Mkt7003 Marketing Foundations

Opportunity Analysis for

Daydream Island Qld

Student: Ning Ren
s5167681

7003MKT_ Marketing Foundations

Professor: Dr. Catherine Prentice

Table of Contents

1.0Introduction and Company Background

1.1Introduction

As tourism has become an indispensable lifestyle for people, the demand for tourism has gradually changed from the initial sightseeing tour to the pursuit of new and different, and the pursuit of leisure and comfortable travel. However, the demand for daydream island is decreasing recent years. It is important for daydream island to avoid further decline and look into potential opportunities in order to attract more tourism.

1.2 Company Background

Daydream Island is the closest island to the land of the Whitsunday Islands in Queensland, Australia. The island is famous for its coral reefs and is an ideal playground for sailors. Daydream Island is about 1 km long and 500 meters wide, only 51 meters above sea level. The name of Daydream Island originated from a yacht called "Daydream" on the island in 1881. In 1930, the name of Daydream Island became popular. The entire island is covered with lush tropical rainforest, the world's largest man-made coral reef lagoon, and is known for its live coral reefs. ("Daydream Island Resort | The Best Whitsunday Island Resort", 2019)

The incumbent of Daydream Island (May 2013) "Island Lord" is Vaughn Brivent, who bought the island in 2000, and in May 2013, in order to better enjoy his later life, he turned white Daydream Island is listed for sale and sells for up to £75 million.

2.0Situational Analysis

2.1Market Analysis

Due to the soaring Australian dollar exchange rate and the surge in the number of Asian tourists in recent years, the Australian tourism economy has entered a “golden period of development”. At present, tourism has become Australia's third largest export industry and the largest service export industry. As shown in the table below, direct tourism GDP increased by 7.4% to $52,918m, compared with GDP growth of 2.3%.("5249.0 - Australian National Accounts: Tourism Satellite Account, 2015-16", 2016) Undoubtedly, tourism has also become a fast-growing point of growth in the country's economy and has driven investors' investment increasing in hotels and related tourism services, further boosting the government and private sector's investment in software and hardware infrastructure.

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Sources: (a) Australian National Accounts: Tourism Satellite Account (cat. no. 5249.0); (b) Australian System of National Accounts (cat. no. 5204.0); (c) International Trade in Goods and Services, Australia (cat no. 5368.0)

The number of visitors to Australia in 2015 reached 7.1 million, of which more than 928,000 visitors from China accounted for 13% of the total number of overseas visitors, and the investment amount is expected to rise sharply by 8.7% to A$54 billion. ("Financial Review - Business, Finance and Investment News | afr.com", 2016)

 The Australian Trade Commission predicts that by 2025, Australia will welcome tens of millions of overseas visitors from countries such as the United Kingdom, the United States, China, Singapore, South Korea and India. This makes tourism the third largest export industry in Australia, the largest service export industry, and the proportion of tourism in GDP even exceeds that of agriculture.

Daydream Island’s confidence is on the rise, and another $15 million in investment will be used for the upcoming refurbishment program. The new investment decision will bring the total cost of refurbishment to $65 million and additional funds will be used for the new terminal. (Wilson, 2017)

2.2Marco Environment Analysis

Political, Legal and Economic Analysis

∙  Politics and Law: Australia's political institutions and habits follow the democratic traditions of the West, and the federal government implements a three-tier government system (federal, state, local). The Australian Parliament (legislative body) and the government are responsible for handling all matters of national interest and the political situation is stable. Tourism is one of the industries that the Australian government strongly encourages and supports and develops fastest. The relevant tourism laws and regulations are sound, which guarantees the personal and property safety and tourism quality of domestic and foreign tourists.

∙  Economy: Australia is a developed capitalist country. In 2015, the gross domestic product (GDP) ranked 12th in the world, developed in agriculture and animal husbandry, and rich in natural resources. (World Bank, 2015) There are “countries riding on the back of the sheep”, “countries sitting in the mine car” and “countries holding wheat ears”. According to Australia, Australia has long earned a large amount of income by exporting agricultural products and mineral resources. It is rich in sheep, cattle, wheat and sugar. It is also an important producer and exporter of mineral resources in the world. Agriculture, animal husbandry and mining are traditional Australian industries. Australia's high-tech industry has developed rapidly in recent years and its competitiveness has increased in the international market. Since the 1970s, the Australian economy has undergone major structural adjustments. The tourism and service industries have developed rapidly, accounting for a gradual increase in the proportion of GDP, which is currently around 70%. The gold industry is developed and has become one of the world's leading gold producers. Australia Post is a rare postal system in the world that makes money without government subsidies.

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Source: WWW.CEICDATA.COM | Australia Bureau of Statistics

The main economic data for Australia is as follows:

∙    Gross domestic product: 1.3 trillion US dollars (2015), world ranking 12

∙    Per capita GDP: $62,260 (2011), ranked 6th in the world

∙    Gross domestic product growth rate: 3.9% (2015) Unemployment rate: 6.2% (March 2015)

("Australia | GDP per Capita: Queensland | Economic Indicators", 2018)

Social Analysis

∙  Population environment: The resident population of Australia reached about 25 million in early May 2018. (Wang, 2018) It is one of the countries with the lowest population density in the world. Australia's population is mainly distributed in the southeastern coastal areas, and Australia's largest cities are also located in the southeastern coastal areas. Australia is made up of people of different cultural backgrounds: Australia, Britain and other European countries account for 95.2% of immigrants, Asians account for 1.3%, indigenous peoples account for 1.5%, and the other 2%. (Wang, 2018)