The impact of globalization on small and medium enterprises: new challenges for tourism policies in European countries

Abstract

The pressure of globalization is having a major impact on the small and medium enterprises (SMEs) of the European tourism industry. Globally acting suppliers, decreasing transportation costs and emerging new destinations have put pressure on the European SMEs in traditional destinations. As many European countries are economically very dependent on tourism, a need for effective policy support arises. The paper focuses on the questions: What could be done to restore the European tourism industry as a growth engine for income and employment? as well as: What roles should the government sector and the private sector respectively play? The implementation of flexible operating network alliances and holistic destination management techniques geared to meet ‘post-modern’ tourism demand are suggested to alleviate the impacts of globalization on SMEs.