1.0 Introduction In today’s global economy, franchising is seen as the greatest business opportunity to diversify your company into other countries. International franchising has seen considerably growth since the 1960s due to domestic market saturation, intense competition and diminishing profits found in home markets. Organizations in USA, Canada and Western Europe just to mention a few have all in recent years found themselves shifting focus to emerging economies. (Ilan Alon) Emerging markets account for approximately eighty percent of the world’s population. It is therefore not a surprising phenomenon that we find these countries as great potential for international franchising.
1. Introduction 1.1 Background Resulting from the globalisation and economic integration, an increasing number of individuals started to migrate to other countries and among of those people, a great number of people choose to engage in entrepreneurship after they have relocated and settled in the host country (Decker, A 2015). The Netherlands, among all the western countries, has become one of the most attractive countries for immigrants. According to Vermeulen & Penninx, (2000), immigration exceeded emigration in the Netherlands starting from the beginning of the 1960s. In Ruainovic’s immigration entrepreneurship study (2006), among all the immigrants, Chinese immigrant have been seen as the most active as entrepreneurs in comparison to the other ethnic groups in the Netherlands, accounting for 15.7% of the self-employment rates among non-western immigrants in the Netherlands in the year of 2003 (Bijl et al, 2005, cited in Ruainovic, 2006, p 22).
Governments view tourism as a tool for infrastructure development, job opportunities, earning foreign exchange, balance of payments, regional development and generating benefits for local communities (Glasson et al., 1995). Tourism development can increase individual’s income and revenues for host countries (Ahn et al., 2002). The development of tourism industry in Malaysia has achieved a level that can be proud of. Tourism related services are one of the main economic activities in Malaysia. It is the second largest foreign export earner, after manufacturing and has been growing since 2000 with international arrivals increasing by 9% per
In the global context, the sector has witnessed booming growth in the past decades or two especially after the opening of the economy. Besides India with its rich historical past and varied geographical locations like hill stations and beaches has always been a very attractive tourist destination. Efforts by the Govt. to promote India as a prime tourist destination in the world is paying dividends and there has been a definite increase in the volume of the international tourist visiting the country. INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED (IRCTC): IRCTC was incorporated on 27th September 1999 as a limited company registered under the Companies Act 1956 to professionalize and manage catering and hospitality services and to promote domestic and international tourism through development of hotels, information and commercial publicity and global reservation systems; and to explore and exploit underutilized assets of Indian Railway and stimulate private entrepreneurship and investment in the hospitality business; and serve the rail users and passengers through value added services.
Investments The tourism and hospitality sector is among the top 15 sectors in India to attract the highest foreign direct investment (FDI). During the period April 2000-February 2015, this sector attracted around US$ 7,862.08 million of FDI, according to the data released by Department of Industrial Policy and Promotion (DIPP). With the rise in the number of global tourists and realizing India’s potential, many companies have invested in the tourism and hospitality sector. Some of the recent investments in this sector are as follows: • US-based Vantage Hospitality Group has signed a franchise agreement with India-based Miraya Hotel Management to establish its mid-market brands in the
Tourism is often referred to as a ‘multi-product industry that encompasses a number of different economic activities’ (Wall& Mathieson, 2006). The rapid development of the world economy in the past two decades alongside with global integration and globalization has led to a significant increase in the number of tourists travelling abroad for leisure and entertainment. According to the United Nations World Tourism Organization (UNWTO), the number of tourist arrivals reached an astonishing figure of 1.1 billion visits in 2014. Currently, tourism is one of the fastest growing and dynamic sectors of the world economy accounting for nearly 1.5 trillion US Dollars in receipts and exports accounting as one of the top 5 export earning sectors of the
Many of these activities fall within the realm of international trade and it is here that international trade law intervenes. The latter section of the research paper focuses on international tourism as part of international trade – international tourism is a part of the Balance of Payments (BOP) under the categories ‘travel’ and ‘passenger transport’. THE TOURISM INDUSTRY: Economic and Trade Importance of the Sector Over the past few decades, tourism has enjoyed a rapid growth rate and has gained geographic diversification, becoming one of the fastest-growing economic sectors worldwide. Modern tourism encompasses a growing number of new destinations and such dynamics have turned tourism into a key driver for socio-economic progress. Apart from tourism impacting the domestic markets,
The secondary data consists of journal articles, webpages, previous research, presentations etc. ICT has helped the tourism industry to grow internationally and provided some better concepts to improve the position of tourism industry in the market. Tourism industry is a growing sector and it is increasing at the rate of 5% per year and the technology
Tourism in India has considerable potential because of the rich cultural and historical heritage, diversity in ecology, terrains and places of natural beauty spread across the country. Tourism has also emerged as a large employment generating sector in addition to being a significant basis of foreign exchange inflows for the nation. Market Size With the rising middle-class in India, the disposable income of the population has increased which has continued to support the growth of domestic and foreign tourism. As per the Ministry of Tourism, Domestic Tourist Visits to the States and Union Territories within India rose by 15.5% year-on-year to INR 1.65 billion during 2016. The top 10 States and Union Territories contributed about 84.2% to the total number of Domestic Tourist Visits.
Tourism will raise employment opportunities, it will create additional jobs. These additional jobs included low-wage entry-level and high-paying professional positions in management and technical fields generate income and raise standards of living. For example, according to the Ninth Malaysia Plan 2006-2010, tourism related activities provide 492 thousand jobs for employees in year 2006, representing 4.4 per cent of the total workforce. It shows increasing from 26 per cent compared to 390 thousand jobs in year 2000, accounting for 4.2 per cent of the total workforce. Previously, tourism industry leads to the growth of other related industries also which further generates more income.