Tourism and Economy Essay Example | Topics and Well Written Essays - 1250 words

Tourism and Economy - Essay Example However, domestic travel has been on the decline not just in Australia but the same trend persists in other countries such as the UK and New Zealand. Travel agents associate the decline in domestic tourism to the growth in the low-cost carriers (LCC) and also forecast that carriers such as Tiger Airways and Air Asia X would slowly kill domestic tourism. However, this may be just one of the factors responsible for the decline in domestic tourism. In fact, the LCC may also contribute to the economy by bringing tourists from overseas, thereby increasing the inbound tourists to Australia. Despite the global economic slowdown during the year ended September 2011 domestic tourism received a boost due to the strong mining sector, recovery efforts following the east-coast floods and stronger business confidence (Domestic Tourism Snapshot, 2011). The graph below confirms that there has not been a significant fall in domestic tourism over the decade. According to this report interstate holidays and visiting friends and relatives increased during this period but the focus was on short holidays. Not a significant growth in the domestic sector has been forecast but the reasons are more economic and not connected to low cost air travel. Source: Domestic Tourism Snapshot, 2011 However, some decline in domestic tourism has taken place. The reasons for the decline in domestic tourism have been associated with several factors. Outbound visitor nights have increased while there has been a fall in domestic weekend trips. Since 2004/05 a smaller portion of household consumption is bei ng allocated for tourism activity (Tourism Research Australia, 2007). The same trend was observed about 15 years ago when outbound travel grew by 6% while domestic travel increased by only about 1 percent per year. Therefore, the current decline in domestic tourism is not a new phenomenon. The driving factor for decline in domestic tourism in UK and New Zealand has also been associated with cheaper fares on short-haul flights. In the case of New Zealand the strength of the national currency has increased competitiveness for overseas holidays. In Australia consumer behavior and the attitude towards holidays has changed. Social, cultural and technological changes have resulted in lower tolerance (Tourism Research Australia, 2007). Australians prefer to spend their time and income on what makes them feel better now instead of deferring their holiday and obtaining gratification later. Domestic tourism has long lead times and lack of tangibility which places it a disadvantage compared to overseas holidays. It is intangible because of lack of communication and proper information. People want to experience their holiday and use it to learn through interactions. Domestic tourism in Australia is unable to fulfill the demands of the consumers who seek newer pastures. This has prompted the domestic tourists towards outbound tourism. Other factors include rising incomes and access to a range of destinations (TRA, 2011). Information and communication at the domestic level is lacking and none is willing to take responsibility. The drivers of domestic tourism are income and price while the drivers of outbound tourism are airfares and air capacity (TRA, 2011). As social and cultural changes have taken place, and as the dollar has become stronger, consumers find overseas travel much cheaper. The demand for outbound tourism has further been increased as cheap airfares and holiday packages are available. However, it is not just the costs but the excitement to experience somethin g different and to engage in activities and