishments in the ACT might lose their products, meaning that businesses will have to look for basic products from more distant sources. As in the case of agriculture, climate change will affect biodiversity, which is an important source of revenue to the ACT through its parks and botanic gardens. Climate change will also affect the supply of labour in the medium-term, and thus construction projects and the production of handicrafts for sale to tourists. These strategic challenges are not immediately apparent, but their impacts will worsen if stakeholders in the industry do not take immediate action. By definition, climate change is apparent when climatic data is analysed over long durations that often run to several decades. Therefore, the effect of present-day emissions will manifest themselves over the long-term. It is an acceptable fact that the manufacturing and energy industries are the most culpable for greenhouse gases emissions. However, emissions from the tourism sector cannot be ignored, meaning that the sector has to take measures to reduce its emissions. The presence of approximately four million annual visitors places an enormous demand on energy and transport services in the ACT. In turn, the transport and energy providers rely on the burning of fossil fuels that are responsible for the extreme weather being witnessed in the country. The implication of these emissions will be more severe conditions in the ACT, which will have horrible impacts on tourism in the long-term. Therefore, the tourism sector in the ACT faces the challenge of ensuring that it does not endanger its future of by increasing the pace of climate change. Major Stakeholders in the Industry The tourism sector in the ACT has a complex network of stakeholders who handle various aspects of the industry that include the sector’s development, marketing, and day to day management. Without the input of these stakeholders, tourism would not reach the level it has attained in the Australian Capital Territory. The first group of stakeholders comprises the local community and the visitors. As stated, the local tourism industry relies on food and wine attractions, arts and culture, family fun, and outdoor adventure to attract tourists (ACT Government 2014, p. 4). Each of these categories relies on input from the local community in the ACT. On the other hand, without the tourists, the local communities would engage in other activities. Therefore, the tourists and local community form the foundation that supports the wider tourism sector and other stakeholders. The second group of stakeholders comprises tour operators and suppliers. This group creates packages that can be marketed successfully to both domestic and international tourists. Tour operators form a vital link between the stakeholders in the industry. For instance, they facilitate communication between a potential visitor from as far as the US and a small vineyard in the ACT. The ACT government is also a major stakeholder, and it leads the region’s tourism sector through VisitCanberra (VisitCanberra 2015). Departments of the national government such as Tourism Research Australia are also part of the stakeholders. This group appreciates the importance of tourism to the national economy and provides quality intelligence to enable tourism-related businesses to make strategic decisions (Tourism Research Australia 2015b). Investors are also part of the stakeholders in the sector. They have an intimate level of involvement in the sector as they develop the facilities that will employ local professionals and host domestic and international tourists. These investors control the decisions in the 3200 businesses that serve the sector, and their decisions can have far-reaching effects on tourism in the ACT. Finally, environmental groups can also be considered as stakeholders. The aim of this group of stakeholders is to ensure that the natural ecosystem within the ACT is not damaged as a result of human activities. The environmental groups create partnerships with the other stakeholders to ensure that the tourism segment of the economy remains sustainable. For example, the environmental groups can lobby regional and national governments to create legislation that protects the environment. These laws then have direct and indirect influences on the management of tourism in the ACT. Possible Strategic Responses Each of the stakeholders in the ACT’s tourism industry can come up with strategic responses that can alleviate the impacts of climate change and promote sustainability. As stated, the ACT and Australia as a whole benefits from not being a mass tourism destination (Business Think 2010). However, this does not ensure that the region’s tourism sector is not contributing to climate change. One of the possible strategic responses that can reduce the sector’s contribution to climate change is the promotion of ecotourism. The International Ecotourism Society (2015) defines ecotourism as “responsible travel to natural areas that conserves the environment while sustaining the well-being of local people.” All the stakeholders in the industry can promote ecotourism leading minimal impacts on the environment. For instance, investors can construct facilities that are designed to have low impacts in areas such as energy consumption. Tourists, local communities, and businesses can also be educated on climate change, and their individual choices can gradually reduce the progress of the phenomenon. Such measures will reduce the significant contribution of the region’s tourism sector to climate change through burning of fossil fuels, industrial activities, land use changes, and deforestation in surrounding areas. It is evident that ecotourism relies on voluntary action by stakeholders who have different interests. This places a limit on its applicability in a number of ways. For example, investors might be unwilling to spend extra money on new energy technologies to increase energy efficiency in facilities. This weakness can be resolved by the local and regional government. In particular, the ACT Government has a climate change policy that is founded on the recognition of the importance of sustainability and sustainable actions (ACT Government 2009, p. 6). A possible strategic response to mitigate climate change would involve targeting sectors such as tourism with strict legislation. The government can enact laws that mandate new establishments in the sector to use renewable energy sources and have zero net greenhouse gas emissions. Access to national parks can also be tightly regulated, and the transport industry that supports tourism can be encouraged to move away from fossil fuels where possible. A third strategic response would involve education. A study by Turton et al. (2010, p. 27) concluded that the Australian tourism sector as a whole is not ready to invest in climate change mitigation as a result of uncertainties. Stakeholders recognized that climate change was real, but they failed to adapt to existing climate change policies that have the potential to mitigate climate change. Becken (2005, p. 11) also studied the willingness of the tourism sector to adapt to climate change and concluded that information on the link between tourism and climate change needs to be communicated. As such, a possible strategic response would be the inclusion of climate change as a core subject in learning institutions that train individuals who will work in the tourism industry. Public campaigns should also be carried out in the country as most visitors to the ACT are domestic tourists. An informed public and an educated labour force in the tourism sector will facilitate the adoption of existing policies that will mitigate climate change and enhance the sustainability of the tourism sector in the ACT. Preferred Approach and its Implementation An evaluation of the possible responses shows that tough legislation is likely to fail due to resistance from the stakeholders. Investors might shift to other locations, and the current and future economic needs of the local community might be compromised. The preferred approach would be a combine a focus on ecotourism and educating students in learning institutions and the wider public. This approach should be implemented as soon as possible as any delay will be associated with disaster in the form of extreme weather. All the stakeholders in the tourism sector should be involved in this approach as it will lead to a sustainable industry. Conclusion In conclusion, this essay began with the definitions of climate change and sustainability. An evaluation of the tourism sector in the ACT showed that it is environmentally sustainable, but it suffers from the lack of a clear marketing policy that can satisfy the present and future needs of all stakeholders. However, this issue can be resolved quickly to make the sector sustainable. When it comes to climate change, the essay concluded that it presents enormous short, medium, and long-term challenges to the industry. An evaluation of possible strategic responses concluded that a focus on ecotourism and educating students and the wider public would allow the sector to embrace policies that can mitigate climate change. References Becken, S 2005, Harmonising climate change adaptation and mitigation: the case of tourist resorts in Fiji, Global Environmental Change, vol. 15, no. 4, pp. 381-393. Business Think, 2010, Riding the Tourism Waves: Can the Real Australia Please Stand Up?, UNSW Australia Business School, viewed 11 July 2015 Community Engagement Strategy on Climate Change, 2014, ACT Government, viewed 8 July 2015 Fung, F, Lopez, A, & New, M, (Eds.), 2011, Modelling the impact of climate change on water resources, Wiley-Blackwell. Gladstone, DL 2013, From pilgrimage to package tour: Travel and tourism in the third world, Routledge, New York. People, Place, Prosperity: the ACT’s Sustainability Policy 2009, 2009, ACT Government, viewed 8 July 2015 Sanders, NR, & Wood, JD, 2014, Foundations of Sustainable Business: Theory, Function, and Strategy, John Wiley & Sons, Hoboken, NJ. Tourism Research Australia, 2014a, Visitor Perceptions of the ACT: Executive Summary, Tourism Research Australia, Australian Government, viewed 9 July 2015 Tourism Research Australia, 2014b, Tourism Region Profiles, 2013-14: Canberra, Australian Capital Territory, Tourism Research Australia, Australian Government, viewed 10 July 2015 Tourism Research Australia, 2014c, State of the Industry 2014, Tourism Research Australia, viewed 11 July 2015 Tourism Research Australia, 2015a, Tourism Region Profiles, Tourism Research Australia, Australian Government, viewed 9 July 2015, Tourism Research Australia, 2015b, About Tourism Research Australia, Tourism Research Australia, Australian Government, viewed 11 July 2015 Turton, S, Dickson, T, Hadwen, W, Jorgensen, B, Pham, T., Simmons, D, Tremblay P, & Wilson, R 2010, Developing an approach for tourism climate change assessment: evidence from four contrasting Australian case studies, Journal of Sustainable Tourism, vol. 18, no. 3, pp. 429-447. VisitCanberra, 2015. VisitCanberra, ACT Government, viewed 11 July 2015, What is Ecotourism?, 2015, The International Ecotourism Society, viewed 11 July 2015 Read More