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Backpacker Tourism

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Backpacker Tourism

Assay questions: how has backpacker tourism developed in Australia and what factors have contributed to the growth this type of tourism, including the profile of domestic and international backpackers?

The backpacker tourism market has become one of Australia’s most successful niche markets. It is making an important contribution to the overall economy and to regional economies as backpackers visit a range of destinations. Special interest tourists such as backpackers, engage in backpacker tourism for a specific reason usually to satisfy particular interest or need. (Derrett 2001) The purpose of this essay is to evaluate backpacker tourism as a form of special interest tourism. This evaluation was based on examining the evolution and development of the backpacker tourism in Australia. In addition, a range of statistics outlines the profile of the domestic and international backpackers in Australia.

Research into backpacker tourism articulated a shift in late 1980s, with new terminology such as ‘free independent traveler’ and ‘backpacker’ entering the tourism industry in favor of previous descriptions. The term ‘backpacker’ is extensively used by tourism market in Australia and New Zealand. In recent years, this type of terminology has begun to be used globally. (Hannam & Ateljevic 2009) A backpacker can be defined as “a traveler aged 15 years or above who spent at least one night in night in either backpacker or hostel accommodation during travel in Australia”. (Tourism Victoria 2009) From an economic and management perspective, backpacker tourism has the potential to develop into another important market niche. (Hannam & Ateljevic 2009)

Backpacker tourism is a major growth market in Australia, which is stimulated by the desire for new experiences and learning about other places and cultures. As a result, backpackers tend to have more contact with the local communities. Backpackers are particularly interested in talking and living with ordinary Australians. They are also looking for interaction and information about Aboriginal culture. Eager to mix with locals, social contact including establishing friendships and partying is a primary motive of a backpacker tourist visiting Australia. Meeting fellow travelers is also an opportunity to acquire good travel tips. (Trembath 2008)

One of the main factors that have impacted on the development of backpacker tourism is internet and mobile technologies. Internet and mobile technologies have been identified as the main channels of communication for backpackers, particularly prior to arrival in Australia. Tourism Victoria (TV) has developed a content-rich website dedicated to backpackers. To improve their marketing communications TV, enhance their website by integrating new interactive features to appeal to domestic and international backpackers (Tourism Victoria 2009). Accessing the communication capabilities of the Internet has become a powerful medium for international promotion. Given that backpackers are generally well educated and familiar with the latest technology; the Internet can be particularly effective in reaching this market (Hannam & Ateljevic 2009).

While the number of backpackers in Australia has grown considerably over the last 20 years, the growth of the backpacker market has created a demand for inexpensive accommodation. Backpacker accommodation is defined as “properties offering, at low cost, a range of sleeping arrangements, including dormitories, with communal and self-catering facilities and an emphasis on guest interaction”. (Tourism NSW) Most backpackers are on tight budgets and look for accommodation that is of a reasonable standard, safe, clean and value for money. Interestingly, compare with other type of traveles, backpackers spend more, travel further and stay longer. On the other hand, backpackers usually like to look for accommodation in the center of a town/city or in close proximity to sites and attractions. Backpackers may be attracted by the opportunity to stay in picturesque locations such as Byron Bay that offer an alternative tourist experience, but unless there is available public transport and good promotion, they are unlikely to find their way in sufficient numbers to such spots. (Tourism NSW)

A typical backpacker is young (18-35 years), educated, adventurous and price conscious. Some backpackers use the wide variety of hostels around Australia. Whilst they prefer to spend as little as possible for accommodation, they also want value for money and may not always choose the cheapest available. Most of their travel finances are spent on other activities. (Tourism NSW) Therefore, international airfares play a significant role in backpacker tourism market. Coupled with failing price of international airfares, this has made it possible for more international backpackers to come to Australia for traveling. Due to the desire to access cheap flights these components of the itinerary will be pre-booked well in advance which will influence flexibility of itinerary planning. (Tourism NSW)

A working holiday is another reason that contributes to the appeal of backpacker tourism in Australia. In order to attact more backpackers come to Australia, the Australian government has come up with some policies available for backpakcers , such as Working Holiday Maker (WHM) visa. Most international backpackers will use the Working Holiday Maker (WHM) visa when they travel in Australia. The WHM visa allows international backpackers to supplement their funds through casual work. The visa is accessible to 18-30 year olds, is valid for 1 year with an option to extend to 2 years. Moreover, backpackers can also do short trips (weekends etc) to local sights and attractions or they have a tendency to spend up to a few weeks in one place whilst working. (Tourism Victoria 2009).

The backpacker ‘scene’ has become an essential part of the tourism economy in recent years, particularly in certain major traveler or backpacker ‘enclaves’. Tourism Research Australia (TRA) point out that international backpackers have approximately increased by three per cent per year since 2000, to reach 566,000 visitors in the year of 2007. While the domestic backpacker market mirrors a trend toward shorter stays, visitation fluctuating with 500,000 domestic backpackers in 2007. (Tourism Research Australia) According to the statistics from the TRA, the main country for inbound backpackers to Australia is the UK (26%); Europe backpackers (excluding German) stand in the second place, there is about 23%; and next follow is the US (9%) and Germany (9%). In addition, backpackers usually have been considered to comprise of young people aged from 15 to 24, accounting for 48% of international backpackers and 38% of domestic backpackers. Moreover, backpackers aged between 25-34 years accounted for 36% international market and 25% domestic market. (Tourism Research Australia)

The backpacker market in Australia consists of two main geographic segments—the ‘East Coast’ and the whole of Australia. The ‘East Coast’ is primarily from Sydney to Cairns, although may also include the Great Ocean Road. The backpackers traveling along the ‘East Coast’ route is more lifestyle orientated and generally stays a shorter period of time. For example, they would engage in more beach, nightlife, and socializing activities. Whereas, backpackers traveling around the whole of Australia are more experiential and interested in exploring all that Australia has to offer including the outback. This market is longer stay, more dispersed, less structured, more mature. (BACKPACKERS IN AUSTRALIA 2003) In regard to tourism regions, capital cities in New South Wales, Queensland and Victoria were the most popular tourist attractions by international backpackers. The most popular visited region was Sydney (25%), the next in popularity was Melbourne (15%), followed by Tropical North Queensland (13%) and Brisbane (11%). For the domestic backpacker, the most popular destination was Sydney (23%), followed by Melbourne (16%), Northern Rivers Tropical New South Wales region (14%) and Perth (10%). (Tourism Research Australia)

Furthermore, backpackers visiting Australia stay longer than the average international visitor - 65 nights compared with 26 nights. They are more inclined to travel off the beaten track and with time up their sleeves; they are trying to seek diverse experiences in varied locations. They usually arrive in Australia with flexible itineraries and travel ideas but few actual bookings. International nights spent in Australia and spent directly in backpacker accommodation have both continued to increase at an average annual rate of around 2% since 2000. What’s more, compared with international backpackers (23%), domestic backpackers prefer to spend all of their nights in backpacker accommodation (76%). In fact, because domestic backpacker also have another choices, they can stay in other accommodation tapes, such as friend’s or relative’s property and caravan parks or camping grounds. (Tourism NSW)

In addition, 10% of all international visitors to Australia are classified as backpackers and they account for about 25% of all international visitor nights. The numbers visiting Australia grew steadily throughout the last decade. Moreover, at least 77% of international backpackers visited New South Wales during their stay in Australia. But this visitation has been heavily weighted to two main areas - Sydney and the Northern Rivers Tropical NSW region (Byron Bay). (Tourism NSW)

In order to promote the development of backpacker tourism, the government attempts to come up with some policies and encourage backpackers during these days by highlighting work opportunities, events and activities especially during the off-peak season, and those opportunities also will dictate itinerary choices for some backpackers. In addition, some insurance companies provide some insurance clauses for backpackers, make sure that tourists stay safe while on the road. (Backpackers Travel Insurances n,d.) Furthermore, increase in the cohesion between domestic and international marketing campaigns will ensure better linkages and follow through. Furthermore, the latest technologies will effectively reach the global backpacker market as part of e-marketing program. (Trembath, 2008)

In conclusion, backpacker tourism is one of Australian most significant form of special interest tourism. Since the late 1980s, the term ‘backpacker’ has prominently emerged in the tourism market. The development of the internet is one of the key reasons why backpacker tourism becomes so popular and strong in Australia. Suitable accommodation, coupled with failing price of international airfares, flexible working conditions and insurance policies also have attracted many international backpackers to come to Australia for traveling in these few years, compare with other form of tourists, backpackers can travel further and stay longer in Australian. On the other hand, the main inbound backpacker predominantly came from the United Kingdom. In addition, backpackers usually have been considered to comprise of young people aged from 15 to 34, most of them prefer to travel in big cities, such as Sydney and Melbourne. In addition, in order to promote the development of backpacker tourism, the government has come up with some visa and working policies available for international backpackers, and those work and study opportunities also will attract more backpack tourists come to Australia in the future.

References lists
BACKPACKERS IN AUSTRALIA 2003, viewed 20 Jan 2010 http://www.tra.australia.com/content/documents/Snapshot%20and%20Factsheets/Backpacker/Niche%204%20Backpackers%202003.pdf.
Backpackers Travel Insurances n,d. “the world is at your feet” http://www.thebackpacker.net/static/travelinsurance.html.
Derrett, R 2001, ‘Special interest tourism: Starting with the individual’, in N. Douglas & R. Derrett (edn), Special Interest Tourism, Wiley & Sons, Brisbane.
Hannam, K & Ateljevic, I 2009, ‘Backpacker Tourism: Concepts and Profiles’, Clevedon Hall, Toronto.
Tourism NSW n.d, viewed 12 Jan 2010, http://corporate.tourism.nsw.gov.au/Backpacker_Tourism_p726.aspx .
Tourism Research Australia n.d, viewed 12 Jan 2010, www.tra.australia.com.
Tourism Victoria 2009, viewed 13 Jan 2010, http://www.tourism.vic.gov.au /.
Trembath, R 2008, ‘BACKPACKER TRAVELLERS IN SOUTH AUSTRALIA: A study of itinerary planning’, viewed 13 Jan 2010, http://www.crctourism.com.au/WMS/Upload/Resources/bookshop/90060%20Trembath_SA%20Backpackers%20WEB.pdf.

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