Analyzing and Understanding the Effects of Foreign Investment in the Hospitality Industry

Recent changes in the world economy is altering the way the hospitality industry is conducting business presently and also in the future. As foreign economies grow, it is inevitable that some foreign firms will challenge and outpace a few of the United States rivals. Several foreigners have already invested in the United States because of its political stability, large economy, and lack of barriers to foreign investment. From this growth of foreign economies, the United States has both benefited and suffered. This research will examine the effects of foreign investment on the hospitality industry. Lately it is not uncommon to here of United States born and raised companies soliciting foreign investors and in some instances completely selling out to foreigners. Hence, not only are the investors coming into America on their own, the citizens of the United States are inviting them to invest. Some of this may be attributed to United States managers concentrating on short-term profits to keep their companies content, rather than long-term financial needs. Nonetheless, at a time when United States firms are increasing their debt, foreign firms that hold large amounts of United States debt are making equity investments in America. The changes that are occurring all over the world now and the ones that are in the process, no one will really know the full effects until the world economy begins to stabilize. As for the hospitality industry, some effects are already clear and presently altering the industry. The effects down the road, one can only speculate