New South Wales: Marketing Tourism - Assignment Example

INTERNATIONAL MARKETING INTERNATIONAL MARKETING Insert name Insert grade course Insert instructor’s name May 26, 2011. Introduction Tourism in New South Wales is a State Government bureau whose major objective is to advertise and expand New South Wales as the principal tourism destination. The operation of the bureau is mainly under the “Tourism New South Wales Act 1984”.The bureau competes for tourist market distribution as is with the rest of the Australian and intercontinental destinations. The agency seeks to spearhead economic, social and ecological sustainability benefits to New South Wales via tourism activities. The conduction of the agency’s business is in a manner that acknowledges the responsibilities of the ruling government, as well as the saleable environment of the tourism business. The working of the agency occurs via in partnering with production and other similar industries in addition to the Government, with an intention of growing and managing the New South Wales destination (Bruce, 2000). Tourism is biggest and the fastest developing industry in New South Wales and thus the agency is dedicated to capitalizing on the profit from tourism and distributing them to all sections of the State. Tourism is fundamental to the State’s financial development, since it was supporting at least 240,000 full as well as part time human resources in New South Wales between 1998 and 1999. The industry presently creates $20 billion in income per year, about 10 per cent of the State’s economy. New South Wales State promotes itself as one of Australia’s most thrilling, good-looking and culturally wealthy states. It is a well-known tourist destination that provides a variety of desirability with stress on its cultural scenery, attractive weather, flora and fauna, with its capital, Sydney being upheld as the entryway to New South Wales. Tourism is New South Wales persuades tourists to experience and travel around the state through its ordinary advertising and promotional plans like the ‘Experience it’ and ‘Exploring NSW’ movements (Gray and Fletcher, 1999). Question 1) Discuss the extent to which the measures taken by Tourism New South Wales were, or were not, effective in helping the travel and tourism industry in general. Before the Asian economic crisis that started in July 1997, Australia’s tourism industry was experiencing a rapid increase in Asian inbound tourism, based on increasing Asian prosperity. Optimistic forecasts of double-digit annual inbound expansion resulted to a renaissance on concentration in tourism venture in Australia, reflecting high levels of investment in hotels and resorts in the late 1980s. By the end of 1997, the economic crisis, which started in Thailand, had spread to South Korea and Indonesia and the initial evidence of the impact of the catastrophe in Australia’s inbound tourism industry was starting to appear, as influx from most East Asian nations declined (Richardson, 1998). Declining competitiveness resulted to reduced venture in several countries in Asia, followed by falling currency values, and huge losses on foreign currency debts for businesses, and their bankers. Shortages of foreign currencies required IMF intervention in Thailand, Indonesia and South Korea, to rescue their economic systems. In 1998, there was a 32 % decrease in the number of Asian tourist arriving at NSW as compared to 1997. As a result of the devaluation of Australian dollar in early 1998, arrivals from Europe and America increased. This greatly influenced the tourism in NSW, since NSW is among the most popular Australian states for international visitors. Most of people had predicted that NSW would be greatly affected by the Asian financial crises and that it would take a long to recover. They had predicted that the Australia’s GDP would decrease due to disaster by an estimated value that would approximate to half a per cent in 1998 ,however, it led to a slowdown of the development pace by1 to 1.5 per cent. The most affected area was tourism industry (Bruce, 2000). As a state government agency, Tourism in NSW seemed to have done what they could to give well-timed information to the travel and tourism industry, and to assist make sure that the market assurance was not losing ground too radically in light of the unpredictability of the crisis. In essence, the strategy adopted by Tourism NSW was to first of all recognize the nature and scope of the predicament, to resolve industry hysteria and make sure they were sufficiently informed, and to offer direction concerning the responses in the short and medium term. The measures taken were effective as the market assurance was generally good. It is believed that Tourism NSW has since moved onto other things and the disaster management strategy was not appropriately documented. In reply to the market worries at the time, the Tourism Forecasting Council (TFC) shifted from long-standing development prediction to short term projections based on a sequence of circumstances such as swift return to expansion, stable return to development and slow return to development. The TFC has now reverted to long term growth forecast. The belief in the pulling power of the 2000 Sydney Olympic Games assisted to reduce the negative impact in the travel and tourism industry. The Asian financial crisis is a symptom of a much larger international predicament. The lesson learnt from the crisis is that such a situation needs short, medium and long term strategies to handle the impact of the crisis as well as take advantage of the benefits that come up. However, there were other measures that were undertaken but were not effective at the time of the crisis. The government did not do much at all levels (local, state and federal) at the time of the crisis. For instance, first, the main impact of the catastrophe was downplayed by the federal minister for tourism. Secondly, there was over-optimistic self-assurance that the decreased worth of the dollar at the time would augment Australia’s competitiveness in the non-Asian markets. Third, the federal government budgets in 1998/1999 and 1999/2000 did not consist of any extra allowances for the tourism industry. Furthermore, no additional government support was given to the tourism industry. Finally, the initiation of a $50 processing fee for visas not issued using Electronic Travel Authority System (ETAS) was very discriminating against travelers, and was poorly timed (Bruce, 2000). Question 2) Examine how the approach may differ for the Asian countries affected by the crisis? The Asian Financial Crisis took place suddenly and its impacts were extremely deep. It also came on top of a harsh famine which was impacting on the accessibility of essential provisions in nearly all of the badly affected nations (Australian Government, 2009). According to the case study, the Tourism New South Wales reduced its expenditures in the Asian markets without abandoning them. Ventures in Asia were made on the basis of analyzing the markets that would recover first. There were different approaches in different Asian countries by Tourism New South Wales together with other Australian tourism bodies. The Tourism NSW structured the state’s fundamental international markets into three tiers according to their potential to visit NSW and according to the characteristics (Tourism New South Wales-Marketing NSW Overseas Wales, 2009). This gave Tourism NSW the ability to effectively target these markets as shown in the table below: (Tourism New South Wales, 2010) China and South Korea are the mainly emerging markets for the Tourism NSW. They are the potential and growth market for Australia tourism industry. They are characterized by high growth in visitation to Australia and NSW. Tourism NSW needs to focus expansion by capitalizing on Sydney’s iconic appeal and first entrant advantage gained through direct airline services. There was a strong increment of the direct aviation aptitude on the China to Australia course following the crisis. As a result of the approach NSW started receiving 281,200 overnight visitors from Mainland China by 2009. Thus Australia should boost their existence in up-and-coming markets of China, India and South Korea as well as increasing promotional activities in both conventional and up-and-coming market. Since about 59 % of visitors from China were visiting NSW for purposes of celebration and enjoyment, all Australian tourism industries ought to expand the pertinent facilities needed for housing of such visitors. Transport structures ought to be enhanced so as fit people of diverse status. The nature of tourism has to be transformed so that Sydney can be seen as a Tourism Capital. This can be done by boosting privileged circumstances and increasing the number of air links in Asia through general scientific improvements in global travel. Secondly NSW tourism continuous competitiveness will only be found by forging the regional tourism and business alliances. This strategy can be achieved by the members of tourism industry breaking free of their traditional geographical boundaries and ‘packaging matching products’ consisting of NSW’s attractions with regional tourist destinations. This focuses on forging linkages between Sydney and the region, and in doing so establish Sydney as a tourism hub. The expected increase of Chinese visitors to Australia ranges from 366,000 in 2009 to 897,000 come year 2020, in addition to an average annual expansion tempo of 8.5 % (International Visitor Survey, 2010). The other type of target market is the mature markets. Australia gets this market from countries like Japan, USA, UK and New Zealand. Australia can improve this category of market by “managing market share and maximizing visitation potential through customer service and trade activities”. This can be done by transforming local landscape from a relatively undeveloped nation in the 1960s to that of a thriving metropolis today that warrants a new image to be projected to tourists. ‘Tourism Unlimited’ encourages local tourist enterprises to go regional and also bring into NSW lifestyle concepts from abroad. Allowing ‘Western’ companies such as Planet Hollywood, Starbucks and Tony Roma’s has attributed to the efforts to improve the Republic’s image with tourists by actively seeking to ‘match-make’ foreign franchises with home investments. Moreover, cultural and entertainment events such as the staging of world-renowned musicals like ‘Cats’ and ‘Les Miserables’ in Sydney aim to tap the regional tourist market by establishing NSW as a regional arts and cultural hub. Sydney has been identified as the gateway to NSW due to its distinct advantages such as classy transportation and telecommunications infrastructure, political stability, manpower, an appealing social setting, as well as a strategic location. Thus by bringing the world to Sydney, these investments will serve the domestic population’s wellbeing both economically and in terms of widening lifestyle choices for NSW people. If this is done, it will increase the number of Japan visitors to Australia. However, the Asian financial crisis has led to decline in the number of Japan visitors to Australia. Moreover, the decline in the Japanese inbound market is due to a decline in the price sensitive package market. Another factor contributing to the decline is increased destination competition from short haul travel options, like China, South Korea and Taiwan. Aviation capacity on the Japan-Australia route has been reduced. If a strategy is devised to reverse these factors, then the Japanese visitors to Australia would increase. There is a projection that the Japanese visitors to Australia will increase from 355,000 in 2009 to 371,000 in 2020, an average annual growth rate of 0.4 % (International Visitor Survey, 2010). The third approach would be to concentrate on trade development markets. These Trade Development Markets of Asia are Singapore, Malaysia, Hong Kong, Germany and other Asian countries. This type of market calls for enlightening and inspiring the distribution channels as well as maximizing visitation potential through successful trade expansion and servicing. In addition, regionalization would endorse local tourism venture, expand regional projects in addition to enhancing stronger connections to the region’s main tourism destinations (Yeoh, Ser, Wang and Wong 2001). Question 3) The unexpected can happen to any overseas market or group of markets. Discuss what international strategic marketing plans should incorporate to reduce damage from unforeseen issues? Sometimes there can be unforeseen events that affect the international market and especially the tourism industry. Adopting crisis management planning or international strategic plan may help the global market to prepare for any unforeseen event which may lead to serious damage. Tourism industry can be affected by certain calamities such as earthquakes, floods, terrorism attacks. Thus the tourism industry should take care not to depend exceptionally on any single market or area. The tourism industry can do this by putting capital into market development in countries or regions that are not as possible as a means of spreading jeopardy. Risk analysis should be undertaken of all markets in which you are operating or intending to maneuver on a regular basis so as to get early caution of likely changes in the financial scene in your area of activity. Additionally, the home market must not be ignored because of more remunerative potential offshore. This is the market in which you are likely to be exposed to the least risk because you both know it and have ‘insider’ status within it. In the event of a regional or global conflict or downturn, you will need to fall back onto the home market. Crisis management planners must develop effective policies which can mobilize internal and external resources, as well as overcome constraints and impediments. Therefore, constant adjustments need be made, even to the degree of permitting the occurrence of paradigm shifts (Yeoh, Ser, Wang and Wong 2001). The international market should prepares for the worst-case scenario so as to be able to deal with other situations and minimize the damages from unforeseen events through assessing market environment, evaluating opportunities and threats, implementation management as well as controlling ongoing market. The crisis management planners should also anticipate crises by scanning domestic and international consumers watch groups and industry websites. This will help it to prepare for the worst case incident and can as well be able to deal with other situations and also reduce damages from unforeseen crises through assessing market environment, evaluating opportunity and threats, implementing management, controlling ongoing marketing and reviewing and monitoring the actions. Evaluating market environment can be through the current situation of the market, the economic trends, impact to the international marketing from the event and so on. For good evaluating, a planning team should be established in the international market. The team would provide broad perspective on the issues, collecting information and data for evaluating, and established a schedule and budget. The crisis management team also develops the contingency recovery plan. A vigilant assessment is needed for Marketing planning for the sake of all strategic issues, which include the business realms, the markets, competitors and the corporate mission, in addition to organizational capabilities. The consequential marketing arrangement becomes ample upon its communication to staff via an oral briefing to ensure its comprehension (Gale Group, 2011). Conclusion We have discovered that the New South Wales’ Tourism in is a bureau of the State’s Government, with a major intention of advertising and expanding New South Wales as the chief tourist destination. The paper sought to discuss three main questions relating to tourism in NSW. First, we have discussed the extent to which the measures taken by Tourism New South Wales were, or were not, effective in helping the travel and tourism industry in general after the Asian Financial Crisis. . In essence, the strategy adopted by Tourism NSW was to first of all recognize the nature and scope of the predicament, to resolve industry hysteria and make sure they were sufficiently informed, and to offer direction concerning the responses in the short and medium term. The measures taken were effective as the market assurance was generally good. Secondly, the paper has discussed the how the approach may differ for the Asian countries affected by the crisis. We have found out that ventures in Asia were made on the basis of analyzing the markets that would recover first. There were different approaches that were considered by Tourism NSW and other Australian tourism bodies. Among these approaches was the structuring of the key international markets for NSW into three tiers as described in the table above. Finally, the paper has discussed what an international strategic marketing plan ought to incorporate to reduce the damage from unforeseen issues. The international market should prepares for the worst-case scenario so as to be able to deal with other situations and minimize the damages from unforeseen events through assessing market environment, evaluating opportunities and threats, implementation management as well as controlling ongoing market. References: Australian Government, 2009. Lessons from the Asian Financial Crisis. AusaAID, Office of Development Effectiveness. Viewed on May 25, 2011 from http://www.ode.ausaid.gov.au/publications/documents/lessons-asia-financial-crisis.pdf Bruce P. 2000. The Asian Financial Crisis: Causes and Implications for Australia's Tourism Industry. Australian Journal of Hospitality Management. Viewed on May 25, 2011 from http://www.accessmylibrary.com/article-1G1-64692545/asian-financial-crisis-causes.html Gale Group, 2011. Preparing a marketing plan. (Checklist 020). Viewed on May 25, 2011 from http://www.entrepreneur.com/tradejournals/article/100012271.html Gray W. and Fletcher R. 1999. Tourism New South Wales’ Experience in Marketing Tourism during the Aftermath of the Asian Financial Crisis: Case study. Tourism New South Wales , Annual Report 1998/1999. Viewed on May 25, 2011 http://wps.pearsoned.com.au/wps/media/objects/2248/2302669/CaseStudies/Tourism_NSW.htm International Visitor Survey, 2010. Japan Market Profile: Tourism Research Australia (TRA). Viewed on May 25, 2011 from http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib78/Japan-YE-Dec10.pdf International Visitor Survey, 2010. Tourism Research Australia (TRA): Mainland China Market Profile. Viewed on May 25, 2011 from http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib78/Mainland-China-YE-Dec10.pdf Richardson, D. 1998, “Asian Financial Crisis” Australia parliament library, Parliament of Australia. Viewed on May 25, 2011 from http://www.aph.gov.au/library/pubs/cib/1997-98/98cib23.htm Tourism New South Wales, 2010. Viewed on May 25, 2011 from http://corporate.tourism.nsw.gov.au/Target_Market_Profiles_p1219.aspx Yeoh B. S.A., Ser T. E., Wang J. and Wong T 2001. Tourism in Singapore: An Overview of Policies and Issues. World Scientific Publishing Co. Pte. Ltd. Viewed on May 25, 2011 from http://www.worldscibooks.com/etextbook/4828/4828_chap1.pdf Read More