Growth Potential for Darwin Tourism

Australia may be world's smallest continent, but it's the world's largest playground for outdoor activities and tourism to explore nature in it's purist form. Comprised of eight major territories, this island nation offers the best in hiking, camping, water sports and nature trails with some of the best action found in the Northern Territory. Australia has enjoyed exponential population growth at a steady rate from its early colonization to the present. From a population of 10,000,000 in 1960, Australia has more than doubled its size in the millennium. In addition to its native people, Australia is a magnate to thrill seekers all over the world. But, can the Northern Territory keep pace with the growth of the rest of the country?

Travel and Tourism Trends.
Australia has suffered a depletion in the foreign traveler market with sharp decreases in visitors from Japan, primarily in the age group of 20 to 29 years old. To sustain Darwin as a top travel destination, the government and private sector need to work together to create an updated image for the nation to bring new visitors and win back repeat business. Economic recession may be partly to blame for the downturn, but affordable tour operations could be targeted for short term travel to the Northern Territory only.

In contrast to the Japanese, the German and British tourist market to Australia has spiked from 2004 and 2005 with increased multi-destination stays leaping from 32 nights prior to 2004 to over 42 night stays. The European demographics may be older, more established patrons, but The Northern Territory has plenty to offer with prime destination targets suitable for a younger, less financially sound market.

Savvy marketing for The Northern Territory will include shorter itineraries with Darwin as the base, adding 5 to 10 night packages to include backpacking and hostel accommodation in Alice Springs and environs. With plenty of budget crunching tours available, targeted at a younger and more physically fit market, Darwin shows potential to win back their Asian market.

The U.S. travelers to Australia tend to be multi-destination visitors buying packaged tours from travel brochures. The favorite destination areas are Sydney, The Great Barrier Reef and Melbourne with an average stay of 24 nights. The absence of Darwin is partly due to the lack of marketing from The Northern Territory. With little presence in North American travel brochures, the American traveler does not have an option to visit Darwin. The region's target market are those U.S. travelers that are interested in Queensland, and may extend their vacation a few days to the nearby Northern Territory. And when winning an American traveler, the brochure itinerary and tour price should be inclusive of transportation to and from the destination.

Infrastructure To Support Growth.
The growth to Darwin's infrastructure is key to the economy, with much of the city's economic strength needing to be free from dependency on the travel and tourism trade. Exponential growth should occur on a natural scale, as all other non-tourists cities in the world. But, in order for the residential population to sustain itself, the growth rate must occur at a steady inclination. Rapid expansion could overburden the tax payers and stymie the economy, creating havoc on the region and putting hotel and tour operators out of business. The building of roads and bridges must be carefully calculated by county officials and ensure the land is ripe for commercial and residential development. However, the government has no concrete assurance that the private sector is ready or willing to invest at the time the county needs to recoup its investment. The development strategy for a new municipality can be likened to a game of "chicken", in a challenge to see which side will flinch first.

Though Darwin has the open space for ready expansion, the economic resolution may not be so easy. With a thriving population and economy, comes the need for increased health care facilities, educational institutions and an integrated highway system, with much of the financial burden falling on the government. And for the private sector to muster the courage to invest in travel and tourism, growth cycles need to be recorded regularly showing exponential growth in the industry. However, without astronomical funding from both private and governmental parties, the expansion process may be a "Catch 22" situation, with cagey investors waiting to fill supply and demand hotel and resort building only when necessary. With such cautious behavior, an explosive growth rate for Darwin may take another generation.

The need for educational institutions providing a degree program in Tourism and Hospitality is lacking in the Northern Territory. Without inspired and qualified travel and tourism graduates, the region is sure to stagnate without fresh ideas. The determined tourism entrepreneur may travel elsewhere for this degree, but Darwin must be held accountable for this educational oversight.

Building Darwin to accommodate and increased amount of tourism requires added staff and support services such as transportation, food and beverage. But, with this commercial expansion comes the need for lower and middle income housing. Condominiums are the most cost effective source for housing, but may not be a welcome addition to the Australian outdoors lifestyle. Once built, there is no guarantee that the locals will invest into communal accommodation.

Although condominium units would provide affordable housing at a much lower development cost to investors as compared to the construction of single family residences, the potential for over expansion can cause mobility issues with traffic on interconnecting highways from the residential to commercial outlets. Too over build in a concentrated area will stagnate the highways, making it a day of frustration and grief for tourists anxious to get to their destinations. For a healthy growth rate in Darwin, the government must be accurate in their assessment for paved roads and freeways to keep the traffic moving. Once development is in place, the options for extended highways will diminish. The endeavor to become more tourism friendly will be costly, and the new Darwin residents will have to bear the financial brunt.

However, if all goes well with Darwin's planning and development commission, a steady stream of influx with tourism will require support services such as food and beverage establishments, shopping malls, gas stations, supermarkets, churches and entertainment. If the city can expand on it's own power and thrive, it will attract the respect and trust for tourism investment to grow along side it. A robust economy means jobs and security for the region, and will likely draw confident prospective investors to build hotel and resort properties. But, the job market and employment opportunities must be stable for Darwin to have accomplished a self-sustaining economy that is enhanced by tourism, rather than dependent on it.

Power and water supplies are vital to sustain economic growth, but the current blackout situations make the future look dim. Generators do not have sufficient power and have been leaving angry residents in the dark. An undependable energy situation can devastate the region who needs to entice a visitor to come back. The answer seems simple enough to build more plants with increased power and efficiency, but the cost would be transferred to the already overburdened communities who have just suffered another hike in energy rates. And without adequate energy distribution, businesses that cater to tourism clientele will take a terrible hit and harm their reputation with travel brokers. If the city cannot consistently deliver smooth operations, the potential for repeat customers is null and void.

The stronger the economy, the better the region is able to play host to its foreign visitors. The existence of the mining and energy industries may be a lure for employment and Darwin would be best served to invest in an information and job application campaign to attract permanent and semi-permanent residency. Mining revenues exceed 2.5 billion a year and have plenty of room to grow. In addition, the energy industry employs thousands with off shore drilling projects and is expected to grow with the petroleum resources in the Timor Sea. With the energy market's projected growth, comes an increased military presence, providing one of the best sources for employment in the Northern Territory.

Darwin is home to a busy port that welcomes international passenger ships such as Princess, Royal Caribbean, P & O Pacific Sun, Holland America and Silver Seas. Although there is great opportunity for economic advancement for the city, tourism planning must be creative and diverse enough to include every passenger's age and activity level. Darwin revenues may not be realized from the food and beverage market, as these tourists are fully accommodated with lodging and meals on board the ship. But day trip excursions and availability of transport away from the docks are a welcomed port amenity for anxious travelers eager to get their boots on the ground. Ground tour operators may prosper with competitive excursions shuttling passengers to nearby attractions, with full or half day guided tours, but the need to market such services is essential for local tour operations to expand and prosper. Each cruise ship employs its own travel desk and earns a profit from the excursions purchased by its passengers. The potential for growth with comprehensive tour packages offered to luxury liner travelers has plenty of room to be creative and expand. The itinerary options should widely diverse and inclusive for all budgets to ensure a maximum booking, yet priced competitively to ensure the ships earn a worthwhile commission.

Political Economic Growth.
With the opening of the Darwin Convention Center in 2008, job prospects for the hospitality industry have potential for exponential growth with lodging, dining and transportation services. With 22,900 square meters of event space to include individual hall seating, the Darwin Convention Centre was created with tiered seating arrangements and conference desks designed to accommodate Canberra's congressional assembly.

This impressive structure will hold from 10 to 4000 delegates and bring a sense of refined dignity and political excellence to the region. The Convention Centre's sleek ovular architecture, situated on the waterfront, draws attention to it's world class amenities and services. But, aside from congress, few may book this spectacular space, if the promoters and government officials fall short on their marketing campaign. Regional, national and international promotion will be necessary to jump start the Darwin Convention Centre and keep the investors afloat.

Although the Centre may be the most beautiful host to international congregations, the parking issue must be addressed to afford tourism expansion in the immediate area. The Darwin Convention Centre can hold 300 vehicles in its underground parking structure, but is dependent on overflow parking in the nearby open lots. On one hand, if the immediate area cannot be constructed for support services, then tourist venues in the vicinity has ceased. On the other hand, though static businesses that earn their business one sale at a time could not flourish, the employment of private shuttle service to transport the Centre's patrons will thrive.

In addition to the Darwin Convention Centre, The United Nations has established a Northern Territory residency employing over 1,100 people and growing. The distinguished residents and guests create the need for five star accommodation and dining with tremendous potential to multiply over the years. In addition, Australia's present and future trade growth with Asia can only the expand the region with quality housing, dining, shopping and everything else necessary for a comfortable community.

With political growth comes an increased in educational institutions and the opportunity for academia in the travel and tourism trade. Statistically, the higher the educational attributes of a culture, the more the culture will participate with technology and growth. The more graduates there are with hospitality degrees, the quicker the region will adapt with services necessary to sustain a vibrant economy with tourism.

Conclusion.
In respect to the will, motivation and determination of the Northern Territory people, they have shown great interest and accomplishment in growing the region's tourism and travel industry. Further growth would surely be welcomed as businesses thrive and new ventures are created. However, the dominating factor is to woo would-be investors on the appropriate time table with the government to develop the infrastructure.
But, understanding the Northern Territory's dedication to productive society and interest in their future growth, the logical assumption is that Darwin and its environs are destined for expansion within its means and will enjoy a steady growth in the travel and tourism industry.