Globalisation: An unequal effect on the tourism industry.
Author: Minna Paulina Lindroth
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Abstract
This paper will discuss globalisation's effect on tourism in the 21st century. Globalisation and capitalism have both created unequal profit shares and uneven development for tourism between different nations. The paper will critically compare the relationship between tourism industry's impacts on 'first world' and 'third world' countries.
Key words: Globalisation, tourism, development, unequal, impact
Globalisation: An unequal effect on the tourism industry.
The technological advances of the 21st century have resulted in the accomplishment of a 'global culture' that has had significant impacts on contemporary tourism trends. Reid (2003, p.31) states the following about globalisations impacts "It has affected social and political stability because of its demand for the removal of market impediments, regardless of the social and environmental costs". Furthermore globalisation has contributed to the difficulty of defining or maintaining national borders, in addition technological advances in communications and transport are helping tourists to overcome barriers of physical distance (Knowles et a., 2001).
The World Travel and Tourism Council (WTTC) encourages countries to adopt policies that promote travel and accessibility to enable economic growth through tourism. Additionally the general agreement on trade in services (GATS) by the World Trade Organisation (WTO) has had significant impacts on the tourism industry's operations and businesses. The GATS has enabled international development by removing barriers of overseas investments, contributing to the foreign ownerships of tourism businesses.
The technological advantages of the 21st century have changed the way tourists buy goods and services (Knowles et al., 2001). Mass-tourism together with globalisation has lead to distinct national tourism markets merging into one global market with a homogenous culture (Knowles et a., 2001). However, with the increased information and access to destinations, globalisation has resulted in the emergence of more experienced travellers and new tourism trends. In addition to mass-tourism tourists now seek the 'niche market' and new alternative and authentic experiences. Mowforth and Munt (2009) suggest that today's society's post-fordism movement has resulted in changes in the way services and goods are produced and consumed, consequently resulting in the emergence of segmented and niche markets. Many of the new destinations have emerged in the less developed countries; tourism in these countries is often viewed as distinctive, offering an alternative to the mass-tourism destinations.
Reid (2003) argues that some new tourism resorts have been relentlessly created in developing countries without concern of the impacts on the local communities and environment. Furthermore the author suggests that globalisation has led to the empowerment of people living in global communities due to the lack of policies and legislations to protect the nations from multinational organisations' destruction. Mowforth and Munt (2009) suggest that when related to tourism sustainability has various meanings that differentiate between the 'third world' and the 'first world' nations. The authors propose that for the organisations of first world sustainability means sustaining profitability and creating economic growth whereas for the 'third world' destinations sustainability often means preserving the environment and cultural lifestyles.
Internationalisation has led to the emergence of a global economy; however, it is often argued to be uneven and unequal (Mowforth and Munt, 2009). While some multinational corporations and few countries benefit enormously from globalisation, many countries experience just the opposite. With political deregulations and various free trade agreements globalisation has resulted in foreign ownership of tourism businesses. Reid (2003) refers to the effect as 'financial leakage' suggesting that although many successful examples of tourism creating economic benefits exists, it is rare that tourism would promote the economy of the host country and that transnational organisations are often the ones to profit from the operations. Although tourism's purpose is often stated to be creating employment and wealth many of the jobs created by the industry are poorly paid and seasonal, additionally multinational corporations often opt for foreign labor at the cheapest costs to maximize profits, regardless of the effect on the host communities.
Mowforth and Munt (2009) suggest that the uneven benefits of the industry's operations are due to globalisation having drawn 'third world' countries into a global capitalist system. Furthermore, tourism can undoubtedly create problems among communities that have had little exposure to people from the wealthier places of origin where tourists are usually from. Not only does tourism create economic issues in the developing countries but is often also blamed for the depletion of natural resources and changing the destinations culture and characteristics. It becomes clear that the globalised tourism industry creates unequal social and economic benefits as well as negative impacts between nations.
Knowles, T., Diamantis, D. and El-Mourhabi, J. B. (2001) The Globalization of Tourism and Hospitality: A Strategic Perspective. London: Continuum.
Mowforth, M. and Munt, I. (2009) Tourism and Sustainability: Development, globalisation and new tourism in the Third World, 3rd Edition. Oxon: Routledge.
Reid, D. G. (2003) Tourism, Globalization and Development: Responsible tourism planning. London: Pluto Press.
This paper will discuss globalisation's effect on tourism in the 21st century. Globalisation and capitalism have both created unequal profit shares and uneven development for tourism between different nations. The paper will critically compare the relationship between tourism industry's impacts on 'first world' and 'third world' countries.
Key words: Globalisation, tourism, development, unequal, impact
Globalisation: An unequal effect on the tourism industry.
The technological advances of the 21st century have resulted in the accomplishment of a 'global culture' that has had significant impacts on contemporary tourism trends. Reid (2003, p.31) states the following about globalisations impacts "It has affected social and political stability because of its demand for the removal of market impediments, regardless of the social and environmental costs". Furthermore globalisation has contributed to the difficulty of defining or maintaining national borders, in addition technological advances in communications and transport are helping tourists to overcome barriers of physical distance (Knowles et a., 2001).
The World Travel and Tourism Council (WTTC) encourages countries to adopt policies that promote travel and accessibility to enable economic growth through tourism. Additionally the general agreement on trade in services (GATS) by the World Trade Organisation (WTO) has had significant impacts on the tourism industry's operations and businesses. The GATS has enabled international development by removing barriers of overseas investments, contributing to the foreign ownerships of tourism businesses.
The technological advantages of the 21st century have changed the way tourists buy goods and services (Knowles et al., 2001). Mass-tourism together with globalisation has lead to distinct national tourism markets merging into one global market with a homogenous culture (Knowles et a., 2001). However, with the increased information and access to destinations, globalisation has resulted in the emergence of more experienced travellers and new tourism trends. In addition to mass-tourism tourists now seek the 'niche market' and new alternative and authentic experiences. Mowforth and Munt (2009) suggest that today's society's post-fordism movement has resulted in changes in the way services and goods are produced and consumed, consequently resulting in the emergence of segmented and niche markets. Many of the new destinations have emerged in the less developed countries; tourism in these countries is often viewed as distinctive, offering an alternative to the mass-tourism destinations.
Reid (2003) argues that some new tourism resorts have been relentlessly created in developing countries without concern of the impacts on the local communities and environment. Furthermore the author suggests that globalisation has led to the empowerment of people living in global communities due to the lack of policies and legislations to protect the nations from multinational organisations' destruction. Mowforth and Munt (2009) suggest that when related to tourism sustainability has various meanings that differentiate between the 'third world' and the 'first world' nations. The authors propose that for the organisations of first world sustainability means sustaining profitability and creating economic growth whereas for the 'third world' destinations sustainability often means preserving the environment and cultural lifestyles.
Internationalisation has led to the emergence of a global economy; however, it is often argued to be uneven and unequal (Mowforth and Munt, 2009). While some multinational corporations and few countries benefit enormously from globalisation, many countries experience just the opposite. With political deregulations and various free trade agreements globalisation has resulted in foreign ownership of tourism businesses. Reid (2003) refers to the effect as 'financial leakage' suggesting that although many successful examples of tourism creating economic benefits exists, it is rare that tourism would promote the economy of the host country and that transnational organisations are often the ones to profit from the operations. Although tourism's purpose is often stated to be creating employment and wealth many of the jobs created by the industry are poorly paid and seasonal, additionally multinational corporations often opt for foreign labor at the cheapest costs to maximize profits, regardless of the effect on the host communities.
Mowforth and Munt (2009) suggest that the uneven benefits of the industry's operations are due to globalisation having drawn 'third world' countries into a global capitalist system. Furthermore, tourism can undoubtedly create problems among communities that have had little exposure to people from the wealthier places of origin where tourists are usually from. Not only does tourism create economic issues in the developing countries but is often also blamed for the depletion of natural resources and changing the destinations culture and characteristics. It becomes clear that the globalised tourism industry creates unequal social and economic benefits as well as negative impacts between nations.
Knowles, T., Diamantis, D. and El-Mourhabi, J. B. (2001) The Globalization of Tourism and Hospitality: A Strategic Perspective. London: Continuum.
Mowforth, M. and Munt, I. (2009) Tourism and Sustainability: Development, globalisation and new tourism in the Third World, 3rd Edition. Oxon: Routledge.
Reid, D. G. (2003) Tourism, Globalization and Development: Responsible tourism planning. London: Pluto Press.