Impact Of Domestic Tourism

912 Words2 Pages

In the modern era, trend of tourism is increasing. During the last decade, tourism industry made a rapid growth in every state of Australia. It is a major contributor in the GDP of Australia. It plays a pivotal role for the growth of Australian economy by creating job opportunities, making tourism revenues in transport services, Cafes, Restaurants and Accommodation services etc. Tourism accommodation has got a higher rank in one of the tourism industry’s major sub sectors.
Since 2010-2011, tourism industry contributed about 2.5% in the Gross Domestic Product, which has a value of AUD 35 billion. Domestic tourism is backbone of the Australian economy as it contributed 73% of the total tourism revenues. In the same financial year 5.8 million temporary visitors were arrived in Australia. Tourism had given employment to 289213 candidates as a full time and 224487 candidates as a part time work. It represented about 8% of the total exports revenue. There are some factors which affected the demand to decline, like inflation, exchange rates, mortgage interest rates. Sustainability can be maintained by overcoming the aforesaid challenges.

ECONOMIC ANALYSIS
By keeping in view the factors like demand & supply and elasticity of demand, supply …show more content…

According to Aguilo et.al (2005) the elasticity of Price was less than one since 1960-2000 as per international demand of tourism. Since 2004-2005 demand for domestic tourism faced a decreasing trend that is 2.93%. Whereas the Australian nationals demand for oversee travel increased by 16.62%. Basically the reason behind this trend was that the economy of Australia had growth in their Gross Domestic Product. The purchasing power of people increased and they preferred to spend on luxurious oversee trips rather than domestic tourism. According to Kulendran and Divisekra (2007), income elasticity of Australia was highest ever i.e.

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