Global Players – Global Markets
- International Institutions and Global Governance series
Edited by John-ren Chen
Chapter 9: Market Entry Strategies of Multinational Firms in Local and Regional Markets and their Consequences for Regional Development
9. Market entry strategies of multinational ﬁrms in local and regional markets and their consequences for regional development: the case of the accommodation and food industry in Western Austria Klaus Weiermair and Mike Peters TOURISM: NO LONGER A FRAGMENTED INDUSTRY? Tourism is certainly not as global as the car or electronics industry but it is more global than food processing, education or retailing. Globalisation in tourism is driven on the demand side by global competition for tourist destinations offering ‘global product bundles’ thereby producing similar types of fantasy worlds or tourism experiences and facilitated by increasing international ﬂows of capital, technology and labour (Smeral, 1996; Weiermair, 2001b). What type of changes in Austria’s tourism have been brought on by or can be attributed to globalisation phenomena? About 40–55 per cent of the decline in Austrian tourism can be attributed to relative prices in comparison to other destinations. This has been greatly enhanced through the opening of new markets and the greater transparency of market prices (for example, introduction of the Euro and use of the US dollar in new markets). A variety of studies have shown quality deﬁcits in Austria’s tourism industries to exist, notably in the areas of animation, cultural attractions, shopping and transport, with an overwhelming proportion of tourists received from neighbouring Germany and some uncertainties as to a continuation of this tourist ﬂow in the future (Freitag, 1996; Fuchs and Weiermair, 1999; Mazanec and Zins, 1996). Immediate strategic questions evolve around the exploration of new...
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