grew exponentially in preparation for the Sydney 2000 Olympics but is now left with "a glut of hotel rooms," according to general manager of The Sydney Boulevard Hotel, Albert Teh ("Australia Hits Bottom"). The drop in tourism coupled with an oversupply of hotel rooms adds up to supply and demand problems for Australia's hoteliers ("Australia Hits Bottom"). Since most of the oversupply exists at the market's upper end, this results in "top hotels charging rates more typical of the 3-stars" ("Australia Hits Bottom"). David Baffsky, chairperson of Accor Asia Pacific, operates 95 hotels across all segments of Australia; he states "Consumer demand, which drives room rate, is currently insufficient to promote growth...Greater yield is essential to ensure balanced investment and development patterns. The priority must be to drive demand" ("Australia Hits Bottom"). Although one sector of the hospitality industry, the Australian Food and Beverage Industry, is cited as "the largest manufacturing activity in Australia...a growth area in which food and catering play a significant role, offering good employment opportunities for workers with a range of skills," it is also true that the hospitality industry overall in Australia is declining (Graham 26).
Franchise Council of Australia CEO Richard Evans states, "Franchising has a tremendous economic impact on Australia generating sales the equivalent to 14% of Australia's GDP each year" (FCA). Evans notes that Australia's $128 billion franchising industry has "developed into a powerhouse industry employing around 600,000 people" and that it "plays a significant role in the generation of income and prosperity for Australians" (FCA). Australia has "more franchising outlets per capita than any country and three times more per capita than in the U.S.," with a "total turnover of the franchising sector in 2007, including the motor vehicle and automotive fuel retail industries," close to US$9...