Importance of Hospitality & Tourism for the Australian Economy and Pakistan - Case Study Example

The Hospitality and Tourism Market Name Institution Course Date The Hospitality and Tourism Market Comparison of the importance of Hospitality & Tourism for the Australian economy and Pakistan Tourism is very important due in part to the number of travellers, huge number of employees and the amount of revenue it brings to a country (Kookana and Tien, 2013). Tourism brings about positive result such as economic growth, access to transport as well as cultural benefits. In Australia, tourism and hospitality creates a multiplier effect. Visitors in Australia buy tourist products and their spending is injected in the local economy. The income generated is spent in ensuring the growth of economy which creates a multiplier effect. Larger percentage of the income generated from Australian tourism and hospitality is spent locally and the benefit is greater compared to other countries like Pakistan (Kookana and Tien, 2013). Tourism has also offered diversification in Australia. It has enhanced the local economy by making the country less dependent on other sectors such as mining and exports which are affected by price fluctuation. Just like in other countries, tourism and hospitality industry has contributed to creating employment to many people. For instance, in 2012, it was reported that the industry created a total of 187,000 direct and indirect employments (Kookana and Tien, 2013). Hospitality and tourism contribute significantly to the economy of Pakistan. One of the major benefits of tourism in Pakistan is its ability to generate income (Travel Guide, 2014). Income from hospitality and tourism is higher than income from other sources such as export of products. Tourism income has been used to correct the balance of payment and has also minimized the country’s burden of debts. In addition, just as in Australia, tourism has created domestic employment in Pakistan (Travel Guide, 2014). Tourism in the country is considered labour intensive as it creates employment in hotels, entertainment places, as guides etc. In addition, profits that have been earned from tourism and hospitality have been used to improve the country’s infrastructure such as construction of local housing, schools, roads and hospitals and has improved water supplies and electricity in the country (Travel Guide, 2014). Due to the growth of tourism in Pakistan, there has been a huge interaction between the tourists and the local people. And due to this interaction, there is an enhanced cultural linkage with other countries. Moreover, tourism and hospitality in Pakistan encourages the growth of local cottage craft industries as well as souvenirs production (Travel Guide, 2014). Discuss the reasons behind the changing nature of the market segments within H&T with reference to the each of the countries In the recent years, the tourism and hospitality industry has undergone some changes due to the changing nature of the market segments (Midleton, 2000). The digital technologies are somewhat shifting power to the customers. In addition, customers are also changing. In the next years to come, there will be digital natives who would have the desire for authentic local experiences. Australia is considered an aging society with large number of old people. There is a growing change in the country’s market segment that affects hospitality and tourism industry Kookana and Tien, 2013). These can be attributed by the expected increase in the population of silvered hair tourists and growth of middle class people. Australian population is aging thus increasing the amount of disposable income and more time to travel. Hotels are forced to reorganize their design and concepts in order to accommodate the silvered hair tourists Kookana and Tien, 2013). According to Naomi, in Pakistan, there is an increase in people’s leisure time which is contributed to working less years and early retirement (Bush, 2010). In the country, more and more people prefer to retire early which gives them more time to enjoy their leisure time through visiting new places and travelling across the world. And as such, the population of old travellers in Pakistan has also increased which has influenced the nature of market segment. In addition, technological advancement has changed the behaviour of consumers (Midleton, 2000). Due to technological advancement in the country, more and more people prefer shopping at the comfort of their homes and more and more travellers are becoming highly hybrid. The growth of e-commerce in Pakistan has changed the behaviour of consumers as they prefer getting their desired products and services at the comfort of their homes (Midleton, 2000). Due to digital innovation, consumers can book hotel rooms online and arrange their whole travel experience through e-booking. This has forced tourism companies to change their strategy and embrace digital technology in their operations. The advancement of technology has made more and more hotels to adapt to information technological system in their operations (Kookana and Tien, 2013). In addition, healthy lifestyle is considered very important in tourist’s decisions. In Australia, there is change in preference and taste of consumers with regard to dietary concerns such as calories, sodium and fat (Kookana and Tien, 2013). Many tourists in Australia prefer consumption of healthy diet and hotels are expected to change their menu to accommodate this target group. Discuss briefly the two top brands in Hospitality & Tourism in Pakistan and write a paragraph about each of them. Hospitality and Tourism in Pakistan has had a great impact to the economy of the country. The two top brands include: Lahore and Karakorum. Lahore is one of the most popular tourism sites within the country which is considered to be an old city with a touch of medieval costume as well as donkeys and carts being driven all over the town (Bush, 2010). The site has buildings commonly known as the Mughal buildings as well as Badshahi mosque which are considered as among the largest in the world. Furthermore, the tourism site also has a terrace where people can have their dinner on a converted Haveli Cocco’ Den with a fantastic bird’s eye view. It is famous for both local and international tourists (Bush, 2010). In addition, Karakorum Highway is another tourism site within Pakistan. It was opened in the year 1986 and it is considered the highest road in the world (Bush, 2010). Karakorum highway cuts through mountains and connects all the way to China. It links up with numerous villages within the area which only form of modernization is the various paintworks put up with Pepsi and Nestle which decorate the shops around the area (Bush, 2010). The road also opens the tourism industry to various painted Bedford trucks which are considered to have cost up to 3 years’ wages to decorate and which involves complex designs of both birds as well as trees. If you were to start your own business in Hospitality & Tourism back which business would you like to invest in & why? I would like to invest in amusement park in my country. Amusement parks in the country are not as many as in other countries like the United States. Amusement parks are growing demand for tourists today. Amusement parks often cater for the single needs of every customer ­ (Amusement Parks and Archades, 2011). The market segmentation of most amusement parks is both children and their families and it intrigues individuals of all age groups for instance, it appeals to children due to the presence of toys as well as animation films. Furthermore, it also appeals to older kids such as teens since it has live action. This clearly indicates that an amusement park will appeal to more than one market segment and is a great opportunity to generate income. Amusement parks are easier and cheaper to start compared to other forms of tourism attraction sites (Amusement Parks and Archades, 2011). One needs to hire a park, sort all the legal requirements and equip it with fun activities that local and international people can enjoy. In addition, competition in the amusement parks in the country is minimal due to few tourist parks (Amusement Parks and Archades, 2011). Therefore, with the growing number of tourists who prefer fun experiences and challenges during their leisure time, an amusement park will be able to attract a huge market share both local and international (Amusement Parks and Archades, 2011). Identify the major difficulties you can expect in marketing for this business. Do not focus on lack of funds The latest trend affecting tourism and hospitality is the management of multicultural talents as well as the various political backgrounds encompassing the industry (McCool and Lime, 2001). Therefore, attributes such as franchise has become one of the biggest as well as the most developing aspect of the tourism industry. Hence, any success of a franchise highly depends on the how ownership as well as how both the internal and external customers are being handled (McCool and Lime, 2001). Therefore, with the further development in terms of internationalization, multicultural challenges greatly affect the industry operators. Marketing of the amusement park to different tourists coming from different cultures will be a huge challenge (McCool and Lime, 2001). In addition, tourism and hospitality consumers are increasingly becoming sophisticated as well as both the products and services they want (McCool and Lime, 2001). Therefore, tourism and hospitality industry has identifies this as a major challenge since both business centres as well as recreational facilities, if not carefully selected, may highly fail to appeal to the consumers being attended to by a particular property (McCool and Lime, 2001). Although amusement parks are well accepted in different countries, the acceptance of a new park may be difficult. References Amusement Parks & Arcades - Quarterly Update 1/10/2011. 2011, United States, Austin: Hoover's Inc. Retrieved 11th Dec. 2016 from http://search.proquest.com/docview/832771609?accountid=11311. Bush A 2010, "Pakistan Travel Information and Travel Guide". Lonely Planet. Retrieved 27 September 2010. Kookana, J and Tien, P 2013, Tourism Contribution to the Australian Economy, Tourism Research Australian. Retrieved 11th Dec. 2016 from https://tra.gov.au/documents/Economic-Industry/Tourisms_Contribution_97-98_to_2011-12_FINAL_3JUL13.pdf McCool, S.F and Lime, D.W 2001, Tourism carrying capacity: Tempting fantasy or useful reality? Journal of Sustainable Tourism, 9(5), pp. 372–88. Midleton, V 2000, Marketing in Travel and Tourism, Butterworth- Heinemann, London. The Economist. Travel Guide 2014, Advantages Of Tourism For Pakistan. Retrieved 11th Dec. 2016 from http://worldtour5.blogspot.co.ke/2014/04/advantages-of-tourism-for-pakistan.html Read More