Globalization in Hospitality Industry Essay

Paper Type:  Essay
Pages:  2
Wordcount:  429 Words
Date:  2022-06-06

The hospitality industry entails the propensity of receiving and treating guests in a warm, friendly, generous manner. The industry is more than just how the employees relate to guests. The support system that operates daily behind closed doors plays a crucial role. The hospitality industry in New Zealand is a significant backbone of their economy. However, it cannot be considered as an individual industry. This is because the tourism industry profoundly influences it. Thus, the scope of hospitality both in New Zealand and globally encompasses the sectors of food and beverage, accommodation, recreation, and entertainment. International tourists mostly utilise the collection of these facilities as opposed to the domestic market. Thus, as it is termed globally, the tourism, hospitality and recreation sector is a significant contributor to countries GDP's globally and similarly to New Zealand with 4.8% of the GDP.

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Globalization occurs when a country starts to trade more internationally. The key driver of globalization is technology. Technology has made it easy for different countries to trade. Globalization has dramatically influenced this sector. In a sense, the drive for image-based marketing of New Zealand whereby they intensely advertised the nation had many benefits (Scott, 2015). Among these is the record-setting tourism numbers recording 513,349 persons in December 2017 which is a lot of revenue generated. Accompanied with this was an increase in employment opportunities in the hospitality sector and good advertising for the country as continuous high numbers of tourists are recorded 388,327 persons in March 2018). The downside is however that there was a drop in the value of the New Zealand dollar and price of commodities such as dairy.

Similarly, the adaptation of new technology and automation of the hospitality sector has aided in helping manage the workload from these large number of tourists (Scott, 2015). However, it has also led to a reduction in employment opportunities as these would have been taken up by people. The trends that include new technology and the global security threats such as terrorism all further impact positively on the New Zealand hospitality industry (Pokhilko, 2018). This is due to the commonly accepted nature of New Zealand as a peaceful country, and use of technology only serves to lower prices making it more competitive to other countries.


Pokhilko, O. (2018). The Role of Foreign Languages in the Development of the Tourism and Hospitality Industry in the Context of Globalization. SSRN Electronic Journal. Doi: 10.2139/ssrn.3125661

Scott, S. (2015). Growing Trends in the Tourism and Hospitality Industry. Journal of Tourism & Hospitality, 04(03). Doi: 10.4172/2167-0269.1000162

Schiff, A., & Becken, S. (2011). Demand elasticity estimates for New Zealand tourism. Tourism Management, 32(3), 564-575. Doi: 10.1016/j.tourman.2010.05.004

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