The main objective of this chapter is to examine how the globalisation of tourism is affecting the role of Small and Medium-Sized Enterprises (SMEs) in the industry’s supply and distribution value chains and networks. It examines how SMEs can best operate in a global market place, even though their theatre of activities is local, how small companies can best compete with both local suppliers and with major international tourism companies and multi-national enterprises (MNEs), and how recent developments in technology, especially in the area of Internet-based information and reservations systems, can best be embraced by SMEs. The report draws on previous work by the OECD and on a series of case studies carried out on this subject by a number of member States.