The Role of Local Food in Maldives Tourism - Scholarly Commons ...
The Role of Local Food in Maldives Tourism - Scholarly Commons ...
The Role of Local Food in Maldives Tourism - Scholarly Commons ...
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quality <strong>of</strong> their services and products to compete with similar dest<strong>in</strong>ations, their survival<br />
will be threatened (Grew, 2004). Grew po<strong>in</strong>ts out that the positive aspect <strong>of</strong> this for<br />
tourism could be that the familiarity <strong>of</strong> tourism products and services could provide a<br />
sense <strong>of</strong> safety for consumers and lead to <strong>in</strong>creased tourism.<br />
Globalisation has given MNCs a dom<strong>in</strong>ant role <strong>in</strong> all types <strong>of</strong> bus<strong>in</strong>esses. This <strong>in</strong>cludes<br />
<strong>in</strong>ternational tourism (Wilk<strong>in</strong>son, 2004), where MNCs are <strong>in</strong>creas<strong>in</strong>gly tak<strong>in</strong>g control <strong>of</strong><br />
a dest<strong>in</strong>ation’s whole tourism <strong>in</strong>dustry by vertical and horizontal <strong>in</strong>tegration through<br />
franchises and management agreements. In vertical <strong>in</strong>tegration, the various stages <strong>of</strong><br />
production, delivery and market<strong>in</strong>g <strong>of</strong> products are controlled by a s<strong>in</strong>gle firm (Burns &<br />
Holden, 1995). Horizontal <strong>in</strong>tegration occurs when MNCs reproduce similar processes<br />
<strong>of</strong> production across countries to avoid costs <strong>of</strong> <strong>in</strong>ternational trade (Yeaple, 2003).<br />
It is <strong>of</strong>ten the case <strong>in</strong> many SIDS and LDCs that the survival <strong>of</strong> their tourism <strong>in</strong>dustry is<br />
dependent on foreign airl<strong>in</strong>e companies, tour operators and hotel companies (Weib<strong>in</strong>g &<br />
X<strong>in</strong>gqun, 2006). <strong>The</strong> growth <strong>of</strong> MNCs through foreign direct <strong>in</strong>vestment (FDI), and<br />
vertical and horizontal <strong>in</strong>tegration (Radice, 2004) added to the standardization and<br />
homogenization <strong>of</strong> products and services throughout the world (Dehesa, 2006). Price<br />
now becomes the only way that products can be differentiated. Swarbrooke (2001)<br />
cautioned that differentiat<strong>in</strong>g on lower prices alone runs the risk <strong>of</strong> limit<strong>in</strong>g economic<br />
ga<strong>in</strong>s from tourism. Particularly, the entrance <strong>of</strong> a low-cost dest<strong>in</strong>ation will cause loss to<br />
all dest<strong>in</strong>ations <strong>in</strong> the market (ibid). Conversely, Hall and Mitchell (2000b) suggest that,<br />
“In the global market long-term competitive advantage will be ga<strong>in</strong>ed by differentiation<br />
on the basis <strong>of</strong> what is unique to a place, not on the production <strong>of</strong> low-value<br />
undifferentiated product” (p. 204).<br />
Swarbrooke (2001) expla<strong>in</strong>s that when tourism corporations expand <strong>in</strong>to other<br />
countries, they are <strong>in</strong>cl<strong>in</strong>ed to build upon the skills and experience achieved <strong>in</strong> their<br />
home country. As a result, irrespective <strong>of</strong> the location, tourism products or experiences<br />
<strong>of</strong>fered to tourists are <strong>in</strong>creas<strong>in</strong>gly similar <strong>in</strong> physical appearance, operat<strong>in</strong>g procedures,<br />
and hospitality and service attitudes (Honey & Stewart, 2002). Moreover, when the<br />
<strong>in</strong>terests <strong>of</strong> the bus<strong>in</strong>esses are put ahead <strong>of</strong> those <strong>of</strong> the dest<strong>in</strong>ations, the bus<strong>in</strong>esses’<br />
commitment to local dest<strong>in</strong>ations becomes weak. Honey and Stewart (2002) po<strong>in</strong>t out<br />
that when MNCs operate <strong>in</strong> LDCs, standardization is an <strong>in</strong>evitable consequence because<br />
limitations <strong>in</strong> resources and knowledge compel LDCs to rely on the established<br />
standards <strong>of</strong> MNCs to develop their bus<strong>in</strong>esses.<br />
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