Nationalism vs. Global Travel & Hospitality
THE RISE OF AUTHORITARIANISM THREATENS GLOBAL TRAVEL AND HOSPITALITY
The recent rise of authoritarianism and ultranationalism around the world has been bad for human freedoms and bad for business. If the trend continues, it could be a disaster for the international travel industry.
Measures of global freedom have been on a 15-year decline. Shifts toward tyranny usually have devastating economic consequences. Countries where political power became concentrated such as Turkey, Venezuela and Hungary, saw dramatic drops in their domestic product and foreign investment. By invading Ukraine, Russia has become an international pariah and has effectively removed itself from the global travel map. Currently over 4 billion people—half the world’s population—live under the rule of tyrants, absolute monarchs and other forms of authoritarian power. This amounts to a monumental loss of human potential—and travel potential.
Repressive regimes pose major obstacles for the business of tourism. International partnerships become harder to maintain as costs and risks are added at every turn. Increased red tape, unenforceable contracts, corruption and the arbitrary use of centralized power are all barriers to creating enduring cross-border relationships. The possibility of boycotts or travel bans and the reputational cost for companies that do business with authoritarian regimes loom over business plans that run through authoritarian-run territories. In addition, tourists usually avoid destinations prone to political crackdowns, arbitrary law enforcement and security crises.
In this environment, companies will have to carefully weigh the risks and potential benefits of each international deal, partnership and investment. Tourism can increase the power and wealth of autocrats, but it can also be the antidote for xenophobia and nationalism. Building understanding between people of different cultures and backgrounds is one of the great benefits of a thriving global travel industry.