Sydney Is Australia Premier Destination

Sydney Is Australia Premier Destination
Answer 1:


Sydney Is Australia Premier DestinationSydney is Australia’s premier destination city and the gateway to New South Wales (NSW), attracting 10.5 million visitors in 2012 with 4.3 million visitors staying directly in the City of Sydney’s local government area (LGA). Sydney currently receives approximately 50 per cent of all international visitors to Australia, exemplifying Sydney’s status as the nation’s only global city. The tourism sector makes a significant impact on Sydney’s economy, benefiting the city’s businesses and communities. Visitor direct expenditure contributed over $5 billion to the City economy in 2012. By its very nature tourism is a broad sector, supporting diverse industries such as transport, accommodation, education, and retail, cultural and recreational services. The city’s vibrant 24/7 tourism culture underpins the health and vitality of more than 10,000 businesses in the city and provides important employment opportunities. More than 6.8 per cent of the LGA workforce is employed in the city’s tourism industry, an estimated 26,700 people.

Composition of demand in tourists:

There were 768,500 visitors in the month of March ’17, an increase of 1.8% as compared to March ’16. Assuming that the visitors only on a holiday would take up the tourism package, for the fiscal year 2016-17, there were about 4,259,300 people visited annually. The growth in leisure tourism arrivals is 9.9% as compared to the previous year


In New South Wales, the number of domestic visitors with overnight travel was 29.3 Million for the year 2016. The number of international overnight travelers was 3.9 Million. Assuming that the tourism package caters to people who prefer overnight travel only, the total target segment would be around 33.3 Million according to 2016. Assuming the same yearly growth rate, the total tourists that the package could cater to would be around 36-37 Million


  1. Tourism Research Australia, International Visitor Survey (December 2012) and National Visitor Survey, (December 2012): Australian Bureau of Statistics (ABS) 8635.1.55.001 – Tourist Accommodation, Small Area Data, NSW, and December 2012.
  2. Estimated by the City of Sydney from Australian Bureau of Statistics (ABS) 8635.1.55.001 – Tourist Accommodation, Small Area Data, NSW, Dec 2012.
  3. Office of National Statistics, Measuring Tourism Locally: Guidance Note One – Definitions of Tourism, 2010.
  4. Estimated from ABS Census 2011 Data – Place of Work.

Number of visitors taking the package can be classified into two categories viz. organic, inorganic. All the organic visitors would come through tourism websites/blogs which are not promotional. The promotional campaign could give a visibility that covers 30 million of the overnight travelers who are visiting for leisure (this is an optimistic figure, considering the fact that most of the tourists would be digitally literate and would check for interesting packages to make their stay enjoyable). We could safely assume that 30% of the total visitors would be families with children and the rest would take up individual packages.

Finally, the estimated revenue would be the rate times number of visitors.

Answer 2:

The factors affecting tourism:

This would involve delving deeper into the demographics of the tourists and also the socio-economic factors surrounding the tourism in NSW. Since 50% of tourists visiting Australia go to Sydney, it can be assumed that it is the hottest tourist bed in the country.

The city is working with a variety of teams to improve the tourism and also increase the number of business conferences every year. The major factors that would affect tourists, not considering drastic global economic changes would be the ease of travel, availability of information, opening hours of the major attractions and cleanliness around the places. Accessibility of public transportation also plays a major role in improving the number of tourists incoming.

The majority of tourists visiting Australia are from US & Europe. And apart from these countries would be South East, Asia & India. If the immigration losses do not permit easy access to these countries, they will be losing on decent chunk of people from these regions.

If the fares of airlines go up drastically then it would be harder for tourist across the globe to visit the place. Most of the factors will not affect the local tourism. Factors affecting local tourism are described in the earlier paragraphs.

The local tourist would be affected if there are no tourist attractions coming around in the city. The local hospitality in Sydney should be maintained at a standard at which it could attract more people rather than other way around.

Destination marketing is very essential to strengthen partnership which would in turn maximize the potential visitor count. The city’s development strategies could identify a number of common themes that should be addressed in three avenues i.e. destination development, management, and marketing. All these factors would influence the visitor potential.

Since these factors require a lot of domain specific information, it would be hard to provide an estimate in the increase or decrease in tourism for an estimated circumstance. Clearly a lot of social economic factors are in play and all of these have to be measured in order to attend reasonable estimates for changes in the tourism scenario.


  2. Business Events Sydney, Annual Report 2011–12 pp. 26–29, Publications%20and%20resources/Documents/Annual%20 Report%202011-12.pdf
  3. Australian Bureau of Statistics (ABS) 8635.1.55.001 – op. cit.

David Marks

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