Political environment

1. Political environment By : Alice Moore and Elena Talevska

2. What's in the presentation! • Introduction • The current state of the political environment • The impact politics has on the tourism industry • Threats and opportunities • Ideas and solutions

3. What is it? • The political environment simply refers to the way a country is being run in terms of politics.

4. Four major concerns • The political system and ideology • The role of government in the economy • Political instability • Australia’s international political relationships

5. The political system and ideology • 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.

6. The role of government in the economy • 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.

7. Political instability • 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.

8. The country's international political relationships • 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.

9. The current state of politics • Australia • Fiji • America

10. Australia • 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.

11. Fiji • 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.

12. America • 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

13. Impact of current political environment on tourism business. • 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).

14. Negative impact • 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

15. Positive 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.

16. Opportunities posed by political environment • Alliances • Governments working together • Government funding • Visas • Tourism White Paper

17. Alliances and Government’s working together • 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.

18. The Tourism White Paper Initiative • 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.

19. Visas • The Approved Destination Status Scheme (ADS) • Work and holiday visas

20. Threats posed by political environment • The Tourism White Paper • Terrorism • Political Unrest

21. The Tourism White Paper Initiative • 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.

22. Terrorism • The foremost threat impacting the tourism industry. • The September 11 2001 terrorist attacks in the United States • Safety and Security

23. Political unrest • Bangkok, Thailand • Fiji

24. Effects of Military Coups • 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.

25. Ideas or solutions for business. • 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.

26. Conclusion • 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.

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