Profiling Australian TSM as a Foreign Direct Investment Prospect Assignment - 1

Profiling Australian TSM as a Foreign Direct Investment Prospect - Assignment Example The tourism industry in Australia is still faced with challenges which impede the maximization of returns. In order for the sector to realize its potential, increased investments in hotel capacity, tourism infrastructure, and labor supply are highly required. These challenges are present opportunities for potential foreign direct investors to do business in such areas, including the aviation infrastructure, recreation, arts, and accommodation.Be that as it may, the level of optimism for investing in the tourism sector in Australia has tremendously improved in the last two years (Australia Trade Commission, 2013). Market size and development potential are important factors that influence the tourism service industry and FDI inflows.Australia rests within the world’, best performing tourism region, as well as the biggest global aviation market.The Australian government launched Tourism 2020, a programme intended to raise Australia’s overnight tourism expenditure to Aus$140 billion by 2020.The high growth economies of Asia present an opportunity for the flourishing of the tourism industry in Australia. In May 2014, accommodation occupancy in the capital city of Australia reached new peaks, surpassing 80 percent in Adelaide, Sydney, Perth, and Melbourne. Demand for accommodation is still on the rise, thereby boosting the hotel sectors (Australia Trade Commission, 2013).  High demand from Asia plays an important role in attaining growth in the global visitation of Australia. The Asian continent is recognized as the world’s fastest-growing market for tourists. This is necessi tated by stable economic growth, a developing urban and wealthy middle class, as well as the fastest growing aviation industry in the world.