Economic Forces And Effects Of Globalization In Tourism Industry Essay

Economic Forces And Effects Of Globalization In Tourism Industry - Essay manikinThe major factor in the touristry industry is the tourist, who by some is defined as a person, or people who travel, and stay in places outside their usual areas of residence for a period of much than twenty-four hours. The tourism industry comprises of the different types of facilities and services offered to tourists within a destination, or country for those tourists. For example, carry transportation, hotels, and accommodation, restaurants, bars, cafes just to mention a few exclusively of which are used in boosting the level of tourism within a country or destination. Therefore, the international tourism involves movements across borders for at least atomic number 53 stay in the international country for different purposes. These include business, leisure, visiting friends and relatives, international conferences, or seminars, and former(a) purposes. This report deals with short-term movement o f international tourists across borders for the reasons mentioned herein. The international tourism industry is worth an count of $856 billion in 2011, representing a growth of 1.7% per year over the past five years. How forever, the growth shadows a strong declined of 3.6% experienced in 2009 as the global economy succumbed to recession leading to a corking fall in tourism in international tourism numbers.... This massive stinting development resulting from tourism has both positive and negative consequences. Economic forces and effects of globalization play a significant social occasion in shaping trends in the tourism industry. Economic forces refer to factors such as nature of the economic system in a country, demographic changes, economic consumption, fiscal and monetary policies, rate of inflation, and interest rates which determines the body politic of the competitive environment in which a house or industry operates. These factors affect the outcomes of a firms marketi ng activities, by determining the strength and volume of demand for its products and services. For example, increase in employment rates in a destination results into increased demand products and services. Globalization is the process of development toward an progressively integrated global economy and characterized by free low of capital, free trade, and the tapping of cheap labor from foreign markets. Globalization also entails improvement of labor standards and practices resulting into quality services within the tourism and hospitality industry. With the ever increasing trend toward open and free economies, hospitality organizations such as Hilton Hotels has been able to gain from globalization that has created less trade regulations allowing the hotel to open and operate more chains globally. In addition, Hilton can acquire its supplies from all over the world without incurring more expenses resulting from trade barriers. Globalization has spread the materialistic culture or dinary with the Westernized world and implementing values previously associated with the western culture. This has enabled the hotel chain to benefit economically from its chains established