The effect of globalization on the tourism industry

Globalization and tourism are very dependent on each other. Today, thanks to globalization, people from across the world can easily exchange ideas and values whether they are political, environmental, technological, cultural, or economic settings. Consequently, this exchange has enabled the circulation of massive knowledge amongst the people of the world. People now understand each other […]

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Globalization and tourism are very dependent on each other. Today, thanks to globalization, people from across the world can easily exchange ideas and values whether they are political, environmental, technological, cultural, or economic settings. Consequently, this exchange has enabled the circulation of massive knowledge amongst the people of the world. People now understand each other better regardless of language, religion, or cultural differences and this has boosted tourism in a huge way.

One of the greatest barriers to the growth of the global tourism industry is political misunderstanding amongst different territories. And apparently, the same barrier has hindered globalization for over five decades now. But the good thing is that citizens from different countries are now exiting from their racial, tribal, religious, and political cocoons and embracing humanity. Many people are continuously realizing the great potential that lies in pulling together as people instead of antagonizing each other for imaginary conflicts. This trend has really helped both globalization and tourism.

In the realization of how powerful globalization is, nearly all countries on the planet are working hard to open up their borders for international investors. This has even forced neighboring countries to form trade blocs in order to enhance the free flow of goods and ideas within the region. The social media, on the other hand, has made it easy for aspiring travelers and business people to acquire information about different destinations and markets, consequently aiding the growth of globalization and the tourism industries. What’s more, affordable accommodation options such as vacation rentals have greatly increased across the world in order to accommodate the growing number of international visitors. 

An Example of How Globalization Has Affected Tourism

Years back, East Asia was a sleeping economic giant. This has since changed due to globalization. Economies such as China, Japan, and India have grown tremendously in the recent past. These countries boast of a huge working population, particularly in the tech industry. In fact, companies in the traditional economic powerhouses are now outsourcing cheap labor to Asia and some parts of Africa. This has led to a continuous flow of money between citizens of different continents. 

The growth of ICT in East Asia, on the other hand, has made it easier and cheaper to do business in the region. Many countries in the west are even competing to make China and Malaysia their close trading allies. They are finding ways of doing business without being physical with the help of different PEO-s (Professional Employer Organization). A good PEO example would be NH Global Partners. This has led to the creation of more jobs and growth of income in the East, not forgetting a growing upper-middle class in the region. Hospitals, road networks, and other economic drivers are also improving by the day.

According to research, demographic shifts due to globalization greatly affect tourism as an industry. The higher the employment rate and average income index a country have, the higher the number of travelers it produces. Today, different tourists attraction sites across the world are seeing more Chinese, Japanese, and other Asian tourists more than ever before. Why so? Because they now have the resources to travel, plus the fact that most Asian employees get many paid leaves nowadays. 

4 Other Ways that Globalization Has Affected the Tourism Industry

Positive effects

1. Increased global mobility

Globalization has made it easier to travel the world. There are cheaper flights, interpreting companies are opening offices everywhere, there are international credit card companies across the world, and changing currencies is easier and more convenient than during any other time in history. This has aided tourism in a big way.

2. Free flow of information

Globalization has made it easy for travel enthusiasts to discover hidden travel destinations and to learn about different cultures before making their traveling decisions. There are more senior citizens in the developed countries today and due to the increased circulation of information, this non-working population is making more international trips than ever before.

Negative effects

1. Terrorism

Increased globalization comes with some negatives too. Terror groups such as Boko Haram, ISIS, and Al-Qaeda are able to send their terror messages easily and faster thanks to social media. Deaths resulting from terrorism are also on the rise because globalization has made it easier for weapons and criminals to move freely between different countries. This hurts tourism in a big way.

2. Culture erosion

The richness of a given culture determines whether or not visitors will be attracted to it. But with globalization sweeping across continents, many people are losing their cultures and adapting to foreign traditions. This is killing the tourism sector. 

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