Perth has been ranked in the top three most desired hotel investment markets together with Sydney and Brisbane in the HTL Capital Advisers 2008 Industry Survey.
When talking about the background of Perth, the ecological footprint of residents of Perth Western Australia is among the highest in the world (Urlich 2000). General affluence and high standard of living are primary contributors. Urban form and housing styles are also contributors, directly and indirectly. Perth is extremely low density (R8 on average). Low density suburban development over decades has caused the loss of large areas of bio-diverse vegetation and habitat. Automobile dependency is relatively high. Greenhouse emissions are consequently extremely high on per capita basis (which creates policy and cultural tension).
In and around Western Australia’s capital Perth, there are inner city parks, bustling markets and a colourful lifestyle, as well as water-based activities like fishing, boating and surfing. Western Australian is the nation’s fourth largest economy, responsible for the production of 13.6% of the Australia’s gross domestic product (GDP). Perth city is a hub for the state’s activity and the point of dispersion for the state’s interstate and international visitors (Australian Bureau of Statistics 2010).
Perth has grown to become a city of international significance – an increasing population, high workforce participation and productivity continues to fuel demand.
Perth has been ranked the least sustainable city in an assessment of the carbon footprint of Australia’s 20 largest cities (ABCNews 2010).
This report is going to discuss the impacts of Hospitality and Tourism industry to Economic, Social and Environmental aspects in Perth. And to some extent, these three aspects would affect tourism industry in Perth also.
Besides these, it also takes an example of Holiday Inn Hotel City Centre Perth in the area of CSR (Corporate social responsibility). The hotel has been engaging lots of charity programs.
2. Economic impacts
Perth and Western Australia have achieved marginal growth in their market share of Australian international visitation since the year 2004. This is most evident in Western Australia’s market share of international visitors, which was up 1.1 percentage points to 13.6% as at year end 2009( Tourism Western Australia,2010).
International visitors spent a total of 21.2 million nights in Western Australia, 17.0 million of which were spent in Perth. This represents a 42% increase for Western Australia and a 39% increase for Perth, since September 2004. The difference between the growth in visitors and growth in visitor nights reflects the growth in average length of stay, approximately 25% (6 days) and 23% (5 days) for Western Australia and Perth respectively – almost half of which occurred in the year to September 2009( Tourism Western Australia,2010).
More quality hotel rooms for Perth, in a world class city with vibrant waterfront and cultural precincts.
The focus on the development of significant tourism infrastructure will mean Tourism Western Australia will pull back from its traditional involvement in smaller ‘industry development’ activities.
Tourism Western Australia will develop a new Statewide Major Events Strategy to create new home-grown events and attract more national and international events to Western Australia (Tourism Western Australia, 2010).
Tourism in Perth:
Tourism and the related business activity are playing an important role in Perth Economy, although a relatively greater one in terms of employment.
An estimated 4.0 % of local workers are employed in the tourism services sector in Perth. However, the tourism industry – and in particular, segments such as accommodation – also is playing a key role in business and corporate activity much more broadly, providing not only the services but also facilities to support activity in these sectors(Tourism Research Australia 2009).
Economic Stress in Perth
It is generally believed that Hospitality and Tourism is a booming industry. The rising level of stress in Perth is perhaps indicative of the local impacts of the wider economic downturn. Large numbers of people engaged in vulnerable industries, such as hospitality. The economic slowdown has seen increasing numbers of people engaged in these industries out of work. It is, however, likely that the recovery in the resources sector, and the State economy more generally, will see economic stress decrease in Perth suburbs such as Butler, Alkimos and Yanchep (Tourism Western Australia 2010).
Perth Airport: the regional gateway
Perth is playing a major role in facilitating tourism activity.
Perth airport serves as the gateway to Western Australia, facilitating 9.4 million passenger movements annually, including 2.6 million international passengers(Perth Airport, 2009). Indeed, Perth is the point of arrival in Australia for 70% of the state’s international visitors (Tourism Research Australia 2009). Looking forward, passenger movements at Perth airport are projected to double over the two decades to 2029, with international passenger movements growing by 4.0% to 5.6 million and domestic passenger movements growing by 3.3% to 13.4 million (Perth Airport 2009).
3. Social Impacts
New hotel development in Perth
The capital city, Perth, offers a sought after lifestyle for the international investment community with its natural, relaxed and multicultural environment, low sovereign risk, pro-development government policies, a highly skilled and innovative workforce and world-class infrastructure (Deloitte 2009).
Market fundamentals for Perth hotels are very strong with double digit yield growth over the last three years projected to continue for the next five years. The outlook for mid market and first class hotels is very positive despite current global economic uncertainty (Marin and Jafari 2002).
Projects of strategic importance in Perth have attracted significant international investor interest creating an exciting business, tourism, residential and entertainment hub to put Perth in the international spotlight (Transocean Consulting Services 2007).
This combined with Perth’s strategic global location, positioning as a major international business hub with close proximity to Asia, makes Western Australia an attractive investment destination.
From the statistics, Perth occupancy rates are still amongst the highest in Australia at 81 per cent.
Perth’s consistent growth over the last five years is encouraging to investors such as the Rothchester Group and its preferred operators (Tourism Australia 2009).
There is strong demand for hotel accommodation in Perth and a particular shortage of high quality hotel accommodation in the city.
In Hong Kong more than 70 per cent of delegates chose Australia as their preferred choice for investment.
Raising awareness of local issues and needs
Tourism can also raise awareness of local issues and needs.
Branding of local product and achievements creates regional identity not only nationally but also internationally.
There is a trend towards investment in interpretation of natural and cultural resources in Perth. Perth attraction to natural and heritage icons often helps fund conservation important efforts and provides opportunities for effective management of sensitive and important areas.
Tourism is largely an experience driven industry, and Perth local culture is a unique experience – more so local personality, hospitality and food than so called built attractions. (McCool and Moisey 2000)
Tourism can boost the preservation and transmission of cultural and historical traditions (Weaver 2000). This often contributes to the conservation and sustainable management of natural resources such as John Forrest National Park and Matilda Bay Reserve in Perth , the protection of local heritage like Aviation Heritage Museum and Heritage Cottage Bed & Breakfast, and a revival of indigenous cultures, cultural arts and crafts.
More education and training programs in Hospitality and Tourism Industry
One of the biggest problems which occurs to Tourism Industry is Occupational Skills Shortage ( Sommerville 2007).
There are not enough qualified and experienced people, and for many of the jobs in short supply, however, education and training usually is not provided for a long time in Perth. At the same time, an increasing number of people seem to leave the workplace than entering it. It is hard to increase the numbers of people being trained because of the need for experienced employees to supervise and mentor apprentices, trainees or graduates and the limitations this placed on the number of new entrants that could be employed and trained. More than that, these education and training courses are often not keeping pace with the innovation and technological change in the workplace in Western Australia (Sommerville 2007).
4. Environmental impacts:
Air Pollution in Perth
Not many tourists might choose Perth as their destination or even locals might not stay in Perth during summer and winter times, due to severe Air Pollution in Perth, While Perth has a relatively small population when being compared with some other Australian capital cities, air pollution in Perth is very significant (Department of Environmental Protection 2009).
The following analysis shows that Perth has levels of air pollution which might present health impacts to tourists and locals. The levels of photochemical smog (ozone) in Perth during summer regularly exceed national standards (Department of Environmental Protection 2000). Besides this, during winter months, a smoke haze frequently hangs over Perth. In most cases these episodes of unacceptable air quality are influenced by weather conditions that prevent air pollutants from detracting quickly (Department of Environmental Protection 2000).
Figure: The sites of the Perth Air Quality Monitoring Stations
Source: Air Quality in Perth 1992-1999 report (DEP 2001)
A detailed analysis of the air quality in the Perth metropolitan region is contained in the DEP’s Air Quality in Perth 1992-1999 report (DEP 2001). In summary the report shows that:
â€¢ Ozone levels in summer are tending to remain high, approaching or exceeding the acceptable standard;
â€¢ Background levels of ozone are increasing;
â€¢ Airborne particle (haze) levels in winter are relatively high, and during spring and autumn are relatively low.
As the population grows, even if the level of car ownership remains the same as it is now, there will be even more cars on the road.
On top of this, the length of vehicle trips is expected to increase as the size of Perth grows.
It is expected that for every one per cent increase in population there will be a 1.6% increase in the number of vehicle kilometers travelled.
Figure: The total vehicle emissions of carbon monoxide and oxides of nitrogen going into Perth’s air each day.
Source: Air Quality gets a Black Mark, Australian Environment Review, Vol 11, No 4, May 1996.
Figure: Predicted daily vehicle emissions of carbon monoxide and oxides of nitrogen for Perth in 2011 assuming there is no new anti-pollution
Source: Air Quality gets a Black Mark, Australian Environment Review, Vol 11, No 4, May 1996.
As for the solution of the Air Pollution, reduction in motor vehicle ownership and usage is the key target. Increased use of public transport -international experience, and recent local successes strongly indicate that rail should be the focus for Perth (Department of Environmental Protection of Perth 2003).
In Hospitability and Tourism Industry, Some forms of recreation, including rowing, bushwalking and rock climbing, make little or no contribution to air pollution (Department of Environmental Protection of Perth 2003). Other pursuits however, affect the quality of our air. Trail bikes, jet skis and power boats all put toxic emissions into the atmosphere.
It is possible to continue to enjoy all forms of recreation and at the same help to improve air quality.
As for Tourism Industry, Coastal Erosion is very serve phenomena.
Hotels, resorts or even local houses along the coast would be affected to some certain extent (Medlik 2003).
Rising sea levels, more frequent storms, cyclones and floods along the coastline are putting beach front properties at risk. Coastal erosion is the permanent loss of land along the shoreline (World News 2009).
Natural causes of erosion (World News 2009): Changes in wave climate such as an increase in wave height change in the angle of wave approach or increased frequency of high magnitude waves. Reduction in the amount of sediment delivered to the coast from reef and rising sea level.
Human-induced causes of erosion (World News 2009): Sand extraction from beaches that reduces the sand volume of the coast, coral mining, insertion of structures such as seawalls which locally alter wave processes and change sediment transport patterns and removal of mangroves.
Waste Water Management in Hotels
Environmental Effort = Reduced Consumption = Lower Operating Costs
Hyatt Regency Perth Hotel is the example of doing Waste Water Management.
Environmental impacts of Hospitality and Tourism are described as following points:
· Large draw on public infrastructure and utilities (electricity, water, sewage) which must be shared with local communities
· Discharge of untreated effluents into the environment in large quantities
· Massive import of goods to service the industry- excess packaging and waste
· Improper land use planning and poor designs of infrastructure systems
These impacts on the community in Perth can be indicated as following: shortages in public utilities – (water rationing, brown outs), ineffective hotel wastewater treatment plant might cause human health impacts and rise in disposal costs for waste removal (Water Corporation 2006).
Protecting Perth’s Public Drinking Groundwater Sources
The growth of Hospitality and Tourism industry in Perth, to some extent, is helping to protect Perth’s Public Drinking Groundwater Sources through raising public awareness.
The main sources of groundwater in Perth are the Jandakot and Gnangara Mounds on which the Jandakot, Gnangara and Perth Coastal (Water Corporation 2007).
Underground Water Pollution Control Areas (UWPCAs) are defined. Within these areas policies have been developed to protect water resources from pollution. The Department of Environment (DoE) is responsible for the protection of water resources used for public drinking water supplies throughout Western Australia (Water Corporation 2007).
5. Corporate social responsibility (CSR)
In terms of Corporate Social Responsibility, some hotels and resorts do make very good examples. Some hotels have 10 percent of the total guest room revenue donated equally to a charity of their choice and Community Footprints, the social responsibility program. Some hotels win lots of popularity through their outstanding and continuing social contributions to the local community which included numerous social initiatives in the fields of sustainability, environment, heritage, community interaction and youth development ( Cq Researcher 2010).
Activities involved are such as inspiring the younger generation with environmental awareness and to instill a sense of ownership for the future of their country. More than that, supporting under-privileged children and eco-friendly green initiatives for many years are also examples of some hotels’ social responsibilities (Cq Researcher 2010).
Holiday Inn Hotel City Centre Perth
Holiday Inn City Centre Perth builds customer loyalty and strengthens employee commitment through a program of charitable engagement with the multiple local communities in which they operate (Cq Researcher 2010).
In the area of corporate social responsibility (CSR) Holiday Inn City Centre Perth is involved in many initiatives aimed at reducing its impact on society, for example energy and water conservation.
The focus of this briefing is on its engagement with charities and how it has helped their business.
The charities are in their core interests of Community, Employees, Arts, Youth & Education, Environment and Human Rights.
The charities they involved such as Children In Need, the Red Cross and so on.
The hotel is also helping to upgrade schools with sanitation facilities as well as library and science equipment, workbooks and classroom materials.
Besides Holiday Inn City Centre Perth, the other hotels in Perth are also helping to make it much easier for their staff to be environmentally friendly. The provision of bike lockers and shower facilities means that staff can gain some exercise and be ready for their day at work. Some hotels even provide child-care facilities, this means that busy mothers and fathers can reduce the distances they drive, or even better, enjoy some time with their children as they travel together on public transport(Cq Researcher 2010).
This study report introduces the city Perth and analyzes how Hospitality and Tourism Industry affect the city Perth based on social, economic and environmental factors. Not only that, it also discusses the issue about Corporate Social Responsibility (CSR) and gives some examples about the hotels in Perth.
Sustainable development is the objective, not just the protection of biodiversity and species.
Tourism is a fast growing industry and a valuable sector, contributing significantly to Perth economy. Perth is experiencing substantial growth in terms of inner-city living, development and Hospitality & Tourism industry, servicing 100,000 daily visitors and workers in addition to its 15,000 inner-city residents. The City of Perth is a main provider of free entertainment for the 1.6 million people in the metropolitan area and is the premier destination for business, entertainment, nightlife, culture and the arts.
Around 4.0 % of local workers are employed in the tourism services sector in Perth. However, they lack training and education. Moreover, local employees usually work at very low paid and unskilled jobs.
People also enjoy living close to recreational areas such as the Swan and Canning rivers and near the open spaces of the various parklands, wetlands and the hills.
There is a tendency for the people of Perth to live in single residential home surrounded by private gardens. Transport is another factor people consider when choosing where they live. These factors have all contributed to Perth becoming a sprawling city. This pattern of development is expected to lead to people travelling greater and greater distances so they may satisfy their work and social requirements.
This report addresses the issues of economic stress and tourism growth in Perth. As for Environmental impacts, Air Pollution, Coastal erosion, Waste Water Management in Hotels, Public Drinking Groundwater Sources are some of the issues are being discussed above. Perth has been facing very severe air pollution. Hyatt Regency Perth Hotel manages well in terms of waste water management. And when comes to social impacts, Tourism can also raise awareness of local issues and needs. More than that, Western Australia also welcomed new hotel development in Perth.
To conclude, Hospitality and Tourism Industry has huge impact on Perth in terms of three factors which discussed above. More than that, it is clearly that some local patterns also affect tourism industry in Perth.