The Impact of Globalisation upon a Tourism

What is this about? The impact of globalisation upon a tourism or business-related industry.

What is the context/situation? Currently, the world has been reduced to a global village where the distance between global businesses and tourism agencies has been reduced to zero.

What is the main point/problem? If the world has been reduced to a global village, will the tourism or business-related industries prosper or fail to operate efficiently? How will this affect doing business as far as the tourism and business industries are concerned? What will be the specific impact on labour mobility and travel, demographic and population trends, security, safety and tourism, poverty and marketing of new destinations?

Where does it take place? In today’s world, both the developing and developed countries, where telecommunication technology has eased the way to do business.

Who is this by? Theodore Levitt (1983) who coined and popularized the term globalisation and what it meant as regards a business-related industry.

Who is involved? All of mankind – Travellers, business owners, customers, and tourists among others.

Who is affected? All of the stakeholders in the tourism and business-related industries particularly the supply chain thereby affecting the value created for the customer. An example is that globalisation has led to effectiveness in sharing information and thus marketing of destinations is simplified.

Who might be interested? Clients, regulatory institutions in the tourism and business-related industries, and governments as their interactions largely influence the environment businesses operate in.

When did this occur? Globalisation is a continuous process that has been taking place in the previous decades and is still expected to take place in the future.

How did this occur? Through the continuous growth, development, and transformation of communication and transportation technology, which has significantly improved global communication and mobility?

How does it work in theory/practice/context? As technology becomes more efficient than before, and new faster ways of communication/transportation are invented, it becomes efficient for tourist/business agents to communicate across international borders, as well as move around easily. For example, cloud computing, teleconferencing, and the internet in general has enabled the holding of meetings among business stakeholders without them moving from their premises, either homes or global offices to one place. The said “one place” is virtual hence the distance does not hinder them from having the meeting.

How does one factor affect another? If the tourism and business-related industries are globalised, as well as operate in globalised markets, they are more likely to be more efficient and prosper faster than before.

How do the parts fit into the whole? The market is where the business operates and thus a crucial part of any tourism or business-related industry. Therefore, those being globalised will significantly impact the industries in question as regards service delivery.

Why did this occur? To fulfil the need for the movement of people from one place to another and because of the desire to pass along or transfer values, ideas, and goods across the globe.

Why was that done? Because of the human desire to raise the interdependence of societies and economies in the while world.

Why this argument/theory/suggestion/solution? Globalisation is crucial for how businesses reach their customers and learn about the competition. That is, how the client accesses a product or service from the business is crucial to the survival of the business in question.

Why not something else? Globalisation holds the future of any business.

What if this were wrong? What if globalisation has no impact on tourism or business-related industry?

What are the alternatives? What if in actuality the tourism or business-related industry is not exposed to globalisation?

What if there were a problem? Actually globalisation negatively impacting the tourism or business-related industry is a problem. For example, through the facilitation of terrorist activities, thus adversely impacting on safety and security of the stakeholders.

What if this or that factor were – added? – removed? – altered? There are other ways in which globalisation affects tourism. For instance, through increased awareness about many destinations, both old and new places, and about the number and types of sites, cultures, and leisure activities, one will experience when they visit certain parts of the world. Producing information about different destinations is a key step in marketing destinations to tourists and is achieved through blogs, films, travel shows, and other communication forms. There is even an increased and fierce competition to attract new visitors to many new places one can visit. Dig deeper into Impact On The Destination with our selection of articles.

What does this mean? That globalisation impacts the tourism or business-related industry, but the impact can either be positive or negative or both.

Why is this significant? It affects the core of the business, thus likely to ignite positive growth or cause failure.

Is this convincing? Why? / Why not? Yes. Globalisation has been observed to lead to a high demand for services and goods, as well as increased overall growth of the economy (Theodore Levitt 1983).

What are the implications? Large organisations in the tourism or business-related industries gain because of globalisation while the small organisations are likely to lose thus fall.

What are the solutions? Restructuring, business process improvement (BPI), and reengineering (BPR).

What are the recommendations? The smaller firms should merge to fight the competition and enjoy the positive impacts of globalisation of markets. All stakeholders in the tourism or business-related industries should align their goals/objectives towards maximising and minimising the positive and negative impacts of globalisation respectively.

Is it transferable? Yes, globalisation can affect all industries and businesses and everyone involved.

How and where else can it be applied? The same way it impacts the tourism and business-related industries, globalisation can impact upon all the other remaining industries.

What can be learnt from it? The stakeholders in the tourism or business-related industries should always be on the lookout on how globalisation affects them as it can both benefit as well as disadvantage them.

What needs doing now? There should be increased awareness about the negative impacts of globalisation and how such influences can be mitigated. For instance, the tourism sector can use travel advisories as warning systems for many people to avoid visiting certain countries or destinations because of being either potential or actual threats to peoples’ lives. Additionally, governments should come up with plans for economic development to take advantage of the positive impacts of globalisation while at the same time minimising its negative impacts.

Reference

Theodore L. 1983. The Globalization of Markets. Harvard Business Review (May 1983 Issue).

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