Travel and Tourism industry - Impacts of Globalization

1. Globalization Impacts
on the Leisure &
Tourism Industry
Globalization Impacts
on the Leisure &
Tourism Industry
Prof. (Dr.) Suddhendu Narayan Misra
Hi
Folks!

2. 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.

3. 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%.

4. FIVE KEY COMPONENTS OF LEISURE INDUSTRY

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.