Anti-Competitive Practices Which Affects Tourism Sustainability
International scientific conference Faculty of Economics, South-West University of Neofit Rilsky, June 18-20, 2007, Bulgaria
Posted: 27 Nov 2007 Last revised: 11 Dec 2007
The competition issue and the treatment of anti-competitive behavior are at the core of the problem of efficiency, viability and sustainability of tourism in developing countries. The latter's ability to deal with those two aspects and to counter their effects is a crucial matter.
Firstly, this is because anti-competitive behavior occurs largely in developed countries, as a result of the fierce competition among a few integrated dominant players with a high market share in their own market and in all segments of tourism industry supply, notably tour operators, travel agencies, hotels, etc.
Secondly, the pattern of globalization, which is the driving force of many of the developments in the supply of the tourism and air transport, also mostly originates and is controlled in the two leading developed economies, namely the European Union and the United States. Consequently, what often appears to be a normal commercial relationship in a developing country may actually be the result of a network of anti-competitive practices arising from a globalize and highly integrated environment, dominated by a few suppliers in the originating tourism markets. Moreover, other non-behavior-related industry issues, such as the inadequacy or absence of a domestic competition legal framework in developing countries, and the lack of multilateral disciplines and mechanisms within the GATS framework, also affect the ability of developing countries to deal with or prevent anti competitive practices in their tourism sectors.
Keywords: Tourism sustainability, tourism suppliers, tour operators, international demand
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