Political environmentBy : Alice Moore and Elena Talevska

Introduction

The current state of the political environment

The impact politics has on the tourism industry

Threats and opportunities

Ideas and solutions

What's in the presentation!

The political environment simply refers to the way a

country is being run in terms of politics.

What is it?

The political system and ideology The role of government in the economy Political instability Australia’s international political relationships

Four major concerns

Political system refers to the institutions of government, power relationships,

decision-making processes and the role and involvement of pressure groups.

Political ideology refers to the prevailing political philosophy in a country,

covering such issues as the role of market forces and government intervention;

attitudes towards profit-making and risk; and towards foreign-owned firms.

The political system and ideology

First, in many countries, regardless of the political system and ideology, the

government is a major consumer of goods and services especially in the

tourism industry. One example is Inbound and outbound travel between

countries. Given that government policy maybe different from purchasing

decisions made by individual consumers or business, international marketers

must have knowledge in this area.

The role of government in the economy

Political instability is probably the most serious problem. Unanticipated

changes in the political environment introduce the greatest degree of

political risk into international buying behaviour.

Political instability

The external political relationships of a country can also have important

repercussions in the tourism industry and buying behaviour for consumers.

for example the idea to make Australia and new Zealand one domestic flight,

shows a good relationship between the two countries.

The country's international political relationships

Australia Fiji America

The current state of politics

The political environment in Australia is currently stable if not excellent. With Kevin Rudd as prime minister.

Since becoming prime minister Kevin Rudd has spent close to $3.4 million on overseas travel.

Australia has an excellent relationship with all countries that are important to inbound and outbound tourism.

Australia

On 5 December 2006, Republic of Fiji Military Forces Commander, Commodore Frank

Bainimarama, announced that he had assumed executive power, that he had dismissed the duly

elected government of Fiji and declared a state of emergency. Subsequently (4 January 2007),

Bainimarama claimed to have returned executive authority to the President, who then

appointed Bainimarama ‘interim Prime Minister’

The Australian Government strongly condemned the Fiji military’s unconstitutional removal of

Fiji’s elected government. Despite claims to the contrary by the military regime, Bainimarama’s

take-over is illegal and cannot be justified.

Australia responded firmly by imposing travel restrictions on Bainimarama, his supporters and

their families. These restrictions also apply to members of the unconstitutionally-appointed

‘interim government’ and their families. Defence cooperation has been suspended.

Fiji

The most recent change to the American government was the induction of the president of the united states of America Barack Obama, who wrote history as he was the first black American man to be named president of the USA.

This has been a positive for the USA

America

Relationships Between politics and tourism -“The political aspects of

tourism are interwoven with its economic consequences…tourism is

not only a “continuation of politics” but an integral part of the world’s

political economy. In short, tourism is, or can be, a tool used not only

for economic but for political means” (Edgell, 1990).

Impact of current political environment on tourism business.

The attack on the world trade centre was the first wake up call in terms of terrorism. Some people are afraid to travel and when they do they get frustrated because of the waiting and checking at airports making them not want to travel again.

Wholesalers and small retailers based on tours to Fiji or Papua new guinea aren't making many sales

Negative impact

The first major terrorist attack on the USA’s World Trade centre was a big wake up call and since then security has been extremely tight.

People feel safer to travel knowing security is a much higher concern.

Positive impact

Alliances

Governments working together

Government funding

Visas

Tourism White Paper

Opportunities posed by political environment

World Trade Organisation (WTO)

Making flights between Australia and New Zealand domestic

Asia, Europe, Japan, The Americas, The Gulf Countries and New Zealand

Australia and China negotiated a free trade agreement that would be a significant benefit for both countries.

Alliances and Government’s working together

Was established in November 2003, lasts for a period of four and a half years.

The Tourism White Paper aims to strengthen the relationships with these countries by presenting framework to achieve this vision.

It is an injection of money the Australian Government have invested

It is a tourism initiative designed to improve international marketing strategies, support domestic tourism marketing and promotion, and improve tourism information, research and forecasts.

The Tourism White Paper Initiative

The Approved Destination Status Scheme (ADS)

Work and holiday visas

Visas

The Tourism White Paper

Terrorism

Political Unrest

Threats posed by political environment

The Tourism White Paper funding finishes in 2008

The industry will suffer, Will be harder to promote and build this industry.

It will be tougher to encourage people to travel.

The Tourism White Paper Initiative

The foremost threat impacting the tourism industry.

The September 11 2001 terrorist attacks in the United States

Safety and Security

Terrorism

Bangkok, Thailand

Fiji

Political unrest

Fiji - 1987: As a result of a mainly non-Fijian government being elected.

Two military coups occurred within four months.

Qantas imposed a two-month ban on flights to Fiji, following the hijacking attempt of an Air New Zealand Boeing 747.

Travel Insurance cover was withdrawn after negative Australian government travel advice.

Effects of Military Coups

Abide by Government rules and regulations

Proposing for more funding by the government

Focus on domestic travel and send tourists to safe places

Aussie Enthusiasts program, helps businesses promote and sell Australia.

Ideas or solutions for business.

Overall Australia's political stance in the world is stable if not good. Our Government supports the tourism industry and the threats posed against the tourism industry in Australia are not that substantial. If Australia continues to establish and sustain relationships/Alliances with other countries, Australia will lift it’s profile throughout the world. The opportunities that are present at the moment, considering the economic downturn are pretty good because people will still travel even if its domestic, which keeps tourism in business.

Conclusion

Tourism Australia.com Department of foreign affairs and trading.com WTO.com ABCNEWS.com Department of immigration and citizenship.com Smartraveller.gov.au

Bibliography