Analysis Of Tourism Issues In Australia Assessment Answer

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Question :

CRITERIA 1:  10 Marks

Demonstrated ability to explore the secondary data to identify and analyse a major trend/issue in the tourism and hospitality industry.

Identify the various factors related/ contributing to the issue/ problem.

Ability to present effective (result oriented - QUANTITATIVE/QUALITATIVE) recommendations that are relevant to the issue/problem. 

CRITERIA 2:   2 Marks

Correct use of the credible secondary resources [AVOID WIKI - MORE USE Scholarly Articles/academic journal]

Correct use of APA referencing system -

CRITERIA 3:   3 Marks

Quality of Document including quality research, grammar, clear language, structure, citation technique referencing, (APA style)




This report will highlight the research skills using in search engines as secondary resources and analysis available data resources. The report will mention some problems that labour shortages will facing in hotel industry in Australia as challenges.


According to article “Australia’s hospitality skills shortage and how to keep good staff”, Josh said there is major threat to the Australian hospitality industry at the moment, so number of young apprentices and experienced senior talent very low and will be decreasing in the future. By the year 2020, they need extra 123,000 workers to be survive in the market compare with growth of population and growth of dinning numbers. Obviously, in high class sectors included hotels and restaurant, they are failing to attract staff. With the deregulation of the industry, there will be no regulation of quality of skills from their staff.

A skill shortage in the industry has made it difficult for award-winning businesses as Lake House to hire very lots of highly skilled staff as Wolf-Tasker said. The problem stems from the kinds of training opportunities that are and attitudes in Australia where hospitality has never been a particularly popular choice as a long-term career. (Wolf-Tasker, 2018)

Another problem of skills shortages is Australia Government recently changing to visa regulation and policy so that is the reason facing to numbers of employees who holding 457 visas now has replacing new Temporary Skills Shortage. This will make industry don’t have enough staff as they want to hire and training during process because changing of visa regulation and sponsorship between industry and employees.

A number of initiatives and studies have addressed the issues of skill shortages and need for training and retention strategies in tourism industry. The Tourism and Transport Forum (TTF), for example, conduct regular surveys of its members Its Labour Shortages, Skills & Training (May 2005) found the following positions difficult such as chefs, cooks and food and beverages staff, trade people, sales and front door staff.

The problems associated with tourism seasonality, and hence labour shortages and possible skill shortages, have led to the development of skill formation strategies with tourism. As Skill Formation in Queensland Council will be developed as a national initiative for comprehensive and ongoing skill development with all components of tourism workforce.

Following step, hospitality industry facing with poor knowledge about financial responsibilities of staff because they don’t have any experienced about this so industry finding hard to given them opportunities (Josh, 2018). That will happen in every hotels or restaurants in Australia because they always hiring workers from overseas and students.

According to the report from period 2015-2020, they included: business surveyed had an average vacancy rate of 7%, if reflected across the entire tourism sector- that would translate to current shortage of around 38,000 positions. There has been a large increase in the proportion of businesses identifying skills deficiencies, with 69% reporting skills deficiencies among their staff, up from 50% in 2011.

Commenting on the new report, Ferguson stated “since 2011, the pace of development in the tourism and hotel sector has increased significantly and while some positives progress has been made in recruitment and retention, supply of skilled labour is not keeping up with demand. “The TRA survey identified a large increase in the proportion of businesses reporting skills deficiencies.


Overall, The Australian Government need to be focusing on these problems and provide more opportunities for the local people who are an unemployment and don’t have jobs to work with. Industry develop more training and tell them clearly about financial and everything related to their work. Therefore, it will decrease number of unemployment and increase the Australian’s economic in the future.


Here is some recommend for hospitality industry can change and solve the challenge with skilled shortages included: increase global marketplace and increase reliance on casual market in a more permanent capacity, and in areas of the industry that had not previously. Provide more menu item bought and less made in house due to less staff. Next, High profile businesses closing certain days and capping hours so that their employees will work. If not, employees will quit and get another job. They also need increase in hospitality groups offering perhaps slightly simpler offerings with centralised production. (Josh, 2018) 

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Answer :



Tourism is one of the major industries that contribute to the overall gross domestic product of Australia. According to the data, it is seen that almost 3- 5 % of the contribution is made by the tourism sector. The domestic tourism industry has footprint of almost 47.5 billion Australian dollars. Moreover, the Australian domestic tourism sector contributes almost 70% of the whole industry. However, in the recent times there have been several issues regarding the sustainable tourism development and shortage in capacity building in hotel staffs.  In this study, the focus will be on analysis of the major issues in the Australian tourism industry and finding effective recommendation for the problems.

Literature review

Problems with sustainable tourism 

 According to the opinion of Mason, (2015), the sustainable development is one of the prime issues that affect the Australian tourism industry.  Since the number of foreign tourist in Australian has increased by almost 7%, it has been seen that there are exploitation of the natural resources such as water land that increases the ecological footprints. The hotels in the New South Wales due to the excessive tourist pressure exploits resource like water that causes huge amount of depletion. Moreover, pristine environment of the natural areas like Great Barrier Reef is being effected due to plastic pollution by the tourist. In the words of Altman, (2018), one of the, major problem is the enhancement in the carbon footprint in the different ecologically sensitive tourist spots that enhances problems by almost 15%.  The exploitation of the resource is causing huge impact on environment and the economy and degradation of the natural resource is influencing the overall local economy of the tourism destination by almost 10 %. 

Issues in capacity building of staffs 

 In the opinion of Hunt, & Smith, (2018), one of the major important factors is the development of the competencies of the staffs according to the need of the situation. In the tourism and hospitality industry of Australia, it is witnessed that the number of tourists is increasing by almost 15% in a daily basis. It has been witnessed that the employees in the tourism sector lacks competencies in the management skill that is needed to achieve the sustainable development in the tourism industry.  Skills like resource management and formulation of effective communication management is lacked due to which revenue is managed by 10 %.

Influence of Australian economy on tourism

Australia was no exception to the economic disaster that struck the whole world and threatened world economy. It is one of the countries that are still striving to recover from the 2008 recession. Though Australia still suffers in a few fields, it has managed to recover at a great pace in others, one of which being tourism. Smith (2015) suggested that Tourism has always played an important role in growth of GDP with 3.1 percent rise in GDP in the year 2018/19. The tourism sector employs over six million people, improving employment and overall socio-economic condition. In Australia, international tourism is considered as an export. It brings in foreign currency within the country from all over the world, maintaining the import costs and export revenue balance. The inbound international tourists account almost AUD $41 billion that poses the majority of their revenue. Thus international tourism is considered to be Australia’s largest export in terms of foreign currency earned. McLennan et al. (2017) opined that a huge increase in the field was seen since Australia signed the historic Australia – China Free Trade Agreement in 2014 that allowed Chinese tourists to visit. China provides with the largest pool of foreign tourists that visit Australia with about one million people participating in guided tour groups.

Issue in tourism planning and policy

Planning policies and strategies regarding deployment of resources and tourism of Australia is influenced by a number of factors that include environmental factors, political factors and cultural factors. Basu (2017) stated that Australia has faced many challenges over the last few decades in blooming in their tourism industry. Sensitive scenic beauty that is degrading due to over population of tourists and the lack of skilled labours to cater to the needs of foreigners, along with communication barriers have effectively hindered the international tourism industry. In such an unstable global climate, it is necessary to preserve the environmental beauty of Australia along with its ecosystem. To do so, disciplined, structured and ever evolving strategies and policies need to be adopted by the tourism industry as a whole. However, with the Free Trade Agreement signed by with China, Australia is opening up, recovering themselves from their previous economic downfall, and strongly preventing another recession within their country by promoting, marketing and advertising their greatest export business, International Tourism. According to Altman (2018) they have advertisements worldwide with catchy tag lines like “No Leave No Life” in 2009 and “There’s nothing like Australia” in the recent times that encourages people to take some time out of their daily routine and have a vacation in Australia. 


The recommendations to mitigate the issues of tourism management are as below: 

  • Sustainable tourism policy:  One of the major factors is formulation of sustainable development policy by implementing the concept of eco tourism in practical scenario. It should help in enhancing the longevity of tourism industry by almost 20 %. Moreover, the carbon footprint should be reduced by atleast10 %.
  • Enhancement of capacity building program:  One of the major important factors is the use of the capacity-building program to increase the strength of the employees in an efficient manner. It should help in proper resource management. Moreover, the funding source should be diversified in an efficient manner by almost 20%to maintain steady cash in tourism sector.


Australia is growing fast in the tourism industry but there still remains a lot of issue that needs to be addressed over their increase in GDP. Environmental factors acting as the primary issue that seems to degrade at a faster rate than expected with the increase in frequency of human intervention in the natural ecosystem. With ozone hole on top of Australia that affects the people visiting there, thus threatening their health, it acts as a turn down for most of the tourists. Also on the other hand, Australia seems to be desperate in staff training, covering up for the lack of skills among tourism employees. With the socio-economic conditions improving in a greater pace, catalyzed by the International Tourist industry, they also benefit in indirect or direct ways other nations that provide transport facilities to the tourists of Oceania.