Control work transnational companies in tourism. Impact of tourism TNCs on the national economy TNCs in tourism

Transnational companies in the international tourism market

PROCESSES OF TRANSNATIONALIZATION AND GLOBALIZATION IN INTERNATIONAL TOURISM

BASIC CONCEPTS

market structure, perfect competition, pure monopoly, oligopoly, monopolistic competition, product differentiation, cartel, concentration of production, integration, horizontal integration, vertical integration, complementary integration, diversification, conglomeration

CONTROL QUESTIONS AND TASKS

1. Name the forms of market structures in tourism. Give them brief description and give examples.

2. What factors influence the structure tourist market?

3. Has the structure of the domestic tourism market changed compared to the Soviet period? What is the structure of the tourist market in Russia today?

4. Describe the current situation in the travel agency market ( hotel) services in your city, district or republic. Try to determine the form of the market structure of the retail tourism (hotel) business. The following characteristics will help you with this: the number of sellers (buyers), possible barriers to entry of sellers into the market, the availability of accurate information and its availability, the possibility of concluding secret agreements between sellers or buyers, the degree of homogeneity tourism products, the role of the state in the market and the size of the profits.

5. What methods of competition do tourism companies use?

6. Name the main reasons for the concentration of the tourist market.

7. Describe the main forms of concentration of production in tourism industry. Give examples.

8. What are the features of integration in tourism?

9. What are the trends in market concentration in tourism?

10. What determines the level of concentration of the tourist market in the future?

CHAPTER IX

The processes of concentration of production and centralization of capital lead to the formation of transnational companies (TNCs). Their production systems do not coincide with the outlines of state borders. With their production networks, they covered a significant part of the world space. TNCs play an active role in global integration processes. Some researchers consider them as the material basis of the future global civilization.

The essence of TNCs and forms of its existence. In accordance with UN documents, TNCs include companies that have branches in two or more countries, regardless of their legal form or business area, and coordinate their activities.

TNCs are constantly expanding their foreign presence, naturally moving from exporting goods and services to organizing their production abroad. TNCs expand externally primarily through placement of foreign direct investment. Οʜᴎ also provide cash loans and enter into non-investment management agreements.

The first way gives the greatest stability to TNCs. Direct investment involves the preservation of control over capital in the hands of a foreign investor - TNCs. The parent company establishes joint-stock firms abroad or acquires controlling stakes in already existing foreign firms. She often owns more than half of all shares (shares) of the branch, although for complete actual control over its activities, a smaller share (more than any other sole proprietorship) is enough.

Many states have introduced additional conditions for corporatization of enterprises. The holders of 51% of the shares are only citizens of this country or legal entities registered in it. Such restrictions sometimes apply to the tourism sector, but much less frequently than to the media or the military-industrial complex (MIC).

At the same time, TNCs operate abroad through such a variety of foreign affiliates as branches. Οʜᴎ although they are registered abroad, they are not independent companies with their own balance sheet and are fully (100%) owned by the parent company, ᴛ.ᴇ. TNK.

The company may expand its overseas presence, lending money to a foreign company. This path is less efficient than the first one, and the problems that arise between the subjects economic relations do not allow talking about a genuine TNC. Meanwhile, the company that issued the loan is often vested with a lien on the property of the borrower until the debt is paid, or signs an agreement with the borrower that allows it to derive additional benefits in addition to the loan interest.

Conclusion of non-investment management agreements- a common practice among firms consisting of several production units. In this case, the parent company manages the chain of enterprises under the contract. Enterprises remain independent, have different owners, can be financed from various sources, but sell products under a single brand. The system of non-investment management agreements provides its participants with economies of scale, especially through the pooling of marketing efforts.

In the domestic and foreign literature There are several theories that explain the phenomenon of TNCs. All of them proceed from profit maximization as the main motive for foreign investment. According to one of them, the condition for the international migration of capital is difference between rates of profit and interest rates. If all national economies were equally open to capital inflows, then one would expect the establishment of an international equilibrium rate of interest, and companies would be indifferent where to invest, as long as the marginal efficiency of capital use exceeded the interest rate.

In fact, there are various kinds of restrictions, more or less risks that prevent the establishment of a single interest rate in the world. But where conditions are created for the free flow of capital, foreign investment takes place on the same basis as domestic investment. It means that international movement capital will continue until the marginal return on assets in the capital-importing country and the home country of the TNC becomes equal. How much capital will be imported into the country depends on a number of factors: the size of the interest rate, the return on investment, the openness of the economy, the guarantees of debt repayment and the timeliness of payment, the magnitude and distribution of risks.

Another explanation for the phenomenon of TNCs is given by the eclectic theory of international production of the English economist J. Dunning. It is called eclectic because it consists of three elements: the oligopolistic advantages of the firm, the advantages of localization (the use of local resources and conditions), and the advantages of internalization.

In order to break into the global market and survive on it, a company must have certain oligopolistic advantages whether it be capital, technology or managerial skill. Thanks to them, a company from country X can have superiority in production over local firms in country V and receive windfall profits.

The second element of eclectic theory is localization benefits. When maximizing profit, the firm decides whether to rely on resource potential home country or use the resources of the country - the importer of capital.

Given the dependence on the type of international production, the company receives different advantages of localization. When foreign capital organizes the extraction of raw materials and the production of materials, TNCs take possession of local natural resources. When establishing import-substituting production (producing goods instead of importing them), TNCs use the advantages of localization to reduce their costs and open up market access. When creating export platforms, ᴛ.ᴇ. organization of production by foreign capital finished goods for sale on the world market, the decisive factors for their placement are the cheapness of labor and incentives from the state, for example, the provision of tax incentives to TNCs.

The third element of the theory is benefits of internalization. The concept of internalization means that the firm carries out operations external to it within its structure. Infiltrating the economy of a country, a TNC can organize its activities in different ways: either concentrate everything within a corporation, or deal with independent partners in the market. Consequently, the problem of internalization comes down to choosing the path of economic expansion - through foreign trade or through the placement of foreign direct investment. In any case, internalization ensures the stability of the supply, it contributes to the establishment of control over prices and use. the latest technologies, as well as the elimination of the uncertainty factor when concluding transactions. Finally, companies that take full advantage of oligopoly, localization, and internalization have every reason to become TNCs.

Some experts explain the phenomenon of TNCs based on the theory life cycle product. According to them, companies create international production systems under their control in order to extend the life cycle of your product breathe a "second life" into it.

Let's assume that in country X the release of some product began several years ago and today it is in a decline phase. In the market of the lagging country V, the same product will be perceived as the latest and go through the introduction stage. A manufacturing company can arrange for the export of a product to country Y, but it will get a big benefit by placing it there production lines. A classic example is the automobile companies of Great Britain and Italy, which have established production in India, Iran, in the territory former USSR. This way of extending the life cycle of a product is more applicable to manufactured goods than to services.

Special Reasons for Internationalization tourism business . In tourism, a company's exit beyond national borders is largely predetermined by the uniqueness of the tourism product. As already noted, it is a set of services and some goods purchased by a tourist. Some of them correlate with the country of origin of the tourist, another one - with the countries and regions lying on the route of his travel and crossed in transit, the third - with the country of destination. In table. 56 shows the expenses of an international tourist in item and spatial sections. Most of them (47%) are in the destination.

Goods and services purchased by tourists are complementary, ᴛ.ᴇ. complementary. They should be used together to achieve an extremely important result. The supplier knows that the demand for his product means the demand for other tourism goods and services. For this reason, firstly, each manufacturer, guided by the motive of maximizing profits, seeks to expand its activities to other areas of tourism. For example, airlines can increase their share of tourism spending by integrating manufacturing from 30-35% to 93% (11+35+47).

Secondly, the sale of inclusive tours, consisting of several elements, primarily transportation and accommodation, brings additional benefits to the company, in particular, savings on marketing.

Third, firms based in destination countries gain a competitive advantage through good knowledge of tourism demand and trends in travel markets in those countries and use them to market products of destination destinations.

Table 56

The structure of the expenses of an international tourist for a short trip, in% (according to A. Bull, 1991)

Tourism industry enterprises are expanding their range of activities, often without setting themselves the direct goal of increasing their own shares in the existing travel market. The efforts of companies are aimed at stimulating the further development of tourism in general, in the expectation that it will lead to the emergence of additional opportunities in the original areas of their activity. In practice, this means new share investments in shares of foreign companies, the conclusion of non-investment management agreements, especially popular in tourism in Lately.

The initiative for the internationalization of tourism production comes to a large extent from the tourism-supplying countries that benefit most from it.

Suppose that there are only three tourism companies A, B and C. Οʜᴎ are national producers of tourism products in the countries of the same name and do not have foreign branches.

Company A is located in a country that generates tourist flows and provides a full range of services related to the travel of citizens abroad. Company C is based in the country of destination. It organizes the reception of foreign visitors and their service during their stay in the destination. Company B is owned by a third country through which tourists are transiting. This firm provides transportation of passengers from country A to country C via B.

If each of the three companies had the opportunity to acquire the other two, then company A would receive an income of 11 + 35 + 47 \u003d 93% instead of the previous 11% (8.5 times more), company B - 93 instead of 35% (in 2.7 times more), company C - 93 instead of 47% (almost 2 times more). Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, company A would achieve the best economic results (increase in revenue and probably profit) by internationalizing production.

Most TNCs in tourism are based in the countries of the so-called "Triad": the USA - Western Europe (France, Great Britain) - Japan, and more recently in Xianggang (Hong Kong). The geography of the headquarters of TNCs confirms the fact that the internationalization of the tourism business originates in countries that generate tourist flows and carry out foreign investment.

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§ 1. Transnational companies in the international tourism market

Essence of TNC and forms of its existence. In accordance with UN documents, TNCs include companies that have branches in two or more countries, regardless of their legal form or business area, and coordinate their activities.

TNCs are constantly expanding their foreign presence, naturally moving from exporting goods and services to organizing their production abroad. TNCs carry out external expansion mainly through the placement of foreign direct investment. They also provide cash loans and enter into non-investment management agreements.

The first way gives the greatest stability to TNCs. Direct investment involves the preservation of control over capital in the hands of a foreign investor - TNCs. The parent company establishes joint-stock firms abroad or acquires controlling stakes in already existing foreign firms. She often owns more than half of all shares (shares) of the branch, although a smaller share (more than any other sole proprietorship) is enough for full actual control over its activities.

Many states have introduced additional conditions for corporatization of enterprises. The holders of 51% of the shares can only be citizens of this country or legal entities registered in it. Such restrictions sometimes apply to the tourism sector, but much less frequently than to the media or the military-industrial complex (MIC).

In addition, TNCs operate abroad through such a variety of foreign affiliates as branches. Although they are registered abroad, they are not independent companies with their own balance sheet and are fully (100%) owned by the parent company, i.e. TNK.

A company can expand its overseas presence by providing borrowed funds to a foreign firm. This path is less effective than the first one, and the economic relations that arise between the subjects do not allow us to speak of a true TNC. Meanwhile, the company that issued the loan is often vested with a lien on the property of the borrower until the debt is paid, or signs an agreement with the borrower that allows it to derive additional benefits in addition to the loan interest.

The conclusion of non-investment management agreements is a common practice among firms consisting of several production units. In this case, the parent company manages the chain of enterprises under the contract. Enterprises remain independent, have different owners, can be financed from various sources, but sell products under a single brand. The system of non-investment management agreements provides its participants with economies of scale, especially through the pooling of marketing efforts.

In domestic and foreign literature, there are several theories that explain the phenomenon of TNCs. All of them proceed from profit maximization as the main motive for foreign investment. According to one of them, the condition for the international migration of capital is the difference in profit rates and interest rates. If all national economies were equally open to capital inflows, then one would expect an international equilibrium rate of interest to be established, and companies would be indifferent where to invest, as long as the marginal efficiency of the use of capital exceeded the rate of interest.

In fact, there are various kinds of restrictions, more or less risks that prevent the establishment of a single interest rate in the world. But where conditions are created for the free flow of capital, foreign investment takes place on the same basis as domestic investment. This means that the international movement of capital will continue until the marginal return on assets in the capital-importing country and the home country of the TNC becomes equal. How much capital will be imported into the country depends on a number of factors: the size of the interest rate, the return on investment, the openness of the economy, guarantees for debt repayment and the timeliness of payment, the magnitude and distribution of risks.

To break into the world market and survive in it, a company must have certain oligopolistic advantages, whether it be capital, technology, or managerial skills. Thanks to them, a company from country X can have superiority in production over local firms in country V and receive windfall profits.

The second element of eclectic theory is the advantages of localization. Maximizing profit, the firm decides whether to rely on the resource potential of the home country or use the resources of the capital-importing country.

Depending on the type of international production, the company receives different advantages of localization. When foreign capital organizes the extraction of raw materials and the production of materials, TNCs take possession of local natural resources. When establishing import-substituting production (producing goods instead of importing them), TNCs use the advantages of localization to reduce their costs and open up market access. When creating export platforms, i.e. the organization by foreign capital of the production of finished goods for sale on the world market, the decisive factors for their placement are the cheapness of labor and encouragement from the state, for example, the provision of tax incentives to TNCs.

The third element of the theory is the benefits of internalization. The concept of internalization means that the firm carries out operations external to it within its structure. Infiltrating the economy of a particular country, a TNC can organize its activities in different ways: either concentrate everything within a corporation, or deal with independent partners in the market. Consequently, the problem of internalization comes down to choosing the path of economic expansion - through foreign trade or through the placement of foreign direct investment. In any case, internalization ensures the stability of the supply, it contributes to the establishment of control over prices and the use of the latest technologies, as well as the elimination of the uncertainty factor in the conclusion of transactions. Thus, companies that take full advantage of oligopoly, localization and internalization have every reason to become TNCs.

Some experts explain the phenomenon of TNCs based on the theory of the product life cycle. According to them, companies create international production systems under their control in order to extend the life cycle of their product, breathe a "second life" into it.

Let's assume that in country X the release of some product began several years ago and today it is in a decline phase. In the market of the lagging country V, the same product will be perceived as the latest and go through the introduction stage. A manufacturing company can export a product to country Y, but it will benefit most by locating production lines there. A classic example is the automobile companies of Great Britain and Italy, which have established production in India, Iran, and on the territory of the former USSR. This way of extending the life cycle of a product is more applicable to manufactured goods than to services.

Special reasons for the internationalization of the tourism business. In tourism, the company's exit beyond national borders is largely predetermined by the uniqueness of the tourism product. As already noted, it is a set of services and some goods purchased by a tourist. Some of them correspond to the country of origin of the tourist, the other - to the countries and regions lying on the route of his travel and crossed by transit, the third - to the country of destination. In table. 56 shows the expenses of an international tourist in item and spatial sections. Most of them (47%) are in the destination.

Goods and services purchased by tourists are complementary, i.e. complementary. They should be used together to achieve the desired result. The supplier knows that the demand for his product means the demand for other tourism goods and services. Therefore, firstly, each manufacturer, guided by the motive of maximizing profits, seeks to expand its activities to other areas of tourism. For example, airlines can increase their share of tourism spending by integrating manufacturing from 30-35% to 93% (11+35+47).

Secondly, the sale of inclusive tours, consisting of several elements, primarily transportation and accommodation, brings additional benefits to the company, in particular, savings on marketing.

Table 56
The structure of the expenses of an international tourist for a short trip, in% (according to A. Bull, 1991)

Country of origin of the tourist		International Link		Country of destination (destination)
Travel agency services	8	air transportation	30	Accommodation	22
Other services (including information)	3	Buying goods (including duty-free shops)	5	Transfers and travel around the country	13
				Purchases	12
taxes	2			taxes	5
TOTAL (excluding taxes)	11	TOTAL	35	TOTAL (excluding taxes)	47

Tourism industry enterprises are expanding their range of activities, often without setting themselves the direct goal of increasing their own shares in the existing travel market. The efforts of companies are aimed at stimulating the further development of tourism in general, in the expectation that it will lead to the emergence of additional opportunities in the original areas of their activity. In practice, this means new share investments in the shares of foreign companies, the conclusion of non-investment management agreements, especially popular in tourism in recent times.

The initiative for the internationalization of tourism production comes to a large extent from the tourism-supplying countries that benefit most from it.

Suppose that there are only three tourism companies A, B and C. They are national producers of tourism products in the countries of the same name and do not have foreign branches.

If each of the three companies had the opportunity to acquire the other two, then company A would receive an income of 11 + 35 + 47 \u003d 93% instead of the previous 11% (8.5 times more), company B - 93 instead of 35% (2. 7 times more), company C - 93 instead of 47% (almost 2 times more). Thus, company A would achieve the best economic results (increase in income and, probably, profits) by internationalizing production.

Most of the TNCs in tourism are based in the countries of the so-called "Triad": the USA - Western Europe (France, Great Britain) - Japan, and more recently in Xianggang (Hong Kong). The geography of the headquarters of TNCs confirms the fact that the internationalization of the tourism business originates in countries that generate tourist flows and carry out foreign investment.

The initiative to attract TNCs quite often comes from host countries where local companies either do not exist at all or do not have sufficient resources. The governments of the Philippines, Indonesia, Pakistan, Sri Lanka provide foreign investors with not only tax incentives, but also sometimes exempt them from paying duties on the import of equipment, mechanisms and materials. The emergence of TNCs in the tourism sector, especially in underdeveloped countries, leads to external control over the structure of the local tourism market and the development of the tourism industry.

A foreign airline serving the international air routes of a small country may prevent other air carriers, both foreign and national, from entering this market and establish its own monopoly, which is not always in the interests of the host country. Some states, having concluded contracts with tourist corporations: "Mediterranean Club" (France) or American hotel chains, not only limited competition, but lost the freedom to choose the direction of economic development.

By asserting its monopolistic position in the host economy, the TNC is able to put pressure on the government to increase spending on infrastructure, among other things. It is not uncommon for multinational companies to dictate the construction of new airports, changes to existing ground transportation systems, or redesign of land use patterns. TNCs seek to determine tourism policy, pursuing their own goals. This is clearly seen in the example of Spain, where the benefits of infrastructure development are received by foreign tourists, and the local population bears the costs of its creation.

In Senegal, within the framework of the IV national development plan, 23 billion senegs were allocated for the construction of tourism infrastructure. fr., i.e. 12% of the state budget. By comparison, spending on health over the same period amounted to only 3.6 billion for education - 7.4 billion for Agriculture- 24 billion seneg. fr. Due to the high capital intensity of tourist facilities, developing countries are forced to take out loans and credits to create infrastructure that meets the requirements of TNCs.

Despite the above problems, some countries still open up tourism markets for TNCs, linking them with their last hope of overcoming backwardness. At the same time, governments are becoming more sophisticated in negotiating with multinational companies. With the growth of international tourism, the number of TNCs eager to expand their sphere of influence increases, and the host party gains more power when concluding agreements with them.

TNCs influence the economy of the recipient country through control over tourist flows. The activities of transnational companies in the field of tourism have led to shifts in the geography of tourist demand, changed the direction of visitor flows. By forcing governments to revise fiscal policies and increase spending on tourism infrastructure, they have sparked an uptick in international tourism in many areas.

At the same time, the efforts of TNCs to attract tourists to the destination often conflict with the interests of national tourism administrations. The latter often choose a relatively narrow market segment of elite tourists as a target, counting on a high income from their service. However, it may be more profitable for a multinational company guided by the profit maximization motive to work with a mass tourist. The wide tourist flows organized and directed by it contain a threat to the local culture and the natural environment.

Less obvious, but no less acute problems arise if TNCs exercise control over highly specialized tourist flows. It identifies the most profitable market niche into which it directs its activities. The number of arrivals is small, tourism does not have a destructive effect on nature and culture and provides financial income. At first glance, such activities of TNCs contribute to the development of the local tourism market, the national economy, but in reality, this practice is fraught with danger.

Tourist centers become dependent on a certain, numerically small category of visitors. It may turn out that a resort area in the Bahamas will specialize in welcoming middle-class people from New York, and a Thai resort will specialize in serving newlyweds from Japan. These market niches are too narrow for resorts to be sustainable and competitive. The latter are affected by the slightest changes in the tastes and preferences of the target group of consumers. Their work is fraught with great commercial risk.

By establishing control over tourist flows, TNCs use this leverage to put pressure on the host country in order to expand the list of tax and other benefits it provides.

In the late 70s, in response to the actions of the Tunisian government, which prevented the further increase in the already huge profits of one of the largest West German tourism corporations, the company sharply reduced the importation of German tourists (from 60 to 12 thousand people), dealing a blow to the Tunisian economy. Thus, the dependence of young states on foreign capital is formed.

Modern TNCs are distinguished by a global strategy of behavior in the global travel market. It finds manifestation in the mechanism of transfer pricing. By manipulating prices for the components of the tourist product when performing intercompany operations, in some cases overestimating them, in others, on the contrary, underestimating them, TNCs increase corporate profits. In the hands of the company is a mechanism that ensures the circulation of profits within one large empire, obeying strategic goals her activities.

Changing the price level is not an invention of TNCs, it is a common commercial practice. By agreement between counterparties, a surcharge to the base price or a discount from it is established. Many products and services are subject to turnover discounts for bulk purchases. In tourism, seasonal discounts are also widely used when purchasing a product out of season, with the help of which supply and demand are balanced. Tour operators and travel agents as intermediaries receive from suppliers tourism services sales discounts, allowing them to withstand price competition in the market. For example, German and British tour operators are very famous low prices for the services of Spanish and Greek hotels, as well as for entertainment.

The price level in each case is different depending on the agreement between the parties to the transaction. This principle continues to operate in the pricing of TNC products. The transnational company only gives the negotiations a certain form and intra-company character.

Let's consider the transfer pricing mechanism with an example. Suppose a tour operator based in country A acquires an airline in country B and a number of tourism enterprises, including accommodation facilities, in country C. In this way, he creates an international production system under his control.

The tour operator offers an inclusive tour at a price of 1000 am. dollars and sells it in country A. All transactions for the sale and purchase of the constituent parts of the tour take place within the system. The tour operator sets settlement (transfer) prices for all participants in this integrated business. They may differ from market prices, and sometimes have no analogues on the open market and are used by the tour operator to evade taxes and customs duties.

TNCs, using the mechanism of transfer pricing, artificially increase production costs for branches located in countries with a high level of taxation, and, conversely, underestimate them for branches in countries with low taxes. As a result, affiliates of TNCs in the first group of countries report insignificant profits in their tax returns, while in other countries overestimated profits are recorded. TNCs, as it were, illegally transfer profits from affiliates in countries with high taxation to affiliates in countries with low taxes, and in this way achieve a net reduction in the amount of taxes paid.

In our example, the tour operator may artificially increase the value of its assets in country C, decommission country B's aircraft, and reallocate overheads or operations among affiliates. As a result, the amount of tax payments will decrease by 2 times, from 40 to 20 conventional units. The tour operator will receive additional profit if he makes international payments at a favorable exchange rate.

The use of transfer pricing for tax avoidance has been criticized. It turns into huge losses for the state budgets of many countries.

Table 61
Transfer pricing in a transnational tour operator company (according to A. Bull, 1991)

A country	Tax rate, %	The actual value of production costs X	Company's actual revenue	The actual profit of the company	The amount of tax payments
A	40	180	200	20	8
B	20	360	400	40	8
C	60	360	400	40	24
		900	1000	100	40
		Transfer price (declared cost of production) Z		Declared profit	Really paid taxes
A		200		0	0
B		300		200	20
C		400		0	0
		900		100	20

Studies show that foreign affiliates of TNCs tend to import goods (services) to the same extent as local companies. Moreover, many TNCs, seeking to create and consolidate their positive image in host countries deliberately use local resources where possible.

However, TNCs, especially in tourism, maintain strong ties with their country of origin. They are guided by the reception of "native" visitors. For example, large US hospitality companies began to transcend national borders, create business chains, and propagate American standards of hospitality in the wake of the expansion of outbound tourists and American complaints about overseas service that did not meet their established expectations and expectations. Today, hotels scattered around the world, united in American hotel chains such as "IT Sheraton" or "Hilton Hotels Corporation", counting on the tastes of their compatriots, import beer and cigarettes from the USA. Foreign affiliates of Japanese TNCs in the restaurant industry import food and furniture from Japan.

Another reason for compelling affiliates to import goods and services is associated with global standardization processes and the creation of an image of the "home" country. Air France promotes its French brand, and the Royal Viking Line ferry company emphasizes Scandinavian origins in everything.

The import of goods and services through international tourism is a significant item of expenditure in the public budgets of a number of developing countries. These operations, although associated with the outflow of currency abroad, are not as large as in the case of a multinational company providing the host country with the factors of production of a tourist product for a fee. On the invested capital, the TNC receives income in the form of interest, which it transfers to its "homeland". The main part of the labor force employed in its branches, especially top and middle managers, is qualified personnel invited from abroad. For their work they receive high wages, which is listed at the place of permanent residence.

The host country loses most of its international tourism earnings as a result of the export of its profits by multinational companies. Whether the TNC owns or manages an enterprise under contract, it has entrepreneurial income, or profits. Through the transfer pricing mechanism, profits can be transferred from one country to another without visible leakage.

In some countries (Sri Lanka, Philippines, Indonesia, etc.) foreign investors are guaranteed free and unrestricted export to their country of income received by tourism enterprises. For example, the Gambia manages to keep only 15% of the foreign currency imported by tourists.

With the very high cost of a trip to Africa (for example, a two-week tour to Kenya or Togo costs about DM 3,500 for a tourist from Germany), the host country itself receives a negligible share of this amount. A European tourist pays for a full package of services in his home country through a travel company. He takes a small amount of money with him to buy souvenirs, which serves as a source of foreign exchange earnings for the host country. With this development model, tourism is in no way connected with the local economy. The tourist complex will function even in its absence, in the desert or on the Moon, due to the influx of foreign visitors.

It is possible to include international tourism in the economy of the host country by attracting local labor (we are talking about types of work that do not require high qualifications and special training), the use of local materials in the equipment of the tourist complex, as well as agricultural products for the nutrition of foreign visitors. In this case, international tourism will increase the GNP of the recipient country, contributing to its economic development.

Assessing the impact of TNCs on national economy will be incomplete if we ignore the role of transnational companies in the transfer of knowledge, experience, technological secrets (what the West calls "know-how"). All this is intangible capital, but very valuable if it is properly disposed of.

At present, TNCs have essentially become "incubators" of technological innovation. They develop their own innovative programs, invest heavily in the creation of an intellectual product and offer it to the world market.

One of the most striking and convincing examples of technology transfer in tourism is the activity of the world famous company "McDonald's", which is considered the undisputed leader in the industry. fast food. Its success is determined primarily by a fanatical belief in the idea of providing High Quality service. Throughout the history of its existence, it has methodically improved every operation in the production process.

In the late 1940s, brothers Richard and Maurice McDonald, owners of a small roadside cafe, began to think about how to improve their customer service and thus increase their income. They decided to reduce the number of items on the menu to three courses, standardized the technology based on a conveyor system and unified the preparation of dishes. For example, hamburgers weighed exactly 1.6 ounces and contained no more than 19% fat. The employees were dressed in starched white shirts and did one kind of work: some removed hamburgers from the pan, others dipped them in boiling oil, and so on. This organization of production ensured the growth of its efficiency and cost reduction. "McDonald's" created a new generation of customers who knew for sure: wherever he was, everywhere in "McDonald's" he would find excellent and fast service and the usual assortment of dishes. Many entrepreneurs, having understood and accepted this line of business, have joined it. Similar fast-food establishments began to appear in large numbers.

Technology transfer is observed not only in the restaurant industry, but in the hotel, tour operator and other sectors of the tourism industry.

TNCs, by locating enterprises abroad, often innovative ones, using latest technology and perfect technology, demonstrate their advantage over national companies. The latter adopt managerial and entrepreneurial experience, technological innovations, increasing their own competitiveness. In countries such as Thailand and Tunisia, where the advanced Foreign experience in tourism is spreading particularly rapidly, with accelerated profit growth in the local travel industry. Some governments now specifically stipulate the transfer of technology as a condition for the activities of TNCs on the territory of their states.

The impact of TNCs on the economy of the home country. TNCs have an economic impact not only in the host country, but also in the "native" country. This, back side internationalization has been much less explored. Tourism TNCs can change the structure of the domestic travel market and the profitability of the production of a tourism product.

First, in a small country where the size of the tourism market is insufficient to achieve economies of scale, corporations such as Singapore Airlines are oriented towards the "export option" economic strategy. Without integration into the world economy, they could not exist.

Secondly, TNCs direct investments to those destinations that provide extremely high incomes and thereby contribute to an increase in the average amount of return on invested capital in the domestic tourism industry.

Thirdly, by putting on stream the production of outbound tourism products, they bring down the price level in the domestic market.

Fourth, TNCs specializing in outbound tourism receive monopolistic benefits in the home country market. If it has an oligopolistic structure, corporations bloc to protect their market positions. The opening of the Sheraton IT chain in the region usually means the imminent arrival of the Hilton Hotels Corporation or the Holiday Inn Worldwide.

Finally, TNCs influence the "native" economy indirectly through tourist flows. Their presence in the travel market, especially such powerful ones as many European tour operators, is often one of the reasons for the intensification of outbound tourism. With an increase in the number of trips abroad and the associated outflow of currency from the country, there is a negative balance of payments for tourists. At the same time, it is thanks to the activities of TNCs that part of the currency exported by tourists can be returned to their homeland. If a US tourist stays at a hotel that is part of an American hotel chain, then, in essence, import substitution occurs. Home country, in this case The United States receives income from serving compatriots abroad, similar to the proceeds from the export of goods and services, and strengthens its balance of payments.

The processes of transnationalization in their modern forms are deeply contradictory. A heated discussion about TNCs, based on value, ideological and political differences in views on the nature and sources of socio-economic development, as well as on the threat to national security, continues as the number of transnational firms grows and their economic expansion expands.

§ 4. Processes of globalization in world tourism

The rapid increase in their number occurs under the influence of a number of factors, among which the aggravation of competition in world markets has a decisive influence. It takes place not only between the companies of the most developed countries. Firms from the newly industrialized countries, which are gradually gaining more and more "niches" in world markets, have become very dangerous rivals. In the hotel industry, these are hotel chains owned by Xianggang (Hong Kong), Shangri-La, Regal Hotels, and Mandarin Orientl.

The essence of global alliances is to bring together human, financial and scientific and technical resources different firms to achieve certain goals in the most effective way - through cooperation. They share the achievements of each of the parties involved and share the costs and risks associated with the implementation of common programs.

The conclusion of global alliances is practiced in various sectors of the tourism and hospitality industry. A striking example of the effectiveness of this kind of associations are global computer systems for booking tourist products. Thanks to them, the external communication systems of the airlines were connected to the complex computer networks hotels, travel agencies, car rental companies, etc. They allow you to book travel packages or individual elements of them - from air travel and hotel accommodation to theater tickets and insurance policies.

One of the largest and most famous computer systems booking tourism products, along with SABR, Amadeus and Worldspan, is Galileo International. Its hallmarks are a powerful information base, extensive redundancy options and flexibility. IN modern form Galileo International has existed since 1993 as a result of the merger of two electronic systems booking "Galileo" and "Kovya-Apollo". The founders of the unified network were North American and European air carriers. With equal share participation, they formed the authorized capital of the new company in the amount of 1.5 billion US dollars. dollars. In 1997, it had 120,000 terminals, covered 500 airlines, 31,000 hotels, and 44 car rental firms. The number of its subscribers reached 42 thousand.

Despite the merger, the creation of a single database and headquarters in Denver (USA, Colorado), Galileo International intends to maintain, maintain and develop Kovya-Apollo and Galileo as two independent systems. While the former continues to serve the US, Mexico, and, to a lesser extent, Japan, the latter works for all other countries, with the exception of Canada, where the Gemini network operates.

Currently, in addition to global alliances, strategic alliances are being formed. Changes are the first property relations. The latter are based on the consent of the parties and do not affect property relations, so they are more widespread.

Strategic alliances can take different kind(consortiums, strategic joint ventures, etc.). Unlike traditional intercompany agreements, they are all aimed at achieving long-term competitive advantage for companies - members of the alliance as part of the global strategy of their activities.

In the hotel industry, strategic alliances are concluded between several companies for the joint implementation of services, the creation of a single distribution network, coordinated marketing activities making large financial investments. The main motive for such an association is to promote the brands of hotel companies in the market. Within the framework of an alliance, the product of one firm opens up the opportunity for another to enter the market, and by sharing financial risk, both firms avoid bankruptcy in an unfavorable economic environment.

An example of a strategic alliance is the partnership agreement concluded at the end of 1996 between the Carlson Hospitality Worldwide group (USA) and the Four Sizes corporation from Toronto. His goal is to expand the international Regent hotel chain owned by the latter.

Once proven, alliances will be the main growth strategy for hotel companies in the 21st century. This conclusion was reached by specialists from New York University, who conducted a survey in the hospitality industry.

The processes of globalization are most clearly visible in air transport. Strong partnerships are being established between the world's leading airlines. They prefer to form strategic alliances with their competitors rather than buy shares in smaller carriers. By reaching agreement among themselves, airlines can quickly expand their route network, increase their market share and limit market access for other carriers. Such cooperation gives a common result for all members of the alliance - an increase in air traffic and profits.

Agreements between airlines relate to different areas activities. Previously, they were distributed mainly to the management of loading and unloading operations at airports, investment and current financing (joint purchases of fuel, aircraft, use of workshops Maintenance and repairs, etc.), as well as the opening of joint sales offices. For example, Japan Airlines, Lufthansa and Air France entered into an agreement to jointly build a terminal at New York Airport. J. Kennedy.

Today, international strategic alliances in air transport are experiencing new stage development. In an effort to establish control over the air transportation market, the members of the alliance switched to the interchange of their identification codes and cooperation in the framework of special incentive programs for frequent flyers. This kind of practice has led to profound changes in the aviation services market.

Special programs "FP" (see Chapter VII) assign customers to certain airlines and prevent the flow of passengers to other carriers. Recently, they have become a powerful marketing tool, the effectiveness of which increases many times over if it is integrated into global strategic alliances. United Airlines, Lufthansa, Air Canada and CAC have recently developed a joint frequent traveler strategy.

By combining incentive programs, alliance members expand their customer base and dominate the market. This strategy leads to the monopolization of air transportation in the context of the general liberalization of air transport. It creates barriers for new players to enter the market and limits competition.

Small and newly formed airlines accuse alliances with a large contingent of regular passengers of violating antitrust laws. Special bodies for monitoring the activities of monopolies and protecting competitive environment closely monitor the formation and development strategy of alliances. But so far they do not see in their business practice the facts of violation of established legal norms.

In addition to the consolidation of incentive programs for frequent flyers, cooperation between members of the alliance is being strengthened through the exchange of identification codes. According to the rules of the International Civil Aviation Organization (ICAO), an airline has the right to share its identification codes with another airline or several carriers can use the same codes. This means that the passengers are not flying with the airline listed on the ticket. To protect the rights of consumers, it is proposed to introduce regulation of the exchange of codes. The issue is under discussion, but for now, airlines should at least inform passengers of this practice.

Whatever the arguments for and against the exchange of identification codes, the number of agreements is growing. In 1997, Spanish Iberia, Swiss Swissair and Austrian Austrian Airlines agreed to exchange codes with Delta Airlines, British Midland with Gulf Air, and Japan Airlines with Australian Kuantas Airlines ". That same year, Delta Airlines and Continental Airlines signed a multi-pronged agreement with Air France that included a code swap. Signed agreements on the exchange of identification codes often develop into international strategic alliances.

In 1997, there were 363 airline alliances in the world. Their number is increasing (Table 62). Most of the new alliances have a flexible organization with a focus on joint marketing and technical development.

Table 62
Air Transport Alliance Development Indicators, 1994-1997

Indicators	years				Changes 1997/1994, %
Indicators	1994	1995	1996	1997	Changes 1997/1994, %
Number of alliances	280	324	389	363	29,6
with share participation	58	58	62	54	-6,9
without share participation	222	266	327	309	39,2
Number of airlines	136	153	171	177	30,1
Number of newly formed alliances	-	50	71	72	44,0*

On the old continent, building alliances is made more difficult by the European Commission's stance on bilateral agreements. Considering the EU as a single territorial entity, it intends to abandon the practice of concluding agreements by each country separately and move to a strict centralization of the negotiation processes.

Despite emerging obstacles, airlines continue to merge. Often, the same carrier is part of several alliances at the same time with different goals. An airline can have a basic agreement with one company and still be a full member of marketing and commercial alliances with other carriers. For example, Lufthansa, in addition to a global strategic alliance with United Airlines, has formed a marketing alliance with Finnair, a freight alliance with Japan Airlines and Korean Airlines, and has also signed identification code exchange agreements with Adria Airways. , Varig Brazilian Airlines, Luxair and Austrian Airlines. The prospects for previously reached agreements become very uncertain with the creation of global alliances of carriers.

The largest associations in air transport are the OneWorld and Star Alliance alliances. Each of them serves over 180 million passengers a year (Table 63).

In 1998, the world's five leading airlines American Airlines, British Airways, Canadian Airlines, Cathay Pacific Airways and Quantas Airlines announced the creation of a new global alliance, OneWorld. Since 1999, its members have embarked on a broad joint program of action worth tens of millions of pounds.

Table 63
Leading global airline alliances

Indicators	Alliances
	"Star Alliance"						"Oneworld"
	"United Airlines"	Lufthansa	CAC	Air Canada	"Thai Airways International"	Varig Brazilian Airlines	"American Airlines"	"British Airways"	"Canadian Airlines"	"Ride Pacific Airways"	"Finnair"	"Quantas Airlines"
Number of destinations	257	271	100	116	73	122	237	255	135	47	60	105
Destination countries	32	88	34	25	35	23	49	102	13	25	27	33
Number of passengers carried million people	84,2	44,5	20,8	17,5	14,8	9,9	93,0	41,0	11,0	10,0	7,2	19,0
Aircraft fleet	576	326	168	243	74	87	856	330	131	63	58	139
Gross income, billion am. Doll.	17,4	13,0	5,1	3,9	3,1	3,4	18,5	9,1	2,6	4,2	1,5	5,3

tariff network

one system

Another international association of air carriers, Star Alliance, was formed in 1997 on the initiative of Lufthansa. Today it includes airlines from Germany, the USA, Canada, Japan, Australia, New Zealand, Brazil and other countries. The ranks of Star Alliance members continue to expand. In 2000, the second most important British airline, British Midland, and the oldest Mexican carrier, Mexicana Airlines, joined them. With the addition of British Midland based at London Heathrow, it has become the world's only hub for two competing global aviation alliances. The general route network of Star Alliance connects 815 destinations located in more than 130 countries of the world. Aircraft of the alliance airlines take off on average every 9 seconds and perform a total of about 9,600 flights daily.

In addition to Oneworld and Star Alliance, there are other similar associations of carriers, Qualiflyer Troop and Winds. A new SkyTeam alliance was recently announced in New York. Its core was Delta Airlines and Air France, which have been cooperating for several years. According to the creators, the alliance should be more focused on the interests of passengers than all previously formed associations. Deployed in the media of the USA, Europe, Latin America and Asia advertising campaign alliance is held under the motto "We care about you."

In 2003, Aeroflot - Russian Airlines plans to join SkyTeam. The Russian carrier has a chance to become a full member of the alliance, subject to stable operation. In the meantime, negotiations are underway to create alliances between Russian and CIS airlines.

Involving in the process of globalization and foreseeing possible Negative consequences entry of domestic firms into the global tourism space, Russia is moving forward towards normal civilized relations in the tourism market.

BASIC CONCEPTS

transnationalization, transnational company, hotel chain, franchise, management contract, consortium, transfer pricing, globalization, global union, strategic alliance

CONTROL QUESTIONS AND TASKS

1. What ways and means do TNCs use to expand their foreign presence?

2. Name the common and special features in the transnational activities of airlines and hotels, on the one hand, and classical commodity producers, on the other.

3. List the main strategies of hotel TNCs. What are the strengths and weak sides each of them?

4. What explains the widespread use of the franchising system in the international hotel business?

5. What are the reasons for the success and crisis of the American model of organization and management hotel business? What is the difference between the American model and the European and Asian one?

6. Name the world famous brands in the hotel services market.

7. What is the impact of tourism TNCs on the economy of the host country and the home country?

8. Explain the transfer pricing mechanism used by TNCs in tourism.

9. To what extent does the activity of TNCs cause changes in tourist flows?

10. What is the impact of globalization processes on the tourism industry?