Small Economies Dependent on Tourism †Free Samples to Students

Question: Discuss about the Small Economies Dependent on Tourism. Answer: Introduction: Being an industry that works for all round 365 days, and 24*7, tourism and hospitality industry is rapidly growing, and offer employment to around 214 million people is highly responsible for the 10.2% of the global gross domestic product as well as World Tourism Organization has predicted that global tourist arrivals might come up to 1.56 million by the year 2020. In New Zealand, the tourist is the vital industry (OECD, 2014). It holds the key results over the economy of the country in the context of employment, and simultaneously, it offers the key percent in its workforce that comes to approximately 9.6% of the entire workforce within New Zealand. It also contributes its share in Gross Domestic Product of the country (OECD, 2014). In New Zealand, the growth of tourism is due to the result of various alternatives, which are provided by tourism and hospitality industry around the globe. Few of the choices are related to accommodation, which is provided by New Zealand, such as Holiday Homes, Apartments, Homestays, Beach Houses, Nature retreats, Motels, Vineyards accommodation, Backpackers, Farm stays Hotels, Holiday parks, Health spas, Homestays, Bed and breakfast, and Resorts (Pearce, 2015). The arrival of international visitors is as per the Tourism Research Council, New Zealand that had mentioned that 2.4 million visitors acme in the year 2015. Similarly, at the same time, international tourism expenditure was predicted to get increase by $1.3 billion and increased up to $7.5 billion (Pearce, 2015). This made the tourism industry as the highest overseas exchange of New Zealand. In the last five years, New Zealand with the floral and white water streams and snow-capped mountains has become the most fashionable destination for tourist. Around 2.35 million of the overseas visitors has visited New Zealand in the year 2015 (Pearce, 2015). The rise in different hotel ownership, as well as strong branding in the 90s as well as in starting of the 20s, has profoundly impacted the hospitality industry, mainly the organizational structure (Pearce, 2015). Furthermore, in this time, these changes are appropriate, but there are many other factors too that are contributing to the changing nature of both tourism and hospitality industry. In the year 2012, four government ministries came up as a business ministry as well as employment and innovation. The new ministry that set up itself at the centre of the government economic plan supported in driving the agenda of business growth by implementing the combined policies for building the globally and competitively focused economy (Schubert, Brida Risso, 2011). This kind of structural change is encouraged as well as facilitated towards strong relation among immigration and tourism with the newly formed ministry. The policy of tourism unit suggests government over how they can better develop the correct environment for improving the growth and productivity in tourism and hospitality sector and also increased the contribution of sector towards the economy of New Zealand. Other units connected with tourism were sector performance collection, analysis as well as publishing the information of tourism; system performance and institutions, which monitor the New Zealand tourism; evaluation, research and analysis units, which try to examine the government initiative effectiveness affecting tourism (Schubert, Brida Risso, 2011). New Zealand tourism and hospitality is referred as a crown entity, which is highly responsible towards promoting the country in overseas market as the famous and exotic tourism destination. The critical tool used for this is a marketing campaign, 100% Pure New Zealand that evolved in the last decade, and made New Zealand as the most respected and popular tourism brand around the world. Along with this other campaigns like, 100% Middle-Earth, won many awards and underpinned the countries marketing strategy of changing global attention towards New Zealand from Hobbit to travel (Wang Pizam, 2013). There are around twenty nine Regional Tourism Organizations (RTO), which are both owned as well as operated by the local and regional government of New Zealand and is assisted by the industry of tourism. RTO is responsible for conducting marketing activities of regional destinations of New Zealand (Wang Pizam, 2013). In the last ten years, global tourism has grown steadily from unimportant to 5% of the GDP of New Zealand. Hospitality is highly indispensable towards tourism success among categorized constituents like food and beverage and accommodation services that are highly contrasted. Income through accommodation is dependent on the visitors, around 95% and food and beverage source most of the income to approximately 59%, and 41% of visitors (Pearce, 2014). With such kind of dependency over the demand of visitors, the performance of the economy is significant, so that visitors in New Zealand feel satisfied because they are making a substantial investment in products. All these approaches are united by welfare theory, which set up the organization economic sustainability measures. The welfare of economy expression is derived through by Barros Alves(2014), relying on organizational factors, t (time), and C (t) as aggregate production or consumption. It is analysed that economic surplus happens through the consumption and its denoted as, S (t) =U(C (t)). In this, U (t) is utility function. If the analysis starts at , then future economic surplus at the time (t) will be discounted exponentially by implementing the relevant discount factor (k). Therefore, W is the total welfare of the company is referred as an accumulated discounted utility that needs to be positive for attaining sustainability (Moriarty, 2015). It is analysed that efficiency of the resource is not required theoretically for sustainability. Instead, its much needed in a competitive environment, in which availability of the resource is no different (Moriarty, 2015). The government of New Zealand and tourism organizations are working towards improving resources efficiency. Correlation among efficiency and FY might rely on the various factors combination like market competitiveness as well as managerial excellence (Beerli Martn, 2014). Competitive markets inefficiency often exacerbate the risk of trading, enhances IY as well as isolate the companies from essential resources (Moriarty, 2015). Even excellence of management supports in offering favourable FY in New Zealand. Market. As tourism market of New Zealand is highly competitive; therefore, a high degree of the correlation needs to be reflected as the high managerial proficiency level. Part B: What would be the main factors influencing both the organization and management structure within the industry at the moment, that would enable them to take full advantage of the current and future situation in New Zealand? Different factors create influence on the New Zealand tourism and economic hospitality structure, tourism scale, as well as long-term sustainability. Labour market institutions and labour laws are the key determinants of tourism job quality, employment, methods of production, product mix, along with regional competitiveness. Along with this, property rights and land ownership also influence the tourist, landowners, and tourism and hospitality business and create stress on the ecosystem through carrying its capacity (Lau McKercher, 2017). Commodity taxes also impact the relative and absolute prices of different tourism services, via response changing on demand, transportation patterns, and aggregate scale of tourism and activity mix (Brown Dev,2015). The tourism and hospitality industry of New Zealand is dependent on various elements and its interconnected parts, such as regulations of government, accommodation, transport, activities, and attractions and marketing. Multiple businesses span over the single sector and this single effect part of the tourism and hospitality industry, which holds significant implications for various other industries (Jenkins Dredge, 2016). The tourism industry includes those sectors that support in enabling the tourist to go for traveling from one destination to the other, like bus companies, travel agents, rental car firms, and tour operators. It also includes those sectors, which are related to products at a final destination such as, attractions, accommodation, and facilities (Jenkins Dredge, 2016). It also provides human tourism element like workers force. It also includes government agencies, public sector, and industry training companies, professional associations, and regional tourism firms. Tourism demand and business travel under the New Zealand organizational structure is profoundly influenced by the massive range of factors explored in regions as well as a destination; they are discussed below (Jenkins Dredge, 2016). Factors mentioned in the below figure emphasize over the forces, which create influence over the demand among the particular region and destination. It also indicates the factors that often influence the demands in specific regions. Nevertheless, this is much like a generalized image, and particular factors that create influence on demand for the particular type of business tourism is training courses as well as incentive travel (Jenkins Dredge, 2016). Segmentation of business travel market is possible in different ways. The expanding market segment includes, business travellers from industrialized countries like Taiwan or South Korea, or either from Eastern Europe, where changes in politics has resulted in the expansion of business tourism and hospitality business; Frequent travellers; tourist taking incentive packages for travel; female business travellers, as well as business travellers that make long haul (Dwyer,Forsyth Rao,2016). The situation is continually changing, and the type of segmentation in the market of travel business is most likely to get change with time. Few other factors influence management structure in tourism and hospitality industry, these are, nature of demand for various kinds of tourism and travel business; business travel level and different other sectors, and question ascended over the demand seasonality (Chon Mayer,2015). All these factors create influence on organizational and management structure, and the main reason for the government get involved in tourism is out of the concern for citizen welfare and complete welfare of the country. This also links with the areas like national security, the stability of the economy, natural resource protection, employment as well as public health. Activities of tourism and hospitality sector can happen in this area; therefore, the government is more concern and is regulated as well as directed, to make sure to gain the highest advantage for the country and for minimizing negative factors (Chon Mayer,2015). The United Nations Conference held in Rome on International Travel and tourism in the year 1963 had resolved, the conference deliberates that it is highly incumbent over the government to urgently stimulate the activities of national tourist, convinced that this work is undertaken by way of national tourist organization. (Chon Mayer,2015). In this world, virtually every country holds the national body, which is highly responsible towards taking out their tourist activities (Beritelli, 2014). Role of NTO is to make sure about the relevant promotion and development of the nation as the popular tourist destination in the world. It includes functions like conducting research, promotional activities, spread information within the country, build global relations, forms tourism policies, and develop tourist spots (Chandrasekar Dev,2016). References Barros,C. P., Alves,F. 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