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Globalisation of Tourism: Drivers and Outcomes

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Title: Globalisation of Tourism: Drivers and Outcomes


1
Globalisation of Tourism Drivers and Outcomes
  • Professor Larry Dwyer
  • School of Marketing, Australian School of
    Business
  • University of New South Wales, Australia
  • President, International Academy for the Study of
    Tourism
  • President, International Association for Tourism
    Economics

2
What is Globalisation?
  • The growing interdependence between national
    economies is reflected in a trend towards global
    markets, global production, global competition
    and global communication.
  • Globalisation involves the evolving
    interconnectedness of the world, reflected in the
    expanded flows of information, technology,
    capital, goods, services and people.
  • Globalization includes, and goes beyond, simple
    internationalization of markets.
  • a process by which national and regional
    economies, societies, and cultures have become
    integrated through the global network of trade,
    communication, immigration and transportation

3
Proponents of Globalisation claim positive
effects - - - -
  • promotes global economic growth,
  • creates jobs,
  • makes companies more competitive,
  • expands consumer choice
  • lowers product prices.
  • the basis for disseminating technical knowledge
    and education
  • improves global communication and transport,
  • creates new markets for firms and countries,
  • generates innovation and enhanced product
    quality,
  • fosters democratic ideals and cultural exchange
    and international understanding

4
Critics of Globalisation claim negative effects -
- - -
  • generates income inequalities,
  • destroys local industries,
  • creates greater dependency of developing
    economies on developed ones, with adverse effects
    on small business
  • Local level negative effects include
  • increased prices of consumer goods and services,
  • increased price of land and housing beyond local
    affordability,
  • increased demands on public services and
    facilities.
  • Some critics advance stronger claims that the
    effects of globalisation, through the operation
    of TNCs, include
  • displacement of indigenous peoples from lands,
  • human rights abuses,
  • unfair labour and wages,
  • commodification of cultures,
  • environmental degradation

5
So - - - who is right?
  • Generalisations are hazardous
  • The effects of globalisation differ case by case
    and by context.
  • This is particularly true for the two- way link
    between the tourism industry and globalisation.

6
5 Drivers of Globalisation
  • Economic
  • Technological
  • Demographic
  • Social
  • Political

7
(No Transcript)
8
Economic Drivers
  • Globalisation drives the integration of national
    economic systems, including
  • greater trade in goods and services,
  • the creation of trading blocks, with the ability
    to move goods and services freely across borders,
  • substantial, and increasing, volumes of world
    trade.
  • The centre of gravity of the world economy is
    shifting from west to east and north to south.
  • Rapid income growth within emerging economies is
    creating new markets and new sources of
    competition. Newly emerging economies,
    particularly China and India, are driving this
    growth in trade.

9
Economic Drivers
  • Easier access to foreign capital and increased
    FDI provides the foundation for import
    substitution and export promotion to generate
    competitive markets.
  • Globalisation induced economic growth is a source
    of tax revenue for development financing. TNCs
    can help developing countries to improve their
    balance of payments with critical financial
    infrastructure for economic and social
    development
  • more integrated and interrelated world labour
    market.
  •  Does globalisation reduce global economic
    inequalities?
  • While jobs are created in developing countries,
    globalisation is claimed to cause unemployment in
    industrialized countries as businesses outsource
    work to developing countries where the cost of
    labour is low.

10
Technology Drivers
  • The globalizing economy and technological change
    inevitably require a more highly skilled labour
    force.
  • Developments in information and communications
    technology (ICT) and transportation have
    accelerated the pace of globalisation, lowering
    operating costs and making it more economically
    feasible for a firm to locate in different
    countries.
  • technology makes it possible to produce
    customised services on a large scale at cost
    competitive prices (mass customisation).
  • Technological spillovers are particularly
    important for developing countries providing
    opportunities for them to narrow the productivity
    gap with the developed economies.

11
Technology Drivers
  • The Internet and related social media has been a
    vital development across all industries as
    consumers use it to gather information on
    destination, products and services.
  • Rise of social media. Internet services such as
    Facebook, Twitter, YouTube and Skype, e
    cross-cultural communication.
  •  Technological advances in the transport sector,
    particularly aviation, enable the continued rise
    in mobility as people are able to move greater
    distances, more comfortably and in faster time.

12
Demographic Drivers
  • Major demographic shifts have profound effects on
    most social institutions.
  • important drivers involve the related areas of
    population growth and age structure change,
    driven by differential fertility rates and
    improved health care
  • A high standard of public health in developed
    countries has contributed to increased longevity.
    With increasing longevity, the growing world
    population is ageing, especially in rapidly
    expanding urban areas
  • Population is ageing in developed countries but
    getting younger in developing countries.
  • Population growth in the context of globalisation
    has generated a worldwide trend toward
    urbanisation. By 2020, more than 60 of global
    population will live in cities The number of very
    large cities, megalopolises of more than 10
    million people, will increase to about 30 by 2020

13
Social Drivers
  • Parallel to changes in demography are changes in
    peoples values and needs, aspirations and
    expectations.
  • As incomes rise in most countries in the world,
    so peoples values, aspirations, motivations and
    behaviour do too.
  • Worldwide, people possess
  • an increased sense of deservingness with
    emphasis on quality.
  • Individualism
  • Money rich time poor
  • Experimental
  • Hedonistic
  • Feeling of deservingness
  • Social and environmental consciousness - - -

14
Social Drivers
  • Globalisation has produced a generation that is
    more international in its outlook than any
    before.
  • This is demonstrated in membership of
    international organisations, studying abroad,
    taking part in human rights campaigns and so on.
  • the migration and movement of people either
    from rural to urban environments within countries
    or migration related between countries is a
    prominent feature of the globalization process.
  • provides better opportunities for people all
    round the world to gain access to jobs.

15
Political Drivers
  • increasing liberalization of trade and capital
    markets.
  • International bodies such as the World Trade
    Organisation (WTO) and the International Monetary
    Fund (IMF) have facilitated globalisation by
    respectively reducing trade barriers (such as
    tariffs and subsidies) and the deregulation of
    world financial markets.
  • The Organisation for Economic Cooperation and
    Development (OECD) and the World Bank support
    continued liberalisation of trade through their
    lending and debt relief policies.

16
Political Drivers
  • ongoing political pressure for higher living
    standards in developing societies with a growing
    global middle class creating a cycle of rising
    aspirations.
  • A rapid expansion of the private sector in many
    emerging market economies,spurs economic growth
    by generating competitive pressures to use
    resources more efficiently
  • development of generic consumer protection
    frameworks in many countries providing certainty
    to all businesses and consumers as to their
    rights, expectations, responsibilities and
    obligations across all industries

17
These Drivers Affect Tourism Development
  • The above highlights only some of the relevant
    drivers of globalisation
  • Each of the drivers has tourism relevance and no
    single driver or trend will dominate.
  • Each influences the others and will have varying
    impacts in tourism destination different regions,
    countries, industry sectors and tourist
    behaviour.
  • The drivers are not necessarily mutually
    reinforcing in some cases they will work at
    cross-purposes.
  • Taken together they set the context in which the
    global tourism industry will develop in a context
    of continued globalisation.
  •  The trend towards increased globalisation will
    boost tourism, as people are increasingly
    international and cosmopolitan in their
    outlook.

18
Effects of Globalisation on Tourism Supply and
Demand
  • Economic Growth
  • income inequality,
  • economic dependency
  • consolidation
  • tourism expenditure leakages
  • destruction of local industry,

19
Economic Growth
  • Globalisation is considered to increase the
    economic prosperity of countries, as rising trade
    and investment flows generate additional world
    GDP.
  • In particular, strong income growth in developing
    economies such as BRIC (Brazil, Russia, India,
    China) is expected to drive the increase in
    international tourism worldwide as the new
    wealthy seek new experiences.
  •  The UNWTO projects tourism to grow at 4.1
    annually at least to 2020, fuelled primarily by
    economic growth internationally.
  • By 2030, it is forecast that destinations in
    todays emerging economies will account for 57
    percent of international tourist arrivals
    compared to 47 percent in 2011
  • As rising income is the most powerful generator
    of tourism flows to the extent that globalisation
    generates a dynamic world economy, it also
    creates the economic basis for continued growth
    in domestic and international tourism worldwide.
  • The circle may be virtuous.

20
The other side - - -
  • Critics have argued that globalisation has
    effects that greatly reduce the economic impacts
    of tourism growth.
  • income inequality,
  • economic dependency
  • consolidation
  • tourism expenditure leakages
  • destruction of local industry

21
Income inequality
  • A particular advantage claimed for globalization
    is that it fosters the generation of employment,
    increasing the standard of living of people
    worldwide, and also alleviating poverty.
  • Over time, as nations become wealthier and more
    efficient, the benefits of trade will trickle
    down, reducing poverty levels.
  • Even so, a causal relationship between inbound
    tourism and economic growth may not necessarily
    lead to higher living standards in developing
    countries, as these are also dependent on the
    distribution of income and the quality of
    services such as health care and education.
  • Some studies suggest caution when generalizing
    the effects of tourism growth on poverty within a
    country.

22
Dependency
  • Most developing economies are highly vulnerable
    to any economic disruptions that occur in the
    developed countries that purchase their products.
  • Two types of risks from overspecialisation
    relate to tourism.
  • a dependency on tourism in general as an export
    market. The global financial crisis has
    demonstrated the risks involved in tourism
    dependency arising from sudden unfavourable
    changes in demand from world markets
  • too much reliance on tourism from particular
    origin markets or too much reliance on a
    particular tourism product (e.g. hunting, spa
    tourism, gambling).
  • Given the discretionary nature of tourism
    expenditure, the industry is extremely sensitive
    to crises of every type (economic, environmental,
    political).

23
Dependency
  • Both of the above types of risk are compounded by
    the reality that TNCs are increasingly
    'footloose', with ability to move and change at
    very short notice creating uncertainty for the
    host destination.
  • TNCs can switch their investments between
    territories in search of the most favourable
    regulatory regimes with adverse consequences for
    the local tourism industry.

24
Dependency
  • In many developing countries, local economic
    activities and resources are used less for the
    benefit and development of communities and
    increasingly for export and the enjoyment of
    others (i.e., consumers from other areas of the
    world). This occurs in tourism when the domestic
    market is neglected.
  • To avoid overdependence on the international
    tourism market and related problems, countries
    can explore tapping the potential of domestic
    tourism
  • domestic tourism can effectively absorb the
    excessive supply resulting from any slumps and
    seasonality of inbound tourism.
  • This also helps redistribute the national
    income, thus reducing interregional gaps in the
    level of economic development and contributing to
    social equality.

25
Consolidation
  • For many tourism firms, survival in the global
    marketplace requires merging with or taking over
    companies that deliver different components of
    the whole product.
  • The growth of TNCs, and the rise in the
    significance of global brands, has been central
    to the emergence of globalisation in the tourism
    industry.
  • The high concentration in some tourism sectors
    creates market power and the potential for abuse
    by large international firms as evidenced by
    exclusionary agreements, price fixing, market
    sharing among dominant operators or boycott and
    refusal to deal with operators in developing
    countries.
  • These anti-competitive agreements and conduct can
    impose substantial costs particularly on
    developing economies eliminating many of the
    benefits of globalisation

26
Leakages
  • Expenditure patterns of international tourists
    has a higher import content than the expenditure
    of domestic tourists.
  • The resulting higher leakages imply a loss of
    foreign exchange and a loss of economic benefits
    outside of the community back to foreign owners.
  • The weaker industrial bases of developing
    countries implies that most products demanded by
    tourists cannot be manufactured domestically.
  • Weak links between tourism and other sectors in a
    destination implies a weak multiplier effect
    from tourism expansion
  • Leakages also include export of profits by TNCs
    to foreign locations by way of repatriation of
    profits to their 'home country',

27
De-industrialisation
  • Globalisation can also erode an economy's
    manufacturing base.
  • Local businesses, particularly in developing
    countries, face much greater competition due to
    globalisation.
  • This can put local tourism SMEs at a disadvantage
    as they do not have resources to compete at
    global scale.
  • Local stakeholders may also be pushed out or
    sell out
  • local prices for commodities and services rise,
    as do taxes.
  • The crowding out effects of export oriented
    tourism growth, resulting in the decline of local
    (non- tourism) industries, are well recognised.

28
Employment Opportunities Positive
  • Globalization can be a catalyst to the creation
    of jobs that require higher skill sets.
  • Globalisation generates greater labour mobility
    as the internet provides greater opportunities to
    gain jobs internationally.
  • The implications of this for tourism employment
    include an increased demand for people with
    language skills, and with the skills to work in
    different cultural environments.
  • Tourism can also be a good employer of women and
    disadvantaged groups and can upgrade their
    economic status.
  • The jobs created by tourism can act as a very
    important motivation to reduce emigration from
    rural areas. Local people can improve their
    earnings prospects through tourism-related
    professional training.

29
Employment Opportunities negative
  • competition from other sectors is causing a
    diminishing labour pool of tourism staff of the
    right quality.
  • the jobs created may be low-skilled with the TNC
    employing expatriate workers for the more senior
    and skilled roles.
  • TNCs can operate as local monopsonies of labour,
    and push wages lower than the free market
    equilibrium.
  • Local employment can be low level or unskilled,
    seasonal, low wage, part time with little
    opportunity for advancement and development of
    business and organizational skills.
  • the tourism-related informal sector may contract
    as the tourism-related formal sector expands

30
Spread of Technical Knowledge
  • Access to information technology provides
    awareness of other countries and their tourism
    offers.
  • The tourism industry globally uses social media
    platforms such as Facebook, Twitter, YouTube and
    travel blogs such as TripAdviser, much more
    intensively, both on the demand and supply side
  • These new technologies have facilitated greater
    information flows between travellers.
  • interactive access to product offering via the
    Internet gives tourists unprecedented control
    over how they spend their time and money

31
Spread of Technical Knowledge
  • Travel and tourism companies and organisations
    increasingly integrate ICT into their sales and
    marketing activities.
  • The Internet allows marketing activity to be
    undertaken on a more level playing field whereby
    small businesses can connect directly to
    consumers and compete for market share on an even
    footing with larger firms
  • New technologies globally also compete with
    tourism by delivering new forms of entertainment
    in or near the consumers home.
  • The new technologies with sophisticated database
    management systems have transformed travel and
    tourism into a more flexible, customised,
    individual-oriented activity responding to
    individual preferences
  • Technology changes thus enable an increasing
    proportion of tourism organizations to achieve
    the dual goals of reducing operating costs and
    increase their ability to add value for their
    customers.

32
Spread of Technical Knowledge
  • In the transportation sector, new technology is
    improving the speed and reducing the real cost of
    travel.
  • However, developing countries do not have a
    proper infrastructure in place to leverage
    technological benefits (TTCI)
  • Is there too much technology?. A consideration
    for the tourism sector will be whether it can
    deliver authentic experiences that arent crowded
    by technology.

33
New Markets
  • two main causes of the development of new
    markets in tourism, both of which are associated
    with globalisation.
  • demographic variables
  • new consumer values.

34
Demographics Population Change
  • Population growth generates substantial expansion
    in overseas travel.
  • Mass tourism is one of the visible manifestations
    of globalization.
  • In 2000 the rate of international journeys was
    11.5 per 100 people. At this rate population
    increase alone would see a 20 rise in
    international travel. However increases in
    wealth, particularly in developing countries, are
    expected to see the rate of journeys grow to 20
    per 100.
  • Population growth is much higher in developing
    countries.
  • The changing distribution of the population
    implies the importance of Asian tourists to all
    markets.
  • emerging economies expected to experience faster
    growth in tourist arrivals
  • By 2030, it is forecast that destinations in
    todays emerging economies will account for 57
    percent of international tourist arrivals
    compared to 47 percent in 2011.

35
Demographics Urbanisation
  • The world is experiencing a shift from rural to
    urban communities.
  • This trend is a positive development for tourism,
    since urban dwellers have a greater propensity to
    travel than those living in rural areas.
  • The growing urban congestion in both the
    industrialised and developing economies leads to
    the increasingly felt need to engage in
    discretionary tourism to escape and/or to
    indulge.
  • As the worlds population grows and becomes
    increasingly urbanised, tourists will be drawn to
    nature-based experiences.

36
Migration
  • Migration levels worldwide have increased
    substantially due to globalisation.
  • Migration and tourism are clearly interlinked.
  • Both Migration- Led Tourism (MLT) and Tourism-
    Led Migration (TLM) make important economic and
    social contributions to countries ranging from
    cultural exchange to providing labour for tourism
    related industries.

37
Age Re-structuring
  • Increased life expectancy means larger numbers of
    older tourists from existing markets in developed
    countries.
  • Increased longevity increases the period over
    which people are active travellers and tourists.
  • Older persons are attractive as tourists because
    they have the financial means, and time to devote
    to travel experiences.
  • Tourism industry will increasingly have to take
    account of the needs and preferences of older
    travellers by way of product design and
    marketing.
  • At the same time, tourists from developing
    countries will be younger with very distinctive
    needs from the older tourists from more
    traditional source markets. Concurrent to income
    growth in the developing world youth travel is
    experiencing rapid growth.
  • The challenge for tourism industry is to address
    both the needs of younger less experienced
    tourists in developing markets and the needs of
    experienced tourists in developed markets.

38
Changing Social Structures
  • Changing social structures associated with
    globalisation affect tourism flows.
  • Household types are diversifying away from the
    traditional nuclear family in developed
    economies.Family structures are shifting from
    more horizontal with fewer generations to more
    vertical structures with more generations
    included
  • tourism will need to adapt itself to provide a
    more varied offer.
  • Marketing and communications will have to address
    new needs and wants that result from these
    emerging family and household structures, with
    staff trained accordingly.
  • Meanwhile, the growth of the singles market
    suggests strong opportunities for educational and
    interest-based tourism.

39
Work Patterns and Gender
  • Work patterns are changing which is also
    associated with globalisation.
  • Changing work patterns will allow for more
    flexibility of travel plans.
  • The distinction between work and leisure will
    continue to blur
  • Society is also becoming more feminised, with
    the traditional distinction between the roles of
    men and women becoming more blurred.
  • Women have increasing influence on all the key
    consumption decisions, including tourism
    opportunities and destination choice.

40
In Sum Importance of Demographic Changes
  • Demographics will have a dramatic impact upon
    tourism in the coming decades.
  • It will impact upon the types of tourists that
    will travel, where they originate from, where
    they travel to, the types of accommodation they
    require, length of stay, and the activities they
    engage in while away.
  • The changes clearly have implications for
    business management, marketing and new product
    development in tourism

41
New Consumer Values Money-rich, time-poor
  • In developed countries, the growth of money
    rich-time poor people implies a high demand for
    short time holidays.
  • The greater pressure on time and rising
    stress levels leads to growing emphasis on the
    means of escape through holidays.
  • Greater flexibility in working hours can provide
    benefits to employees in terms of greater freedom
    to choose when to go on holiday.
  • This balancing between time and money is a
    critical issue for the tourism industry to offer
    the right balance of activities and relaxation to
    maximise the benefit of the experience.
  •  

42
New Consumer Values Individualism
  • People increasingly tailor holidays to meet their
    particular requirements.
  • As travellers become more experienced, they want
    customised services, rejecting the impersonal,
    non-interactive system of mass tourism.
  • Tourists seek the unusual and the authentic
    experience rather than the shared, off-the-shelf
    holiday package
  • The experiences sought are those authentic to
    the destination and its people, personalised and
    often involve social interaction and emotional
    connection.

43
New Consumer Values Participation
  • As incomes grow, people shift their discretionary
    expenditure towards experiences as opposed to
    products.
  • One result of the experience economy and tourism
    has been a fragmentation of the tourist market
    into subsets of unique experiences.
  • With tourists desirous of involvement as
    participators not spectators, seeking a variety
    of optional experiences,
  • At the same time, tourists are demanding
    assurances of safe products and services prior to
    purchase.

44
New Consumer Values Self-improvement
  • individuals are becoming more interested in
    self-improvement as part of the tourism
    experience, emphasising health, well-being,
    education, skill development and cultural
    appreciation.
  • people are increasingly concerned about their
    health and well-being. Greater value is being
    placed on de-stressing and selfmedicating
  • People are increasingly interested in
    discovering, experiencing, participating in,
    learning about and more intimately being included
    in the everyday life of the destinations they
    visit.
  • As more material needs are satisfied tourists
    seek newer, richer, deeper, experiences.
    Tourists, have an increased social and
    environmental consciousness, seeking authentic
    tourism experiences.

45
Seeking Quality
  • Standards in hospitality management and hotel
    sector are now judged by global comparisons, even
    at the more localised level.
  • The tourist marketing battle has shifted from
    competitive pricing towards service improvement.
  • TNCs that have been able to establish and sustain
    a consistent brand image and control quality
    typically outperform competitors unable to do so.
  • As domestic businesses have to combat foreign
    competition, they are compelled to raise their
    standards and customer satisfaction levels in
    order to survive in the market.

46
In Sum New Consumer Values
  • The new consumer values have important
    implications for tourism on both the demand and
    supply side.
  • Rising affluence, greater internationalism, an
    appetite for risk taking, more sophisticated
    marketing, the feeling of greater time pressures,
    and improved access to technology all contribute
    to a fragmentation of tastes in both developed
    and emerging markets.
  • Firms must adopt individual strategies for
    individual markets and customers, in order to
    become increasingly competitive in the market
    place.
  • This will require more detailed analyses of
    demographic trends and value shifts, how these
    are impacting on tourism demand
  • Those tourism organisations that ignore this
    massive demographic and values shifts and their
    global impact are likely to experience strategic
    drift and cease operations.

47
International Agreements
  • Globalization results in easier access across
    borders, which for the tourism industry implies
    more foreign tourists as well as increased global
    competition from international tourist
    destinations.
  • The continued deregulation and liberalisation of
    air transport and open skies policy supports
    the growth of trade and tourism.
  • However, it has been argued that international
    institutions aid and abet some negative effects
    of globalisation
  • Under GATS, protection to the local tourism
    industry would be construed as unfair practice
    and would thus have to be eliminated.
  • Regulations such as those found in the TRIMS
    agreement which restrict a country's rights to
    require companies to purchase local materials,
    the "most favoured nations" provisions which make
    it illegal for countries to reward companies who
    hire locals or have good environmental practices,
    and the liberalization of trade in services of
    GATS which would allow foreign companies to merge
    or take over local companies.

48
International Agreements
  • Tourism is now being pursued as a serious
    development strategy for the less developed
    world. Under IMF-World Bank prescriptions,
    tourism is classified as an export strategy.
  • The International Monetary Fund (IMF) has
    included tourism as part of its Structural
    Adjustment Programmes (SAPs).
  • The SAPs, which are preconditions for the
    approval of financial assistance require the
    indebted country to be integrated into the
    global economy deregulate and liberalise its
    economy shift from an agriculture-based to a
    manufacturing and service industry-based economy
    and liberalise its financial sector.
  • All such initiatives reinforce the importance of
    globalisation to tourism industry development.

49
Environmental Effects
  • On one view, globalisation has enhanced our
    understanding of the importance of environmental
    protection benefitting all tourism stakeholders.
    Tourism can foster conservation and preservation
    of natural resources, encouraging community
    revitalisation and beautification, raising
    revenues to help maintain quality of natural and
    heritage attractions
  • The rise of the socially conscious and
    environmentally conscious consumer leads to new
    patterns of tourist behaviour, as exemplified by
    the development of alternative tourism, in
    opposition to mass tourism
  • Many global environmental problems involving
    cross-boundary pollution, e.g. over-fishing in
    the oceans, climate change, are being solved by
    discussions and conventions.
  • Globalization enhances the ability of countries
    to work together to overcome natural disasters
    and global challenges, such as global warming and
    whaling.
  • Another phenomenon that the globalization of
    ideas brings about is improving environmental
    awareness and the popularization of the concept
    of sustainable development

50
Environmental Effects
  • As a counterargument, all countries face
    intensified environmental problems as a result of
    population growth, economic development and rapid
    urbanisation.
  • Trade growth has also accelerated the depletion
    of non-renewable resources, such as oil.
    Increased consumption leads to an increase in the
    production of goods, which in turn puts stress on
    the environment via its carbon footprint.
  • Tourism transport, especially aviation, is a high
    emitter of greenhouse gases, and contributor to
    global warming. Human, animal and plant diseases
    spread more quickly through increased movement of
    goods and people around the globe.
  • The main environmental trends such as climate
    change, depletion of natural resources and loss
    of biodiversity, are all associated with
    globalisation.

51
Social Effects Positive
  • The globalisation of social networks, whether
    through multinational companies, higher
    education, or international civil society, can be
    expected to drive further growth of tourism and
    travel.
  • Inter alia, tourism can lead to removal of social
    or national prejudices, promote mutual
    understanding between hosts and guests, encourage
    civic involvement and local pride in a
    destination, improve the quality of life of
    locals including the vitality of local
    communities, and increases availability of
    recreation facilities and opportunities.
  • Globalisation forges cross-cultural contacts,
    helping to promote cultural understanding and
    tolerance, as well as the spread of democratic
    ideals.
  • Globalization has helped to create
    internationally sanctioned agreements which
    attempt to ensure that people are not
    discriminated against on the basis of country,
    caste, creed or sex.

52
Social Effects Negative
  • On a contrary view, since the cultures of those
    countries that have more economic power are
    likely to be more dominant than others, it is no
    surprise that global tourism threatens indigenous
    knowledge, social structures and relationships.
  • In many developing countries, tourism's effects
    on indigenous peoples have been profound
  • widescale eviction from their lands,
  • economic dislocation,
  • breakdown of traditional values
  • degradation of cultural sites when historic sites
    and buildings demolished to make way for tourist
    facilities.
  • commodification of culture
  • Clearly the reality differs case by case.

53
Reason for optimism?
  • On a brighter note, populations are responding to
    the globalization of economies, markets, systems
    and cultures by exploring their own identities
  • This tension between modernity and identity
    is leading to the increasing questioning by local
    communities of the form and scale of tourism
    development and type of destination marketing in
    those societies.
  • Increased community involvement in tourism
    planning and development results in a growing
    dispersion of tourism away from mass tourism
    dominated by TNCs, into diverse niche markets.
  • From this perspective, globalisation appears to
    pull in two ways, both towards the creation of
    TNCs by the extension of operations through
    take-overs, the formation of strategic alliances
    or franchising agreements, and, in terms of
    consumption, towards more localised or regional
    branding and niche marketing.

54
In Sum - - -- -
  • We cannot generalise too broadly on
    globalisations impacts on tourism and the
    subsequent effects on economies, communities and
    natural environments.
  • Globalisation has positive and negative effects.
  • More case studies are required to identify the
    effects in particular locations.
  • As the drivers of globalisation show no signs of
    a slowdown, the challenges facing tourism are
    formidable.
  • Since the same forces that drove mass tourism are
    sewing the seeds of its demise, it is very likely
    that a complete change of paradigm, is required
    if tourism globally is to develop in a
    sustainable way
  • Some critics argue that the growing incidence of
    crises, environmental, political and economic,
    encourages a counter trend to the globalisation
    process, with possible significant implications
    for the future of the global travel system.

55
In Sum - - - -
  • All elements of the tourism industry need to be
    sensitive to the needs of the new tourists.
    Communities must ask What do tourists want? What
    types of experiences do they value? How can we
    meet those needs? Do we want to?.
  • Perhaps even more important than catering for
    visitor needs, destination residents should be
    developing a vision for the type of community
    they wish to live in, and the role that tourism
    might play (if at all) in achieving that vision.
  • the tourism industry can do more to critically
    engage with the main international institutions
    and governments, providing a link from
    stakeholders who are marginalised and exploited
    by the processes of globalisation.
  • The international tourism industry, through
    organisations such as the UNWTO, can play an
    important advocacy role, helping to build the
    capacity of developing countries to participate
    more fully and negotiate more effectively in the
    discussion about trade rules, subsidies,
    liberalisation and corporate responsibility and
    regulation.

56
  • Thank You
  • Merci
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