“Investigative Report on the Current Issues within the Tourism and

Hospitality Management Context”

Within this increasingly volatile global landscape, more than ever there is a need
for the tourism industry operators to identify various issues affecting their businesses
and to embrace a disciplined, structured and continuous approach to identifying and
monitoring future trends and issues to inform policymaking and strategic planning. And
from the different scholarly articles reviewed, the following prevailing issues were
observed and analysed:

I. OPERATIONAL CONTEXT

First is the need for proactive decision-making and strategic planning to

maximise opportunities, minimise adverse impacts and maintain competitive
advantages. One of the significant outcomes from the planning operation has been the
engagement of the major tourism stakeholders. The increasingly volatile tourism
operation environment in recent years has placed increased emphasis on mechanisms
that bring together tourism industry stakeholders to provide effective and holistic
responses to unanticipated events. Thus, sectors must demonstrate preparedness and
responsiveness to issues and challenges before they become a problem. Also, planning
and designing long-term strategies basically improve insights in business operations to
create cohesive and better position across the global industry making it more robust and
flexible.

Second is growing concerns of the tourism sustainability. It has been a topical

issue in the tourism industry for several decades. This is in spite of the fact that
sustainability issues have reputedly become a key driver of the social and political
agendas in many countries. Continued volatility in the global marketplace and the
urgent need to respond to issues of suggest that the tourism industry is not set to enter
a period of relative stability. Hence, companies across numerous industries, including
hospitality and tourism, are constantly monitoring key industry trends to better
understand and deliver a vibrant tourism industry that makes a strong contribution to the
economy.

II. HUMAN RESOURCE CONTEXT

There is a significant number of underlying industry issues which make it

problematic for parts of the tourism industry to recruit and retain the talent they need.
Hotel and Tourism industries continue to focus on the skills shortage which is a single
(albeit very important) component of the broader problem of a general shortage of
labour in many areas of Australia, especially those impacted by the resources boom.
This is not to underestimate the vital importance of achieving appropriate training
standards and delivery mechanisms for both employees and employers.

This topic includes the issue of education and training and updating the knowledge
base of personnel in different parts of the sector. The quality of experience or product
on offer to the market is subsumed within this category. There are also significant and
accompanying new directions needed in the human resources management field

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pertaining to career structures for those who work in tourism. Clearly, the professional
capacity of managers in the tourism industry is a vital factor in the capacity of the
industry to attract, develop and retain staff. As such, there needs to be significant effort
to raise the professional capacity of employers in the sector. Business operators should
always aim to strengthen tourism cooperation across a range of areas including Human
Resource Development.

III. FINANCIAL CONTEXT

Business support and practices theme a diverse range of issues including

profitability or profit margins of tourism businesses and the need for increased funding
and support programs for tourism businesses. The general volatility in tourism
investment, particularly in areas such as accommodation supply, remains a key issue in
improving profitability and long term sustainability. The sectors participation and
collective involvement in any trade and marketing activity locally, nationally and
internationally would lead to a whole new level of awareness where the benefits are
immeasurable including the increase of its profitability and operational capacity.

Another factor that continuously constrains the progress of tourism industry is the
lack of available development finance. Tourism organisation partnership seeks a
financial contribution from all parties involved in the agreed initiatives such as
enhancing the business systems and using smarter work practices to address the
financial impediments to the growth of the tourism industry and to consult on specific
marketing strategies and cooperative marketing opportunities. Moreover, these
ingenuities will ensure financial sustainability and increase productivity and fine-tune
internal processes of the business. Thus, a high-performing organisation with a strong
alignment between culture and strategy produces more financial growth and better
employee engagement.

IV. PRODUCT AND MARKETS CONTEXT

Diversifications of product offerings and development of niche markets are the

major focus, as well as the dominant issue, at the national level tourism development.
The industry’s reliance on its natural “product”, which is potentially under threat,
coupled with the potential for changing consumer demand patterns, particularly in
long-haul markets, should be concerning for the tourism industry. There was a
recurring theme of the need for innovation and new initiatives including novel products
and experiences such that any innovation has to fit within a developmental vision
embracing the multiple goals of profitability, community acceptance and environmental
responsibility. Tourism industries should develop commercial partnerships that extend
its reach and target customer engagement through required strategies and actions
making it easy to showcase their products and experiences to a global audience.

A business sector should develop potential new and emerging markets through
targeted marketing strategies. There must be an implemented range of cooperative
measures, including assisting industry in the delivery of quality tourism products and
services, increasing industry's knowledge of market operations, and improving the
market’s competitiveness. This will include continuing to collaborate and align on some
marketing campaigns, combining market resources, sharing international consumer
research and consolidating distribution activities. Issues on product and market context

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should be addressed through structural changes that will seek to achieve greater
efficiencies and optimal return on investment in marketing.

References:

East, B. (2018). ANNUAL REPORT 2016/2017 |. [online] Tourism Australia. Available

at:http://www.tourism.australia.com/content/dam/assets/document/1/6/z/6/s/2005156.pd
f [Accessed 16 Aug. 2018].

Anao.gov.au. (2017). Strengthening Australia’s Tourism Industry. [online] Available at:

https://www.anao.gov.au/work/performance-audit/strengthening-australias-tourism-
industry [Accessed 17 Aug. 2018].

E TURNER, R. and FREIERMUTH, E. (2017). TRAVEL & TOURISM GLOBAL

ECONOMIC IMPACT & ISSUES 2017. [online] https://www.wttc.org/-
/media/files/reports/economic-impact-research/2017-documents/global-economic-
impact-and-issues-2017.pdf. Available at: https://www.wttc.org/-
/media/files/reports/economic-impact-research/2017-documents/global-economic-
impact-and-issues-2017.pdf [Accessed 15 Aug. 2018].

Pearce, P. (2013). Initiatives for the Development of Tourism in Tropical Australia.

[online] https://researchonline.jcu.edu.au/29920/5/29920_Pearce_2013.pdf. Available
at: https://researchonline.jcu.edu.au/29920/5/29920_Pearce_2013.pdf [Accessed 15
Aug. 2018].

Ruhanen, L. and Shakeela, A. (2013). Responding to Climate Change: Australian

Tourism Industry Perspectives on Current Challenges and Future Directions. Asia
Pacific Journal of Tourism Research, 18(1-2), pp.35-51.

Hooper, K. and van Zyl, M. (2011). Australia’s Tourism Industry. [online] Rba.gov.au.
Available at: https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-3.pdf
[Accessed 14 Aug. 2018].

Sanders, D. and Laing, J. (2010). In the Line of Fire: The Challenges of Managing
Tourism Operations in the Victorian Alps. [online]
http://ro.ecu.edu.au/cgi/viewcontent.cgi?article=7336&context=ecuworks. Available at:
http://ro.ecu.edu.au/cgi/viewcontent.cgi?article=7336&context=ecuworks [Accessed 14
Aug. 2018].

Ruhanen, L. and McLennan, C. (2009). Strategic Issues in the Australian Tourism

Industry: An Analysis of National Tourism Strategies and Plans. [online] Research-
repository.griffith.edu.au. Available at: https://research-
repository.griffith.edu.au/bitstream/handle/10072/53454/86845_1.pdf?sequence=1
[Accessed 12 Aug. 2018].

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