Globalisation is a widespread concept, particularly about foreign operations and modernisation, which has a significant impact in modern societies.Also, it is made up of forces (external & internal environment), which would explain the concept as a mode of change (Chen & Hsu, 2010, p.121)…
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Globalisation and its forces are present long before trends are rapidly changing, but they are given emphasis when global trends have opted transnational organisations, nations, economies, societies, politics/government, industries, etc., to move out of the conventional way. “Tourism is both a cause and a consequence of globalization” (Azarya, 2004, p.949). Furthermore, tourism industry is perceived as an economic breadwinner of both developed and developing nations considering that it is today’s most rapidly growing industry and world’s largest export earner (Harrison, 2007, p.61; Higgins-Desbiolles, 2006, p.1192; Page & Connell, 2006, p.5). Globalisation and tourism are considered as the inseparable strategy and process; however, their interrelationship is gaining too much attention among tourism and academic scholars. The mostly debated topic is about the forces of globalisation in the tourism industry whether they are a blessing or a blight to the industry. However, before a claim is made, it is necessary to define various terms first, so that the issue will be understood thoroughly.
The main thrust of this paper is to study what is the real role of globalisation in the tourism industry and determine if its forces are beneficial to the industry or not. 2.0 Globalisation Globalisation is the “highest development level of internationalisation,” and it is associated with increasing involvement in foreign markets” or international transactions through innovation (Calof & Beamish, 1995, p.116; Williams & Shaw, 2011, p.29). It is also defined as an old way of fragmentation, a concept for a shifting of trends or ideology of growth, and an instrument for the extension of capitalisation, politics, economics, international relations, and environmental restructuring. According to Cooper and Wahab (2001, p.319), globalisation is a “concept with consequences,” and these consequences are applicable to multiple industries, societies, economies, businesses, transnational organisations, and many more. Specifically, it played an important role in the tourism industry because it made the scope of tourism production and consumption a part of the global society, increased tourism demand in developing countries, and opened tourism goods and services to the world (Macleod, 2004, p.15; Azarya, 2004, p.952). However, globalisation is a double-edge sword, which carries both cooperation and conflict in the world society through its forces (Page & Connell, 2006, p.17). In globalisation, organisations, industries, economies, etc., are becoming more and more competitive wherein their primary objective is to gain the competitive advantage of internationalisation (both costs & accessibility). According to Dwyer, et al. (2009, p.63), tourism companies would gain a competitive edge if they were more conscious of global trends/events, which would lead them to the development of appropriate and effective global schemes. In fact, “those tourism destinations and enterprises that isolate themselves from world trends will be at a severe disadvantage,” and those in a globalised society will “embrace the new way of operating and recognise the forces of change” (Cooper & Wahab, 2001, p.332). This event would also lead to strategic drift or wear-out wherein trends and schemes in the global context are not inter-related and do not follow common objectives or directions. Thus, it is important for industry players to be proactive in the mode of change, especially that the components of globalisation are constantly changing. 3.0 Tourism Industry
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