Industrial Analysis Report
CAMPERVAN HIRE INDUSTRY
Introduction.
The campervan hire industry has been one of the exciting transport industries in the New Zealand country. The sector has positively impacted the nation through transport services offered. A lot of improvement has been experienced in this transporting sector. The transport sector provides transport choices at the country level. It also schedules a different preference for specific traveling styles. The purpose of this report is to give recommendations about investing in the Campervan industry after an investigation done.
Industry Profile
New Zealand has considered the tourism industry as one of the priority industries in the country. New Zealand is collaborating with other countries like Australia, China, and the UK to manage the Campervan hire industry. The tourism industry contributes 18% of the countries development. The new plan and objective that has been put forward in New Zealand are securing and protecting their long term future. The increased use of transport by tourists has shown positivity in maintaining the sustainable tourism industry according to recent research. Total tourism expenditure increased by 4% ($1.6 billion) in the year 2019, which led to $40.9 billion from the previous year. International tourism expenditure increased by 5.2% that was ($843 million) to ($17.2 billion), which contributed to 20.4% to the total goods and services exported (Lohmann & Zahra, 2010). Tourism is the most significant export industry that has added to n21% of foreign exchange earnings.
Research done shows that in 2017 the tourism industry contributed to 17.9 of New Zealand’s GDP. The sector created 8.8% of employment to the people. It amounted to 212,000 jobs in 2017. 10.9% of employment in the country’s economy is seen to be dependent on the travel and tourism industry. The government aims at working with the tourism sector to sustain tourism growth. Over the last year, the tourism industry recorded a high arrival from Australia, China, and the United States. In 2016, the percentage of Australian entry increased from 7% to 42%, and the Chinese appearance was 28% (Lohmann & Zahra, 2010). Through forecasting, the growth is expected to rise from 3.1 million in 2015 and reach 4.5 million by 2022. New Zealand experiences a great challenge of completion with other countries like South America, which is trying to match with the country’s strategies. It is one of the biggest competitors of New Zealand internationally. Other countries were trying to copy the way the New Zealand tourism industry operates things.
Competitive Analysis.
Potter’s Five Forces Analysis has been used in this industry to give an analysis of it and its competitors. In New Zealand, it has helped identify the critical attractiveness of the Campervan hire industry and the market through the external environment. For a market to be attractive, it is determined by the structure of the market, which affects the behavior of participants in the market. For a competitive environment, New Zealand ensures situational analysis performed by this model which is a management analysis tool. The Campervan hire industry profitability and attractiveness to the outside market is also determined. The tool assists in the useful analysis of businesses in their industry (Lennox, 2012). In cases of the tourism industry, the competitive environment aims at providing excellent services to the tourists, which include experience.
Driving forces.
Markets position themselves well for their businesses to avoid the inconveniences that can be done by the country’s tourism management. In my analysis, most of the porter five forces lie in the growth of the Campervan hire industry in New Zealand. The troops have got barriers due to competitive pressure with other sectors. There is an essential policy implication for New Zealand policymaker. They have an input and output to the government of New Zealand, which requires a lot of social impact on the growth of the country to shoot up. The tourism factor has already shot up to a high level from 2008 and 2015.
Strategic issues.
A visitor who has visited the Camper van hire in New Zealand has raised the benefits of the country. Economic opportunities have been created, which increase profits in different regions socially. The Campervan hire industry has also provided job opportunities that have given a lot of experience to the people. Through working in the industry makes the progress of rising to high standard jobs. Some threats draw back this industry. The strategy the industry has done will help in focusing on making a lot of profit from international businesses (Weaver, 2017). They will also increase their market to raise their advantage. The campervan hire industry will also aim at the premium travel sector to focus on the uncovered demand.
The cost and benefits of the tourists always fall in the same place for the country. Infrastructure pressure is created because when the visitors come, their area of visiting should be well set. The industry concentrates much on tourists and forgets about developing other sectors. The rise of oil prices is a significant threat to this industry since this makes it spend a lot of expenditure on fuel (Lennox, 2012). There is also pressure that is created on the roads since the management of the Campervan hire industry has to spend a lot of money building them for better presentation. The Campervan hire industry is also faced with financial problems that stagnate the progress of the sector.
Recommendations.
The Campervan hire industry has a high rank in the economy of New Zealand. With the above review, I would recommend this sector to increase most of the materials that are required to attract the tourist and bring comfort to them while touring the areas. Through this, visitors’ numbers will rise from the current name. The infrastructure and roads should be checked so as not to bring inconveniences at the last minute. By creating international interactions, the industry’s profit is seen to increase, and international businesses expanded. Therefore, as an investigator, I would recommend investors to invest in the Campervan industry.
References.
Lennox, J. (2012). Impacts of high oil prices on tourism in New Zealand. Tourism Economics, 18(4), 781-800.
Lohmann, G., & Zahra, A. (2010). The influence of international tourists’ travel patterns on rental car fleet management in New Zealand. In Drive Tourism (pp. 173-185). Routledge.
Weaver, A. (2017). a case study of new Zealand. The Routledge Handbook of Consumer Behaviour in Hospitality and Tourism, 459.