Wine Tourism Development Report

Question: Discuss about the Wine Tourism Development Report. Answer: Introduction Wine tourism, also known as Vinitourism, is often defined as that particular domain of tourism which includes visits to wineries, the testing of fresh products from the facilities along with the purchase or consumption of the same. According to Charters and Mitchell (2014), most other domains of tourism are passive as compared to the activities that wine tourism include: the guests participating in such tours get to chance to take walks in the grapevines, visit the wineries, taste fresh products, and even participate in grape harvesting. The Margaret river region is considered to be one of the most important centers of the Wien industry of Australia. Located in southwest part of Western Australia, the region has 5,017 hectares of land being currently used for the cultivation of grapes, which supply raw materials to the 215 wineries operating in the locality (Thompson, 2013). The region has a flourishing vinitourism industry with most vineyards and wineries allowing tourists to visit their facilities. This particular report is aimed at highlighting the strategies using which the wine tourism of this region can be developed in future. The following section of the report would include a SWOT analysis of the tourism industry of the region, based on which the strategies for ensuring the competitiveness and sustainability of the region would be developed. Discussions would also be made on the collaborative arrangements that exist in the region and the primary stakeholders associated with the wine tourism industry flourishing in the area. Current state of the Margaret river wine tourism industry Your Margaret River Region is one of the most well known organizations that conducts wine tours to various wineries and vines located in the Margaret River region (Margaretriver.com, 2016). According to the information available in the official website of the organization, at present the organization offers a variety of tours to the tourists, the most popular ones being: 1. Margaret River Brewery Tours: A tour designed especially for guests interested in visiting the numerous wineries and breweries located in the region. 2. Wine for Dudes: Designed specifically for the youths, this tour offers the tourists to experience wine blending, along with visits to local breweries and lunch (needless to say with wine) at the best winery restaurants of the region (Winefordudes.com, 2016). 3. Margaret river vintage wine tour: According to the information available in the website, this tour allows guests to have a glimpse at the way wine in traditionally manufactures in some of the oldest wineries of the region, besides providing them with the chance of participating in the process of harvesting vines. Yet another well known wine tour provider of the region, the Bushtucker River and Wine Tours offers the following popular tourism opportunities to their customers: 1. Visits to some of the vintage wineries of the Margaret river area (Bushtuckertours.com, 2016) 2. Visits to the iconic breweries of the region, 3. Gourmet tastings at the wineries and breweries 4. Having lunch at the Wine Estate Researchers Mitchell, Charters add Albrecht (2012) are of the opinion that along with Your Margaret River Region and Bushtucker River and Wine Tours, a large number of small sized tour operators that conduct wine tours to several of the 218 wineries of the region at significantly low prices. In fact, the authors are of the opinion that the Margaret River Region attracts the largest number of wine tourists from all over the country (as compared to the other wine tourism regions of Australia), courtesy to it pristine location and warm Meridian climate. According to Galbreath (2014), a significant section of the population residing in the Margaret River Town site earn their living by being associated with the flourishing wine tourism, which presently generates a yearly revenue of 2.81 billion Australian Dollars. The researcher has also pointed out the fact that government authorities of the region have estimated that by 2031, the said industry would attract large number of professionals from all over the country, thus doubling the total population of the town. On the other hand, researchers Carlsen and Boksberger (2015) have opined that the wine tourism industry of the Margaret River Region is yet to achieve its full potential primarily because of the fact that current state of the Margaret River Town site is not in alignment with the brand image of the premium products brewed in this region. Authors Charters and Mitchell (2014) second the opinion, claiming that the redevelopment of the town site facilities would attract more tourists, thus increasing the total revenue generated by the vinitourism of the region. SWOT analysis of the Margaret river wine tourism industry The following section of the report provides an analysis of the strength, weakness and threats of the wine tourism industry of the Margaret river region, along with the opportunities available to it. Strength Weakness There are different types of wines as well as wine growing regions within Western Australia. As the tourists are interested into organic wines, therefore they are visiting the Margaret River Wine Region. Australias facilities of research are excellent as compared to other wine countries such as Chile, Argentina. It has low domestic per capita consumption as compared to other producing countries. The quality of production is not managed properly. Australia is isolated their position within the globe as the country is at the large distances from export markets. Opportunity Threats They have an opportunity of to expand wine tourism They have a global relation with the new emerging wine markets such as China and Brazil. Social media marketing Collapse with the world financial markets They are competing with other beverages markets Over production of the wines worldwide Table 1: SWOT Analysis of Margaret river wine region (Source: Galbreath, 2014, pp-102) Primary stakeholders of the Margaret Wine Region The main stakeholders of the Margaret Wine Region are the shareholders those have the objective to receive a huge return from the investments. The managers, employees, visitors, suppliers, creditors and communities are the primary stakeholders. The visitors are seeking to purchase highest quality of products as well as services at lowest price (Quadri-Felitti Fiore, 2012). The wine industry benefits their suppliers through purchasing of goods as well as services. The industry are benefited from the creditors by giving earn to return on the financing that it provides (Hall, 2013). Finally, as the commodities are doing business with the win industry of Margaret Wine region, therefore they are important stakeholders. Clustering/collaborative arrangement of the Margaret River wine tourism industry The Margaret River Wine tourism industry has a cluster arrangement with other wineries. It is the industry that has characteristics to influence growth as an Australian exporter as well as it becomes competitive on the world market (Byrd et al., 2016). The location of the wine industry in Margaret river wine region in the Western Australia continues to have significant implications for economic circumstances of the regions. The Australian wine industry is largely made up of two components such as large multinational exporters those are dependent less on the domestic markets and other is small to medium operators those made up of bulk of domestic wine industry (Lavandoski et al., 2016). The key success of the Australian wine industry is their capability to collaborate. Mitchell, Charters and Albrecht (2012) described the Margaret River Wine industry as a natural resource based cluster. It also identifies three factors such as producers are geographically concentrated, the producers ar e interested in technology as well as research and last one is research and development such as providing training facilities with high skilled (Getz Brown, 2006). Geographic co-location, proximity to exist into tourism centers as well as recognition of brand is significant pre-condition for the wine tourism industry. Cluster analysis provides a clear picture of the regional economy of the wine industry. The cluster analysis is done to formulate the economic development strategies designed for the industry clusters (Poitras Donald, 2006). Therefore, the performance of the wine cluster of Margaret River wine industry is done based on some of the factors such as: Direct wine cluster employment: Though the wine industry in Margaret industry is comparatively young, therefore they have significant growth from the first day of the winery on the river. The growth of the wine cluster employment has sharp sine the year 2000 growing from 31 wineries to 171 by the year 2015 (Lereboullet, Beltrando Bardsley, 2013). Therefore, the greater Margaret River region is responsible for 72 percent in the growth of job. Total wine economic impacts: The Washington wine has given a direct as well as indirect economic impact within the Margaret River wine industry (McRae-Williams, 2004). Growing of the wine as well as wine makes account for most of the wine related to employment within the country. The visitors of winery also generate tourism related employment. Region for ensuring competitiveness and sustainability The Margaret River wine region produces 20 percent of the premium wines for Australia. The ever temperature through the ripening season as well as the rain free days during the growth months ensure that the wine industry gives high quality of fruit of the powerful flavor (Molina et al., 2015). The flavor difference is determined across the region by visiting the wineries as well as talk to the producers. Australia is the oldest grape wines within the world. Most of the Australian wines are found for sale over 100 countries. Getz and Brown (2006) stated that global wine leads to focus on the reduction of cost as well as initiatives in order to achieve competitive advantage of environmentally certified wines. Margaret River wine region gives higher quality of differentiated products in lower prices with new technologies, while sustaining cost advantage over the rivals. Implementation of the sustainability strategy within the wine industry enables the industry to create a unique as well as differentiated product (Vila, Darcy Gonzalez, 2015). The products are such that it can perceive innovative as well as higher quality. It also turns the wine industry to charge for premium price for the products as well as services. The sustainable wine tourism is dependent on three approaches towards development of tourism such as economic, social as well as environmental sustainability. Economic Sustainability: The winemakers of Australia stated that 70 percent of the production of wine within Australia is uneconomic. Grimstad and Burgess (2014) stated that 84 percent of the Australian wine grapes are produced at a loss. Within the wine industry, economic sustainability is a vital issue. There is a problem of being a price taker within the competitive market as well as need of industry tax reform. Environmental Sustainability: The environment is one of the vital issues for the wine industrys future. The Margaret River wine industry sees the importance to leverage the Australian wine industries environmental credentials when the international buyers such as Marks Spencer and others are introducing environmental benchmarks in order to purchase premium brands (Fraser Alonso, 2006). The environmental sustainability within the context of weather events, change in season as well as water shortages is the short-term economic gains within the wine Australia. The tourists are drawn into particular region due to environmental attributes as compared to destinations (Sparks Malady, 2006). The polluted natural settings, overcrowding, intrusive noise detracts from the quality of the visitor experiences. Some of the wine tourists are identified as being willing in order to pay for the environmental fee in order to taste the wine. The environmental management program are started to enhance environmental assets that increase the tourism competiveness within the specified destinations. Social Sustainability: The social aspects within the wine industry are generation of employment, encourages the tourism trading on the foodie as well as cultures (Byrd et al., 2016). It also supports regional communities those are suffering from extreme hardship. Conclusion It is concluded that the Australian wine industry is largely made up of two components such as large multinational exporters those are dependent less on the domestic markets and other is small to medium operators those made up of bulk of domestic wine industry. The areas those are profitable in investment within the wine industry upgrades the production techniques as well as technology within the vineyards to improve the quality of grape. It is identified that the tourists of the Margaret River is well educated as well as professional person those are visiting the region to tour wineries. The tourists are considering the wineries as the prime tourist destinations within the region as well as goes to the wineries to taste as well as buy the wine. It is seen that the wine tourism industry faces inadequate accessibility as well as distribution of the existing materials, and lack of promotional materials. Even the sustainable wine tourism is dependent on three approaches towards developm ent of tourism such as economic, social as well as environmental sustainability. Recommendations On the base of the entire report, it is recommended that the wine tourism industry faces inadequate accessibility as well as distribution of the existing materials, and lack of promotional materials. In order to overcome this weakness, the following recommendations are suggested such as: Development of an integrated wine tourism promotional plan: A commitment is build among the wineries of the Margaret Rive wine industry to develop the wine tourism within the region. An image should be developed for the wineries that will appeal to the tourist of winery. Wine tourism package: A winery tour package should be developed with the tours designed in order to suit selected target groups as well as their demands. The tour should be developed considering various group sizes, as there are variety of different sized groups that should go to the wineries. Improve over the accessibility of promotional materials: Appropriate promotional materials should be developed to meet with the needs for information revealed among the visitors. Promotion through communication methods: A wider range of communication methods should be utilized to the tourists. 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