THM 01 Module 7
THM 01 Module 7
This module was prepared to help you gain fundamentals and basic knowledge
about communication processes. This will be the source of Information for you to
acquire knowledge and skill in this particular trade independently and at your own pace,
with minimum supervision of help from your instructor.
Talk to your online facilitator and agree on how you will both organize the
Training of this unit. Read each through the module carefully. It is divided into
sections, which cover all the skills and knowledge you need to successfully
complete this module.
Work through all the information and complete the activities in each section.
Read Modules and complete self-check. Suggested references are included to
supplement the materials provided in this module.
Most probably your facilitator will be your supervisor or manager. Your online
facilitator will support and correct you.
Your online facilitator will tell you about the important things you need consider
when you are completing activities and it is important that you listen and take
notes.
You will be given plenty of opportunity to ask questions and practice on the job.
Make sure you practice new skills during regular work shifts. This way you will
improve both your speed and memory and also your confidence.
Talk to more experienced workmates and ask for their guidance.
Kindly the self-check questions at the LMS (EDMODO) to test your own progress.
Forces Affecting
Growth and Module 7.2
Change in the
Hospitality
Hospitality Industry
7 Workforce and
Diversity and
Tourism Role of National
Organization Organizations Module 7.3
in Tourism
Tourism and
Hospitality Module 7.4
Organizations
in the
Philippines
MODULE CONTENT
Date Developed: Document No. 001-2020
Macro Perspective
of Tourism and August 1, 2020
Hospitality Date Revised:
Issued by:
Module 7: Hospitality ---
Page 4
Workforce and Developed by:
CRT
Diversity and Tourism Jennifer J. Miranda
Organization
MODULE TITLE: Hospitality Workforce and Diversity and
Tourism Organization
MODULE DESCRIPTOR:
This module covers Hospitality Workforce and Diversity and Tourism
Organization.
LEARNING OUTCOMES:
At the end of the module, you MUST be able to:
Contents:
Conditions:
Learning Objective: After reading this MODULE, you should be able to:
.
Module 7.1 The Hospitality Workforce and Diversity
Nature of Hospitality and Tourism
Globalization has enhanced the diversity experienced in the hospitality and
tourism industry because of its multicultural nature. Tourism involves the movement of
people from their usual surroundings to places of interest either within the country or
across international borders for leisure, business, fun or adventure. Hospitality, on the
other hand, involves providing services such as travel, accommodation and
entertainment to meet the needs of tourists. Hospitality and tourism aims at optimizing
the experience of tourists in cultural environments that differ from those of their home
countries or regions.
Let’s look at the concrete benefits. First off, attracting talent from a broad
range of candidates gives you the best chance of hiring stellar employees. Limiting
your talent pool by short listing from a specific group of people isn’t a great strategy
for finding the best and brightest. Look at it another way: in nature, a species has the
best chance of survival when it has diverse genetic interplay going on. At the end of
the day, your business is much the same.
Additionally, a diverse workforce allows for positive organizational culture.
Illustrating that hard work, initiative and out-of-the-box thinking will be rewarded
regardless of race, creed or sexual orientation promotes good morale, and good
morale always pays dividends. What’s more, the higher level of psychological
engagement from motivated staff feeds on itself and builds momentum over time.
A welcoming workplace encourages employee loyalty, which can help you
retain talent and cut turnover down. You’re no doubt aware that turnover can be a
business killer. Indeed, if you aren’t careful, turnover can become one of your main
expenditures, and it is especially damaging over time. By promoting diversity, you can
build a stronger corporate culture that will encourage team members to stay when
they might otherwise leave. Imagine for a moment that an employee gets an offer
from another company for a higher salary. If the other company has a dubious
corporate culture relative to yours, you may stand a chance of retaining the
employee.
Being in the hospitality industry, it may be obvious that you would do well to
retain staff who speak multiple languages and who are fluent in the customs of
various cultures. However, this is an important point, and it shouldn’t be understated.
By encouraging a diverse workforce, you may well position yourself as a standout
operation. A smaller language barrier means one less thing for your clients to worry
about as they travel.
Naturally, cultural diversity won’t happen on its own, and the benefits above
don’t come about without some effort. You should plan from the outset to consciously
encourage diversity. And keep in mind that while some of these benefits occur in
parallel, some must be achieved before others can be attained. For instance, changes
to your overall company culture takes time, and the benefits of a diverse company
culture won’t show up overnight.
Workplace diversity in the hospitality and tourism industry is enhanced through visions
that promote equal employment opportunity to cater for the different nationalities in
the market. The industry gets to appreciate the world's socio-cultural and economic
differences through the recruitment of people of diverse backgrounds. As such,
businesses in this industry need to establish organizational policies that not only
discourage discrimination but also encourage intercultural activities such as cultural
educational programs and forums. Businesses also should employ organizational
structure that comprise of people from different regions and races and spread key
appointments to qualified staff from across the board
The changes that are occurring now in the business environment are
tremendous. Managers must understand the various forces that are driving these
changes and affecting their businesses in order to be effective. A few of the changes
that have impacted the industry just in recent years include terrorist attacks, problems
with the supply chain, recession, and disease. On the whole, the hospitality industry has
responded effectively but some segments, companies and destinations have suffered
Demand
Many of the changes that are occurring are affecting demand for hospitality
services. One of the major factors that is affecting demand is the changing population.
To understand these changes, it is important to understand the concept of
demographics. Demographics is the study of objectively measurable characteristics of
the population
AGE
We often hear that “The population is aging” but what does this mean? While it
certainly means that each of us is getting older, it also suggests that the oldest
segments of the population, as a percentage, are increasing in size. One way that we
can better understand demographics is by segmenting the population – in this case by
age. Baby Boomers were born between 1946 and the first Boomers turned 60 last year.
They range in age from 43 to 61. Boomers represent 26 % of the population. More
importantly, they are in their “high income” years and are driving much of the
economy. Boomers represent a large share of overall spending on foodservice, lodging
travel and recreation.
Generation X (or GenXers) were born between 1965 and The first GenXers
recently turned 40 and range in age from 32 to 42. At the younger end of this cohort,
they are just beginning to establish their careers and beginning to have children (most
have children now). Even though they have received a lot of attention of late, they only
represent about 14% of the population. They are different than Boomers and, perhaps,
the first generation to have technological savvy – also the most educated.
Both the African-American and Hispanic segments of the population are expected
to grow into the future (2050). The Asian-American market is also expected to grow (an
increase of 100% in a 20 year period). These changes will have an effect on consumer
markets and labor markets.
WORKING WOMEN
This is not new any longer but it is important to note how quickly things have
changed in just a short amount of time. Up until about 1940, fewer than 25% of
women worked outside of the home. In 1980, the rate increased to 50% and is
expected to increase to 60% over the next few years. This also has implications on both
the consumer and labor markets.
INCOME DISTRIBUTION
The Middle Class (size and range) is often viewed as a proxy of the range of
income distribution in society. The Middle Class includes all families (based on
household income) ranging from $25,000 to $50,000 per year. Most reports indicate
that the gap between rich and poor is increasing, that is that the middle class is
shrinking and the number of wealthy (as a percentage) is increasing
SUPPLY
SUPPLY — LAND
Land is an important consideration for several reasons: its availability, its cost,
and what it produces (food). The availability of “good” locations is decreasing “Good”
locations are considered those to be near high traffic areas, near destinations, etc.Note:
Locations, however, can be created such as with Restaurant Row in Dallas.
All of this is subject to change as new areas develop (examples include Las
Vegas and other expanding cities) and as companies look for nontraditional sites.
Companies have become much more astute at site development though.
SUPPLY — FOOD
Food supply concerns have always been present but they are of a different sort now
and, more sever in some cases. Operators must consider:
Seasonality
Effect of weather
Overfishing
SUPPLY — LABOR
The Bureau of Labor Statistics (BLS) continues to predict increases in demand for
labor, particularly for management positions, over the next 10 year period.
Management jobs, across occupations, will grow 12% through 2010. Lodging positions
are predicted to grow at a slightly lesser rate. Certain factors complicate the labor
picture however
In short, the outlook is good but there will be challenges filling entry level jobs
Module 7.3
Date Developed: Document No. 001-2020
Macro Perspective
of Tourism and August 1, 2020
Hospitality Date Revised:
Issued by:
Module 7: Hospitality ---
Page 14
Workforce and Developed by:
CRT
Diversity and Tourism Jennifer J. Miranda
Organization
Role of National Organizations in Tourism
Tourism Organizations
Since tourism and hospitality is a diverse industry made up of many different segments, there is
a need to interrelate and share information. This has led to the establishment of several public
and private organizations at the international, national, regional, state, and local levels.
International Organizations
The UNWTO is the chief international organization in the field of travel and tourism. It is an
intergovernmental technical body which deals with all aspects of tourism. It began its legal
existence on January 2, 1975. It was born of the International Union of Official Travel
Organization (IUOTO), a nongovernmental technical body first set up at The Hague, Netherlands
in 1925 to promote tourism for the economic, social, and cultural advancement of all nations.
This work was interrupted by the Second World War and in 1946, the organization was
reestablished in London. Its headquarters was later transferred to Madrid by the decision of the
first General Assembly of IUOTO.
The value of work of the IUOTO was recognized in 1963 when the United Nations
Conference on International Travel and Tourism recommended that the United Nations should
consider the IUOTO as the main instrument for the promotion of tourism. The rapid expansion
of travel had created the need for a world body able to deal with tourism problems at the
government level and this led to the transformation of IUOTO into WTO and the
intergovernmental organizations of universal vocation providing an adequate framework for
government-level consultations, effective cooperation between member states, and
formulation of decisions on all questions relating to their policies in the field of tourism.
The UNWTO works in cooperation with all international organizations, particularly the
United Nations, as well as with commercial and noncommercial bodies involved tourism
Membership
3 affiliate members
Associate members are territories or groups of territories not responsible for their external
relations, but whose membership is approved by the state which assumes responsibility for
their external relations.
The UNWTO has the same legal character as the United Nations and its specialized agencies. It
has three important legally functioning bodies: the General Assembly, the Executive Council,
and the Secretariat directed by a secretary-general. The General Assembly, which meets once
every two years, is the supreme
The ICAO is an organization of around 134 governments established for the purpose of
promoting civil aviation on a worldwide scale. It was established at the Chicago conference of
1944. The 96 articles of the Chicago convention established the privileges and restrictions of the
member countries.
The International Air Transport Association was established in 1945 in Havana was
composed of airline operators attached to the national delegations of the ICAO conference in
Chicago. At present, membership includes more than 112 scheduled airlines. Their objectives
are to promote safe, regular, and economical air transport, faster air commerce, and study
problems connected with the industry. IATA serve the agency through which airlines seek
jointly ta solve problems that cannot be solved individually. It is involved in standardizing
tickets, prices, weight bills, baggage checks and other documents. This helps make travel
uniform throughout the world.
Although setting rates is the most significant aspect of the work of IATA, the final
responsibility rests with individual governments. In IATA, every member airline holds a single
vote and also holds veto power. With deregulation, the status and function of the organization
is changing and only time will tell its final role which certainly will be less influential than in the
past.
The World Travel and Tourism Council is the only global forum whose members are the
top decision makers in the travel and tourism industry. It is the only body representing the
private sector in all parts of the industry worldwide. The over 150 members comprise of CEOs,
presidents or chairmen of airlines, airports, hotels, cruise lines, travel agencies, tour operators,
and travel technology suppliers. WTTC drives on three strategic priorities which it has identified
as hindering the successful development of travel and tourism now and in the future-freedom
to travel, policies for growth; and tourism for tomorrow. The WTTC maintains a professional
staff in its London office, under the leadership of its president and CEO. This organization is
In order to achieve national development, the government should clearly delineate its
policy with regard to tourism and other development options.
Countries that are visited by tourists have an official organization that regulates and
encourages tourist activities. Its importance varies from one country to another. In some
countries, tourism organizations are at the full ministry or cabinet level while in others, it may
be on a sub-cabinet level or a council or information post. In some countries, the tourist office
is not officially a part of the regular government structure, The national tourism organization
may be highly structured, centralized, and controlled such as that in Russia and many of the
socialist countries or it may be a laissez-faire, decentralized system such as those of the United
States and the United Kingdom.
The national tourism office is responsible for the promotion of tourism in a particular
country and for the overall development of the tourist industry
Examples: United States Travel and Tourism Administration and the Department of
Tourism in the Philippines
The US Travel and Tourism Administration is the national tourism office in the United
States. It is under the umbrella of the US Department of Commerce. Its director is an
undersecretary of commerce for tourism. Its main objective is to promote and develop tourism
to and within the United States and to promote a better and friendlier attitude toward the
United States
The Department of Tourism (DOT) is the primary government agency charged with the
responsibility to encourage, promote and develop tourism as a major socioeconomic activity: to
generate foreign currency and employment: to spread the benefits of tourism to a wider
segment of the population, and to assure the safe, convenient, enjoyable stay and travel of
foreign and local tourists in the country.
Directly under the Secretary of Tourism are the National Parks Development Committee,
the Tourism Promotions Board, the Tourism Infrastructure and Enterprise Zone Authority, the
Intramuros Administration, and the Nayong Pilipino Foundation,
Inc. The 15 regional offices of the DOT are responsible for domestic tourism promotion,
tourism marketing accreditation, tourism assistance, public relations, and coordination with
local government units and tourism stockholders in the region. The regional offices are also
tasked to undertake planning and product development projects in support of the
government's policy of decentralization under the Local Government Code, The DOT regional
offices are also actively involved in the formulation of Regional Tourism Master Plans (RTMP)
that will serve as the framework in the development of travel and tourism in the Philippines.
The Travel and Tourism Research Association is concerned with travel research specifically in
improving the quality and effectiveness of research in the travel industry. Through a series of
conferences, reports, and a journal, the association aims to maintain current communications
in travel research developments and methodology occurring in the field. It is concerned with
the teaching of tourism and has established communication procedures to support education
The American Society of Travel Agents is one of the largest travel associations in the United
States. It includes travel agencies and tour operators from the United States
The Council on Hotel, Restaurant, and Institutional Education was founded in 1946 as a
nonprofit association for schools, colleges, and universities offering programs ir hotel and
restaurant management, food service management, and culinary arts. I recent years, its focus
has expanded to include the enhancement of professionalism at all levels of the hospitality and
tourism industry, such as food, lodging, recreation nd travel services CHRIE works to foster the
international advancement of teaching training, learning, research, and practice in the field of
hospitality and tourism provides access to information, research, shared resources, talented
people, and progressive ideas. irs office is in Washington DC CHRIE is governed by an elected
Board of Directors and a professional staff At present there are 19 CHRIE chapters throughout
the world. Each one is led by an elected president vice president and secretary/treasurer, It has
more than 2,300 members throughout North America and in more than 50 countries around
the world. There are three categories of membership-individual member institutional member
and corporate/organizational member. The annual membership dues vary according to
category, division, and geographic location.
Some of the publications are The Guide to College Programs in Hospitality and Tourism;
The Hospitality and Tourism Educator; and Hospitality Research Journal
2. Travel marketing associate includes students, suppliers, and others affiliation; wishing to
participate in ATME programs but do not meet the requirements for registered professional
and may become an associate of ATME; and
3. Fellow - qualified individuals who have been a registered travel marketing professional for at
least one year. After the one-year anniversary date, the registered professional may apply for
fellow status. A fellow requires a more detailed personal and professional history and at least
five years full-time experience as a travel marketing professional.
The Philippine Travel Agencies Association was established in 1979, It was born out of a
union of the national associations of the outbound travel agencies and inbound tour operators.
It aims to foster unity in the travel industry and to promote the welfare of its members and the
traveling public.
2. to strive toward the attainment of the highest standards of services facilities for
travelers and tourists,
3. to uphold the dignity and the ethics of the travel and tour business strive toward its
professionalization
4. to work for the general welfare of the members by acting as the representatives of the
travel and tour agency sector of the industry:
5. to cultivate friendly relations between the Philippines and other countries and among
their peoples;
6. to act as an effective liaison with government agencies and other trade organizations
involved in local, regional, or international tourism for the benefit of its members, and
Date Developed: Document No. 001-2020
Macro Perspective
of Tourism and August 1, 2020
Hospitality Date Revised:
Issued by:
Module 7: Hospitality ---
Page 20
Workforce and Developed by:
CRT
Diversity and Tourism Jennifer J. Miranda
Organization
7. to encourage, support, and help develop Philippine tourism.