Trends in the New Zealand Hospitality Industry
Discuss about the Ministry of Business Innovation and Employment.
The tourism industry of New Zealand hospitality sector is enhancing their business and a wide range of cultural assimilation has happened in this process. Variety of hospitality management and the experimental the view of flexible work culture is the key issue of the New Zealand hospitality management. In 2015, 108,000 people are working in the hospitality sector in New Zealand and most of the people; almost 54% have worked in cafes and restaurants (Tourismnewzealand.com, 2018). The engagement of people with this kind of job and growth in the market signifies the up gradation of business. In New Zealand, most of the business hospitality related to Auckland and 38% of New Zealand hospitality sales happened in this region.
There are three trends that have mentioned in this section and all trends are highlighting the general issue in this aspect. The processes are important and relevant enough for the sustainability in the business process in New Zealand. Their aspect of low fuel price is important and that influences lower ticket range also. The Ministry for Primary Industries (MPI) is taking care of this policy and that is the reasonable price range decrease situation is more valid and essential. There will be an assumption that takes place in that account like a decrease in ticket prices by $22 is estimated to increase visitors by between 11,460 and 56,190, an enhancement of 0.5%-2.4% passengers for the change in this process(Tourismnewzealand.com,2018). This is the facilitator method process and that help to accumulate people for the development of the business.
In case of motivation, the level of decision making and have a sustainable development of the business is the key issue in that case. The environmental welfare is the main aspect of sustainability and that is the key motivation for the New Zealand hospitality sectors. The trend highlights the government initiations also in New Zealand and the proposed act of ‘Tourism New Zealand is a Crown Agent governed by the Crown Entities Act 2004′ established by the New Zealand government(Tourismnewzealand.com, 2018). The motivation is the key aspect as they develop the air connectivity, targeting the value, visitor experience, productivity and the insight strategic drive of the nation and it helps in that process also.
The incident of 9/11 attacks, is the main concern of business reluctant factor. The entire tourism department has got a threat in that situation and thus it can be considered as the resistance factor of tourism in New Zealand.
- The process of airline low fare and low fuel cost help in the growth of tourism.
- The low-cost fare also provided the wide range of business and stretches the horizon of business so that effective results can be expected.
Motivators and Resistance Factors in Business
In the case of motivator factor in business
- The sustainable condition of tourism is important for the passengers and that is the reason people accumulation will become high and they can trust the nation for their serviceability.
- Demand in the market is high and that impacted on the people and CSR approach to environmental sustainability attract people to continue the endeavor to stay their hospitality position in the global market.
In case of resistance factor, the incident of 9/11 is the liable matter of this and that also affects the tourism.
- People are in fear and they think about the undesired consequences that may face in airlines. At the initial stage, it was quite high and that threaten the airline business. Now the situation is improving so as the security of airlines and that is the concern drawback of this business.
- The attention of media and other news has a special interest on that and live footage of these situations and people helplessness in that situation affect in the growth of the airlines.
494,193k total international arrivals are in 2016 in New Zealand. People had come in this nation for a different occasion. Most of the visitors are from Australia and China (Archive.stats.govt.nz, 2018).
The international recipient of 4% growth is the concern issue of the process. This is the major situation that headed by Australia, China, USA, Germany and Japan (Tourismnewzealand.com, 2018).
There are some positives in like the first bilingual city of Rotorua, the community development in improved quality, spending boost to Wellington, destination tourism place and, socio-cultural advantages are the major highlighting aspect for the tourism business. In case of drawback situation in the hospitality sector, flooding is the concern issue in this nation. Global condition change in a rapid manner and that can change the planning for visitors as well.
After 10 years, the tourism business will improve, approximate 4.9 million international arrivals is there and that surplus $15 billion by 2023 (Mbie.govt.nz, 2017).
Milford Sound in the south-west of New Zealand and this is the main inbound tourism market, in which people went in numbers. The semantic beauty of the place is the major aspect along with the towering peak, rainforest, waterfalls like Bowen falls and Stirling falls are the major reason and that attract people (Archive.stats.govt.nz,2018). The Milford Discovery Centre and the availability of Black Coral are the main attraction of place and people used to go there for that reason.
Hooker Track is the main place that improved the scenario in 10 years and especially in last 12 months. The increase of 35% is the crucial matter in this aspect and the numbers of Mount Cook or Aoraki is the main factor that attracts people (Mbie.govt.nz, 2017).
The top four nations of international tourist arrival are France, United States, Spain and China. The amount of receipts is $205.9 billion for the USA, $60.3 billion for Spain, $44.4 billion for China, and $42.5 billion for France (E-unwto.org, 2017).
France is the first nation in tourism and almost 37 sites are under the UNESCO World Heritage list and that brings the cultural interest with the nation (Mbie.govt.nz, 2017). Quality heritage is the issue that upgrades the tourism process of the nation. World‘s largest and renowned museums Louvre, the most visited place are there and that changes the dimension of the attraction of people.
Top International Tourist Markets
China is the world best tourism market in the world. The expenditure of travelling has crossed US$102 billion in 2012 and considered as the first source market in the global basis. The major reason behind the issue is the relaxation of restriction and rapid urbanization policy of the country (E-unwto.org, 2017). These two processes along with the rising disposable incomes and the volume of international trips are a major concern the help in the source market for China.
The major factor that market mainly concern is the economic demand of the market area. The utility process registered the fluctuation of demand. The level of income is also important in that case.
The case of inflation and taxation are the main asset ad sales value of the country and that is the reason it comes directly influences the prices and make a supply-demand relationship also(Archive.stats.govt.nz,2018). The significance of the case is to make the relationship and create a chain value with the market. This is the case that evolves the nature of market and drives it towards the level of competency.
In accordance with the New Zealand Key Tourism Statistics, November 2017, the total number of international arrivals was 3714551 which mark 7.6 % growth from the previous year. in this regard, it must be mentioned the over the last ten years the growth of the tourism industry has been consistent as the number of international arrivals was 3450629, 3089562, 2836774 2699762, 2564824, 2582935, 2520725, 2439252, 2453555, 2467461 in 2016, 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008 and 2007 respectively (Key tourism statistics | Ministry of Business, Innovation and Employment, 2018).
The data from the New Zealand Key Tourism Statistics, November 2017 revealed the key international visitor markets are United Kingdom, Australia, United States, China, Germany and Japan. There are several reasons behind the countries are the key markets for New Zealand.
One of the main reasons is the strong economy of these markets which helps in becoming the desired places for international tourism. Secondly, the third reason is the direct airlines services and the increased rate of air capacity for which the tourists from these countries are increasing rapidly making up the countries the key international visitor markets for New Zealand (Key tourism statistics | Ministry of Business, Innovation and Employment, 2018). Thirdly, the political condition of the country is stable and that made the comparatively one of the safest destination than other countries where hesitation of tourist are observed due to political unrest.
Inflation and Taxation in Tourism
Among the all international markets, Australia is the largest market for New Zealand in terms of international tourism fetching nearly half of the international tourists in the country. The primary reason of being the largest international tourism market is its strong economy. Culturally rich New Zealand attracts most of the Australian visitors during seasonal occasions. In addition there are other factors such as being the neighbor country, Australia and New Zealand is well connected via direct air services which enabled the Australian visitors to travel the country easily.
The total expenditure of in the domestic sector of the tourism industry has been recorded as $21.4 Billion whereas the year of 2016 witnessed the expenditure of $20.6 Billion, similarly $19.5 Billion and $18.2 Billion in 2015 and 2014 respectively. While domestic tourism sector of the country contributes largely in the economy with $59 million per day the contribution of the international tourism is $40 million every year. Therefore, there is a difference can be observed between the contribution of the two sectors. Certain reasons like rules, regulations and long process before travelling a foreign country discourage the international tourism while encouraging the domestic tourism prospect (Key tourism statistics | Ministry of Business, Innovation and Employment, 2018). Apart from that, the worldwide economic crisis in general discouraged the international tourism across the world.
The contribution of the regional tourism sector is significant inclusive of both the international as well as the domestic front. Among the regions, Auckland witnesses most the international and domestic tourists contributing 30% share in the economy. Similarly, the contribution of Otago and Canterbury regions are also significant marking the 13% market share individually in the tourism sector. Thus it can be observed that the Auckland and Otago are the two main regions that observe most of the international tourism of the country (Key tourism statistics | Ministry of Business, Innovation and Employment, 2018). One of the main reasons behind it which deserves mention is that most of the international tourists reach the country through the Auckland airport. Therefore it can be understood that Auckland is well equipped all the essential hospitality arrangements including tourists spots in order to welcome the international visitors. In addition to Auckland, Otago is one of the regions of the country that is enabled with all the facilities for the international visitors. From culture to amusement, Otago has been able to mark itself as one of the famous international tourism destination across the world.
New Zealand Key Tourism Statistics
While discussing the global trends in regard to the tourism industry, sustainable tourism comes to the forefront of the discussion. Nearly the entire tourism industry across the globe focuses on practicing sustainability in order to reduce the negative impacts of globalization on the planet. Meanwhile at the same time food centric tourism is on the rise over the globe. Beside of leisure trips, there is a major trend emerged that inspire people to explore to taste the food of different countries. Thus the concept of food tourism has become very popular among the travelers (Getz et al., 2014). In regard to that, the tourism sector is too transforming in order to exceed the expectation of the tourists.
The global trends have significant impacts on the tourism industry of the country. As New Zealand is one of the developed countries, it also has stepped forward towards the sustainable tourism in order to reduce the negative impacts of globalization on the industry (Edgell, 2016). However, the tourism sector of the country practice sustainability ad maintains the attraction aspects at the same time. For example, the tourism industry of New Zealand focus on implementing green drive within the resorts, hotels parks, gardens and so on (Edgell, 2016). On one hand, more green reduces the negative impacts of pollution and on the other the it attracts visitors more as mostly people go to New Zealand in order to spend leisure time, to relax from the daily life. Thus the greenery in the resorts, hotels and even in the restaurants takes them away from the hustles and bustles of the city life. As per the observation, sustainable development has received massive response from the tourists thus the government of the country also encouraging sustainable practices in the tourism sector.’
Meanwhile, the food tourism has been emerged as a recent trend yet very popular among the western countries like New Zealand, Australia and so on. Over the recent past years, it has been observed that the considerable number of tourists visits the country in order explore the food culture of the country (Getz et al., 2014). The country in turn also welcomes the food lover of the other countries with great hospitality so that they can be overwhelmed while exploring the authentic food culture of the country. In respect to this it must be mentioned that food tourism not only creates avenue to generate large revenue to the economy but it also pools a greater extent of revenue in the food and restaurant industry of the country.
References
Archive.stats.govt.nz (2018) Stats NZ retrieved from: https://archive.stats.govt.nz/about_us/about-this-site/help/with-technical-issues.aspx [Accessed on 27th May, 2018]
Edgell Sr, D. L. (2016). Managing sustainable tourism: A legacy for the future. Routledge.
E-unwto.org (2017) UNWTO Tourism Highlights 2017 Edition retrieved from: https://www.e-unwto.org/doi/pdf/10.18111/9789284419029 [Accessed on 28th May, 2018]
Getz, D., Robinson, R., Andersson, T., & Vujicic, S. (2014). Foodies and food tourism. Oxford: Goodfellow Publishers.
Key tourism statistics | Ministry of Business, Innovation and Employment. (2018). Key Tourism Statistics retrieved from https://www.mbie.govt.nz/info-services/sectors-industries/tourism/key-tourism-statistics
Mbie.govt.nz (2017) New Zealand Tourism Forecasts 2017-2023 retrieved from: https://www.mbie.govt.nz/info-services/sectors-industries/tourism/tourism-research-data/international-tourism-forecasts/documents-image-library/forecasts-2017-report-final.pdf [Accessed on 28th May, 2018]
Tourismnewzealand.com (2018) TOURISM NEW ZEALAND retrieved from: https://www.tourismnewzealand.com/ [Accessed on 27th May, 2018
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