Monday, July 22, 2019
Tourism in New South Wales Essay Example for Free
Tourism in New South Wales Essay Introduction:       This paper seeks to answer given questions in relation to tourism and travel industry at New South Wales including evaluation the effectiveness of measures taken, difference of approach for Asian countries affected by crisis, knowing how to incorporate crisis management in an organization’s business strategic plans and how to reduce damage from unseen contingencies. Questions and Answers 2.1. Do you think the measures taken by Tourism New South Wales were effective in helping the travel and tourism industry?       The measures taken by the Tourism New South Wales (TNSW) were effective in helping the travel and tourism industry in the sense that the outcome was a minimized reduction inflow of total visitors to the state through careful management of the crisis.  It was further mentioned that TNSW succeeded in defusing the industry hysteria and ensured that the industry was adequately informed, which gave the industry directions how to conduct its short and medium-term strategy in response to the crisis. As a result, the industry, did not abandon the region in question entirely, which could have led to a very damaging loss of face and presence in many of the markets (Gray and Fletcher, n.d.).        An analysis of the measures taken revealed concern rather than alarmed in terms of initial response taken by TNSW to address the crisis. TNSW identified the crisis at the earliest time possible by tapping industry contacts and commentary by its regional officers in the affected areas. It helped to see the extent of the problem when government statistics on inbound tourism became available for decision making. Since by that time, several media sources had been painting a bleak picture of the entire Asian-based tourism industry, which thereby created hysteria within the travel and tourism industry as a whole, TNSW has responded responsively accordingly.         TNSW conducted its own analysis on the nature and extent of the crisis, and how it affected the travel and tourism industry on a country-by-country basis. By monitored the news reports for accuracy and senior levels, TNSW disseminated information through the press to paint a more comprehensive picture of what was actually happening as way of damage control to what the press has earlier reported. TNSW revived confidence and calmed down the hysteria generated through some speculative biased reports (Gray and Fletcher, n.d.).       Instead of being alarmed TNSW was able to provide leadership on how the industry should respond and to provide forecasts which it used to project the nature and extent of the recovery in all markets.  Based on forecasts made, it was able to see where it could take advantage opportunities and minimize the effect of industry threats (Kotler,1994; Kotter and Schlesinger,1991; Porter, 1980). As part of its many tactical decisions, case facts mentioned the allocation of a larger portion of its budget to Asian region being diverted to other key growth markets such as the USA and Europe.  TNSW applied careful marketing investment decisions in Asia on the basis of analysis of which markets would recover first. It was able to observe which of the markets showed evidence of rebound while ensuring that it would not lose presence and awareness in those markets. How will the approach differ for the Asian countries affected by the crisis?      The approach will differ for Asian countries affected by the crisis in terms of giving priority where risks caused by the Asian crisis should be brought at the minimum by allocating more budgets for Asian countries than the rest that could produce more revenues or less amount of loss.        To implement this kind of strategy, those countries which could give earlier recovery in terms of more revenues or less amount of loss should be viewed in the proper values of currencies of each of the countries. To illustrate, some of the Asian countries have smaller devaluation of their currencies than others in relation to the US dollar or those which has shown smaller decline in number of visitors are less affected.       Case facts say that the impacts of the crisis from Korea and Hong Kong were alarmingly low at the end to 1997, falling by about 90% from the previous year. Between the two Hong Kong has shown faster recovery. Japan in comparison showed smaller decline in number of visitors by about 6% in 1997, 19% in 1998 and 8% in 1999. Thus it was more proper to invest more in Japan that with Korea and Hong Kong. Countries such as Korea, Indonesia, Malaysia and Thailand appeared to have held up well in 1999 after their being badly affected during the crisis, thus these countries could receive higher budget allocation in 1999 and afterwards. TNSW could not just abandon Asian markets because they constitute about 40% of all NSW’s visitors (Gray and Fletcher, n.d.). 2.3. The travel and tourism industry is often exposed to uncertainty, risk and disaster. How important is to incorporate crises management in an organization’s strategic business plans.     It is important to incorporate crises management in an organization’s strategic business plans because failure to do would leave the country or nation unprepared to such eventuality and it is such a big risk to face in terms of loss revenues. In the case of New South Wales, the tourism industry income represents about 10% of the state economy and the government is also depending from the same industry to employ thousands of its people, thus the decision of TNSW is critical and very important to making its strategic plans.      Incorporating therefore crises management to an organization’s strategic plans is the same as preparing for contingencies in the major part of the economic plans for New South Wales. For a nation to lose big amount of revenues amounting to billions of US dollars and thousands of employment opportunities is also courting other problems for its people politically, socially and even psychologically.      To incorporate crises management therefore in an organization’s strategic plans amounts being complete and realistic in preparing strategic plans (Churchill, Jr. and Peter, 1995; Cooper, L. 2000). Strategic plans are meant to attain objectives which include the characteristics of being specific, measurable, attainable, realistic and time-bound. To prepare for any eventuality including possible crises is just being realistic with possible events in the future and therefore including crises management in strategic business plans of an organization is deemed part of well prepared strategic plan. 2.3. The unexpected can happen to an overseas market or group of markets. What should international strategic marketing plans incorporate to reduce damage from unseen contingencies?      To reduce damage from unseen contingencies, the following should be incorporated in the international strategic marketing plans: (1) A contingency plan that could address all possible scenarios; (2) The contingency plan should allow management a sober analysis and interpretation of anecdotal and statistical information for decision making; (3) The contingency plan should allow dissemination of information to industry players to allow responsible decisions (Gray and Fletcher, n.d.); (4) The plan should provide leadership in terms of how to respond properly with the contingency; and (5) The plan should have forecasts (Brigham and Houston, 2002; Weston and Brigham,1993; Helfert, 1994) that could project the nature and extent of the recovery in all markets should the contingency happen (Gray and Fletcher (n.d.). Conclusion and Recommendation       This paper has shown how an organization responded to unseen crises that it may not have foreseen as per case facts.  A calculated response was however noted in addressing the Asian financial crisis effects on tourism and travel industry to NSW by TNSW’s employing the elements of analysis and interpretation of anecdotal and statistical information, dissemination of information to industry, providing leadership in terms of how to respond to the crisis and providing forecasts which projected the nature and extent of the recovery in all markets.  The crisis was essentially external to TNSW but company appears to have been prepared despite any indication in the case fact that it did not foresee the same. The response therefore is an indication of preparedness that must formally form part of organization’s strategic plans. In additional international strategic marketing plans should incorporate contingency plans to reduce damage from unseen contingencies and that such contingency plans must be workable under different conditions.       Organizations are therefore recommended to always be prepared and the best kind of preparation is integration of contingency plans on their strategic business plans. References: Brigham and Houston (2002) Fundamentals of Financial Management, Thomson South-Western, London, UK Churchill, Jr. and Peter (1995) Marketing, Creating Value for Customers, IRWIN,         Sydney, Australia Cooper, L. (2000) Strategic marketing planning for radically new products, Journal of Marketing, Vol. 64 Issue 1, pp.1-15. Gray and Fletcher (n.d.) Tourism New South Wale’s Experience in marketing tourism during the aftermath of the Asian financial crisis Helfert, Erich (1994), Techniques for Financial Analysis, IRWIN, Sydney, Australia Kotler, P (1994) Marketing Management, Analysis Planning, Implementation and Control, London, UK Kotter, J. and Schlesinger, L. (1991) Choosing strategies for change, Harvard Business Review, pp.24-29. Porter (1980) Competitive Strategy, Free Press, London, UK Weston and Brigham (1993) Essential of Managerial Finance, Dryden Publishers London, UK
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.