Impact of Globalization on Amangalla: A Study on Sustainable Practices in the Hospitality Industry

This study analyzes the impact of globalization on Amangalla, a Sri Lankan hotel franchisee, and its sustainable practices in the hospitality industry. It covers exposure to various cultures, technology advancement, and competition in the global hotel industry.

Globalization is the process of incorporation across world-space occurring from the
interchange of views, ideas, products & other aspects of the world & its culture. It generates
interdependence of cultural & economic activities by advancing in telecommunications &
transportation infrastructure including the rise of the internet. The connectedness of the
economies & cultures of the world is one of the significant reasons for globalization (Steger,
2010).
Amangalla is a five-star hotel franchisee, which belongs to the Aman Resorts a multinational
group, situated in Galle, Sri Lanka. It is a premium and luxurious resort on the walls of Galle
Fort in the mid of Galle, as part of the living heritage and culture of Sri Lanka (Amangalla -
Luxury Hotel & Resort in Galle, Sri Lanka, 2018).
Globalization refers to the tendency of incorporation of several aspects based on economy,
living, ideas, culture and thought the presence in rest of the world. The innovation and advance
in different modes of transportation and IT are stated as the driving factors in the process of
globalization, following generation links and interdependence among culture and economic
activities (Beck, 2018). Further, globalization refers to the free flow of goods, services as well as
individuals throughout the world on an integrated basis. The present study is based on the
evaluation and analysis of Amangalls, a Sri Lankan company while explaining the concepts of
globalization in relation to the company. Along with this, the study will also cover the impacts of
globalization the operations and activities of business and its sustainability.
In the developing countries like Sri Lanka, globalization is considered as a significant process,
because of the enormous benefits provided by the same. It assists in the entire growth of the
country’s economy through foreign investment generating savings in the country which can be
utilized in other investments. Globalization is a broad term, based on a trend to a more integrated
economic system on a global basis (Steger, 2017). It is an ongoing process in business that flows
into the spheres of economy and technology.
The increasing development of global economic integration as well as globalisation has resulted
in considerable changes and impacts in the hotel industry. Thus, it is essential to consider several
aspects related to globalization that can influence the present and future development in this
specified industry. In context with the hospitality industry, necessarily, the impacts of

globalization can have extensive outcomes, in both positive and negative way (Kotabe and
Helsen, 2014). A better understanding of the effects of the globalization and conducting things in
a manner that can generate positive consequences will help the company in gaining a competitive
edge in the global market while attaining their long-term goals.
Globalization can impact the Amangalls in various ways
Exposure to various cultures: the trade globalization and the economy can create a significant
impact on the travelling and staying prices. A cut-throat competition has caused competitive
pricing and has led to increasing low-cost models, by which the business is not able to set higher
rates and attain expected gains and returns.
Technology advancement: For attracting more and more tourist, hotel industry must attempt to
retain higher technology advancement. It is significant for hotels to continually make
improvement in their offered products and services with gaining a top edge on the competition
(Lee and Joshi, 2016). With more innovation and ever-evolving needs of customers, businesses
at the global scale are needed to grasp revolutionary aspect by technological advancement.
With the globalization, more accessible and affordable ways emerge for the customer. This
means that customer can enjoy better portfolios with a wide range of products and services, and
n the business side, they are benefitted with worldwide operational diversities, similarities and
openings to satisfy global goals. There are different ways by which nations use sustainable
practices in their globalization; some countries might experience an enhanced local
environmental because of globalization process while other experience is declining. Further, this
complexity demands a highly integrated approach, mixing social, cultural, ecological and
economic aspects, in the world based on globalization, companies must be aware of the emerging
developments in various domains, and the enhancing integration needs to be the focal point for
the sustainable global policies (Zaitseva and et al., 2016).
Globalization offers an opportunity for hotels to drive cost-efficiency, and offset among
decreasing cost and enhancing efficiency by adopting sound working practice and developing
technologies based on environment, Amangalls will be able to reduce waste. By considering this
aspect, the company will be able to make optimum utilization of available resources while

minimizing wastage (Agarwal, 2015). This can be regarded as a critical aspect to earn higher
profitability for long-term.
With optimal sustainability maintained, Amangalls will be able to provide better guest
experience along with embrace sustainability within a business culture can set the company
apart, and help in attracting g targeted group segments, while leaving a positive remark on them
thereby stimulating corporate brand image.
Furthermore, the government has also stimulated economic incentives for the improvement in
the environment; these incentives are inclusive of premium discounts in insurance, grants and tax
write-off, which can benefit hotel industry in a substantial way to operate their activities on a
global basis. Globalization and sustainable practices will help the hotel sector to address
hazardous material and the environment in a compelling way, while keeping safety and health
measures at the place (Wheelen and et al., 2017). These will impact the business by taking
construction, operations and designs forward.
By integrating a high level of sustainability, Amangalls will be able to expand their brand
standards and impact; these sustainable practices will result in enhanced corporate and brand
impact, thereby offering higher profits and returns for the longer haul.
Competition in the global hotel industry is becoming fierce and, as hotels are seeking new and
innovative ways to develop while customers have more options to select (Crane and Matten,
2016). Globalization can result in weakening hotel images; they can lose their authenticity and
local image. It can be said that globalization offers threats as well as opportunities for the
hospitality sector, but to succeed one can respond and explore market trends, global competition,
environmental consideration, technological advancement and innovation.
In the present era, by considering the rapid increase in the globalization levels in the hotel
industry, Amangalls is required to learn various management approaches to succeed and develop
in the environmental situations with higher uncertainty levels while gaining a better
understanding about the implications of impacts in a direct and indirect manner. With this
understanding, and considering the changing environment while help in ensuring long-term and
sustained growth.

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