The Facts About Globalization in Tourism
The Tourism and Travel Domain Task C: GlobalisationFacts about Globalisation. In Tourism[Extract 12] Tourism is an industry that is highly competitive. Globalised and dominated by large international companies such as Hilton, TUI, Thomas Cook, First choice or My Travel. The Phenomenon Globalisation is not new in today world. Globalisation primary has the effect to exploit recourses. These recourses might be people, land, energy or cultures.
In the undeveloped countries such as Thailand, Philippines, Maldives, Malaysia Globalisation has the greatest impact. Negative effects of Globalisation[Extract 13]Bankrupt of small local firms. The world tourist industry is regiert from a few major international tour operators. With the full control of the tourism chain they can offer cheaper prices than smaller local companies. As a matter of fact local firms. Which can not compete with the cheap prices of the large international companies the large companies control the tourism market. For example in Malaysia, 29 local shops were destroyed to make way for a tourist development project. [Extract 14] 698 million people travelled to a foreign country in 2000, spending more US$ 478 billion The reason why undeveloped countries promote itself as a tourism destination is because they expected economic improvement.
Developed countries have the most urgent need for income, employment and general rise of the standard of living but often rich countries are better able to profit from tourism than poor ones. Reasons for that: In all-inclusive package tours tourists often stay for their entire stay at the same cruise ship or resort because it provides everything they need. As a matter of fact most of the travellers spending goes back to the airlines, hotels and other international companies, and not to local businesses or workers. For example in Thailand more that 70% of all money spent by tourists ends up leaving Thailand Food, drinks and equipment often needs to be imported because local products are often not up to the hotel's or the tourist's standards or the country doesnt have a supplying industry which is neededWider gap between rich and poor[Extract 15]
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The majority of travellers come from the middle class in developed countries and they travel to undeveloped countries to enjoy a holiday in paradise. Globalisation contributes to the increasing gab between rich and poor. This leads to instabilities in tourism destinations such as Bali. Tourism is the worlds biggest industry and employs more than 100 million People worldwide.
The lack of education and know how about the industry often leads to exploitation. People from undeveloped countries working in the tourism industry often work under non human work conditions. Low salary! Long working hours! Unpaid overtime Inhuman living conditions Health problems Management positions are filled by foreign workers. To protect the rights of the local people living in tourist destinations some international tourism companies have signed up international agreements, such as the WTO Global code of ethnics and the UN Global compact. Their aim is to protect workers rights. The ILO says that 10-15 % of the tourism workforce is children.Increase of prices Globalisation increase prises in the undeveloped countries.
Because real estate, food, clothes ect. gets more expensive in tourist destination it is very difficult for local people to meet their basic daily needs.Positive Affects of Globalisation Employment The very fast expansion of international tourism has led to great employment creation in hotels, restaurants, nightclubs, taxis, and souvenir shops the hotel sector employs around 11.3 million people worldwide. Globalisation can also affect the local government.Infrastructure improvements such as better water systems, roads, electricity, telephone and public transport networks are positive effects of globalisation. This changes do not only improve the quality of life for tourists but also for local people.Foreign exchange earning Tourism destinations can take advantage from the tourist dollar Some countries increase this growth by requiring visitors to bring in a certain amount of foreign currency for each day of their stay.
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