Discuss the impact of Globalization on the Hospitality Industry.
Globalization has both positive and negative impacts on the hospitality
industry.
The Positive Impacts of Globalization are as follows:
1. Exposure to different cultures: Due to Globalization the managers
of the hospitality 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.
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.
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.
5. Promotes Creativity: Organizations are constantly thinking of new
and creative ideas to attract more tourists
6. 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
7. 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/Cuisines: 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.
The negative impacts of Globalization on the hospitality industry are as
follows:
1. Language Barriers: Due to Globalization, the hospitality Industry
can employ people from different countries – as it is usually
cheaper – they may sometimes have problems in communicating
with the customers. Many customers get quite irate as a result of
this.
2. Cultural Barriers: As there are people from various cultures, one
needs to be careful not to offend them. For Example, a muslim will
not eat pork – one needs to make sure not serve food which
contains pork.(unless specifically asked). What s acceptable by
one culture may be frowned upon by another.
3. Events/Disasters in other Countries: A disaster or even taking
place in one country may affect our country (the home 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. Increasing use of technology to communicate: Due to international
barriers, there has been a steady increase in the use of technology
for communication (through the internet, voice recordings). This
removes the human touch.
6. 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.
7. Increase in Crime Rate: With the increase in tourists, crimes
increase too. Example: pick-pocketing, hustling, rape, smuggling.
8. Bad Habits: People from other countries sometimes influence the
local youth in a bad way. Increase in drugs and promiscuous
behaviour, etc.
9. Environmental Depletion: Globalization causes an imbalance in the
eco system. People usually throw their garbage around
everywhere which could cause sicknesses, to encourage more
visitors, areas of greenery are cleared and wildlife killed - which is
a major cause for global warming.
10. Loss of Cultural Pride and Values: To suit customer needs one
needs to change or modify various services and products. For
example: Certain food dishes are changed (in taste, names
become more westernized) to make them more attractive to
visitors. This, in a way, leads to the loss of culture as one wants to
become and behave like the tourists that come into our country.
