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Executive Summary As economies around the world have begun to recover, there has been a comparable increase in the demand for travel, and it is anticipated that the surge of growth in companies connected to tourism will be immense (Craig, 2021). After the COVID-19 pandemic, tourism showed an incredible amount of resilience, and it is continuing to flourish because to the effective rollout of the disease's vaccine and the community immunity that has developed in certain locations. As a result, many nations are loosening their regulations on travel, which has led to an increase in the demand for cross-border tourism and paved the way for the growth of this industry. Because of advancements in tourism and hospitality, a number of trends have surfaced, including the creation of megatrends that have the potential to have an effect on these industries for a considerable amount of time into the future. This can encompass the following six primary megatrends: More from less, Going, going … gone?, The silk highway, Forever young, Virtually here, and Great Expectations (CSIRO, 2012). With the use of secondary research, this paper examines the significance, effects, and features of six key CSIRO trends in the hospitality sector that connect to the industries of tourism. This report will contain some recommendations for the expansion of Australia's tourist and hospitality industry in the future. These recommendations will be derived from the identification of these global megatrends and the examination of their impact on the tourism industry.
Table of Contents
- Executive Summary.....................................................................................................................................
- Introduction.............................................................................................................................................
- Mega-trends in tourism sectors based on research and theory..............................................................
- Opportunities and challenges for tourism-related industries..................................................................
- 3.1. Opportunities
- 3.2. Challenges
- Political, socio-cultural, and economic factors that impact the emerging global tourism markets.........
- 4.1. Political
- 4.2. Socio-cultural
- 4.3. Economic
- Key drivers and trends that influence the megatrends..........................................................................
- Conclusion.............................................................................................................................................
- Recommendations.................................................................................................................................
- REFERENCES..............................................................................................................................................
Bank, 2021). China and India are the two economic pillars of the modern world. This economic transformation will give Australia access to new export industries, trade connections, business models, and cultural linkages. The flow of visitors, money, and ideas from Asian nations into Australia's economy and society will increase. The Asian Century is about to start. The next megatrend is Forever Young. The population's aging is a benefit. The population of Australia and many other nations is aging. The proportion of Australians aged 50 and older is projected to be 32% in the nation's capital and 39% across the country in 2020. (Australian Government, 2022). Elderly people offer a multitude of abilities, expertise, information, and guidance. However, there are some problems brought on by demographic trends and an aging population. The growing retirement savings gap in Australia and the sharply rising cost of healthcare are two of these issues. People's lifestyle, the products they desire, and the form and operation of the labor market will all alter as a result. Another megatrend is Virtually here. In a world of advanced connection where individuals, governments, and companies are far more deeply involved in the virtual world than ever before, this megatrend analyzes what might occur. More and more, we are using the internet to communicate, provide and access services, find information, and carry out tasks like working and shopping. Every element of life is moving to internet platforms, including communication, education, and employment (Hajkowicz et al., 2012). Modern workers are becoming increasingly interested in remote working options, and private companies are even investing in the office property sector (Buckley et al., 2015). Individuals may now connect with new people and access information in a variety of ways thanks to digital media, which is causing the trust in conventional information sources to decline. The world of digital connectivity is practically here. Lastly, Great expectation is a buyer, sociocultural, demographic megatrend. It examines the growing value of social connections and the preference for experiences over items. The need for tailored services to satisfy each person's particular requirements and desires is also examined by this megatrend. This development has ramifications for the Australian retail and other delivery service businesses, forcing them to reinvent their offerings to be more distinctive and centered on the needs of the customer. But the market's condition will go in two opposite directions: the increasing wealthy elite will seek high-end experiences from the goods and services they
purchase, while the underprivileged will just demand the requirements for surviving—water, food, shelter, clothes, and security. Furthermore, the overuse of social media and digital communication seems to have made interpersonal interactions even more important, which has increased the need for face-to-face contact.
2. Mega-trends in tourism sectors based on research and theory The megatrend, which is described as "a big change" with effects throughout the coming decade (CSIRO, 2012), is primarily driven by external political, economic, technological, social economic, and environmental factors rather than by internal dynamics inside the tourism sector (Dwyer, 2018). Figure 1: Six mega-trends of the world (Source: CSIRO)
kinds of community movement, which results in new competition between species. Through its effects on climate change, tourism also has an impact on biodiversity (Tomassini, 2019). The silk highway Since it has been shown that consumers with different income levels have varying views of service quality (Chiu, 2002), the developing middle and upper income groups have a particular need for travel. The "silk highway" encompasses the rapid urbanization trend, the geopolitical unrest, and the transition from industrialization to cutting-edge technology. Additionally, it promotes new linkages with Australia, where visitors from Asian countries will have a great impact on the country's culture and economy as well as the global economic tendency of immigration based on areas (CSIRO, 2012). As a result, there will be an increase in new markets, business connections, hotel investments, and cultural ties with Australia. Forever young As fewer children are born, longevity causes the hotel industry to turn its attention to the elderly. As a result, by 2030, it's expected that customer expectations and service practices will change to fit consumers’ goals as well as modifications to hotel design (Research and Market, 2021). The growing number of senior tourists, both domestically and abroad, creates opportunity for the tourism and hospitality industries to increase their offerings to this relatively untapped market. The demands of older groups are significantly more complex and varied than the commonly believed needs of senior individuals, who are described as being "the cheapest product," according to a prior study (Wee & Liow, 2022). Virtually here Technology has made many user requests easier to meet (Bigne et al., 2020). The use of technology has increased consumer involvement in tourism services in a number of ways, including enabling consumers to search for and connect directly to tourism services as well as use social media (Sun et al., 2020); allowing them to participate in virtual reality involvement that alter their interpretation and spending of hospitality industry; and allowing them to co-create value by taking on various roles when using self-service technology (Bigne et al., 2020).
Great expectations The phrase "Great Expectation" relates to society's and consumers' rising standards for pleasurable and unique experiences in social relationships and the physical environment. In the previous ten years, tourism has had high expectations, and this has acted as a driver of economic growth (Scott & Gossling, 2015). For instance, hotels will increase the variety of self-service choices available to visitors during their stay, emphasizing positive experience elements and customizing the visitor experience. For tourism businesses, providing a sophisticated client experience that is personalized in the case of travel services appears to be a key objective (Scott & Gossling, 2015).
3. Opportunities and challenges for tourism-related industries 3.1. Opportunities Forever Young, The Silk Highway, and Virtually Here are the three primary topics that have enormous potential for the hotel industry. The "Silk Highway" trend predicts a significant rise in Asian travelers; especially, the surge in Asian and Chinese visitors to Europe, and Australia will keep rising as China's middle class continues to expand, leading to a number of benefits to the current hotel industry worldwide and Australia particularly (Erdem & Tetik, 2013). Over the next ten years, there will be 30 million more families with annual incomes of at least $100,000. This will increase the wealth of the tourists and tourism markets as people choose to travel more frequently, driving up spending and boosting the hotel industry (Mijinke, 2021). The population of the world, not just that of Australia, is experiencing a rapid aging phenomena. Given that this senior demographic is anticipated to spend more on travel and engage in more active global exploration, this circumstance presents the tourism sector with great prospects (Mijinke, 2021). Additionally, because young people today appreciate technological advancement, the use of smart non - contact methods, active online conversations and applications, or robotic devices in the tourism sector will increase customer requirements and expectation, boosting spreading opportunities. This is especially true in the context of COVID- with the new approach of the tourism industry.
4.2. Socio-cultural This kind of factors has a great impact on the global travel and hospitality industries. As the tourist places reflect the cultural traits of each specific tourist attraction, tourists enjoy the interaction between travelling and history from a historical and cultural perspective. Destinations that meet their needs will experience great growth as more and more tourists seek for intimate encounters through exposure to other cultures. This is related to the megatrend "Great Expectations," which is significantly changing the hospitality and tourism industries around the world for the better (Kelly et al., 2017). In addition, because each demographic group—such as older or younger visitors—tends to favor a certain culture, adjustments in the hospitality industry's ideas based on future cultural differences may be necessary in order to be more flexible, as part of the massive "Forever Young" trend. 4.3. Economic Socioeconomic factors have a significant impact on the global travel and hospitality industries. The four elements of socioeconomic factors are: availability of accommodations, amenity supply, supplemental services, and accessibility (Sharma & Khanna, 2021). Since tourism and hospitality businesses cannot survive in a remote place, damaging the industry, they should be located close to transportation sources in the outreach section. Accommodations are important because they satisfy visitors in a variety of ways and increase a nation's revenue from this industry, which could aid in the expansion of the tourism and hospitality industries. A crucial socioeconomic factor, global income, directly affects the prevalent "Silk Road" trend in the hotel industry.
5. Key drivers and trends that influence the megatrends Demographic Groups As already indicated, the growth of senior groups is rapidly altering the demographics of Australia particularly and of the entire world. The "Great Expectation" and "Forever Young" megatrends may be strengthened in the future as a result of this driver, which will substantially influence the changes in expectations. The "Forever Young" trend is marked by an aging
population, differences in pension benefits, and a longer life expectancy; costs for healthcare are going up, diseases due to bad lifestyles are on the rise, and people become more aware of what they consume. As active travelers who are willing to spend more on vacations, the aged represent a positive trend for Australian tourism. Technology According to the "Virtually here" megatrend, technological progress has altered travel habits with its sophisticated features for the tourist sector during the pandemic (Kelly et al., 2017). The development of virtual tourism, made possible by technology, has a positive impact on the environment by reducing emissions of greenhouse gases from transportation. The demand for "Virtually here" with cutting-edge technology and distinctive inventions helps us get ready for the future. More so than at any other moment in history, it appears. Traveling movement The Covid-19 epidemic hinders the tourism sector since several jurisdictions have enforced travel and social gathering bans in an effort to stop the spread of the illness (World Tourism Organization, 2022). This motive will have two opposing effects: it will strengthen the "going, going...gone" megatrend and lessen the power of the "silk highway." From a different angle, modern technology may be able to increase access to a variety of hitherto undiscovered tourist places (Kelly et al., 2017). In response to labor market needs, especially in the aftermath of the COVID-19 epidemic, hotels will become more adaptable and expand their products; hotel market pricing will fluctuate in the interim. Governmental policies Despite the fact that Covid-19 impacts business operations, firms across all sectors anticipate "business as normal," and the tourism sector is not an outlier in this regard (Sharma & Khanna, 2021). During the COVID-19 period, the government has heavily intervened in the tourism industry (World Tourism Organization, 2022). Additionally, cross-border travel bans have been lifted as a result of a number of significant political developments. The government's goal to track individuals crossing international borders and its ambition to make it simpler to monitor
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