Tourism sector success depends on successful tourism enterprises

The success of any nation, district, or town’s tourism sector is ultimately dependent on the performance of the businesses within it. If they are successful, the sector will keep growing, which will deliver significant benefits to the businesses themselves, to their communities, and to the national economy as a whole.

SUCCESSFUL TOURISM BUSINESSES

Successful businesses will underpin a prosperous tourism sector that attracts ongoing investment and can deliver significant benefits for the economy, communities, and businesses.

Prosperous businesses:

  • provide owners with attractive returns on the capital they have invested, allowing them to reinvest in quality staff and expand their businesses
  • generate income and create employment opportunities for their communities
  • create sustainable economic growth, generate export earnings, and help destinations become more internationally connected.

THE TOURISM SECTOR NEEDS TO PROSPER AND GROW IN A SUSTAINABLE WAY.

Globally, tourism’s contribution to gross domestic product has increased in the past ten years.

Revenue has increased, and there are now more international visitors, more tourism businesses, and more people working in the tourism industry. This represents significant financial and human investment. The growth strategy must have a strong focus on increasing the return on that investment.

In particular, it is important to increase the economic value of each individual visitor. This is one way of making sure the sector keeps growing despite some of the challenges it faces. These challenges often include labour shortages and the highly seasonal nature of the industry.

In some areas these seasonal patterns have proved very difficult to shift. The gap between high, shoulder, and off–peak season business creates problems such as assets being underused, difficulties in retaining staff, constraints on productivity, and difficulties meeting demand during the relatively brief peak periods.

WHAT MAKES A SUCCESSFUL TOURISM BUSINESS?

Successful tourism businesses are those that identify the mix of products and financial strategies that generate the best sustainable returns. These businesses will:

  • focus on maximising profit and maintaining the long–term success of the business by
    • using resources such as staff, capital, and energy more efficiently
    • developing quality products that are highly valued by visitors and that can be priced accordingly
    • planning and marketing effectively, including investing in quality accreditation and environmental sustainability initiatives
  • reinvest or successfully attract capital investment to allow the business to grow and develop
  • implement business solutions to increase demand across the shoulder seasons and the off season so that assets are used more often and staff can be retained
  • compete successfully for an appropriately skilled and knowledgeable workforce
  • compete successfully in the domestic and international marketplace.

These are the business fundamentals that will underpin a prosperous and profitable tourism sector. They will ensure a successful, economically sustainable future for a tourism sector, be it locally or nationally.


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