Impact Of Globalisation On Hospitality Industry

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Register to read the introduction… One of the most used yet complex terms in international business, ‘globalisation’ refers to the development of global or worldwide business activities, competition, markets and the increasing global interdependence of national economies (Stonehouse, Campbell, Hamill and Purdie, 2004). Muller (2002) insists that when a business becomes global, political boundaries are being abolished and the planet is turning into a ‘global village’ with uniform and commercialised culture. For instance the 1973 oil crisis occurred when the member of OAPEC announced as a result of the Yom Kippur war that they will no longer supply oil to nations that had supported Israel which included the US and its allies in Western Europe. One of the allies was the UK who suffered economically as the oil price went up and decline in manufacturing sector started to show. However this also led to the rise in the service sector, particularly the Tourism and Hospitality industry as people started to look for alternative for generating money. Not only economically does globalisation have an effect but also socially and politically as well. Rising real level of income coupled with a rise in consumer credit in recent years have contributed to worldwide consumption (Stonehouse, Campbell, Hamill and Purdie, 2004). Demands for consumer goods and services have increased beyond recognition in comparison with the post war period. This has been most evident in the case of Tourism and Hospitality products such as transportation, food & drink and the number of tourist attraction. Politically, globalisation has been the cause in reduction in barriers to international trade (Stonehouse, Campbell, Hamill and Purdie, 2004). Unions like the EU and NAFTA have played a major role in fostering the inter country trade that is the forerunner of global …show more content…
Tourism which started as early as 18th century has since evolved with the change in technology and more importantly with globalisation. According to Levitt (1983) technology, social, economic and political developments have driven the world towards ‘global village’. Indeed MNCs such as the Hilton and McDonald’s have given consumer the variety of options to choose from and have also generated employment. Moreover hotels have benefited from access to global markets and low cost production in developing countries. However in contrast globalisation has brought no benefits for the people working in the industry according to the anti-globalist. MNCs have generated jobs but the inferior jobs are given to people of the host country with low pay. They have also argued that big corporations are destroying the environment by buildings more hotels, restaurants and airports. Nonetheless as Micklethwait and Wooldeidge states “globalisation is a savage process, but it is also a beneficial one, in which the number of winners far outnumbers that of the

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