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FACULTY OF BUSINESS ADMINISTRATION

GBMT300 - Global Business Environment

Professor: Dr. Javier

The effects of globalization in the

tourism

industry
Ana Lusa Costa, BB607338

The effects of globalization in the tourism industry

Globalization is an ongoing process of economic, social, cultural, and

political activities crosses national boundaries. This process depends on

the international mobility of information, capital, technology, services,

goods and people. Globalization transformed the world in a "global village,

which affect peoples, industries, firms and economies both at local and

global level. It improved the interdependence between countries,

economies and people.

Tourism, like other industries, was influenced in various levels by

globalization. The first evidence of globalization in tourism is the sudden

increase in potential tourist demand due to the development in

transportation, which contributed to a significant improvement in global

mobility. Modern transportations, such as aircraft, cruise ships, trains,

permit people move faster and cheaper. The development of Boeing 787

Dreamliner allowed flying in long distances with a larger number of


passengers, and consequently opens new routes. The progress in the

trains, road systems and even city bike rental programs makes easier to

people explore the world.

The emphasis in technology innovations has made travelling easier.

Technological progress and tourism are related through their increase

expansion observable in the past fifty years (Poon, 1993, pp. 62).

Technological innovations and ICT (Information and communications

technology) functions have a strong effect on tourist trends. Nowadays,

with globalizations and the advance of technology people are able to book

a trip to any part of the world from your computer at home. International

banking systems allow people access to their bank account in the internet

anywhere in world. Handheld devices also facilitated travelers with the

creation of travelling apps like visitacity, tripadvisor, booking. These apps

simplify the way how travelers interact with a destination and what they

do, making it easier to choose a restaurant, where to stay and where to go

as well as translate a foreign language, once they have access to more

information. Films, TV shows, sports tournaments and commercials that

are shown on TV or cinema are a way to exposed new regions and create

curiosity to visit and explore new places. Even social media websites such

as Facebook, Instagram and Snapchat are excellent means of publicity

since they are free, can be upload in the minute and show in direct.

Globalization has also contributed for the raise in competition

between the different destinations. The tourism industry is trying to adapt

to the requirements of potential tourists in order to gain advantages to its


competition. However, it is still very hard to define a global tourist

product owing the demographic features differences, oscillation in the

number of trips throughout the year, the level of experience gained during

the trip as well as the type of trip people want to have.

The direct and indirect effects of tourism on the environment are

significant and can lead to the disappearance of natural resources. One of

the main long-term problems for tourism are environmental changes that

can lead to the disappearance of many destinations, such as beaches,

coastal areas, areas along rivers and lakes. Another mater regarding to

environment is the animals protection. Tourist are always looking for new

experiences that they cannot live in their countries, for instance contact

with exotic animals like elephants and tigers. The constant search for new

activities has led some countries like Thailand to ignore animals rights.

However, people are changing their attitude and becoming more

environmental aware and protective regarding to nature and resources.

This aspect has increase the demand for eco-tourism. For example,

Thailand are facing a new change in tourism once there is a demand for

protective elephant activities, where instead of ride elephants, people are

looking for activities where they can interact, feed and treat the

elephants. This change in peoples mind are forcing tourism focus on

sustainable development. Stainable development is the foundation for an

ongoing development of a destination in spite of the additional cost in

investment for natural resources preservation and rational use of

resources.
Globalization is a link of interdependence between countries,

economies and people. Comparable with most of the industrial sectors,

tourism is affected by global economic trends. One evidence of that was

the global financial crisis of 2007-2008 which made the international

tourism arrivals falling globally. Nevertheless, tourism was one of the

industries that rapidly rebound, with the increased of the number of

travelers in 2010. Another economic trend that influence the tourism

industry is the conscious consumerism. This refers to consumers who take

advantages of their purchasing power and changing the world according

to their values and beliefs. This trend used by travelers can shape

destinations and business interests toward a more social and

environmental aware, as was previously explain by the elephants

example.

In most emergent economies and developing countries tourism is

the industry that supports their economy. In these countries, the economy

is strengthening by bringing foreign currency, foreign investment in hotels

and tourist attractions and global players and strategic alliances and

consequently creates a raise in employment.

To sum up, globalization has positive and negative effect towards

tourism industry. The advance of technology in transportations and social

media had improved significantly the tourism industry and take it to an

upper level. In terms of environment, it has some negatives impacts on

the past and still has tanks to the fake eco and artificial products.

However, with the change in mentality from travelers the industry is


changing in a protective and preservative way towards the environment.

Regarding to economy, tourism is generating new markets based on

different values and needs and subsequently contribute to the economic

growth of many countries, especially the developing countries.