The term of “Globalisation” has been given various definitions by different International organisations, scholars and other entities. According to the two giant world financial institution, World Bank and International Monetary Fund ( IMF). Globalisation is mainly focusing on the process of integrating world economy; particularly, through international trade and financial flows. ( The World Bank, 2009).
The process of Globalisation has led to extraordinary surges in international trade and investment. Globalisation, which involves accelerated interactions and integration due to less costly, more frequent and faster transport, improved accss to information and free movement of capital, goods and people has also created enormous opportunities for the expansion of tourism.
Globalisation and Tourism seems to be interrelated. One on hand, globalisation can contribute to the growth of tourism sector through free movement of almost anything and on the other hand tourism can spread and foster the movement of globalisation.
Travel and tourism as a economic sector shows clearly the global reach of transnational corporations (TNC´s). Over the recent years, the industry has increasingly pressured governments around the world to liberalise trade and investment in services and benefits from the General Agreement on Trade and Services (GATS)- a multilateral agrrement under the World Trade Organisation. (WTO).
GATS aims to abolish restrictions on foreign ownership and other measures which have far protected the services sector in individual countries. TNC´s can now have the same benefits as local travel and tourism agencies, in adittion to being allowed to move staff across borders as they wish, open branch offices in foreing countries, and make international payments without restrictive regulations.
More than two-thirds of the revenue from internationak never reaches the local economy because of high foreign exchanges...