ECONOMIC STRUCTURE OF TOURISM AND HOSPITALITY INDUSTRY

INTRODUCTION
The Australian Industrial classifies the Hospitality industry as containing businesses
offering lodging, food and drinks like restaurants and delivery food services; pubs, bars,
motels and other leisure and leisure clubs. With growth due to factors such as an
increasing 'foodie' community, interest among many individuals to own a hospitality
industry, demographic growth and an rise in customer demand, this sector has been
rising gradually over the last 5 years. The population of food and beverage companies
is comprised of 777,300 employees making it one of Australia's biggest working sub-
sectors. In 2015 alone the clubs industry employed 130,000 workers.
Park Hyatt Sydney is an elegant luxury residence that beautifully personifies modern
harbor living between the Sydney Opera House and the Harbor Bridge at its exclusive
location. It is located with green and gold Sydney ferries on the Sydney harbor. The
Hyatt Company came into existence on September 27, 1957 when the Hyatt House was
bought at Los Angeles International Airport. Hyatt has also expanded geographically
and by purchases, with the main development resulting from the 2004 purchase of
America Suites and then it was later rebranded as Hyatt Place .Hyatt has more than
100,000 staff globally, serving nearly 900 assets across 20 brands in 60 countries.
Park Hyatt Sydney is one of the biggest and largest hospitality industries of Australia
which provides the best accommodation and food services to people. In this report we
are going to provide description about Park Hyatt Sydney and also going to analysis
about the overall market structure of this industry. There will be discussion about the
demand and supply condition about the hospitality and tourism sector of the Australia
and discuss about the demand elasticity of this industry. At last there will be the
discussion about the current structure of the country and analysis of the situation with
substantial impact cause in this industry.

Background of Park Hyatt Sydney

The Hyatt Regency is the 5-star brand assign. Hyatt Regency covers the widest
spectrum of hotel styles, with specific assets providing a wide variety of professional
facilities and dining choices designed to suit the desires of meeting, corporate travelers
or resort vacationers. Hyatt Regency helps all visitors to feel adventurous and refreshed
when they are going to function, to cool down or to join in festivity. Properties vary in
scale from 200 to more than 2000 rooms and can be located in metropolitan, residential,
hotel, conference, and resort destinations worldwide. The business hotels at Hyatt
Regency offer ample meeting and conference services that are proportionate to the
amount of bedrooms or consumer demand. Guests at the convention hotel are
sometimes part of a special party, meeting, or conference. Guests at corporate hotels
are mostly independent business travelers. Resort hotels host couples searching for a
missing member, families spending a break together and corporate organizations
searching for a comfortable place to organize company meetings. The assets in Hyatt
Regency are famous throughout the world with their expedient and strategic positions
within major cities. The high standard of personal care guest support and the wide
selection of luxuriously accessible business facilities are both associated with the brand.
The Hyatt Company is the 9th biggest hotel chain in the World and more than 320
privately owned assets worldwide. This company specializes in the occupying key
positions in the inner city and representing mainly business customers. There are
several chains run by Hyatt Hotels Company. The Hyatt Regency brand is the
company's oldest brand, with the introduction of the Grand Hyatt and Park Hyatt marks
in 1980. Some of these properties are designed as "resort" properties and may include
spas or other leisure facilities. The property has an additional following chain, like Hyatt
Place, planned as a limited service package to the business traveler. In 2005, Hyatt
purchased an extended stay company, Summerfield Suites, which boasts 34 sites in the
United States. In April 2007 Hyatt introduced a new company too.

The market structure of Tourism and Hospitality industry in Australia

The Australian hospitality and tourism sector faces significant challenges. Economic
instability, labor market issues, natural disasters and other issues have significant
negative consequences for the entire sector's growth. Since the hospitality sector is
labor-intensive, solutions to the standard in human resource management
predetermines the achievements and shortcomings in hospitality firms. The hospitality
industry in Australia is appropriately regarded as one of the main sources of income and
incomes, as well as a rare supplier of significant job opportunities. Nonetheless,
Australian hospitality’s expectations for economic development are very positive. The
sector accounts for at least 15 % of national GDP and currently employs over 500,000
workers. After a sustained time of restricted new production, developers have started to
understand Australia's strong demand dynamics and a variety of innovative hotel
commodity is now being developed in the main markets. As of January 2020, from a
total of 332 projects, there are a total of 57,316 rooms in the pipeline until 2028. Today's
Australian hospitality and tourism industry should leverage HRM’s growth capacity to
achieve its long-term sustainability goals. The amount of employment for the
accommodation sector has stayed fairly constant with some small variations since 2000.
Following a protracted span of restricted new supply, developers have started to realize
Australia's strong demand dynamics and a variety of exciting hotel commodity is now
being developed in the major markets. Although the recent increase in supply has
influenced hotel output in most major markets in Australia, long-term forecasts are for all
capital cities to return to increase. Recent STR estimates suggest that increasing
competition is having a dampening effect on occupancy and prices in all major markets
as the amount of new rooms added is rising faster than increased rooms sold. For YTD
July 2019, Sydney and Hobart are achieving occupancy of over 80 percent, with
Melbourne falling just below that. Sydney was the national leading performer in terms of
RevPAR.
Factor that influence demand and supply of tourism and hospitality industry
Being the largest commercial region in Australia and the gateway for others large
company and recreational passengers in the world. Segment, the market for Sydney
hotel room nights works as hotel sector general output barometer around the State-
Country. The place as Australia's hub of industry implies Sydney is therefore
comparatively more vulnerable to external influences which can have an effect much to
the tourist sector than in many towns. The industry in the Sydney Tourism Area consists
of 107 hotels with a minimum of 18,631 rooms in December 2003, of which the
overwhelming majority is in 4 and with category 3 stars. Additionally 67 residential
complexes are serviced overall 4,899 units. In the city center, the minimum number of
space stocks for more than 10,000 guest rooms and condos serviced. Hotel availability
in Sydney got a substantial boost in the run up to the Olympic Sports, reporting
cumulative average development levels of over 11 per cent 1998 until the year 2000. No
new additions were reported from late 2000 until recently and the stock of
accommodation in the broader metropolitan region significantly decreased, with around
3,500 rooms. They were transformed to residential stock, mostly within the CBD fringe
region.

There is also a slight decrease in room supply inside the 5-star category when both the
Wentworth and the Hilton take up 900 spaces together from the Construction business.
Both hotels would open again in late 2004, Hilton repositioned herself as the chosen
meeting hotel went worth is to be branded as a Sofitel again. Around 50% of Australia's
tourists are to Sydney, producing more than 35 million nights for tourists in 2003. While
approximately 57 per cent of the incoming population visitors come for a holiday to
Sydney, a substantial proportion of the market employment or employment linked,
although often live with friend and family. As a result, only about 16% of foreign
travelers live in hotels. In 2003, it produced about 5.8 million hotel room nights. The
international market, which accounts for just over half of long-term rise in overall hotel
room nights in the region compounded average growth trend between 1989 and 2003 of
about 6 per cent. Following a very sharp rise associated with the Olympics in 2000,
demand decreased by 2.6 per cent over the period 2000-2003. Particularly owing to
drops inbound visits despite continuing health and safety during 2003 current Business
Problems. At a more constructive side the proportion of foreign hotel guests have risen
from 15.7% to 16.4% amid a drastic decline in overseas tourist nights nearly 14 per cent
spended in the City of Sydney. Equally significant is the domestic market which
generates 22,4 million visitors nights in 2003, about 32 per cent of which were spent in
hotel rooms,7.2 million hotel room nights in all. Noteworthy, even though sum domestic
tourist nights deteriorated year after year in the Sydney area. Domestic estimates
indicate a modest rise of 3.7 per cent in December 2003 spent nights in hotels 1.4 %.
The domestic business will not expand as fast as the foreign sector, at a cumulative
long-term growth trend of 2.5 per cent per year. This boost the trend is even more
unpredictable and moved from the foreign sector 11.4% rise from 1997-2000 to a 6.7%
decrease from 2000-2003; Assigned to various impeding causes like ansett downfall as
along with the relatively poor economic conditions of recent years. The connection
between rise in supply and growth in demand is of concern which can be specifically
described for the domestic market but which is not discernible in response to external
competition. The explanatory statement the trend is that hotels are able to deliberately
redirect demand from lower ones domestic oriented divisions by competitive pricing
strategies, while not reacting as explicitly to the foreign market pricing techniques
updated. Sydney's business success currently shifts approximately in stages ten years,
guided directly by growth in supply and its effects on the occupancy house. With the last
production inflow ended in 2000 concert to screen the Sydney Olympics. No new growth
in supply is expected for the foreseeable future and the performance of hotels.
Anticipated a substantial increase as demand continues to rise. Average room levels
are likely to begin to increase, as the following the round of rate contracts will represent
changes in occupancy and reportedly, hoteliers are searching for drastic cost rises to
reverse shattered land the last couple of years. The forecast for Sydney overall the
outlook is positive, with significant changes expected for both occupancy and efficiency
scores.
The Australian Government allocates significant sums of its budget to Tourism Australia
carry out the task of promoting tourism to Australia. Tourism Australia was established
on 1 July 2004, combining the collective expertise and knowledge of four separate
organizations: A Tourist in Australia, Commission; Travel Development and Travel
Forecasting Board. The TA allocates capital to businesses and industries, with minimal
money segment with the largest potential yield (the amount of spending on Australian
by foreign tourists Goods for tourism). A substantial proportion of this spending goes to
four main markets of origin, including Japan, New Zealand, Big Britain, and the US (see
Figure 1).
The first in the case of Australian demand for inbound tourism such as an analysis
undertaken by Crouch et al 1992 covering the period 1970 to 1980 showed that
advertisement expenditures were incurred good results on tourism elasticity demands
varying from 0.11, 0.2, 0.25 and 0.14 for USA, Japan and UK and as a New Zealand.
Also, TA commissioned reports on Access Economics (1997, 2002) published an
elasticity of the TA marketing expenditure (0.12 in 1997 and 0.15 in 2002) as an
aggregate elasticity not relevant for USA, Japan, Great Britain and New Zealand.
The Park Hyatt’s latest selling set a benchmark for price per space charged
underpinned by the legendary position and consistency of the Australian industry room.
Maximum room challenger the bidder has allegedly offered the property. Investors in the
existing syndicate with Hyatt in stapled arrangement retention of ownership powers
under a long term arrangement.

Analysis and impact of recent situation in Hospitality industry

When COVID-19’s impact expands around the world the main concern for policymakers
and corporations is their people's health. Although this emphasis should continue, the
consequences for economic development and corporate earnings will contribute to rapid
sell-off around the globe in financial markets. The impact on both the revenue and
supply chains is huge, and not yet predictable. Decisions to shut down hotels,
restaurants, theme parks and cinemas, not to mention the whole disruptive effect of the
travel ecosystem, all have a major impact on world tourism. Operators and creditors are
seeking to reduce the challenges of cash and working resources and keep in good
touch with their partners. That is a percentage greater than was initially anticipated
going into the study. A greater proportion of hotels based in regional markets 69 %
expect to stay open relative to their equivalents in State Capital 65 % given the fact that
a larger proportion of participating regional hotels have already closed down. There is
no significant gap between properties in the pattern of occupancy expectations,
irrespective of venue, while Melbourne hotels plan to report lower output in Q3 2020
than in Q2 2020. That may be attributed to the imminent volume of new supply for
business entry. The global corona virus pandemic was having its first tangible effects on
Australia's hospitality industry. Company owners need to be vigilant now because the
whole market shifts through the future, under tremendous financial and organizational
stresses, to mitigate immediate and permanent risk to their companies. The Covid-19
pandemic has caused a whopping 70 percent of companies in the hospitality sector to
cut their staff's hours and 43 percent either to fire or place them on unpaid leave, new
data reveals. Approximately 78 per cent of companies in the housing and food services
industry have undergone improvements to their staff, including 70 per cent who briefly
shortened working hours.
The effect of hospitality demand is greater than many other sectors, but even among
hotels, air and cruise ships, and restaurants, it is varied. Hotels and airlines run at half
capacity with both corporate and recreational passengers canceling scheduled journeys
and not booking them for the immediate future. This is enthusiastically felt in restaurants
where internet transactions, which previously constituted a fraction of the amount of
sales, have become the main source of revenue as company moves totally off
premises. Near-term innovation in hospitality-wide technologies should concentrate on
addressing urgent problems and creating or improving new market prospects when
existing sales sources have collapsed. Organizations that is agile to change digital
strategies to optimize staff to processes while using data to boost consumer
engagement and gain loyalty can take a faster road to recovery.

Conclusion
The above report has discussed and analyzed every detail about the tourism and
hospitality industry in Australia. It also has researched about the history and background
of Park Hyatt Sydney details and market structure to make the report represent properly
with all the services. There is proper demand and supply data and discussion provided
of 10 years so that management board can make a better company strategy for the next
5 years.