Relationship between UK, EU, and Australia
The tourism sector of any country depends upon the server aspect of the host country as well as the trading partner countries (Low, 2016). In the same manner, the Brexit creates the considerable situation for Australian tourism industry (Rumbens, 2016). In this context, the present report is based in the impact of Brexit on Australian tourism industry. With the help of several studies, the impacts have been analyzed and understand the importance of minimizing the impact. In this regard, a tourism plan is recommended to overcome the impact of Brexit on the tourism industry. It further increases the sustainability of tourism sector with the involvement of key stakeholder as government and industry representative.
The political stability of the country affects the business of dependent countries as well as the country’s economy (Yeung, 2017). In this regard, the Brexit has the huge impact on the UK economy as well as Australian tourism industry because in Australia around 9% tourists came from the UK that’s why it is the key source market for Australian tourism sector (Wykes, 2016). Owing to this, the Brexit createsthe direct impact on the Australian economy. However, the variation in UK GDP has the great impact on the dependent overseas market. Further, the downturn in the financial income of UK public forced them to prevent travel plans. Owing to this, the Australian tourism industry negative influence by the lower growth of UK GDP. In this regard, the political stability accelerates the economic growth of a country (Ramadhan et al. 2016). Furthermore, the lower pound value imposes UK people to lower investment in visitation. Therefore, the political condition of the UK creates the significant impact on the Australian tourism sector and forced to downturn.
The tourism is the fastest growing industry in Australia has significantly contributed to the Australian economy. In this context, it contributes in Australian GDP with 3% of total GDP and gives 4.3% employment to Australian public (Turner, 2018). Thus, the Brexit hasconsiderable for the Australian economy. Further, it creates the barrier in the revenue generation for tourism sector of Australia.
The Brexit influenced the relationship between the Australia, EU and UK. In the present time, Australia has been establishing a free business contract with EU and wants to establish another contract with the UK (Rumbens, 2016). Owing to this, the regulations may vary when Australia wants to export and import goods from the EU and UK. However, the EU and the UK are the key business partner for Australia (Taylor, 2018). Further, both EU and UK caused the decline in the Australian trade export share in 2016 with 6.1%which significantly affected the Australian economy (Rumbens, 2016). In this regard, Brexit has influenced the trade relationship with the UK and creates business uncertainty which needs the specific attention of regulatory authority so that suitable strategies can be framed so as to look into the issue. Furthermore, in the Australian tourism, Brexit creates the issue for lower consumer attention, poor employment and consumer mindset for higher saving. All these issues create the barrier in the Australian tourism growth.
Effects of Political Stability on Tourism Industry
At the same, UK work as a gateway in creating an entrance for Australian business firm into other EU member countries (Australian Institute of International Affairs, 2018). Thus, it influenced the trading relation with other EU member countries. Therefore, the Brexit construct the negative impact on every Australian industry which has import and export trade with EU and UK. Moreover, the Brexit influenced the global competitiveness of the Australian tourism industry. This is because older marketing strategies will not enough for new political and business environments of Britain (Yasarata et al. 2010). Therefore, the Brexit influenced those issues of Australian businesses which are imperative for maintaining the global competitive edge.
In the present time, every countrytargets to take independent decisions in several contexts like trade agreements with other countries (Low, 2016). Further, they avoid the interference of other countries and groups in their decision and in relation with other countries. This gave rise to Brexit so that UK could operate freely and form the relationship with other countries which are not included in EU. However, currently, EU regulations are followed by the UK in every context which might not be effective or favourable in every context (Taylor, 2018). Owing to this, Brexit would be helpful for the UK to set up their independent trade policies and does not rely on one EU policies. Although, members countries also provide benefit for several nations in term of immigration, employment, industry development and other related aspects; yet, the restriction is imposed by single governing body which needs to abide by the members. This scenario impedes the independent decision making through which countries like the UK initiated Brexit. Moreover, political communities of UK understand the importance of independent decision making and own regulation through which business activities and decision-related to the general public can be taken. However, it would create distance with the countries included in EU but still, now the country will be able to access the entire world with its own regulations and procedures. Though to a certain extent negative impact may be faced by the UK but then the long-term benefit will be seen with the improvement in the political, economic and social condition of the country. In this manner, a referendum was conducted on 23 June 2016 and the resulted in the favour of Brexit with 51.9% vote (Hunt and Wheeler, 2018). Owing to this, the UK will be free from all the EU regulation and build new business contract with other countries. However, the political stability is imperative for the economy which leads the uncertainty in future growth (Aisen and Veiga, 2011). Similarly, high political instability is proportional to lower growth in the economy (Fatas and Mihov, 2013). Owing to this, Brexit influenced the economic growth of the UK.
Contribution of Tourism to Australian Economy
However, the UK has some disadvantages from the Brexit as the WTO tariff will change for the UK to import and export. Further, the UK trade process will be changed for other EU members and become difficult to access. Owing to this, the Australian government needs to build healthy relationship with the UK and invite the UK public in Australia from easy immigration rules. In this context, working holiday maker (WHM) visa provided by the Australian government for the UK’s public between 18-30 age group (Tourism Australia, 2016). With the introduction of such kind of effective plan, the government of Australia can make the healthy relationship with the tour operators so as to grab the attention of visitors from both countries towards each other. Therefore, the Australian government is aware of the visa policy for the UK public. Further, the tourism industry used this policy for marketing and emerge the awareness in UK public.
As per the above discussion, Brexit creates a negative background for the Australian tourism industry. In this context, the Brexit creates emergence for several following issues which needs the proper solution.
The effect of Brexit is the political movement which had affected the currency value of the country and accordingly spending limit of the consumers or the general public get affected. Here, the low value of the pound in comparison to dollar change the travelling habit of UK public and impose them for saving money rather than investing somewhere. Owing to this, the Australian tourism industry needs to improve their strategies to attract UK public, In this regard, they will make cost-effective tourism plan which can be accessible or affordable for UK travelers. However, suitable marketing strategies by focusing on the financial aspect can be used so as to grab the attention of visitors. Moreover, industry representative develops more attractive offering tour plan to their customer and encourage them for travelling in Australia. Further, it builds their travelling experience to extraordinary.
On the other hand, the global warming destroyed the natural beauty of Australia. Further, the travelers’ activity in marine area negatively influenced the marine biodiversity through enhancing the heat level which resulted in coral bleaching (Williams, 2018). Due to this, they focus on the conservation of their natural beauty as increase marine biodiversity with the help of protective marine environment and. These environment protection techniques become helpful for attracting overseas traveller. Further, it is important for the Australian government to find the solution for both lower income UK traveller and the conservation of the marine environment.
Negative Impact of Brexit on Global Competitiveness of Australian Businesses
Brexit influenced the immigration process of UK citizen and increased the flight charges (Calder, 2017). Owing to this, Australian government needs to improve their connection with the UK government and creates supportive immigration rule for easy access to visa. This is because, the government politeness for foreigner increase the tourist satisfaction level for selecting particular tour destination (Wanhill, 2013). Furthermore, they need to decrease their flight’s charges for travellers through which they are able to attract medium income group clients. It will further increase the travelling activity in Australia by encouraging public with the cheapest flight price.
Brexit creates downflow in the value of pound as well as the Australian dollar (The conversation, 2016). Owing to this, inflation occurs and decreases the global competitiveness for business. Further, it prevents business for overseas expansion. In this context, the tourism industry of Australia suffered from Brexit. Owing to this, it is important for Australia to build a close relationship with the UK and post Brexit EU (McDougall, 2016). In this context, the political changes influenced the international business relationships by creating changes in present trade regulation (Luttrell et al. 2014). In this context, the current plan will be helpful to focus on those specific issues and assist the UK government to make the favourable regulations which promote the tourism of Australia. However, it might be possible that both governing bodies come together and take decision for the promotion of each country with the collaborative approach. For this purpose, a plan has been prepared for finding the alternatives ways to resolve the issue related to Brexit and provides the new direction for the overall tourism sector of the country. Therefore, the Australian government needs to set their focus on the finding the solution for overcoming the impact of inflation.
Brexit has long-term effects on several economies as well as the Australian economy. As per the above discussion, Brexit influenced the Australian tourism industry as well as other industries. In this context, the Brexit influenced several issues which are imperative for the growth of any industry. Owing to this, the proposed tourism plan have possibility to progress in the Australian economy. Further, it has huge scope in Australian tourism sector as well as other business sectors these are following.
The tourism plan has huge scope in the tourism industry by amplifying the service quality with unique offering with affordable price. Due to this, the Australian tourism industry will be successful in attracting a large amount of foreign traveler. In this context, the organization offerings in service quality work as a magnet for the consumers and build sustainable tourism (Chen et al. 2011). Similarly, it will be helpful for targeting lower income group consumer with the affordable tour plan. This is because the understanding of customer perception is necessary for improving the customer retention (Högström et al. 2010). Therefore, the proposed plan increases the productivity of the Australian tourism industry.
Improving Tourism Strategies and Marketing to Attract UK Travelers
Collaboration is one of major aspect for the success of any business and industry. In this regard, the business growth rate depends on the collaborative nature of the business (Majava et al. 2013). Owing to this, the proposed tourism plan will be helpful for Australian business for building a collaborative trade relationship with the overseas business firm. Further, it will be helpful for increasing the productivity and profitability of Australian businesses which further enhances the probability overall tourism sector of the country. Moreover, on the basis of the above discussion, the free trade agreements of Australian government with UK and EU will improve the tourism of Australia and reduce the impact of Brexit to a great extent. Therefore, the tourism plan with the free trade agreement will be helpful for escalating the overseas collaboration of Australian business.
The healthy relationship with UK and EU amplifies the probability of the development process in the several Australian industries. Owing to this, they will be more developed and expand globally. Further, it creates the positive global competitive edge which will attract the huge amount of overseas customers. Furthermore, it will also increase the FDI in Australia and brings more innovation to the industries. In this context, the higher rate of FDI is helpful the business in the terms of development by increasing the investment in the innovation in the firm (Belloumi, 2014). Similarly, the FDI is the major part of economic growth by determining the natural resources, trade openness, the effectiveness of government and regulation quality (Jadhav, 2012) Due to this, FDI will be contributing positively in global competitiveness of Australian trade market. Moreover, liberalization in the immigration process will be attracting the foreign consumer. Therefore, the optimistic global relation and government liberalization in the immigration process willeffectively influencethe Australian tourism industry.
As per theabove discussion, the overseas collaboration and global competitiveness of Australian business are important for the Australian economy. Further, the tourism industry contributes well to the Australian economy such as GDP growth and employment in the Australian public. Owing to this, the collaboration between tourism industry representative of Australia and Britain’s tour operator firms will influence the tourism growth in Australia. However, the government intervention in the overseas business influences the business productivity in both positive and negative way (Mason and Brown, 2013). In this context, the Australian government positively influences tourism industry by creating development strategies and policies. However, it is already known that Brexit creates the unfair situation for the Australian tourism industry. Owing to this, the government should build more effective strategies for development and retain more traveler’s attention.
Conservation of Natural Beauty and Marine Biodiversity
By considering the potential issues related to Brexit, tourism plan has been prepared for the Australia which covers following different steps. It has been explained as follows-
According to the above discussion, it is found that the tourism industry must need an effective tourism plan to overcome the effect of Brexit. Further, it will increase the growth of the tourism sector and the overall rate of return. Owing to this, the following objectives are set for improving the efficiency of the tourism plan.
- To increase the arrival of Britain’s tourists in Australia by 20%
- To improve trade relation between overseas tour operators.
- To improve the global competitiveness of Australian tourism by 10%.
- To simplify immigration rule for Australian tourist.
- To increase customer retention for Australian tourism by 15%.
As per the above discussion the Australian government, Tourism industry representatives, consumers and competitors are the key stakeholders of the Australian tourism industry. Owing to this, the involvement of key stakeholder is imperative for creating effective tourism plan. In this regard, the Australian government will be focused to enhance the growth of tourism industry in this context, the Australian government may simplify the immigration rule for the tourist and increase the arrival rate of foreign tourist. Further, the government can also reduce the burden of strict rules and regulation related to visa procedure for the UK travellers which will be helpful for establishing the more effectual relation with the overseas business firm.
Moreover, the government should need to invest in the alternative solution for protecting valuable marine life. In this regard, they can build a clone aquarium the same as the Great Barrier Reef which can divert travellers and protect the marine environment. Further, the government body can make affordable travelling charges. Further, the industry representative should offer attractive service with moderate price. Further, they can also offer cost-effective tour plan with additional services without any charges. At the same, the industry representative should create healthy relations with overseas partners and force them into doing business with them. On the other hand, they can improve their service quality through employee training.
The implementation of the tourism plan is based on the stakeholder role in the current problem. Owing to this, it is crucial for the Australian government to invest more in the international trading contract and creates free flow in the international business. Further, they can change their immigration policies create them quite simple for tourist; even, they can give a visa without creating any trouble for visitors. Moreover, the government can create several regulations for tourism industry representative. Thus, the hospitality representative will be bound to offer a superior quality of service with affordable price. At the same, they will offer 30% off on tour plan for the overseas travellers in the offseason and maintain continuous flow in the arrival of visitors.
Improving Immigration Rules and Flight Charges
According to the result of the implementation of tourism plan, the revision is done upon the outcome of the tourism plan in regular time span and evaluates the efficiency of the tourism plan. In this context, the review will be implemented every month and analyzed the tourist’s growth in peak season as well as offseason. Further, at the departure time, the feedback from the traveller will be taken for the future improvement. Owing to this, this revision process is helpful for considerate the deficiency of current tourism plan.
In this step, the modification will be done on the basis of the output of the revision process and the changes will be implemented in the strategies of the current tourism plan. In this regard, the modifications are done upon the current objectives and update them according to future requirement. These modifications increase the effectiveness of the tourism plan and magnify the probability of success.
Conclusion
On the basis of the above report, it can be concluded that the economy of a single country is influenced by the political measures and economic changes in the other related economics. According to the above analysis of Brexit impact on the Australian tourism sector, it can be concluded that the political condition of the UK influenced their business environment as well as the Australian business environment. In this context, the tourism plan can helpful for finding an alternative solution for harmful issues which are created by Brexit with the engagement of government and other stakeholders of the tourism industry.
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