Tourism
.Write as a representative of the STA Travel company in USA (www.statravel.com) which would like to make a business offer to travel agency in another country In Europe.

http://cms.mngt.waikato.ac.nz/stmg222/Module3/Overview/Welcome.aspx
Steps to complete the assignment:
1. go to the above website and read module 3
2. module 3.4 is the assignment module.
3. to complete module 3.4, you must first read module 3.1, 3.2, and 3.3
4. all the instructions for the assignment are given in module 3.4.
5. give as many references as you can.

Tourism Industry in New Zealand

Name
Course
Institution
Tourism Industry in New Zealand
Introduction
Tourism industry is one of the fastest growing economic sectors as well as one of the top contributors of rapid economic growth in New Zealand. According to Simmons (2013), when it comes to the contribution of tourism industry to the overall economy of New Zealand, a commonly stated comparison is that tourism generates a very similar contribution to the dairy sector, vying with it for first place in foreign exchange earnings. In fact, the tourism sector overall contributes NZ$7.2 billion or 3.8 percent to the Gross Domestic Product (GDP) of the country’s economy (Simmons, 2013). “Tourism is one of New Zealand’s largest export industries in terms of foreign exchange earnings. It directly employs 4.7 per cent of the New Zealand workforce and indirectly employs a further 3.1 per cent. In total, around one in 11 working New Zealanders is employed in the tourism industry and it has the potential to improve the economies of communities around the country”(Tourism New Zealand). According to Cooper and Hall (2005), the growth in the quality and structure of New Zealand’s tourism industry, coupled with vibrant marketing campaigns to major international tourism generating areas has seen the country well positioned as a destination in the international market, and it is now considered to be in a good position for further growth in the twenty-first century. Cooper and Hall (2005) further note that the structure of the tourism industry in New Zealand influences extensively the amount of benefits that are gained. The country’s tourism industry consists of several sectors that directly supply tourists and secondary supplier industries that support tourism in collaboration with several other activities (Carey, Davidson & Sahli, 2013).
The economic impact of tourism in New Zealand is measured by the Tourism Satellite Accounts (TSA), which reports on tourist expenditure in different areas of the tourism industry and in sub-sectors (Cooper and Hall, 2005). Reports by TSA indicate that the total expenditure by internationals tourists in 2002 amounted to approximately NZ$6.2 billion, which 9.6% higher than the total expenditure in 2001 (Cooper and Hall, 2005). On the other hand, the total expenditure by tourists in 2002 was NZ$6.9 billion, which is 9% higher than the total expenditure in 2001 (Collier, 2011). The holiday market for international tourists contributed the most significant amount to the economy, with figures of 2002 showing an average trip spending of NZ$3500 and total earnings for this market at NZ$ 3.6 billion (Cooper and Hall, 2005). With the improvement of transport network and travel routes, effective marketing initiatives to suitable international markets, as well as internal product development, tourism in New Zealand is increasingly becoming significant industry to the economic growth of the country. The economic and political environment of the world, coupled with the decline in the relative value of the New Zealand currency compared to other international currencies, has placed the country in a perfect position to improve on its international tourism market share (Cooper and Hall, 2005). Moreover, the country has capitalized on the growth of tourism in Australia, as many international tourists visit both countries when they travel to the region. The Trans-Tasman air route between New Zealand and Australia is by far the busiest air route coming to New Zealand owing to the large number of both outbound and inbound travelers between the two countries (Cooper and Hall, 2005). The industry, however, faces a number of challenges. One of the challenges is high taxation; tourism industry is taxed quite highly in New Zealand. Security is another key problem facing tourism industry in New Zealand. For example, terrorism is a major security threat that affects the tourism industry in the country. Many tourists fear to travel to some destinations due to the threat of terrorist attacks.
Industry Analysis
Even though the establishment of New Zealand as a nation is relatively recent, the potential benefits of tourism to the growth of the country’s economy was realized early and the country’s government created a Department of Tourist and Health Resorts in 1901 (Pearce, 2007). Early tourism in New Zealand focused on unique natural attractions such as geothermal activities. A noteworthy contributor and influence was the involvement of indigenous Maori as tour guides and as cultural tourist attraction, which to date remains a significant draw-card for tourists in New Zealand. According to (Garrod & Wilson, 2003), early tourism in New Zealand, as it has been the case in many other new-world locations, was connected closely with early settlement from, mainly, the European immigrants. In fact, as early as 1840s, New Zealand was the source of curiosity and the subject of many travel writers, journalist, and novelists intrigued by the new colony (Garrod & Wilson, 2003). Most of the attractions that were written about and that offered the momentum to this growth of tourism were linked to the natural features of amazing beauty or extraordinary quality. Therefore, nature-based tourism was an early and important contributor to the growth of tourism industry in New Zealand (Garrod & Wilson, 2003). However, owing to the huge distance of the country from the potential inbound markets, tourism numbers were small. The first official number of international arrivals was witnessed in 1903 and when more than five thousand visitors from Australia and the United Kingdom visited the country (Garrod & Wilson, 2003). Since then, the growth of New Zealand as a tourist destination has been increasing rapidly, with tourism numbers increasing exponentially. Reputation of New Zealand continued to grow and publicity from the government, from the travel industry, and word of mouth, contributed to the growth that led to approximately two million arrivals in 2002 (Garrod & Wilson, 2003). This rapid growth of New Zealand as one of the top tourist destinations in the world has mainly been influenced extensively by the country’s nature-based attractions. According to Garrod and Wilson (2003), while the tourism industry in New Zealand has diversified drastically, especially in the last decade, natural attractions, and nature-based activities remain important and continue to be the dominant feature of the country’s tourism sector.
Technology is another contributor to the rapid growth of tourism industry in New Zealand. The advancement in technology such as the emergence of internet and electronic commerce, as well as the adoption of the prime business to consumer (B2C) and business to business (B2B) applications in the tourism industry has transformed the sector and shifted the conventional way of carrying out the tourism business (Wayne, 2007). According to Wayne (2007), today, customers are able to undertake their entire tourism product search and booking online and, therefore, the role of intermediaries has been changing in a drastic manner. The Internet is utilized widely as a means of delivering updated content and, as a result, it has created the conditions for the emergence of a broad range of tourism eMediaries (Wayne, 2007). Tourism suppliers such as hotel chains, airlines, and car hire have taken advantage of the new technologies and developed e-commerce applications by enabling users to access their reservation systems directly (Wayne, 2007). Similarly, a number of tourist destinations in New Zealand have come up with destination management systems to distribute their smaller properties and to present the destination as a holistic entity.
Structure of tourism industry
The demand for tourism in New Zealand has been rising constantly in recent years, guided by the promotion that the country has witnessed within the international markets by events such as the Lord of the Rings film trilogy the successful hosting of the America’s Cup (Cooper and Hall, 2005). According to Cooper and Hall (2005), the growth in the quality and structure of New Zealand’s tourism industry, coupled with vibrant marketing campaigns to major international tourism generating areas has seen the country well positioned as a destination in the international market, and it is now considered to be in a good position for further growth in the twenty-first century. Cooper and Hall (2005) further note that the structure of the tourism industry in New Zealand influences extensively the amount of benefits that are gained. The country’s tourism industry consists of several sectors that directly supply tourists and secondary supplier industries that support tourism in collaboration with several other activities. The economic impact of tourism in New Zealand is measured by the Tourism Satellite Accounts (TSA), which reports on tourist expenditure in different areas of the tourism industry and in sub-sectors (Cooper and Hall, 2005). Reports by TSA indicate that the total expenditure by internationals tourists in 2002 amounted to approximately NZ$6.2 billion, which 9.6% higher than the total expenditure in 2001 (Cooper and Hall, 2005). On the other hand, the total expenditure by tourists in 2002 was NZ$6.9 billion, which is 9% higher than the total expenditure in 2001. The holiday market for international tourists contributed the most significant amount to the economy, with figures of 2002 showing an average trip spending of NZ$3500 and total earnings for this market at NZ$ 3.6 billion (Cooper and Hall, 2005). With the improvement of transport network and travel routes, effective marketing initiatives to suitable international markets, as well as internal product development, tourism in New Zealand is increasingly becoming significant industry to the economic growth of the country.
The economic and political environment of the world, coupled with the decline in the relative value of the New Zealand currency compared to other international currencies, has placed the country in a perfect position to improve on its international tourism market share (Cooper and Hall, 2005). Moreover, the country has capitalized on the growth of tourism in Australia, as many international tourists visit both countries when they travel to the region. The Trans-Tasman air route between New Zealand and Australia is by far the busiest air route coming to New Zealand owing to the large number of both outbound and inbound travelers between the two countries (Tourism Industry Association New Zealand, 2014).
Competitive Pressure in the Tourism Industry
Being one of the major economic sectors in New Zealand, tourism industry in New Zealand is quite competitive. Firms in this sector experience enormous competitive pressure. However, by understanding how the Porter’s five forces influence competition and profitability in the tourism industry, tourism firms can better understand how to position itself relative to the forces, determine any sources of competitive advantage now and in the future, and estimate the profits that can be expected. Tourism firms can understand the market environment by carrying out Porter’s five forces analysis. According to Dasgupta (2011), Porter’s five forces analysis is a framework for analyzing the industry and developing business strategy. The framework utilizes concepts developed in industrial organization economics to drive five forces that determine the competitive intensity and, thus, attractiveness of the industry. Attractiveness in this context refers to the profitability of the entire sector (Dasgupta, 2011). An industry that is not attractive is the one where the combination of forces acts to pull down the overall profitability. “A very unattractive industry would be one approaching pure competition” (Dasgupta, 2011). For the tourism industry in New Zealand, the following are important:
• New entrants: New avenues of tourism such as creation of new tourism sites or putting up a new tour guide service.
• Threat of substitutes: Entails creation of other sources of relaxation within the native city of the tourist.
• Buyers: Is the customer, that is, the tourist, who is the source of income for the tourism industry.
• Suppliers: these refers to the various states or nations promoting their tourist destinations
• Rivalry between existing competitors: This refers to completion between established tourist destinations to attract tourists.
Summary Analysis
Even though the tourism industry is one of the fastest growing economic sectors as well as one of the top contributors of rapid economic growth in New Zealand, the industry faces a number of challenges. One of the challenges is high taxation; tourism industry is taxed quite highly in New Zealand. Security is another key problem facing tourism industry in New Zealand. For example, terrorism is a major security threat that affects the tourism industry in the country. Many tourists fear to travel to some destinations due to the threat of terrorist attacks. Nonetheless, there are many factors make this industry attractive. For example, the economic and political environment of the world, coupled with the decline in the relative value of the New Zealand currency compared to other international currencies, has placed the country in a perfect position to improve on its international tourism market share (Cooper and Hall, 2005). In addition, the growth of improved transport systems and travel routes as well as effective marketing campaigns by the New Zealand government has made tourism one of the attractive industries in the country. The future of tourism industry in New Zealand is also promising. It is predictable that the growth that the tourism industry has experienced over the last few years will continue well into the future. Therefore, it is advisable for the existing members in the industry as well as the new entrants to invest in the tourism sector in Australia because the country is increasingly becoming a worthwhile tourism destination for international markets.

References:
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Tourism New Zealand. About the Industry. Retrieved on January 17, 2016, from
http://www.tourismnewzealand.com/about/about-the-industry/
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http://tourism2025.org.nz/