IMPACT OF LIBERALIZATION AND GLOBALIZATION

ON TOURISM DEVELOPMENT
CONTENT :
y INDIAS DEVELOPMENT STRATEGY PRIOR TO 1991 y NEED FOR REFORM

y LIBERALIZATION $ GLOBALIZATION  _MEANING , PROCESS

y TOURISM DEFINITION

y IMPACT OF TECHNOLOGY PROGRESS ON TOURISM INDUSTRY y TOURISM AND EMPLOYMENT OPPORTUNITY y REASON FOR TOURISM DEVELOPMENT y CULTURAL GLOBALIZATION y EFFECTS OF GLOBALIZATION AND LIBERALIZATION ON TOURISM INDUSTRY y CONCLUSION

LIBERALISATION AND GLOBALISATION

INDIAS DEVELOPMENT STRATEGY PRIOR TO 1991-AN EVALUATION
Prior to 1991, India followed mixed economy and the control of critical industries such as coal mining; steel, power and roads were under the control of the govt. The private sectors were allowed to establish certain industries again under the rules and regulations of the govt. In case of the public sector, the Government invested a large amount and the

purpose behind this strategy was to remove poverty, reduce inequalities in the distribution of income and wealth and to achieve economic growth and social justice.

NEED FOR REFORMS:

Not only the negative aspects but also several problems like rising prices, shortage of adequate capital, slow economic development and technological backwardness contributed to the increase in govts expenditure than the revenue. Indias borrowings (1991) from abroad had increased to that level Indian Govt had to borrow money from World Bank and IMF. All these factors led to the framing a New Economic Policy (NEP) that contains three strategies liberalization, privatization and globalisation.

LIBERALISATION AND GLOBALISATION: MEANING AND PROCESSES LIBERALISATION contains two components.  -Allow the private sector to run those activities which were restricted earlier only to public sector.  -Relaxation of rules and regulations which were restricted to the growth of private sector.

PROCESS:  Private sector has been allowed to produce all the goods except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace and drugs and pharmaceuticals.  Industries reserved for public sector has been reduced from 17 to 3.

 Private sector can also enter in to core industries like iron and steel, electricity, air transport, shipbuilding, heavy machinery and some defence goods. The private sector has been freed from many regulations such as (a) licensing (b) permission to import raw materials (c) regulation on price and distribution and (d) restriction on investment by large business companies

TOURISM DEFINITION

Tourism is travel for recreational or leisure purposes. The World Tourism Organisation defines tourists as people who "travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited".

IMPACT OF TECHNOLOGICAL PROGRESS ON TOURISM DEVELOPMENT

Economic Reform have created a condition in which firms are under great pressure to improve their technology .Adoption of information technology enabled Indian industries to compete with foreign industries. Now it is very easy to communicate and inform about various products. Tourism industry gained a lot from this technology progress , they were able to offer their services. This internatinalizationof news exposes countries to foreign ideas, practices, and lifestyles. The development ofcomputer technology with its social networking sites, video sharing websites, blogging sites and various other permutations has served to accelerate cultural globalization as there are no boundaries on the World Wide Web. Advances in transportation have also facilitated physical travel to other countries, which in turn, has encouraged cross-cultural exchanges.

TOURISM AND EMPLOYMENT OPPORTUNITY Due to globalization , tourism industry started progressing

,likewise employment opportunity also increased. According to UNWTO , Tourism is now the largest industry in the world . This industry provided employment opportunity to many people . presently it employs 220 million people and contributes over 9.4% of world GDP. It is estimated that every hotel room provides direct employment to atleast 3 persons and indirectly to another 5.

REASONS FOR TOURISM DEVELOPMENT Tourism gave an opportunity to citizen to get to know his own environment . They are able to inculcate a sense of belonging to culture and the people . Not only that it gives an access to holidays and travels. Tourism generates income ,so it improves the quality of life of the people . Tourism generates revenue like property tax , sales tax / service tax ,hotel tax , income tax , import duty , transport tax , entertainment tax .

CULTRAL GLOBALIZATION Cultural globalization is the rapid traversing of ideas, attitudes and values across national borders. This sharing of ideas generally leads to an interconnectedness and interaction between peoples of diverse cultures and ways of life. The term globalization came to be widely used in the 1980s, but as early as the 1960s,Marshall McLuhan popularized the term global village to describe the effect that the ability to connect and exchange ideas instantaneously would bring to the world. The proponents of cultural globalization point to the benefits that the exchange of knowledge and information can bring. Foremost among its proponents is Big business . The more cultural homogeneity that is attained , the easier it is for businesses to sell their products globally.

Mass media and communication technology are the primary instrument for cultural globalization.Global news services such as CNN disseminate the same events and issues across the world including some of the most remote locations in the world. A terrorist attack in a small village school in the Northern Caucasus can hold entire households in Kansas spellbound.

EFFECTS OF GLOBALISATION AND LIBERALISATION ON TOURISM INDUSTRY A traveler can decide today to go to the North Pole and be there by tomorrow. Global infrastructures such as transportation and communications and global policies for free trade have created a situation where people and businesses in the global North can easily access natural resources and cultures in the global South.

Until 1999, when thousands of people around the world began organizing against it (e.g., the Battle in Seattle), globalization was not regarded as a danger to local economies and cultural diversity. In fact, politicians and the media tout globalization as the path to greater wealth and success. Although globalization may be the most primary transformation of the worlds political and economic structures since the industrial revolution, its implications have yet to be fully understood and debated.

The development of vast infrastructures such as roads and other transportation routes goes hand in hand with tourism development. Without these basic infrastructure no tourist would like to visit a place. Communication systems go in, as do energy-intensive and pollutive accommodations for visitors. The roads and communications in turn provide other industries with easy access to cheap labor and natural resources.

This cycle of development is occurring at alarming rates in small communities and villages throughout the world; many of these areas are considered the most important biologically diverse regions of the planet.

Tourism increases local reliance upon a global economy, leaking many economic benefits outside of the community back to the companies and countries that control most of the travel infrastructure. At the same time, tourism decreases dependence on local resources, as technologies, food, and health services are imported. Local people may also be pushed out or sell out, and local prices for commodities and services rise, as do taxes.

Tourism plays an increasingly important role in international relations. Links exist between tourist flow and regional integration, governments, military, and economic aid. Most nations have several policies toward foreign tourists that are based not only on anticipated length of stay, but also on the degree of international cooperation existing between the two countries.

Tourism is big business for governments and private enterprise alike. Any country with still-pristine areas of forests, beaches, mountains, and parklands or with ethnic tribes and other unique rural cultures has something to market in the global economy.

Some of the largest corporations in the world are designing and carrying out policies that open up borders and allow them to operate in areas once restricted to individual country corporations. The tourist industrys entrance into and operations in China, the Middle East, the former Soviet Union, parts of the African continent, and countries with human rights abuses show that government and big business can work together despite trade restrictions and political differences. Governmental instruments and international organizations that help shape international tourism policy encourage the growth and involvement of transnational corporations because they

provide quick money and expanded trade and services. In supporting and increasing the power of such corporations, governments are ignoring the numerous inequalities, exploitation, and dislocations they foster. Countries create lax trade environments to attract the tourism industry, lifting restrictions that are applied to other industries and offering many incentives.

. CONCLUSION Ultimately , this liberalization and globalization made an ease to tourists to travel to their favourite spots ,as there is no much barriers . They were able to decide their own tour packages via internet and also arrange their accommodation and transportation by sitting at their place itself. Tourism also helped our country to improve the financial condition and enhanced our standard of living.