Abstract:
Countries covered: Australia
Industry Risk Ratings Synopsis
This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Tourism in Australia industry. Industry Risk is assumed to be 'the difficulty, or otherwise, of the business operating environment'.
The report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
This approach is new in that it analyses non-financial information surrounding each industry. Industries are scored on a 9-point scale, where 1 represents the lowest risk and 9 the highest. The Industry Risk score measures expected Industry Risk over the coming 12-18 months.
Industry Definition
Tourism is the business of providing services to international and domestic visitors (whether on day or overnight trips).'Tourism' is defined broadly in the international standards to include visitors whose primary travel purpose includes business, convention/conference travel, are on government business, as well as the more familiar tourism for leisure/holiday and to visit friends and relatives. This service based industry comprises of a number of tangible and intangible components. The tangible elements include transport, food and beverages, tours, souvenirs and accommodation, while the intangible elements involve education, culture, adventure or simply escape and relaxation. The Australian Bureau of Statistics also defines the tourism industry in terms of expenditure by visitors, as follows: The directly related (or Tourism Characteristic Industries) are: air and water transport, accommodation, cafes, and restaurants and food outlets, travel agency and tour-operated services, motor vehicle hiring and taxi transport. The indirectly related (or Tourism Connected Industries) are: clubs, pubs, taverns and bars, other road transport, rail transport, food manufacturing, beverage manufacturing, transport equipment manufacturing, other manufacturing, automotive fuel retailing, other retail trade, casinos and other gambling services, libraries, museums and arts, other entertainment services, education and ownership of dwellings. In this report, IBISWorld largely focuses on the Tourism Characteristic Industries.Report Contents
Risk Overview
The Risk Overview chapter includes sections on Industry Definition and Activities, Industry Risk Score and Risk Rating Analysis. The Industry Definition and Activities section provides a detailed definition of the activities carried out by operators in this industry as defined in NAICS. A list of the primary activities of the industry is also included. The Industry Risk Score section provides the Overall Industry Risk Score as well as the Risk Scores for each of the three types of risk covered that combine to form the Overall Industry Risk Score. These three types of risk are Structural Risk, Growth Risk and External Sensitivity Risk. The Risk Rating Analysis section discusses the underlying factors contributing to the Overall Industry Risk Score.
Structural Risk
The Structural Risk chapter looks at risk arising from within the industry itself and provides a detailed discussion of the industryв€™s level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Each of the key indicators is discussed in detail in this section.
Growth Risk
The Growth Risk chapter looks at risks arising from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Detailed analysis is provided discussing the reasons for the growth scores of both.
Sensitivity Risk
The Sensitivity Risk chapter looks at risks arising from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant (up to 6) external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate.
Industry Risk and Industry Risk Scoring Methodology
This chapter provides an overview of how IBISWorld defines Industry Risk and discusses the methodology used to arrive at an Industry Risk Score. There is also a table that provides a definition of the seven levels of Industry Risk.
Table of contents:
RISK OVERVIEW
Industry Definition & Activities
Industry Risk Score
Risk Rating AnalysisSTRUCTURAL RISK
Barriers to Entry
Basis of Competition
Domestic and International Markets
Industry Assistance
Life Cycle
Industry VolatilityGROWTH RISK
Recent Growth Analysis
Forecast Growth Analysis
SENSITIVITY RISK
Tourism - Visitor Nights: Total
Real GDP Growth
Tourism - Short-Term Arrivals: Total
INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY
What is Industry Risk?
The Industry Risk Scoring Methodology
Risk Rating Score Definition
Services 