Globalization Impacts on the Leisure & Tourism Industry

Globalization Impacts on the Leisure & Tourism Industry

Prof. (Dr.) Suddhendu Narayan Misra

Hi Folks!

Leisure:

Time free from the demands of work or duty when one can rest or enjoy hobbies or sport.

Tourism:

A popular global leisure activity; ‘travelling’ predominantly for recreational purposes, or the provision of services to support leisure travel.

Globalization has positive influences on national economies.

Tourism keeps attracting attention of many new industry players every year.

“Tourism and leisure” has also become an attractive industry for many public policy makers, due to a

multitude of contributions it can make to the overall economy of a particular country.

Foreign Exchange Earnings during the month of February 2010 were US$ 1434 million as compared to US$ 923 million during the month

of February 2009 and US$ 1305 million in February 2008.

The growth rate in February 2010 over February 2009 was 55.4%.

FIVE KEY COMPONENTS OF LEISURE INDUSTRY

Leisure industry includes…

… restaurants, amusement parks, theaters, hotels, gaming places, venues for musical groups, spas and health clubs, yoga centers, ayurvedic clinics, gyms ….

Leisure’s role in peoples’ lives is not purely economic. Leisure has important social, psychological and cultural implications.

Developments in technology and transport infrastructure have made many types of tourism more affordable. These developments are the impacts of globalization.

Internet sales of tourism products (e.g., www.newmind.co.uk, www.yatra.com, www.greenglobetourism.com, www.medretreat.com) have now started offering dynamic packages.

Technological improvement is likely to make possible air-ship hotels, based either on solar-powered airplanes or large dirigibles. Underwater hotels, such as Hydropolis, have started operation.

The impact of globalization is felt not only in tourism, but in every field, viz. politics, industry, finance, health, ecology, etc.

India Tourism Market & Future Forecast (2009 - 2015); published April 2010

International tourist arrival in India is expected to grow with a CAGR of 7.9% for the period spanning 2010-2015.

Despite economic downturn Indian outbound tourist departure has been estimated to have increased by 0.87 million in 2008.

Indian outbound tourist departure is expected to reach 20.5 million by 2015.

Domestic tourist visits is expected to increase with a CAGR of 12.29% for the period spanning 2008-2015.

Indian tourism Foreign Exchange Earnings are expected to grow with a CAGR of 7.9% for the period spanning 2010-2015.

India Tourism Market & Future Forecast (2009 - 2015); published April 2010

In Indian union budget 2010, India government has given more than Rs. 1,000 Crore to Ministry of Tourism India.

The number of cruise tourist arrivals in India is expected to jump by 233.33% by 2010 from the number of cruise tourist arrivals in 2007.

The number of medical tourist arrivals in India is expected to increase by a CAGR of 24.6% from 2009 to 2013.

Globalization and Tourism have become a deadly mix for indigenous people. It is because of this, Tourism’s impact on indigenous people’s way of life has become more pronounced.

Tourism is now being viewed and pursued as a serious development strategy for the Third World.

IMF has included tourism as part of its Structural Adjustment Programs (SAPs).

SAPs, which have pre-conditions for approval of financial assistance, require the indebted country to be integrated into the global economy.

There’s a shift from an agricultural based to a manufacturing and service industry based economy.

Local economy is now opened to foreign investment and multinational corporations while eliminating subsidies and protection to local industries.

Bye Folks!

The indigenous people are paying a heavy price because of the impact of globalization on tourism industry.

Governments in the Third World countries in their desire to get billion dollar profits have completely disregarded the interest of the people.

The impact of globalization will continue to be more cogs in the wheel of the billion dollar industry.