Small business

Is Australia’s tourism industry up to scratch?

January 9, 2012
Queensland.

Many tourism operators let Australia’s natural beauty do the work for them. Photo: Glenn Hunt

When did you last feel pampered on an Australian holiday? That is, regardless of price, you felt a tourism operator went out of their way to make your holiday feel special. It might have been friendly hotel staff, an excellent waiter, or a business owner who implied nothing was too much trouble.

I know such tourism enterprises exist. The trouble is, too many slack operators drag others down. They have little regard for repeat business. Get as much as they can from tourists on their first and last visit, seems to be the mantra.

They let Australia’s natural beauty do too much of the work for them and seem lazy compared to overseas tourism operators that are far more professional.

What’s your view?

Are standards in Australia’s tourism industry falling?

• How do our tourism standards compare to those overseas?
• Have you encountered slack, overpriced tourism joints?
• What are the real problems in Australia’s tourism industry?
• Have the federal and state governments done enough to help the industry?

I feel sorry for passionate tourism operators who lose repeat business because terrible operators in their tourism “ecosystem” turn a potentially great Australian holiday into a good or average one.

Consider my recent family holiday to the Whitsundays. The accommodation was excellent: attentive staff, great service and zero stress. But the restaurant in town took an hour to serve meals, they did not arrive at the same time, and the waiter could not remember the orders.

The ice-cream man in the main street snapped at a nice old Italian woman who did not realise a queue had formed, and an island resort forced patrons to line up for 30 minutes on a hot day for an awful lunch. Not once were we asked where we hailed from, how our holiday was going or had a tourism attraction recommended.

It’s hard to feel sorry for the tourism industry when standards are this poor.

Yes, I’m nit-picking, but it’s a similar story in far too many Australian tourist destinations, where good operators are let down by poor ones, and innovation is lacking.

What would an American tourist think of such patchy service? I still had a good holiday, but not so good that I would rush to return. I thought, “Next year, I’ll spend the same amount on an overseas holiday that feels like a real holiday, rather than just staying in another town.”  

To be fair, Australia’s tourism industry is under intense pressure. The global financial crisis saw more international travellers stay home, and our high dollar and cheap airfare packages encourage record numbers of Australians to travel overseas. Heavy discounting has forced some tourism operators to cut costs to maintain profit margins. All too often, service is the first casualty.

The short-term outlook for tourism is poor. “Australia will continue to lose its share of the global international traveller market as many new destinations emerge,” says business forecaster IBISWorld in its latest tourism industry report. IBIS says an equivalent of 30.2 per cent of Australia’s population takes an overseas trip each year and forecasts this to rise to 50 per cent by 2016-17. That’s a great opportunity in itself for nimble entrepreneurs who can cash in on Australia’s overseas travel boom.

Thank goodness many more Chinese tourists this decade will help offset less domestic travel in Australia.

Even so, it will be a terrible shame if more tourist operators give up on the domestic market as they chase Asian tourists. Our tourism industry has too much of a natural competitive advantage – the country’s vast beauty – to lose share to other destinations.

I’m no tourism expert, but I’ve seen too many industries respond poorly to structural and cyclical threats (retail is an example). The main solution has been to cut costs, damage product quality and wreck brands. Company morale falls and staff only turn up for the pay cheque. Decades of hard work are lost in a few years as even loyal customers start to give up on the product. Innovation and great leadership are lacking.

I wondered why tourism operators in my holiday town did not work closer together and find a way to compete and collaborate at the same time by cross-promoting attractions. I wish more tourist towns adopted a service code of ethics for tourism operators and enforced it. Maybe more stringent accreditation for tourist operators is needed. And I wonder if the quality of customer experiences in Australian tourism are audited enough and benchmarked against other countries.

I wasn’t asked once about the quality of my holiday or any product or service bought.

As an observer outside the tourism industry, it seems so much money is spent (and often wasted) on attracting tourists to Australia, and not enough on improving their travel experience and encouraging repeat business. Do enough international travellers to Australia rave about their experience upon returning home? What about domestic travellers?

A relative who recently returned from Hawaii gushed about the experience and customer service (right or wrong, tipping makes a big difference.) I reckon Far North Queensland has Hawaii covered for natural beauty, but with too much patchy service and standards in Australian tourism, it’s getting harder to make the case to holiday locally – at least for big trips.

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72 comments so far

  • Having just come back from a trip to the Whitsunday's I can say that I felt like my hit pocket had taken a massive hit. My friend and I both said we could get the same holiday at a much cheaper cost if we had gone to Fiji or some other overseas destination. We stayed at a 5 star resort (which was beautiful) where our linen and towels were never changed in the 4 nights we stayed there, we never once saw a staff member in the time we stayed either. The room was unlocked with the key in the door when we arrived.
    We decided to go to Hamilton Island for the day - at the cost of $125 just to get the ferry over there!!! What a rip off!!! We then went to get a golf buggy at the cost of $80 for 3 hours (another rip off), we were waiting in line for about 20 minutes when we got sick of it and thought we would just do it on foot.
    We could get the same holiday flying to Fiji at the same cost, stay in 5 star accommodation with all our meals included with far better service and stay longer - why holiday in Australia??? Next time we will be going overseas.
    People are smarter now with the invention of the internet -we can do all our research and sums and figure out the best deal.
    Customer service standards need to be lifted and prices need to be brought into line, come on, $125 to catch a ferry to Hamilton Island from Airlie Beach - its absolutely ridiculous!

    Commenter
    Magic
    Location
    In my chair
    Date and time
    January 09, 2012, 11:42AM
    • So sure you can get a holiday over there cheaper, it's called slaves.
      As for your sheets? But do agree on towels. Oz is turning into a pack of whingers. I just want friendly, smiley faces to counteract the costs.

      Commenter
      emma peel
      Location
      avenging
      Date and time
      January 09, 2012, 9:51PM
    • @emma peel I've holidayed in Japan. The hospitality & service everywhere were world-class & exceptional. The Japanese certainly don't get paid slave wages nor work under slave conditions & yet they were able to provide good, friendly & coutreous service.

      Commenter
      James
      Location
      Date and time
      January 10, 2012, 10:13AM
  • living with an ex-tour guide for incoming Chinese tourists, I have been told most Sydney tourist sites are 'boring' and do not update from year to year. So - once a tourist has visited once - no reason to come back.

    I've even seen an Asian tourist bus chuck at U-ey at the Opera House cul-de-sac off Circular Quay with the onboard tour guide saying as they swung around - 'on your left you will notice the world-famous Sydney Opera House ...' and continue on without stopping.

    My understanding is most visitors love Australian relaxed friendliness and wide-open spaces - which is good, because modern tourist attractions are few and far between.

    As an Australian who has faithfully lapped most of our coastline, I now see no reason to go back - the relative homogeneity offers no interest compared to the variety of cultures and places overseas for the same or cheaper prices.

    When I want good service, these days I go to cheap Japanese restaurants. Efficient, effective, good quality, good prices, friendly service with a smile, good value - excellent !

    Commenter
    Nota bene
    Location
    Sydney
    Date and time
    January 09, 2012, 11:44AM
  • As you expressed the answer is simple they dont care about repeat business and try to suck everyting out of you.

    A large problem that Australia also has is the higher pay and conditions that the Australian govt forces tourist operators to pay, employees dont feel the need to offer exceptional service to customers becasue they know that the boss has to pay them regardless of how their customers go home or weather they can bring in new business or not.

    Everywhere you go in Australia service is terrible compared to other countries, especially compared to the USA, employees can be hired and fired alot easier and the business owner has more direct control over his business and the type of people and experience that it is providing for its customers.

    Even small things in USA are better from the portion size of your meal and the amount of meat they put in a sandwhich to unlimited refills of coke at almost every restaurant to prompt service which most of the time was not too pushy.

    Maybe a way of getting better service from employees is to make them work for tips or the company charging a gratuity charge to the customer or 'encouraging' the customer to pay a service tip if they believe that the service went above and beyond what was required.

    Commenter
    Clint from Newtown
    Location
    Date and time
    January 09, 2012, 12:03PM
    • Errgh so you judge a good holiday with the amount of meat & coke refills. Darling, how is your waistline?

      Commenter
      emma peel
      Location
      avenging
      Date and time
      January 09, 2012, 9:54PM
  • Most of these "hospitality" employess are poorly trained (if at all) by the tourist based businesses they work for. And, working for tips?!?! what do conservative pollys say low salaries, "pay peanuts you get monkeys"!!! BTW, I would have to say that Qld, is definitiely one of the major proponents of poor service.

    Commenter
    pete down south
    Location
    Date and time
    January 09, 2012, 12:44PM
  • Firstly, I think service in Australia is patchy. There's good service and bad service. I stayed at a great B&B in Tassie where the host asked us how our stay was and were most helpful. Ditto with a wonderful cave guide. I think smaller operators who care about their staff (and staff who care about their work) provide better service.

    I don't think tipping is the way to go. I found service in the US patchy and staff in non-tipping roles could be incredibly rude (they don't get tipped so...why bother). Even those in tipping establishments.....some great, some terrible.

    I don't know if it's the lack of training or support but it's almost a vicious cycle of.....tighter budgets, fewer staff, less customer satisfaction

    Commenter
    hmmm
    Location
    Date and time
    January 09, 2012, 12:45PM
  • the strong Aussie $ doesn't help, bu even without that, Australia is generally overpriced and this of course imapcts on tourism. Even if tourists are getting good service, and it appears that they aren't, the prices here are just ridiculous compared to most of the First World, and unfortunately our useless government is doing absolutely nothing to address the exorbitant cost of living

    Commenter
    Lady
    Location
    Melbourne
    Date and time
    January 09, 2012, 12:49PM
    • "unfortunately our useless government is doing absolutely nothing to address the exorbitant cost of living"

      Well not absolutely nothing! The pollies and department heads got a 31% payrise. I'm sure that will address any personal concerns they may have about the exorbitant cost of living.

      Commenter
      enno
      Location
      sydney
      Date and time
      January 09, 2012, 2:03PM

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