Box 7.2 Five major forms of TNC participation in the Third World hotel industry

When this relationship is extended across all three sectors of the industry, encompassing the carriers (most frequently airlines in the case of tourism to Third World countries), hotels and tour operators, it becomes evident that most of the finance paid into the industry by the tourist is controlled and retained by the TNC. A tourist travelling on

3 41 5 6 7 8 91 10 1 2 13111 4 5 6 7 8 9 20 1 2 3 4 5 6 7 8 9 30 1 2 3 4 51 6 7 8 9 40 1 2 3 4 5 6 7 8 9

There are five forms of participation by TNCs in hotels in developing countries:

1 Ownership or equity investment: Where the TNC owns a part or the whole of the share equity of the hotel. This is the most direct form of TNC control.