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10INTRODUCTION Tasmania is the smallest state of the Commonwealth of Australia It is an island about 250 km 150 miles south of the state of Victoria The stretch of water between Victoria and Tasmania is Bass Strait Also it is a place of wild and beautiful landscapes friendly welcoming people a pleasant temperate climate wonderful wine and food a rich history and a relaxed island lifestyle There are many tourists coming to visit this place every year The purpose of this project is to discuss the dynamics of marketing a tourism destination of Tasmania As there are challenges coming up and Tasmania has the potential to growth on tourists rate Again this project could provides the strategic direction and blue-print for action to improve the performance competitiveness and structural efficiency of the tourism industry in Tasmania 20KEY ISSUES AND CHALLENGES The economic impact of tourism Tasmania Tourism is increasingly being viewed by many national and local governments as a mechanism to aid the regeneration of the ailing economies of industrial cities There is a prevailing perception among national and local governments that economic benefits accrue to tourism destinations which then creates employment opportunities and stimulates the development process in resorts and localities For the local population it is often argued by proponents of tourism development that investment in tourist and recreational facilities provides a positive contribution to the local economy Such assumptions are not without their problems since tourists are not noted for their high levels of customer loyalty to tourism destinations and a number of features support this argument lTourism is a fickle industry being highly seasonal and this has implications for investment and the type of employment created Tourism employment is often characterised as being low skill poorly paid low status and lacking long-term stability lThe demand for tourism can easily be influenced by external factors eg political unrest unusual climatic and environmental conditions which are beyond
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