Globalization--An accelerator in the growth of the Hotels, Restaurants, & Leisure Industry

With the help of new communications, technologies, and international trade, Globalization is continually increasing, making it possible for societies, governments, and companies of different nations to become much more integrated. Globalization has made it easy for people around to world to communicate and do business. Just like every other industry, Globalization plays an important role in the growth of the hotel, restaurant, and leisure industry. Globalization has greatly helped chain restaurants to expand and increase profits in foreign markets. McDonald’s for example, this chain of fast food restaurants serves an average of fifty eight million customers daily. Without globalization, the introduction of Mc Donald’s in the international market would not have been impossible. When a multi-million dollar enterprise emerges into a developing country such as the Dominican Republic, no other local restaurant is able to keep up with them as a competition, therefore destroying the Dominican home market. But on the other hand, McDonald’s helps the economy of the country by creating job opportunities and hiring locals as employees. Entering new markets is extremely challenging for restaurants, as food is a consumption-good, which requires a deep knowledge about consumer tastes that is location specific. Thus, McDonald’s has to vary its menu depending on the wants and needs of that new target market.

Globalization has affected the hotel market as well. Globalization makes it possible for hotels such as “Hilton” and “Best Western” to penetrate foreign markets and become global companies. With traveling rates significantly increasing for both business and vacation purposes, hotels gained interest in expending overboard. Just like in the restaurant industry, globalization may affect the business of local hotels in the country they choose to enter. But the positive side is that they maximize their profits while creating jobs in this new market.

It is true that globalization destroys local companies, cultures, and values. But on the other hand, the development and expansion of the Hotel, Restaurant, and Leisure industry around the world is productive, innovative, and brings employment to the country of entry. Globalization will continue to grow and affect the business world.