Tourism and Hospitality Industry
IMPACT OF GLOBALIZATION ON HOSPITALITY AND/OR TOURISM INDUSTRY
Globalization refers to the increments in the relationships of the people, industries, culture and various activities of economy. The term Globalization refers to the economics and all the global distribution of the production of goods and service which ultimately reduces the barriers of international trade like export fees, import quotas and various other tariffs, Cowen (2003). The Globalization has contributed to the growth of economy in a considerable manner. The globalization have accompanied to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. Globalization means the transnational change between the ideas, languages, and popular culture of different nations and countries so as to increase the diversity in the economy and enhance the growth of economy. It is argued that the decrease in the inter-cultural contact will increase the possibility of international and intra-national conflict.
According to Shoa (2002), the globalization impacts the hospitality industry in prospect to the national as well as international hotel and tourism industry as a new occurrence. Actually, there are many hotels which are dealing with the international players even in the eighties. However, these days, the phenomenon has become so common that some company’s claim fifty percent of their profits will emanate from foreign companies, Pimentel (2008). The major factor behind the higher impact of globalization is that the hospitality sector has attracted international hotels into foreign countries and they are exploring the efficient and cost effective methods of doing business. The economies of scale are not just a theoretical phenomenon. it equally works in the hospitality sector and has considerable impact of globalization on the same. The hotels have realized that the larger they become the lower their production costs and the higher
Globalization refers to the increments in the relationships of the people, industries, culture and various activities of economy. The term Globalization refers to the economics and all the global distribution of the production of goods and service which ultimately reduces the barriers of international trade like export fees, import quotas and various other tariffs, Cowen (2003). The Globalization has contributed to the growth of economy in a considerable manner. The globalization have accompanied to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. Globalization means the transnational change between the ideas, languages, and popular culture of different nations and countries so as to increase the diversity in the economy and enhance the growth of economy. It is argued that the decrease in the inter-cultural contact will increase the possibility of international and intra-national conflict.
According to Shoa (2002), the globalization impacts the hospitality industry in prospect to the national as well as international hotel and tourism industry as a new occurrence. Actually, there are many hotels which are dealing with the international players even in the eighties. However, these days, the phenomenon has become so common that some company’s claim fifty percent of their profits will emanate from foreign companies, Pimentel (2008). The major factor behind the higher impact of globalization is that the hospitality sector has attracted international hotels into foreign countries and they are exploring the efficient and cost effective methods of doing business. The economies of scale are not just a theoretical phenomenon. it equally works in the hospitality sector and has considerable impact of globalization on the same. The hotels have realized that the larger they become the lower their production costs and the higher