Globalization

 and  Tourism  
Harsimran  Chadha  
Senior  Lecturer  
Government  Women’s  Polytechnic  College  
Indore  
E-­‐mail:  hsimranchadha@gmail.com    
 
   
  Introduction    
Abstract   Globalization   is   a   phenomenon   that   has  
influenced   everyone   and   everything   on   this  
This  paper  attempts  to  explore  the   planet.   From   a   simple   pencil   to   high-­‐tech  
relationship  between  globalization  and   instruments,  be  it  fruits;  vegetables,  animals  or  
humans   all   are   under   the   radar   called  
tourism.  It  is  based  on  the  review  of   globalization.   As   a   combine   effect   of   improved  
existing  literature  how  increased   trade   and   advanced   transportation   facilities   it  
has   boosted   the   movement   of   goods   and  
globalization  has  influenced  tourism   people   within   and   across   the   country.   This  
industry.  It  talks  about  inception  of   process   has   led   to   creation   of   new   business   –  
Tourism.   This   paper   particularly   looks   into  
globalization  and  then  its  role  in   answering  the  following  questions  to  study  the  
encouraging  tourism  as  an  industry.  At  the   relation  between  globalization  and  tourism:  

end  it  discusses  the  process  for  planning   1. What  is  Globalization?  
§ What  are  the  factors  causing  it?  
tourism  activity  in  a  sustainable  manner.  
§ What   are   the   impacts   of  
  globalization?  
2. What  is  Tourism?  
Keywords:  Globalization,  
3. What   is   the   relation   between  
internationalization,  travel  and  tourism       globalization  and  tourism?  
4. How   to   plan   for   tourism   in   globalized  
 
world?  
 
Globalization  
 
  Globalization   can   be   defined   as   a   process   of  
  international   integration   arising   from   the  
  interchange  of  worldviews,  products,  ideas,  and  
  other   cultural   aspects.   The   increase   in  
  information   technology,   transport   and  
  communication   has   reduced   physical   distances  
and   has   unified   countries   in   political   as   well   as  
 
 
GLOBALIZATION  AND  TOURISM   1  
 
economic   connotations   (Al-­‐Rodhan,   Nayef   and   in   large   industries.   Industrialization   had   its  
Stoudmann  2006).   strong   base   in   countries   like   UK,   Germany,   and  
It   can   also   be   simply   defined   as   a   system   of   USA.   This   led   to   formation   of   dense   urban  
world   economy   in   which   the   national   centers   like   London,   Paris,   Amsterdam,   and  
economies   of   the   world   are   interlinked   more   Vienna   etc.   With   the   beginning   of   20th   century  
than  ever  through  trade  and  finances.  It  was  in   these   industries   began   to   decline   due   to   several  
the   19th   century   that   world   economies   and   changes   like   automation   and   sophistication.  
cultures   starting   connected   in   deeper   sense   Consequently   it   was   observed   that   major  
than   ever   before   and   the   use   of   term   companies   were   shifting   to   less   industrialized  
globalization   became   frequent   only   in   mid-­‐   courtiers   like   Brazil,   Mexico   and   Korea   where  
1980s.   This   could   happen   due   to   advanced   they   unearthed   abundant   raw   material   as   well  
transportation   systems   like   the   railways   and   as  cheap  labor.    
aviation   and   improved   telecommunication   Peter   Dickens   in   2007   called   this   phenomenon  
systems   from   telegraphs   to   the   Internet   in   as   “Global   Shift”   that   is   defined   as   movement  
present   times.   The   increase   in   trade   and   of   industrial   employment   from   cities   of  
commerce   across   borders;   the   free   flow   of   developed  world  to  the  developing  world.  
ideas   and   information   as   an   effect   of   Another   structural   transformation   due   to  
liberalization   has   made   our   planet   a   small   place.   change   in   modes   of   production   is   often   called  
Liberalization   is   one   of   the   key   players   in   as   “internationalization”   that   includes   deeper  
increasing  the  interaction  and  interdependence   integration  of  corporations  spread  over  various  
between   countries   in   areas   of   social   and   locations.   In   other   worlds   it   can   be   said   that  
economic   activities.   In   a   broad-­‐spectrum   world  economy  has  become  a  single  integrated  
liberalization   is   associated   with   economic   and   entity   that   has   encompassed   all-­‐-­‐-­‐major   national  
trade   policy   of   any   country   that   allows   trade   territory  (Clark,  1996).  
between   countries   by   relaxing   its   laws   and   The   era   of   invention   that   started   in   1780   with  
regulations.   For   instance   the   reforms   and   the   invention   of   steam   engine   to   railways,  
liberalization   in   1990s   in   India   opened   new   electrification   then   automobiles   and   now  
sources   of   income   and   helped   India   to   grow   information   and   communication   technology  
beyond  the  Hindu  rate  of  growth.         today  has  transformed  the  world  into  a  “global  
History   village” i .   Thereby   a   few   major   cities   now  
The   movement   of   people   from   one   part   of   the   perform   multiple   roles   and   can   no   longer   be  
world   to   other   has   been   there   from   ages.   The   considered   in   isolation   but   are   viewed   as  
Silk   Route   that   connected   three   continents   consequence   of   global   pattern   in   account   of  
would  be  best  example  of  exchange  of  cultures,   their  growth  and  organization.  
religion,   philosophy,   language   and   art.     The   International   Monetary   Fund   in   2000  
However   for   the   paper   just   focuses   on   the   identified   trade   and   transactions,   capital   and  
modern   time   and   so   would   look   into   the   history   investment   movements,   migration   and  
from  19th  century.   movements   of   people   and   dissemination   of  
The   industrial   era   brought   a   series   of   knowledge   as   the   four   fundamental   characters  
breakthroughs   in   manufacturing   methods   that   of   globalization(Fund   2000).   These   features  
increased   production   exponentially.   Invention   create  a  highly  dynamic  global  environment  and  
of   steam   engine   led   to   a   series   of   advances   in   to   sustain   growth   and   harmonious   environment  
overall   development   and   structure   of   working   for   business   and   in   general,   cities   search   for   a  
comparative   advantage   for   themselves   over  
2   GLOBALIZATION  AND  TOURISM  
 
others.   Providing   better   manufacturing   tourism   industries   with   new   origins   and  
facilities,   high   skill   labor   or   developing   tourism   destinations   regardless   of   countries   and   their  
is  the  example  of  this  specially  developed  niche   boundaries.  
that  city  planner  and  visionaries  opt  these  days.   According  to  the  World  Tourism  Organization  –  
Impacts  of  Globalization   Tourism   is   defined   as   “travel   for   recreational,  
Where   on   one   hand   world   cities   and   economic   leisure   or   business   purpose”.   A   tourist   is   a  
systems   are   doing   well   in   fields   like   research,   person   “   traveling   to   and   staying   in   places  
improvement   in   quality   of   life   and   service   outside   their   usual   environment   for   not   more  
delivery   to   the   people   as   an   effect   of   that   one   consecutive   year   for   leisure,   business  
globalization,   it   has   its   ill   effects   to.   The   and  other  purposes”.  
international   trade   and   commerce   has   resulted   The  trend  of  leisure  travel  is  associated  with  the  
in   inequalities   amongst   nations,   cities   and   Industrial   Revolution.   It   was   then   restricted   to  
people.   The   opportunities   provided   in   this   traders   and   factory   owners.   This   laid   the  
global   world   are   not   accessible   to   people   foundation   tourism   industries   and   came   the  
uniformly  and  hence  inequalities  exist.    What  is   concept   of   holiday   resorts,   hotels   and   travel  
needed   is   to   find   ways   that   are   sustainable   in   agencies.   There   have   been   developments   in  
long   run   and   that   do   not   deprive   people   from   tourism   in   preceding   epochs   and   is   growing  
their   basic   rights   as   development   can   be   days   and   nights.   Developments   in   aviation,  
achieved  only  when  entire  society  benefits.  The   Internet   and   budget   packages   have   made  
figure  below  gives  the  summary  of  evolution  of   various  holiday  destinations  accessible.      
globalization  through  various  stages.   Over   the   years   there   has   been   substantial  
increase   in   international   arrivals.   In   1950   the  
number   of   international   travellers   were   25  
Industrial    Revolution  
million  that  had  escalated  to  806  million  in  2005  
Stages  of  evolution  

and   1,035   million   in   2012.   The   average   annual  

Global  Shift   growth   in   international   tourist   arrivals   from  
2005-­‐2012   is   3.6%   for   the   world.   While  
comparing   the   average   annual   growth   in  
Internationalization   international   tourist   arrivals   in   emerging  
economies  is  4.8%  that  is  higher  than  growth  in  
advanced   economies   that   was   just   2.6%  
Globalization  
(UNWTO  Tourism  Highlights  2013  Edition  2013).  
1200#
  1035#
Figure   1:   Stages   of   development   of   globalization   based   on   1000#
the  literature  study  
800# 677#
Tourism     551#
600#
To   compete   in   the   global   markets   government   420#

and   policy   makers   put   in   efforts   to   make   cities   400#

484#
256#
compatible   to   compete   in   world   systems.   The   200#

increased   interdependence   between   counties  

0#
and   cities   is   not   just   limited   to   large-­‐scale   2000# 2005# 2010# 2012#

corporations   but   also   small   and   medium   World# Advanced#Economies# Emerging#Economies#

enterprises.   This   has   led   to   enhancement   in    

Figure  2  Growth  in  International  Tourist  Arrivals  

GLOBALIZATION  AND  TOURISM   3  

 
Tourism  has  grown  as  an  important  contributor  
Nature  
to   the   GDP   of   nations.   Free   flow   of   goods,  
Setting  and  meeting  objective  
services   and   people   impedes   the   income   and  
employment.   Earlier   planning   for   tourism   was   Approaches  
Boosterism  
regulated   to   economic   profits   and   crashes   Conventional  
however   the   global   awareness   about   Integrated  

Tourism Planning  
Comprehensive  
environment   and   climate   change   is   forcing   the   Continuous/  Flexible  
government   to   regulate   environmental   and   Sustainable  
social   impact   as   well   (Archer   1998).   There   are   Implementation  

 
Separating  Tourism  System  
positives   and   negatives   of   tourism   where   on   Components  
one  hand  in  order  to  make  economic  profits  the   Market/  Product  
governments   promote   private   sector   but  
Outputs  
usually   the   developments   are   unplanned   and   Partnerships    
unrestricted  (Hawkins  1992)  (Archer  1998).  This   Community  Participation  
quiet  a  few  times  translates  into  diminishing  the  
Outcomes  
importance  of  the  destination  and  its  ill  effects   Impacts    
on   the   native   community   and   their   Measurements:  Economic;  
Social;  Environmental  
environment.   While   it   helps   tourists   to   explore    
Figure  3  Tourism  Planning  Process  
new   places   and   destinations   and   bringing   new  
opportunities   to   its   native,   there   are   ill   effects   Majority   of   courtiers   have   development   plans  
of  globalization  too,  it  floods  the  local  markets   for   tourism.   There   are   a   few   components   of  
with   products   that   are   not   indigenous,   as   a   tourism   planning   process   as   shown   in   Error!  
consequence  the  vernacular  art  and  culture  are   Reference  source  not  found..    
in  threat  of  getting  lost.     Nature    
Tourism  Planning  process   The  planning  process  begins  with  development  
Tourism   brings   associated   problems   with   like   of   objective   by   the   government   with  
overcrowding,   traffic   congestion   socio-­‐cultural   consultation   with   various   stakeholders   and  
deterioration.   In   general,   these   are   caused   due   public  participation  for  e.g.  Greece  has  goals  for  
lack   of   interference   of   the   government   in   regions   of   the   country   through   five-­‐year   Plans  
policymaking,   regulating   and   insufficient   of   Economic   Development.   These   have   two  
planning  (Edgell  1990).     main   objectives,   a)   to   achieve   spatial  
In  order  to  maximize  the  economic  benefits  and   distribution   of   tourist   activity   and   b)   to   increase  
minimize   the   environmental   impacts,   planning   tourist  expenditure  (Konsolas  1992).    
in  necessary.  According  to  Murphy  (1985):   The  goals  and  objective  depend  upon  the  scale  
  of  project  and  also  different  factors  like:    
 Planning   is   considered   with   anticipating   and   • Political   will,   national   prestige   and  
regulating   change   in   a   system   to   promote   orderly   international  exposure  
development  so  as  to….  Increase  the  social,  economic  and  
• Socio-­‐   cultural   values   and   resources,  
environmental  benefits  of  the  development  process.  To  do  
this,,   planning   becomes   ‘an   ordered   sequence   of  
traditions  and  lifestyles.  
operations,  designed  to  lead  to  the  achievements  of  either   • Environmental  concerns  like  pollution  
a  single  goal  or  to  balance  between  several  goals’  (p.  156).   • Economic  –  increase  in  employment  and  
  incomes  (Andriotis  2007).  
Approaches  

4   GLOBALIZATION  AND  TOURISM  

 
The   next   is   planning   approaches   the   first   • Inputs:  demand  and  supply  of  tourism  
approach   can   be   ‘boosterism’   –   defined   as   • Output:  tourist  satisfaction  
tourism   that   is   favorable   to   inhabitants,   • Externalities:   tourist   preferences,  
environment,   enhances   economic   benefits   and   political,  security  issues  etc.  
development   impediments   are   abridged   (Hall   Therefore   for   all-­‐inclusive   development   these  
1991).   On   the   contrary   conventional   planning   is   inter-­‐related  components  should  be  studied.  
often   too   vague   and   all   encompassing,   reactive,   Outputs  
sporadic  and  realistically  detached  from  budget   This   involves   involvement   of   community   and  
(Baud-­‐Bovy  1977).  While  the  integrated  planning   public-­‐private   partnership   in   benefits   of   tourism  
proposes,   “market   oriented   for   the   tourist   development   and   decision-­‐making.   This   is  
providing   the   right   product”,   however   this   important   as   otherwise   benefits   would   be  
approach  “results  in  environmental  degradation   restricted   to   people   who   have   capital   to   invest  
and  loss  of  socio-­‐cultural  integrity  of  the  tourist   at   the   expense   of   the   community   (Timothy  
area”   (Braddon   1982)   (Inskeep   1991).   And   1999).   Research   and   examples   from   many  
hence,   Sustainable   approach   emerged   that   countries  has  given  importance  to  participatory  
Baud-­‐Bovy  (1977)  defines  as:     planning  in  tourism.  
  Outcomes  
“Any   tourism   development   plan   has   to   be   Most   of   the   tourism   researches   are   oriented  
integrated   into   the   nation’s   socio-­‐economic   and   political  
towards   the   economic   benefits,   for   this   many  
polices,   into   the   nature   and   man-­‐made   environment,   into  
the  socio-­‐cultural  traditions,  into  the  many  related  sectors   countries  use  the  concept  of  multiplier  analysis  
of   the   economy   and   its   financial   schemes,   and   into   the   that   is   based   on   calculation   of   direct   and  
international  tourism  market  (p.  308).   secondary  effects  created  by  additional  tourism  
  expenditure   within   the   economy.   The   four   main  
Thus   sustainable   approach   seems   to   multipliers   are   sales,   output,   income   and  
incorporate   the   essentials   of   existing   without   employment  (B.  H.  Archer  1996).  
compromising   the   capability   of   the   future   Environmental  measures  include  Environmental  
generation.   In   addition   to   this   the   planning   Impact   Assessment   for   all   projects   including  
approach   shall   be   done   at   various   levels   to   fit   tourism.   There   are   a   variety   of   indicators   such  
the   context   at   each   level.   For   instance,   in   as   climate   change,   urban   environmental   quality,  
Greece,   the   planning   process   is   controlled   by   natural   resources   etc.   (OECD   1994).   And   lastly  
the   central   government   through   decision   there   are   social   and   other   measures   that   are  
making  and  funding  various  processes;  the  lack   assessed   with   help   of   secondary   data   available  
of   local   autonomy   in   decision-­‐making   in  government  records.  
encumbers   the   achievement   of   set   goal   From   the   literature   reviewed   on   tourism  
(Andriotis  2007).   planning   it   can   be   concluded   that   there   is  
Implementation   strong   need   for   planned   development   in  
After  the  plan  and  policy  is  developed,  it  comes   tourism   for   sustainable   future.   It   shall   also   be  
to   implementation.   The   implementation   of   taken   into   consideration   that   focusing   on  
tourism   plan   can   be   comprehended   by   economic   benefits   has   short-­‐term   benefits   and  
separating   it   in   various   components.   The   does   not   work   in   long   run.   Planners   and  
advantage   of   splitting   is   that   it   reduces   the   visionaries   shall   work   with   the   community   and  
intricacy   and   recognizes   the   relation   between   integrate  them  in  planning  process.    
the   components.   The   components   are   (Law        
1991):  
GLOBALIZATION  AND  TOURISM   5  
 
Conclusion   given   to   environmental   and   social   impact   of  
From   the   literature   review   it   is   clear   that   tourism  as  against  economic  planning  earlier.    
globalization   has   considerable   impact   on    
tourism.   The   statistics   show   the   movement   of    
people   has   significantly   increased.   Tourism   has    
helped  the  emerging  economies  to  elevate  their    
economies   with   a   competitive   edge   over    
advanced   economies   and   Tourism   planning   is    
now   considered   as   the   top   most   agenda   of    
planners   these   days.   Considering   the    
contemporary   expansions,   due   weightage   is    
 
 
 
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Murphy,  P.E.  Tourism:  A  Community  Approach.  London:  Methuen,  1985.  
 
Edgell,  D.  L.  Intrenational  Tourism  Policy.  New  York:  Van  Nastrand  Reinhold,  1990.  
 
Konsolas,  N.,  &  Zacharatos,  G.  "Regionalisation  of  tourism  activity  in  Greece:  Problems  and  policies."  In  
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6   GLOBALIZATION  AND  TOURISM  

 
Baud-­‐Bovy,  M.  &  Lawson,  F.  Tourism  and  Recreation:  A  Handbook  of  Physical  Planning.  Boston:  CBI,  
1977.  
 
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Law,  E.  Tourism  Marketing:  Servicing  and  Quality  Management  Perspective.  Chelthenham:  Thorves,  
1991.  
Timothy,  D.J.  "Participatory  Planning.  A  view  of  tourism  in  Indonesia."  Annals  of  Tourism  Research,  
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Archer,  B.  H.  &  Fletcher,  J.  "The  economic  impact  of  tourism  in  the  Seychelles."  Annals  of  Tourism  
Research  ,  1996:  32-­‐47.  
 
OECD.  Envirenmental  indicators.  PAris:  OECD,  1994.  
 
 
 
 
 
                                                                                                               
i  Marshall
McLuhan came up with the phrase "the global village"
as a way to describe the effect of radio in the 1920s in bringing us
in faster and more intimate contact with each other that ever before
in human experience.
 

GLOBALIZATION  AND  TOURISM   7