Importance of Globalization in Hospitality

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Question- Critically analyse the relevance and utility of globalization for the international hospitality industry.

In the recent years hospitality industry over the years has expanded their business all around the world. Big hotel chains such as Marriott’s and Accor group are opening their hotels in developing countries such as India, Singapore etc. The process of globalization has played a major role in expanding their profits and laying their business across their own boundaries. Majority countries, around the world have been trying to promote globalization through eliminating barriers and reducing taxes. However, there are various methods through which companies are trying to expand such as licensing, Exporting, joint venture and
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Since the time when globalization was introduced in 20th century and with the formation of bodies such as WTO and NAFTA, hospitality industry has opened a huge range of jobs in the developing countries. With the coming of globalization, Hotel brands from developed countries started investing in the developing countries. It has been noted in developing countries like China and India that with more and more companies investing, poverty level in these countries has subsequently decreased (Hamdi 2013). Hospitality industries enjoy the fact of low level wages and their setup cost to establish a business is very low in the developing countries. With the elimination of trade and other barriers from the countries it has been seen that goods and labour can be easily be shifted from one place to another, which also increases the GDP for the economy. According to the census of 2007, Hospitality industry provides jobs to more than 383 million people around the world and in a developing country like India; it is currently employing more than 38 million people (Jauhari 2012). With more and more hospitality companies investing in India, there have been job opening in the various sector such as airlines, Cruise, Travel Industries and etc. With the increase in investment in developing countries, it has also
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