Government Initiatives and Funding for International Tourism
Discuss about the Drivers of Change in Regional Tourism Governance.
There are many places to visit New South Wales (NSW) like ‘blue mountains’, ‘central coast’, ‘Hunter Valley’, ‘Lord Home Island’. According to the government report, yearly many international visitors come to NSW and they have contributed $9.8 billion to the economy of the concerned destination (Nsw.gov, 2018). Total of 3.9 million overnight international visitors is liable for the amount which shows 10% increase respect to the previous year (Nsw.gov, 2018). This business report thus shows the future of the international tourism in NSW based on the research made from secondary sources. Datasheet with graphics will also be illustrated for outlining the findings of the study based on which the implications for the future international tourism in the NSW will be depicted.
The government of the nation has taken the initiative for the Environment and Tourism Fund through which the regional community gets funds to build tourism infrastructure to associate with such projects (Nsw.gov, 2018). John Barilaro, Deputy Premier and Minister of NSW have depicted that this fund will enhance the tourist numbers, employment and support the nation’s government to initiate other government regional investment programs. The fund in recent times gets sanctioned for $300 million and also motivates the local community to suggest new ideas for enhancing the tourist visits in NSW (Nsw.gov, 2018).
New South Whales obtained the rank one in terms of visitors, nights and expenditure and the regional NSW leads by 34% share of overnight visitors compared to regional Australia (DestinationNSW, 2018). Moreover, NSW also has the lion share of 65% for overnight visitors compared to Sydney which is only 39% (DestinationNSW, 2018).
NSW also contribute 34% of the total Australian Share, 34% of total Australian visitors and 32% of the overnight visitors (DestinationNSW, 2018). The statistics also show that $11.8 Billion was attained in the end of 2017 for holiday purpose, which is $4.9 Billion for VFR tourism that is to visit family or friends, $4.7 Billion for business purpose and $7.6 Billion for other purposes (DestinationNSW, 2018).
Dredge and Jenkins (2003) stated that in Australia, federalism is followed which resembles that the power is dived between the national and regional government units. However, this research article shows that federalism on one hand give power to the regional governing units to develop their undertaken states but also rise problem like lapping jurisdictions, countervailing power and multiple accountabilities which affects the tourism policy development (Dredge & Jenkins, 2003). The research article also found that prior 1945, Australian government provide basic infrastructure for the growing economy and in the year 1947, NSW government raise the profile of tourism through promotion of tourism areas and establishment of tourist offices. Similarly in 1960, the NSW state government formulated Country Industries Assistance Act 1966 due to which first formal recognition of NSW was attained (Dredge & Jenkins, 2003). However, Dredge and Jenkins (2003) highlighted in 1970, Wran Labor Government came to power that fixed the value of the Australian dollar artificially high that resulted in cheaper overseas holidays and expensive domestic holidays. In late 1980s, the government focused on tourism infrastructure and attractions. Tourism Commission Act 1984 were passed replacing Tourist Industry Development Act 1976 during this time as the Department of Tourism and the Department of Sport and Recreation are merged to formulate Department of Leisure, Sport and Tourism (Dredge & Jenkins, 2003). In 2000, the Liberal Government is replaced by Labor Party and initiatives like state-wide strategic planning exercises, regional tourism strategies and Regional Attractions Strategy were developed in order to attract international tourist.
Statistics on Tourist Visits and Expenditure
Jenkins (2000) identified that Department of Leisure, Sport and Tourism is formulated for efficient coordination and management for the development of the state’s economy through tourism and sports. In order to identify the in-depth reach of the consumer, NSW was divided into nine regional areas. The departments developed Hunter Tourism Development Plan through which the association between four regional tourists attracts can be obtained that are e Hunter, Great Lakes, Port Stephens and Manning Valley Associations (Jenkins, 2000). This committee presents some arguments that the tourist committees should provide experience to the visitors like fishing, fossicking, wine tasting, drive yourself tours and farm holidays (Jenkins, 2000). Another argument made is that funds should be allowed for campaigns like consumer-based product marketing for the promotion of the tourist spots and develop long-term (five years) tourism strategy (Jenkins, 2000). After the implication of the long-term tourism strategy, in 1994/95 financial year, $5.1 million investment was underpinned for regional tourism where the main elements are co-operative regional marketing projects worth $1 million. Moreover, the project for regional marketing development of new products worth $500,000, direct co-operative advertising industry worth $2 million, product and marketing brochures from $700,000, regional tourism support activities worth $300,000 and Newtracs subsidies and Tourist Information Centers, $413,000 were sanctioned (Jenkins, 2000)
Compared to the year 2016, in the year 2017, there is increase in number of visitors in NSW for the holiday, VFR tourism, business and other purpose. The data shows that the 37,093,000 number of visitors visited NSW for holiday purpose in 2016 and the number was 39,326,000 in the year 2017 showing a positive growth of 6% (Tourism Research Australia, 2018).
Moreover, NSW leads Victoria, Queensland, Western Australia and Southern Australia in terms of overnight trips, visitor’s night and overnight trip expenditure (Tourism Research Australia, 2018). The overnight trip of the NSW was 29,188,000 in the 2016 and 31,575,000 in 2017 showing a positive change of 8% (Tourism Research Australia, 2018). NSW also shows a positive change of 5% in terms of visitors night stay which was 95,183,000 in 20016 and 100,104,000 in the year 2017 (Tourism Research Australia, 2018). Lastly, in terms of overnight trip expenditure, NSW attained $16,701 Million and $18,644 Million in 2016 and 2017 respectively that show a positive enhancement of 12% (Tourism Research Australia, 2018).
Thus, the operational issue for the development of the RTO was found as focusing on product development opportunities, marketing synergies for developing product’s exposure, coordinating all the government and industry’s activities, local focus on tourism needs and maintaining communications. Jenkins (2000) also found that some regional offices are still struggles for governing membership and funding and get full financial support from local government bodies. Many of the organizations are equipped with effective communication strategy, but many of the tourism offices lack modern technology and business improvement program. Moreover, the due to federalism, in NSW, there are overlapping of the decision of governing bodies in order to develop strategies for attracting people to NSW. This can be overcome through effective communication and reports on customer demand forecast.
Impact of Federalism and Operational Issues in Tourism Policy Development
The data also showed that presence of many tourist attractions in NSW results in more economic growth as people come to visits there more compared to all other places in Australia. The government also took initiative for improving the environment and tourism infrastructure through funds and spends millions of dollars for regional tourism spots.
Thus, NSW needs to collaborate the decision of the governing bodies so that a particular decision can be carried out for developing the international tourism in the nation and also to reduce the overlapping of the decisions.
NSW can also take initiative to focus on the inbound destinations and improves their infrastructure especially airport infrastructures and roads. In order to attract more international people, NSW can also prepare communication media in all languages so that people, who understand a different language, can also get conformable.
The government of Australia also conducts a survey based on which the customer data can be assessed; however, these data can also be used for market and customer demand forecast. The data such as from which country travelers visit more to NSW, what tourist spots these travelers prefer the most and what activities these travelers opted during their stay. These data will allow the NSW tourism officers to implement customized strategies for attracting these visitors.
NSW can reduce the communication problem of the federalism governing rule and make the tourists aware regarding the tourism attraction and activities through the social media. They can also include web-based and mobile technologies for developing an interactive dialogue between communities, organization and individuals.
Real travel experiences are other future trends in NSW for attracting more international tourists. NSW tourism centers can provide the tourists, who visit the place options like learning humanitarian actions, learning a new language, attending a cultural concert and exploring culinary techniques.
Development of recycled infrastructure using waste products can also attract international tourists to witness the process of reusing the waste. NSW can also take initiatives like fuel-efficient cars and transports and offer them visiting the projects for regenerating the electricity and projects for overcoming the problem of global warming and climate change.
Over-tourism can be a problem in NSW which negatively impacted the nation’s environment. This problem can be overcome through putting limitation in the arrival of the tourism in NSW so that the environment can be maintained properly.
Reference List and Bibliography
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Nsw.gov. (2018). Regional NSW environment and tourist attractions will benefit from a new $300 million fund. [online] Available at: https://www.nsw.gov.au/news-and-events/news/international-visitors-boost-nsw-economy/ [Accessed 07 Jun 2018].
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