THE IMPACT OF GLOBALIZATION ON THE HOSPITALITY INDUSTRY DEVELOPMENT IN AN EMERGING MARKET: A CONCEPTUAL EXPLORATION

Abstract

Generally, studies on globalization have accumulated with respect to its varying degree of impact on economic growth and development in underdeveloped, developing and developed economies. Nevertheless, the impact of globalization on specific socio-economic sectors’ growth has not been adequately reported in the literature. This paper, therefore, addresses a critical gap by exploring how globalization affects hospitality industry development and growth in developing economies. The paper also explores factors driving globalization in the hospitality industry, challenges as well as strategies for managing impact of globalization in the hospitality. The paper adopts the globalization theory, as articulated by Giddens (1990) and Robertson (1992) as its anchor. Drawing from a review of relevant literature, the paper highlights how forces such as technological integration, cultural exchange, and economic interdependence have shaped the growth and influenced the strategies of hospitality firms internationally. It also stresses the dual nature of this phenomenon (globalization and glocalization) where global brands must strike a balance between maintaining global standard and adapting to local market needs, especially in diverse, rapidly developing economies. The paper concludes that while hospitality organizations from developed economies have leveraged on globalization due to their huge economic capital base, professionalism and deployment of advanced technology in service delivery, many of their counterparts in developing countries, including Nigeria, have not benefitted much from globalization. The paper recommends investment incentives, provisions of adequate tourism infrastructures, increased financial capital base, hospitality product/service standardization and professionalism for indigenous hospitality organizations in emerging markets to compete in the global hospitality market.