Impacts Of Globalization On Hotel Industry 91l1k

Globalization: Globalization refers to the trend towards a more integrated global economic system. A common modern definition of „globalization‟ may be “The gradual integration of economies and societies driven by new technologies, new economic relationships, and the national and international policies of a wide range of actors, including governments, international organizations, business, labor and civil societies (NGOs).” Another expansive definition has been offered by Professor John Reggie in the following words“Globalization does not come in tidy sect oral or geographically demarcated packages. It is all about interconnections – among people; across states; in production networks and financial markets; between greed and grievance; among failing states, terrorism, and criminal networks; between nature and society. Reference: http://www.authorstream.com/Presentation/nairvivin21-922088-globalization/

IMPACTS OF GLOBALISATION ON HOTEL INDUSTRY Globalization is a very debatable topic as it has goods and the bad to the people. It depends upon the person whether the Globalization is good or bad or it has Positive Effects Negative effects.

POSITIVE EFFECTS 1. Exposure to different cultures: Due to Globalization the managers of the hotel industry are able to learn about different cultures as they get to mingle with people from various walks of life – and thus, increase their knowledge. Different peoples regarding to different cultures visited others countries, then we have to know about their culture to provide best in services.

2. Larger Market: Due to Globalization the customer base has increased greatly. People travel not only for holidays, but business, health and various other purposes too. Thus, this has increased the market for the hospitality industry, which gets its major income is from international visitors. Which result in increase the market or to expand the market as well.

3. Boosts the economy: Visitors come in and spend money – multiplier effect – and foreign exchange increases. Thus it is of great value to the economy as Globalization helps to pump in money into the country.

4. Technology Advancement: Since one wants to attract as many tourists as possible, hospitality organizations constantly need to upgrade and improve their products and services Example: Singapore Flyer, using faster and newer technology in hotels to so that the customer is satisfied. And it is possible due to globalization.

5. More Job Opportunities: Due to Globalization, more visitors come into our country and thus more people are needed to serve and cater to their needs. So, with the advent of globalization, there are a lot of more jobs available for people within the hospitality industry. Like an example in Book of Toyota. When open in Japan. It made 2000 direct and indirect job opportunities. So globalization is helpful in creating more job opportunities.

6. Boosts the Travel Industry: Due to globalization more people move around, to facilitate this, the travel industry needs to grow as well. People who come into our country by air, or ship, or land – use the transport services offered as well.

8. Variety of International Services: Since there are a lot of different visitors with various cultures, customs, cuisines, and languages, the hospitality industry includes recipes and various other services to cater to them. These services are available to the locals too, which makes it even better. Reference:http://www.academia.edu/1209681/MANAGING_GLOBALIZATION_CHALLENGES_FACING_ INTERNATIONAL_LAW_IN_THE_21st_CENTURY

NEGATIVE EEFECTS 1. Language Barriers: Due to Globalization in the hotel Industry we can employ people from different countries as it is usually different language they may sometimes have problems in communicating with the customers. Many customers get quite irritate as a result of this. So Language is a big barrier of globalization. Due to globalization we have to meet with different cultures and different language peoples that we really don‟t know and result in miscommunication.

2. Cultural Barriers: Same as discuss in language barrier as there are people from various cultures, one needs to be careful not to offend them. For Example, a Muslim will not eat pork/alcohol – one needs to make sure not serve food which contains pork/alcohol. What acceptable by one culture may be frowned upon by another.

3. Events in other Countries: A disaster or event taking place in one country may affect our country also. For example, the financial crisis makes less people want to spend money or travel due to increase in terrorism some visitors get are not ready to travel to certain countries.

4. Seasonal Employment: During peak periods, a lot of jobs are available but as soon as the tourists go back the jobs disappear as well. For example: Goa – India; the locals in Goa get their income only during the peak season, (Dec- Feb and April – July) after which they have no jobs and no income.

5. Developing Countries: Countries that are unable to keep up with the advancement in technology tend to lose out. Example: Africa does not have the infrastructure or technology as yet to welcome a large amount of foreign visitors, though it does have a lot of natural attractions. To increase the flow, it would have to improve conditions; otherwise tourists have a vast sea of areas to choose from.

6. Increase in Crime Rate: With the increase in tourists, crimes increase too. Example: pick-pocketing, hustling, rape, smuggling.

7. Effects on SMALL HOTELS: There are many hotels which are not having more lavish and has high luxurious facility. Big hotel groups coming to India creates a huge mess for the small hotels owners. There is always a problem for employees as big hotels owners will take away the employees giving higher salary and opportunities. Now-a-days small hotels are being extinct and there is a huge increase in hotels coming from outside of India.

CHALLENGES TO REMOVE NEGETIVE EFFECTS 1. Language barrier: As people are employed from all over the world, they should be trained efficiently, such that we can solve language problem.

2. Cultural barrier: Any hotel starting its business in any new country or location they should first have deep research about that place like, religion, type of cuisine ,and standard of living. 3. Events in other country: If there are any events or disaster taken place in any country, neighboring countries should try to help in all events. For example: Recently, a huge destruction took place in Japan due to earthquake and tsunami India helped them by sending food packages. 4. Increasing use of technology: As world is changing fast every type of industry should be modernize/or should be updated other wise there can be threat to face heavy loss and be out of market. Developing countries: These countries attracts foreign business in them .developed countries help these countries in getting modern technology and making them successful. Increase in bad habits: it is in individual to have bad habits or not. Effects on small hotels: If small hotels try to merge with big or brand hotel group they can increase there business and compete in market.

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