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Austraian Destination Management

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TOUR19020 - Destination Management Assignment 2

Research Report on Australian Destination Management

Student Name: Tianrou Zhou & Amy Zeng
Lecturer: David Ponton

Table of Contents
1.0 Introduction 3
2.0 Product development 3
3.0 Partnerships, community and tourism stakeholder relations 6 3.1 Partnerships 6 3.2 Community and tourism stakeholder relations 7
4.0 Governance and leadership 8
5.0 Communications and relevant promotions 10 5.1 Integrated marketing communications 10 5.2 Branding and technology application 10
6.0 Comments & Recommendations 11 6.1 Conclusions 11 6.2 Recommendations 12
7.0 Reference List 13

1.0 Introduction

This report aims to explore relevant tourism issues of Australia in a more in-depth extent, based on the analyzed results of previous report. The analysis process is conducted in perspectives of product development, partnerships and team building, community and tourism stakeholder relations, governance and leadership as well as communications and relevant promotions, respectively. At the end of this report, comments and recommendations will be drawn according to the analyzed results. This report consists of following five parts: independent discussions from above four dimensions and comments & recommendations at the end.

2.0 Product development

After decades of development, tourism has already become the fastest and most prosperous industry in Australia, with a proportion of 2.5% in terms of its contribution to Australia’s GDP in 2011 (Hooper& van Zyl2011, p. 12). The rapid development of Australian tourism largely depends on its competitive capability of developing tourism products whichappeals to various specific requirements of different segmentation markets. As analyzed from existing research literatures, a comprehensive product mix, which includes tourism items of nature, history and culture as well as other characteristics, enables Australian tourism to explore and seize emerging niche markets while retaining its reserved customers by meeting tourists’ changing needs (Bushell et al. 2001; Maurer2008; Hooper& van Zyl 2011; Ascaniiset al. 2012). ← Nature sighting and leisure tourism: The 37,000 km-long coastline earns Australia with inherent advantages in term of oceanic sightings, such as the Gold Coast and the Great Barrier Reef, which are famous for features of original ecology. In addition, numerous different geological landscapes, such as Uluru, Kakadu National Park and Fraser Island, as well as unique species, such as kangaroo, koala bear and platypus, also offer tourists to enjoy special sceneries (Maurer 2008). After a period of inadequate protections from human behaviors, which has caused great harms to Australian nature environment, related DMOs, represented by governor agencies, have taken measures to ensure that natural tourism resources are explored ecologically and sustainably, thus enable Australia’s tourism development within environment capacity. ← History and culture tourism: Compared to countries famous of long history and numerous historic relics, such as France, Britain and China, Australia may be relatively less competitive in developing tourism of historical and cultural themes, however, a typical immigrant county as it is, Australia has a distinct and mixed history of aborigines and immigrants, which has been preserved well because of this country’s long-period isolation of geographical and historical. Thus tourist interested in historical and cultural themes may be attracted by intact presentations of aboriginal culture and colonial culture (Tourism Australia, 2013). In addition, architectures of Opera House and Sydney Harbor Bridge give tourists a modern view of Australia. ← Tours of visiting friends and relatives (VFR): In addition to traditional tourism items, Australia also takes advantages of its certain social characters to offer customized theme tours to attract specific groups of customers, and VFP is one example (Seetaram 2012. p.1536).Considering that Chinese migrants are largest non-British population group in Australia and Chinese tourists has become the second largest group of tourist sourcefor Australia, among which a remarkable proportion come with purpose of visiting their Australian-migrants friends and relatives, plenty of events with the themes of Chinese traditional customs and cultures are initiated under collaboration of authorized DMOs and local Chinese communities during Chinese festivals to fulfill the needs of tourists with purpose ofVFR (Dwyer et al. 2013, p. 41). ← Wine tourism: As one of the world’s most reputable wine-producing region, Western Australia is also famous for its trail in cooperating local tourism with wine industry to provide characteristic tourism item of wine theme, in order to attract those segmented tourists to stimulate the development of both wine and tourism in this region. As a result, such collaboration has been estimated to have already generatedrevenues of more than $ 1.5 billion annually in recent years and benefited this region from tourism despite its lack of traditional tourism resources (Carlsen&Boksberger 2013, p. 279). ← Sports tourism: During the 27th Olympic Games held in Sydney, tourists from all over the world had brought great opportunities for development of Australian tourism industry, by seizing which Australia benefited not only considerable economic value also great exposure to the world, which enhanced Australia’s attractiveness as a tourist destination (Berdychevsky& Gibson 2012. p.253). Inspired by emerging segmented market of tourists interested in sports such as surfing, boat-sailing, etc., Tourism Australia had issued Towards a National Sports Tourism Strategy in 2000 and several following related plans to promote the process of improving infrastructures and publicities of sports tourism, thus occupy the markets of both abroad and domestic (OECD 2011). Yet few empirical evidences have proved its direct benefits (Berdychevsky& Gibson 2012. p.255).

As an interim conclusion, traditional tourism segmentations have developed for years with matured markets and stable customer base, yet strategic emphasize on sustainable developments and corresponding actions ensure these items to stay in stage of rejuvenation in view of TALC. In terms of tourism of VFR and wine, the considerable customer base as well as gradually-increasing investments earns them with positions of development and consolidation, and targeted investments and promotions in these areas will generate rapid visitor growth. However, sports tourism may confront limitation of market volumes and its uncertain prospect.

3.0 Partnerships, community and tourism stakeholder relations

3.1 Partnerships

It is of crucial importance for DMOs to identify and form stable relationships with qualified partners, as good partnerships can generate multi benefits for all parties by integrating and reallocating resources to achieve goals more effectively and efficiently (Andergassen et al. 2013. p. 88). As for Australia, in the process of developingtourism industry, relevant authorities have successfully developed and maintained relationships with multi-side stakeholders at various levels. ← International partnerships:Australian authorized DMOs have formed different yet multi-beneficial partnerships with various international partners. For instance, among the top ten inbound travelling countries to Australia, up to seven countries establish memos with Australia on clauses of collaborating to promote bilateral trades, including simplifying and eventually eliminating visa process for tourism purposes (Pforr 2006. p.92). In addition, to integrate surrounding resources to make a more attractive destination, Australia seeks to ally with other Oceania countries, such as New Zealand, Palau, Solomon Islands, etc. to form a broader tourism region, and a more collaborative Pacific Rim is on the horizon (Hooper & van Zyl 2011). Except actions between governments, partnerships in forms of G2B, B2B, etc. are also encouraged and supported with consultancies and funds in different extents (Maurer 2008). Such partnerships offer Australia more accesses to markets, information, expertise and so on, which are beneficial for its development byderiving stimulus internationally. ← Domestic partnerships:A relatively more important market as it is, domestic tourism accounted for 73% percentage of the total direct tourism GDP in 2011 (Hooper & van Zyl 2011), which means DMOs should pay adequate attention on cooperating with internal partners. In addition to partnerships with ordinary operators, such as local transportation, food retailers, hotels and accommodations, medical and health services, one peculiar feature distinguishing Australia from other countries is its corporation with institutes of education and researches (Maurer 2008). With adequate awareness that certain industries’ growth is significantly affected by related sectors of education and research, a increasing number of universities in Australia have launched teaching or research programs in the field of tourism to keep peace with urgent demands of tourism development, alongside with support from government and private organizations. Such trend led to a series specific academic organizations and programs, including the establishment of the Council for Australian University Tourism and Hospitality Education (CAUTHE) in 1992, the multidivisional program in tourism launched by the Commonwealth Scientific and Industrial Research Organization (CSIRO) in 1994, the Co-Operative Research Centre for Sustainable Tourism (CRC) from 1997, etc. (Pforr 2006. p.103). All these campaigns and programs have contributed to guiding Australia’s tourism development on a sustainable and reasonable route.

3.2 Community and tourism stakeholder relations

Coordinating complex relations among different communities and stakeholders is another important issue for DMOs to concern, as certain decisions on destination management are inevitably influenced by parties with different interests, which may lag or even prohibit decisions from coming into effects (Day & Murphy 2012. p.278). As an immigrant country, the major challenge Australia confronts in tackling issues of stakeholder relations are the complex and highly-independent communities of different ethnics. To avoid possible conflicts generated between local inhabitants of certain community and tourism agents as well as tourists, except attempts to communicating with communities about the accurate activities of destination management, which are usually supported by academic proof and education, Australian government has also empowered communities with sufficient autonomy in issues of tourism items, what’s more, relevant DMOs have promoted mechanisms of benefits sharing, through which job opportunities are created and infrastructures as well as revenues from tourism development are shared with local communities and aborigines to gain their supports (Lemelin et al. 2013. p.264). When addressing another import matter of environment protection, besides defining communities’ responsibilities of maintaining territorial eco-systems, relevant DMOs, such as Tourism Australia, also cooperate with third-party environmental organizations of Clean up Australia and ATCV to launch specific programs to raise public awareness of touring in environmentally friendly manners (Murdy& Pike 2012. p.1283).

4.0 Governance and leadership

DMOs’ capabilities in terms of governance and leadership are vitally important for the smooth implementation of destination management, as all stakeholders are influenced by procedures, policies and systems generated by DMOs’ governing activities and respond differently on related leading behaviors, which, in turn, may result in various outcomes depending on concrete contexts(Pechlaner et al. 2012. p. 158). Empirical studies indicate that effective managerial goals are achieved once DMOs operate as a servant leader to guide and consult stakeholders’ behaviors under transparent and authentic regulatory systems (Day et al. 2012; Andergassen et al. 2013; Song et al. 2013). Specific for Australia, to ensure thattourism industry obtains sustainable and healthy development, relevant DMOs, mainly Australian governmental agencies, have issued a set of policies and legal documents to regulate the tourism industry and mediate potential conflicts and problems emerging among different interested parties, among which Tourism Australia plays a significant leading role (Tourism Australia, 2013). With National Action Plan for Tourism as an outline of Australia’s tourism development strategies,specific documentations, such as National Ecotourism Strategy and Nature and Ecotourism Accreditation Program, serve to form comprehensive structures to regulate stakeholders’ behaviors (OECD, 2011). Besides strategic structures of destination management governance, Tourism Australia also empowers local regions with sufficient authorities in making relevant tourism policies which suit for local conditions.For example, Northern Territory (NT) of Australia,with academic and financial support from federal government, a policy network with the core of Northern Territory Tourism Development MasterPlan: A Commitment to Growth (TDMP) has been established to stimulate and regulate local tourism’s development(Pforr 2006. p.107). Another responsibility for Australian DMOs is risk management, as tourism is a typical industry vulnerable to vibration of external environments. In specific of Australia’s practices, in terms o internal risks, apparent operating mechanism especially in governmental DMOs, such as Tourism Australia, is constructed receiving supervisions and inquires of public to ensure all resources are allocated effectively and legally, while for external uncertainties, DMOs attempt to form joint and regular collaborations among different stakeholders though establishing information sharing system and offering access to professional consultancies of academies, thus enhance total industry’s capabilities of advanced preparations and resistance to unexpected crisis (Anderson 2006. pp.1291-1295).

5.0 Communications and relevant promotions

5.1 Integrated marketing communications

Professional capabilities of integrating all available resources in perspectives of communication and promotion are crucial for DMOs’ managerial activities, as DMOs’ prior objective is to make certain destination learnt and chosen by targeted tourists, which requires integration of various media resources and promoting measures to ensure a consistent and attractive image of destination to be conveyed through comprehensive publicity process (Hays et al. 2013. p.219). In Australia’s practices of IMC, in addition to traditional publicizing measures, such as official advertising and promoting campaigns, relevant DMOs also have trails on innovative measures to enhance Australia’s popularity and attractiveness as a tourist destination. For instance, the successful sponsorship of 27th Olympic Games in Sydney and following promotions tremendously increase Australia’s international image. Besides, sponsorships of large-scale events as well as Theme Years with partner destination countries, such as SchooliesWeek, Sydney Gay and Lesbian Mardi Gras and Chinatown Demonstration, Year of Chinese Culture, also exhibit the appealing sides of Australia as an ideal destination to experience diversified and interesting cultures (Dredge & Jamal 2013. p.569).

5.2 Branding and technology application

With perception that effective branding position can be of help to enhance targeted customers’ recognitions and identifications with destination countries with minimized costs, DMOs of Australia have channeled great efforts to shape impressive images about Australia. For example, Tourism Australia has adopted a hopping kangaroo with the sun behind it as its brand to promote Australia’s tourism industry (Tourism Australia, 2013). Yet in terms of attracting foreign tourists, even though Australia remains first in term of advocacy, which means that tourists who visit Australia remain highest level of satisfaction, the inefficient exposure to world tourists has dragged its development in terms of international section. And a significant reason resulting in such condition is its less emphasize and competitiveness in respect to innovating and applying latest technologies to promote local tourism. A recent survey indicates that while 73% of international tourists select official websites of Australia tourism as prior information source, the unfriendly interface and complex contents tend to cause customers’ resistance and even abolishment of original plans, with a result of Australia’s fifth rank in perspective of overall brand image in 2011 Future Brand survey (Angela Saurine 2011). Besides, inadequate attention and investment are paid on emerging socially publicizing technologies, such as SNSs, AI, etc. by relevant DMOs (Hays et al. 2013. p.227).

6.0 Comments & Recommendations

6.1 Conclusions

In conclusion, by designing and providing comprehensive product mixes with proper consideration of available resources and targeted customers’ specific needs, Australia’s DMOs offer a convincible premise for tourists to choose Australia as their destination. In addition, efforts in forming multi-dimensional partnerships and coordinating different stakeholders’ relationships, as well as incorporating interested parties into active involvement of destination management through comprehensive and transparent systems, also prove to be worthy. All these promising conditions ensure tourism industry’s capability of seizing emerging opportunities and responding to changes though integrated actions.

6.2 Recommendations

While development of Australia’s tourism is promising, as analyzed above, insufficient exploration on international markets as well as few comparative advantages in terms of technology innovating and applying drags the globalizing trends, which in turn also demonstrates opportunities for Australian tourism industry. Thus, it is suggested that extra focuses of DMOs shift to these areas to make the most of technical innovations to enhance Australia’s international branding images as a tourist destination and simulate development of international section to fulfill its potential.

7.0 Reference List

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Anderson, B. A. 2006. ‘Crisis management in the Australian tourism industry: Preparedness, personnel and postscript’. Tourism Management, vol. 27, no. 6, pp.1290-1297.

Angela Saurine 2011, ‘Australia's tourism brand image suffers big hit, new survey shows’, viewed 12September 2013,

Ascaniis, S., Gretzel, U., &Mistilis, N. 2012. ‘What tourists want to know: An analysis of questions asked at visitor information centres’. CAUTHE 2012: The new golden age of tourism and hospitality; Book 1; Proceedings of the 22nd Annual Conference, p. 16. La Trobe University.

Berdychevsky, L., & Gibson, H. J. 2012.‘Sport Tourism Development’. Journal of Sport & Tourism, vol. 17, no. 3, pp.251-255.

Bushell, R., Prosser, G. M., Faulkner, H. W., &Jafari, J. 2001. ‘Tourism research in Australia’. Journal of Travel Research, vol. 39, no. 3, pp.323-326.

Carlsen, J., &Boksberger, P. 2013. ‘Enhancing Consumer Value in Wine Tourism’. Journal of Hospitality & Tourism Research. vol. 37, no. 7, pp. 273-289.

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Dredge, D., & Jamal, T. 2013. ‘Mobilities on the Gold Coast, Australia: implications for destination governance and sustainable tourism’. Journal of Sustainable Tourism, vol. 21, no. 4, pp.557-579.

Dwyer, L., Pham, T., Forsyth, P., &Spurr, R. 2013. ‘Destination Marketing of Australia: Return on Investment’. Journal of Travel Research. vol. 17, no. 1, pp. 37-51.

Hays, S., Page, S. J., &Buhalis, D. 2013. ‘Social media as a destination marketing tool: its use by national tourism organizations’. Current Issues in Tourism, vol. 16, no. 3, pp.211-239.

Hooper, K & van Zyl, M 2011, ‘Australia’ tourism industry’,viewed 12September 2013,

Lemelin, R. H., Whyte, K. P., Johansen, K., Desbiolles, F. H., Wilson, C., & Hemming, S. 2013. ‘Conflicts, battlefields, indigenous peoples and tourism: addressing dissonant heritage in warfare tourism in Australia and North America in the twenty-first century’. International Journal of Culture, Tourism and Hospitality Research, vol. 7, no. 3, pp.257-271.

Maurer, A 2008, ‘Tourism trends in Australia: Facts and forecasts’, viewed 12September2013,

Murdy, S., & Pike, S. 2012. ‘Perceptions of visitor relationship marketing opportunities by destination marketers: An importance-performance analysis’. Tourism Management, vol. 33, no. 5, pp.1281-1285.

OECD, 2011. ‘National Tourism Policy Review of Australia’, viewed 12September 2013,

Pechlaner, H., Volgger, M., &Herntrei, M. 2012.‘Destination management organizations as interface between destination governance and corporate governance’. Anatolia, vol. 23, no.2, pp. 151-168.

Pforr, C. 2006. ‘Tourism policy in the making: An Australian network study’. Annals of Tourism Research, vol. 33, no. 1, pp.87-108.

Seetaram, N. 2012. ‘Immigration and international inbound tourism: empirical evidence from Australia’. Tourism Management, vol. 33, no. 6, pp.1535-1543.

Song, H., Liu, J., & Chen, G. 2013. ‘Tourism Value Chain Governance Review and Prospects’. Journal of Travel Research, vol. 52, no. 1, pp.15-28.

Tourism Australia, 2013. ‘Tourism 2020’, viewed 12September 2013,

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