The Hospitality and Tourism Market

Question: Discuss about theHospitality and Tourism Market. Answer: Introduction: Background: Over the past few years, tourism and hospitality industry has able to enhance its significance immensely. In Australia, tourism and hospitality sector represents a huge sector of the entire economy. Presently, around 31% of the population who are looking for an overseas trip is selecting Australia (tourism.australia.com 2016). Therefore, it has increased the business opportunity in the Australian market in a massive way. On the other hand, Nepal is also regarded as one of popular tourist spots in Asia, as people from different parts of the world visit the country for excellent hospitality services. Thus, both the economy has huge potential to enlarge the market in the tourism and hospitality sector. Aims: The study aims to evaluate changing nature of business in the tourism and hospitality sector in Nepal and Australia. Scope: In order to fulfill the aim of the study, an in-depth analysis will be conducted for both Australia and Nepal regarding the evaluation of impact that tourism and hospitality industry have on the economies. Furthermore, the study will focus on identifying the prime factors that are influencing Australian and Nepalese market to evolve continuously. The study will also focus on developing comparative analysis between two selected economies for identifying business opportunities in both the market. Important of Hospitality Tourism for the Australian Economy: As per the article by Pham et al. (2013), number of international tourist in Australia has increased by 4% in past two years. It indicates the fact that overall popularity of the country is continuously increasing among the potential customers. As a result, it has influenced Australian market to develop superior quality of tourism and hospitality services. Overall revenue of Australian tourism and hospitality industry has been accounted over 100 billion in 2015, which include more than 6.6 million of foreign tourists (tourism.australia.com 2016). Furthermore, overall assessment f the tourism market has indicated that the number will increase even further in near future, which will enhance the significance of hospitality and tourism industry in Australian market. Reasons behind the Changing Nature of the Australian Hospitality Tourism Market Segments: Increase businesses in the hospitality and tourism sector have influenced several foreign investors to invest huge amount in the Australian market. As a result, people from different parts of the world has established businesses in the Australian market, which has created direct impact on the present culture and social value of Australia (Amelung and Nicholls 2014). Furthermore, increasing number of tourist has also induced Australian government to implement specific rules and regulations for maintaining the environment condition of the economy. In addition, technological evaluation has influenced Australian tourism and hospitality sector to alter its operational process completely. Importance of Hospitality Tourism for the Nepalese Economy: As per the article by Nepal and Karst (2016), tourism is regarded as the prime factor that determines the overall economical condition of the country. Nepal is a very small country with beautiful nature beauty that has influenced tourists from different parts of the world. It has been assessed that foreign exchange is regarded as the largest source of revenue for the country, which indicates the significance of tourism industry. In 2015, around 12 lack international tourists have visited Nepal, which is 16% more than the previous years (Rijal and Ghimire 2016). Thus, it can be expected that the market of tourism and hospitality industry in Nepal is growing is a significant manner. Reasons Behind the Changing Nature of the Nepalese Hospitality and Tourism Market Segments: Initially, tourism and hospitality market in Nepal is completely unstructured. However, with increasing popularity of Nepal as a tourist destination, government of Nepal has taken several steps to develop a structured tourism and hospitality industry. In fact, several promotional tools have been implemented for providing knowledge to the potential tourists. Nepal government has highlighted a specific percentage for the organizations dealing in the hospitality and tourism industry regarding the inclusion of local people within the organization (Basnyat 2013). Liberalization of Nepalese economy has also played a major role in creating changes in the hospitality and tourism segments. Furthermore, Nepal has segmented tourists in different groups in order to ensure that all the tourists can able to receive superior quality of hospitality services. Comparison Between the Australian and Nepalese Hospitality Tourism Market: The above discussion has highlighted the fact that hospitality and tourism sector plays major role in maintaining economical condition of both Australian and Nepalese countries. In addition, both the economies have utilized several types of promotional tools and techniques for reaching to the potential customers. However, Australian tourism and hospitality market is more focused towards developing sustainable tourism in the country (industry.gov.au 2016). On the other hand, Nepal has provided prime focus on ensuring inclusion of local people in the tourism industry. For that reason, foreign investors have to develop different strategies for Australia and Nepal market for fulfilling all the business objectives. For instance, business organizations dealing in Hospitality and tourism sector in Australia will have to be extremely careful regarding the amount of resources used in the operational process. Furthermore, it has to conduct several types CSR activities for maintaining position in the market (Moyle, Weiler and Croy 2013). On the other hand, Nepal has comparatively more restrictions regarding the inclusion of foreign businesses, which has restricted the enhancement of the overall hospitality service quality of the country. However, Nepal is still not been utilized fully as a tourist destination. As a result, it can be expected that number of tourists visiting the country will increase in a huge manner. This indicates a potentially large market in Nepal that hospitality and tourism industry needs to capture in an appropriate manner. Top Two Nepalese Hospitality Tourism Companies: Nepal Airlines: Nepal Airlines was established in 1958 with the objective of providing superior quality of air transport services to any person regardless of their nationalities. After the establishment, the organization has focuses on developing their resources to provide effective transport facilities to the people. In 2015, Nepal Airlines has provided transport facilities to around 3 lakh international people, which is more than 23% of the total foreign travelers in previous years. On the other hand, it has carried around 50,000 domestic passengers in 2015, which is 21.60% higher than the previous year (Nepalairlines.com.np 2016). It highlights the fact that the tourism and hospitality market in Nepal is increasing in continues manner, which will provide opportunity for new business development as well. Dwarikas Hotel: Dwarikas Hotel is a Katmandu based hospitality services provider that is looking to enhance the quality of provided services in an effective way. Dwarikas Hotel is in the hospitality sector for over 40 years and has able to create huge popularity in the market (dwarikas.com 2016). The organization rescued thousands of woodcarvings for developing unique design for the hotels in order to maintain the satisfaction level of the visitors. In addition, Dwarikas Hotel has made conscious effort in maintaining the rich heritage culture of Katmandu valley. It has helped the organization to maintain continues growth regarding the number of visitors for past few years. New Nepalese Airlines Company Business that you have started: Plan: As competition in airline sector is relatively low in the Nepal market, it can provide enough business opportunity for the new organization to establish effectively in the market. However, development of airline organization requires huge amount of initial investment. Therefore, it is necessary for New Nepalese Airlines Company to influence investors so that all the requirements of the operational process can be completed effectively. Furthermore, the organization needs to utilize different promotional tools for reaching to the potential customers in an appropriate way. The organization also needs to focus on providing additional facilities like discount to regular customers, seasonal pricing and discounts for developing popularity in the Nepalese market. Reasoning: Many studies have highlighted the fact that both domestic and international air travelers in Nepal has increased around 22% in 2015 (Calhoun and Douglas 2015). In addition, studies have highlighted that the number will rise even further in next two-three years. Therefore, it will represent huge business opportunities for the organizations dealing in the airline sector. Marketing Difficulties: In order to increase the popularity of New Chinese Airline Company, marketing strategy will have to focus on effective utilization of international marketing campaign. As per the article by Buhalis and Crotts (2013), effectiveness of international marketing campaign depends on culture and values of different economies. Therefore, it is necessary for the organization to identify the challenges associated with the differences in culture in an appropriate way. Furthermore, cost associated with international marketing can also create difficulties for fulfilling all the business objectives in an appropriate way. Conclusion Recommendations: The study has provided an in-depth analysis of tourism and hospitality sector of Nepal and Australia. It has mentioned that both Australia and Nepal is growing in the tourism and hospitality sector continuously. Therefore, it is expected that it will provide new businesses enough opportunity to establish effectively in the market. The Study has also provide an idea regarding the marketing challenges that new organizations will have to face at the time of establishing business in the Nepalese and Australian market. References: Amelung, B. and Nicholls, S., 2014. Implications of climate change for tourism in Australia. Tourism Management, 41, pp.228-244. Basnyat, S., 2013. Eclectic Paradigm and the analysis of FDI in tourism in Nepal.The Gaze: Journal of Tourism and Hospitality,5, pp.69-82. Buhalis, D. and Crotts, J., 2013.Global alliances in tourism and hospitality management. Routledge. Calhoun, J. and Douglas, A., 2015. An Analysis of Hospitality and Tourism Research: Learning Organizations (LO) Influence.Handbook of Research on Global Hospitality and Tourism Management, p.359. dwarikas.com, 2016. HOME - Dwarika's Hotel. [online] Dwarikas.com. Available at: https://dwarikas.com [Accessed 6 Dec. 2016]. industry.gov.au, 2016. 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