COURSE OUTLINE

THC 1 – Macro Perspective of Tourism and Hospitality

Duration Topics/Activities

Week 1 – 2 A. Class Orientation; Presentation of Class Requirements, Rules

and Regulations
B. The Relationship of Tourism and Hospitality
C. The Food and Beverage Component
D. Definition of Tourism
E. Definition of Hospitality
Week 3 – 4 F. Meaning of Tourist
G. Elements of Travel
H. History of Tourism Industry
I. History of Hospitality Industry
Allotted for PRE-TEST Examination
Week 5 J. Pioneers in Tourism and Hospitality
K. Origin of Tourism and Hospitality in the Philippines
L. Factors that Favor the Growth of Tourism and Hospitality
Week 6 M. The Role of Tourism and Hospitality in Economic
Development
N. Tourism Multiplier
O. How to Maximize the Economic Effect of Tourism and
Hospitality
Allotted for PRELIM Examination

Week 7 – 8 P. Tourism and Hospitality Components

Q. Tourism and Hospitality Supply Components
R. Infrastructure
S. Superstructure
Week 9 T. Tourism Organization
U. Roles of National Organization in Tourism
Week 10 - 11 V. The Bright Future of Tourism and Hospitality
W. Marketing Issues
X. Legal Issues
Y. Human Resource Issue
Z. Operational Issues in Tourism and Hospitality Allotted for
MIDTERM Examination
Week 12 – 13 AA. The Impacts of Tourism and Hospitality
BB. Social and Cultural Impacts of Tourism and Hospitality
CC. Positive Socio and Cultural Impact of Tourism and

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 Hospitality
DD. Negative Socio and Cultural Impact of Tourism and
Hospitality
Week 14 – 15 EE. Future of Tourism and Hospitality
FF. The Travel, Safety and Security in Tourism and Hospitality
GG. The Impact of the World’s Economy on Tourism and
Hospitality
Allotted for SEMIFINAL Examination
Week 16 – 17 HH. Managing Sustainable Tourism and Hospitality in a
Responsible Manner
II. Tourism Policy and Strategic Planning
JJ. Meaning of Sustainable Tourism
KK. Global Ethics of Tourism
LL. Tourism and Sustainable Development Goals
Week 18 MM. Sustainable Trends
NN. Benefits of Sustainable Tourism Allotted for
FINAL Examination

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 Week 1 & 2

OVERVIEW OF THE HOSPITALITY

INDUSTRY
Desired Learning Objectives:

At the end of this chapter, you should be able to:

1. Identify The Relationship of Tourism and Hospitality

2. Determine The Food and Beverage Component
3. Define the Meaning of Tourism
4. Define the Meaning of Hospitality

Introduction

Tourism and Hospitality has been one of the largest and fast-growing industries in the world. It
is also considered to be a Peace Industry, for there are no criticisms towards Clients/Guests. It
contributes greatly to global economic development. Countries that are leading in tourism and
hospitality revenues are the United States, France, German, the United Kingdom, Mexico and
Japan.

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The Relationship of Tourism and Hospitality
The tourism and hospitality industries strongly affect one another. Several associations and
industry leaders consider the combined industries of tourism and hospitality as one large
industry – the tourism and hospitality industry. The components of this large industry include: (1)
food and beverage services, (2) lodging services, (3) recreation services, and (4) travel-related
(tourism) services. These components constitute the tourism and hospitality network. “Network”
means a complicated interconnection of parts or components. See Figure 1 for an overview of
the tourism and hospitality network.

Figure 1. The Tourism and Hospitality Network

The Food and Beverage Component

The public looks for food and beverage services everywhere – in hotels, motels, airlines,
airports, cruise ships, trains and shopping malls. There must be food service available to them
for breakfast, lunch dinner, and snacks. There are commercial restaurants that provide food and
beverage services such as fast service restaurants, ethnic restaurants, and specialty
restaurants.
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Aside from restaurants, taverns, bars, kiosk, vending machines, supermarkets, food stalls, food
carts, and food trucks now offer food and beverage services.

The Lodging Component

Lodging involves providing overnight or even long-term services to guests. For many people,
lodging is a place to sleep. For other, lodging facilities not only provide beds but also
entertainment and recreational facilities. Hence, the lodging industry component has begun to
accommodate several customer preferences – from budget motels to luxury hotels and
expensive resorts.

Recreation and Entertainment Component

Entertainment originated from the traditional duties of a host to entertain his/her guests, whether
they are neighbor or travelers from other places. The host has always felt whether they are felt
an obligation to attend to the needs of his/her guest not only for food and beverages and
lodging, but also for entertainment.

Travel and Tourism Components

Travel and tourism are used together as an umbrella term to refer to those businesses that
provide primary services to travelers. These include not only food and beverage services,
lodging services, recreation and entertainment services, but also transportation services, and the
services of travel agencies and tour operators.

Transportation
The main purpose of transportation is to make it possible for people to go from one place to
another. There are many ways to do this, from the primitive and simple to the modern and
complex. The common means of transportation are automobiles recreation vehicles (RVs),
buses, trains, ships, and airplanes.

Travel Agencies and Tour Operators

Travel agencies and tour operators are modern additions to the travel and tourism world. Both
have become important in the survival of many businesses in the tourism and hospitality
industry.

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Definition of Tourism
The task of defining tourism is not as easy as it may appear. Since tourism is a multidimensional
phenomenon, it is difficult to describe. Attempts have been made in the past to formulate a
standard definition of tourist and among countries throughout the world.

One of the first attempts to define tourism was that of Professor Hunziker and Krapf of Berne
University, Switzerland. They defined tourism as the “sum of the phenomena and relationships
arising from the travel and stay of nonresidents, insofar activity.” This definition distinguishes
tourism from migration, which involves taking
Burkart and Medlik (1997) cited five main characteristics of tourism:

1. Because of its complexity, tourism is a combination of phenomena and

relationships;
2. It has two essential elements: the dynamic element or the journey and static
element or the stay;
3. The journey and stay are to-and-fro destinations outside the place of residence and
work;
4. The movement to destinations is temporary and short-term, with the intention to
return within a few days, weeks, or months; and
5. Destinations are visited for purposes not connected with paid work, that is, not to
be employed and not for business or vocational reasons.
Tourism in the pure sense is essentially a pleasure activity in which money earned in
one’s abode is spent in places visited.

Definition of Hospitality

The word “hospitality” is derived from the Latin word hospitare, which means “to receive
as a guest”. This phrase implies that a host is prepared to meet a guest’s basic requirements
while the guest is away from home. The requirements of a guest in these circumstances are
food, beverages, lodging, or shelter.

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Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #1
1. Select a local tourist attraction. It could be a historic site, museum, park, beach area, or
shopping center that caters to tourists. Write a one-page report describing the features of this
attraction that actually draw tourists.
2. Select a local tourist destination. Make a research of the following:
a. What type of visitors does the destination draw?
b. What does the destination’s management do to bring in visitors?
c. what features has its management added to lengthen the visitors stay?

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

I. Identify the Following.

________________ 1. Involves providing overnight or even long-term services to guests.
_______________ 2. Sum of the phenomena and relationships arising from the travel and
stay of nonresidents, insofar activity.
_______________ 3. Derived from the Latin word hospitare.
_______________ 4. This component has begun to accommodate several customer
preferences.
_______________ 5. Are modern additions to the travel and tourism world.
_______________ 6. An umbrella term to refer to those businesses that provide primary
services to travelers.
_______________ 7. Means a complicated interconnection of parts or components.
_______________ 8. Originated from the traditional duties of a host to entertain his/her
guests. _______________ 9. The main purpose is to make it possible for people to go from
one place to another.
_______________10. Is a multidimensional phenomenon.

II. Enumerate the following.

11 – 15. Tourism and Hospitality Network

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 16 – 20. Type of Lodging

Week 3 & 4

The History of Tourism and Hospitality

Desired Leaning Objectives:

At the end of this chapter, you should be able to:

1. Defining the meaning of Tourist

2. Identify the Elements of Travel
3. Determine the History of Tourism Industry
4. Determine the History of Hospitality Industry

In order to deeply appreciate the tourism and hospitality industry, it is important to

understand its historical origin. A person cannot project the future without understanding the
past.
Philosophers say it another way: “Knowledge is telling the past. Wisdom is predicting the future.”
In line this philosophy, this chapter will explore the history of this marvelous industry called
tourism and hospitality.

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Meaning of Tourist
In 1937, the League of National defined “tourist as Follows: “A tourist is a person who
visits a country other than that in which he or she usually resides for a period of at least 24
hours”.
In 1963, a United Nations Conference on International Travel and Tourism recommended
a new definition of a “visitor” as “any person visiting a country other than that of earning money.”
this definition covers two classes of visitors:
1. Tourists. Temporary visitors staying at least 24 hours, whose purpose could be
classified as:

a) leisure, such as recreation, holiday, health, study, religion, or sport;

b) Business;
c) Family;
d) Mission; and
e) Meeting
2. Excursionists. Temporary visitors staying less than 24 hours in the destination
visited and not making an overnight stay, including cruise travelers, but excluding travelers in
transit.
Elements of Travel
Four basic elements have been used as criteria for defining travelers and/or tourists.
These are: Distance, Length of stay at the destination, Residence of the traveler, and Purpose of
travel.

A. Distance - What must be considered under distance is the difference between local travel
or traveling within a person’s home community and nonlocal traveler or traveling away from
home. It excludes commuting to and from work and change in residence.
B. Length of stay at the Destination – The definition of tourists and excursionists as proposed
by the WTO is largely based on length of stay.

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C. Residence of the Traveler – The residence or origin of the traveler is the third basic element
of travel. For business and research purposes, it is important to know where people live. D.
Purpose of Travel – It can be divided into seven:
1. visiting friends and relatives;
2. conventions, seminars, and meetings;
3. business;
4. outdoor recreation – hunting, fishing, boating, and camping;
5. entertainment – sightseeing, theater, and sports;
6. personal – family, medical, funeral, wedding; and
7. others
The Nature of a Tour
To analyze the nature of a tour systematically, we must understand the difference between
domestic and international tourism, as well as independent and package tour. 1. Domestic
Tourism – refers to travel exclusively with the national boundary.
2. International Tourism – involves the movement of people across international boundary.

3. Package/Inclusive Tour – is an arrangement in which transport and accommodation is brought

by the tourist at an all-inclusive price and the price of the individual elements cannot be
determined by the tourist.
4. Independent Inclusive – is one in which the tourist travels to his/her destination individually.

The Tourist Product

The Tourist product consists of what the tourist buys. In a wider sense, the tourist product is a
combination of what the tourists does at the destination and the services de or she uses during
his/her stay.
Two characteristics of Tourist Product;

1. Service – It’s an intangible item. It cannot be inspected be perspective

purchases before they buy as they can with a washing machine,
a stereo, or other consumer goods.
2. Attraction – It is more than a collection of services such as an aircraft seat
and a hotel room.

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The Tourist Destination
The tourist destination is geographical unit where the tourist visits and stays. It may be a village,
a town, a city, a district, a region, an island, a country, or a continent.

Tourist Services
The travel and stay of tourists give rise to a wide range of services in the course of a holiday.
the principal tourist services are supplied by passenger transport which provides the means to
reach the destination, as well as movement at the destination. Accommodation, food and
beverage, and entertainment constitute the second group pf tourist services. The third group of
tourist services consists of those provided by the by the travel agent and by the tour operator.
Other tourist services include currency, documentation, information, sightseeing, and shopping.

Characteristics of Tourism and Hospitality

Tourism and hospitality have special characteristics which make it different from other
industries.
1. In tourism and hospitality, the product is not brought to the consumer; rather, the
consumer has to travel and go to the product to purchase it.
2. The products of tourism and hospitality are not used up; thus, they do not exhaust the
country’s natural resources.
3. Tourism and hospitality is a labor-intensive industry.
4. Tourism is people oriented.
5. Tourism and hospitality is a multidimensional phenomenon.
6. The tourism and hospitality industry is seasonal.
7. The industry is dynamic.
Importance of Tourism and Hospitality

Tourism and Hospitality has become one of the world’s major industries. Both developing and
highly developed nations are now taking a closer look at the following potential benefits from
tourism and hospitality.

1. Contribution to the balance of payment.

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 2. Dispersion of development.
3. Effect on general economic development.
4. Employment opportunities.
5. Social benefits.
6. Cultural enrichment.
7. Educational significance.
8. Vital force for peace.
History of Tourism Industry Early Tourism
Travel and exploration are basic to human nature. Man has travel since the earliest times
although the term Tourism was only used in the 19 th century. “Tourism” is derived from the
Hebrew word torah which means studying, leaning, or searching.
Early tourism has two forms: travel for business such as trading and religious travel. Throughout
history, merchants have traveled extensively in order to trade with other nations and tribes.
Travel for religious reasons took the form of pilgrimage to places of worship such as Chaucer’s
tale of pilgrimage to Canterbury. Pilgrimage were made to fulfill a vow as in case of illness or of
great danger or as penance for sins.
Tourism in the Medieval Period
During the medieval period, travel declined. Travel became burdensome, dangerous, and
demanding during this time. After the decline of the Roman empire in the 5 th century, roads were
not maintained, and they became unsafe. Thieves inflicted harm on those who dare to travel. No
one during this time traveled for pleasure. Crusaders and pilgrims were the only ones who
traveled.
Tourism During the Renaissance and Elizabethan Eras
With the renaissance, a few renowned universities developed so that travel for education was
introduces largely by the British. Travel for education became popular in the 16 th century. Under
Elizabeth I, young men seeking positions in court were encouraged to travel to the continent to
widen their education. In time, it became recognized that the education of a gentleman should
be completed by a “Grand Tour” of the cultural centers of the continent which lasted three years.
Tourism During the Industrial Revolution
The Industrial Revolution brought about major changes in the scale and type of tourism
development. It brought about not only technological changes, but also essential social changes
that made travel desirable as a recreational activity. The increase in productivity, regular
employment, and growing urbanization gave more people the motivation and opportunity to go
on holiday. The emerging middle class combined higher incomes and growing education into
annual holidays. To escape from their responsibilities and the crowded city environment, they
traveled to the countryside or seashore for their holidays: This led to the creation of working-
class resorts near major industrial centers.

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Modern Tourism
Tourism in the 19th century
Two technological developments in the early parts of the 19 th century had a great effect on the
growth of tourism. These were the introduction of the railways and the development of steam
power. As tourism became organized int the later years of the 19 th century, the organization of
travel became an established institution. Travel organizers emerged. The first and most famous
of these was Thomas Cook. His first excursion train trip was between Leicester and
Loughborough in 1841 with 570 passengers at a round-trip fare of one shilling. In 1866, he
organized his first American tour. In 1874, he introduced “circular noted” which were accepted by
banks, hotel, shops, and restaurants. These were in effect the first travelers’ checks.
As the 19th century drew to a close, photography and guide books became popular. A huge
variety of guide books which dealt with both local and overseas travel were sold to tourists.

Tourism in the 20th century

At the beginning of the 20 th century, pleasure travel continued to expand, encouraged by the
increasing wealth, curiosity, and outgoing attitudes of the people as well as the increasing ease
of such movement.
World war I brought about many changes, which influenced the volume of tourism. It boosted
the demand for international travel. New forms of mass communication stimulated curiosity
about other countries. In addition, posters and press, the cinema, radio, the television widened
knowledge and interest in travel.
After World war I, forms of travel began to change radically. The railways as a means of travel
declined with the introduction of the motor car. Motorized public road transport and improved
road conditions led to the popularity of seaside tours.
World war II also led to increased interest in travel. The war had introduced combatants not only
to new countries, but also to new continents, generating new friendship and in interest in
different cultures.
After post-war recovery years, there was an increase in private car ownership. Travelers switch
to the use of private cars and change affected both coach and rail services. The private car
provided flexible transportation which freed people from the schedules and fixed routes of public
transport.
The post-war economic recovery provided an increase in discretionary income and leisure time,
which many people converted into increased recreation and travel. Due to labor negotiations and
social legislation, the length of official and paid holidays increased. Governments have created
more vacation time by incorporating isolated public holidays into the familiar “long weekends”
throughout the year.
As business and trade prospered in the developed countries, business travel also flourished,
leading to the demand not only for individual travel, but also conference and incentive travel on a
worldwide scale.
Prospects for the continued growth of world tourism in the 20 th century appear to be the most
promising. Societal trends are favorable to the continuing growth of demand. Governments of
many nation are encouraging the growth of both domestic and international tourism as a means

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of job creation, economic diversification, and source of foreign exchange. Beyond its economic
significance, there is a growing realization of the role of international travel in promoting world
peace and prosperity.
History of the Hospitality Industry Ancient Period
The Sumerians
The recorded history of the hospitality industry begun with the Sumerians, a group of people
who lived in Mesopotamia near the Persian Gulf at about 4000 BC. The Sumerians invented
money and writing to record and settle their business transactions. The Sumerians were the first
to invent trade in the modern sense of the word
Politically, the Sumerians organized themselves into city-states. Sumerian traders required the
services of travelers namely, food, drinks, and shelter. Hence, local Sumerian tavern were
established, making them the first hospitality business. Its more likely the hospitality industry
began with the Sumerians 5000 years ago in 3000 BC.
Early Traders
In 2000 BC, a considerable number of traders had developed among the people of the middle
east. Many became traders of exotic goods. As they need hospitality services some enterprising
individuals set up the caravanserai or inns to provide shelter and food.

Medieval Period
Dark Ages
In 476 AD, innkeeping almost disappeared after the fall of the Roman empire, except local
taverns and a few inns which were scattered throughout Europe. The Roman Catholic Church
too over the job of feeding and housing travelers-both religious and lay people. But providing
hospitality services to travelers became a burden to the religious houses. The church found it
difficult to accommodate many travelers in limited space. The monasteries were “overbooked”.
Gradually, some taverns, inns, and wine shops began to give accommodation to middle-class
travelers. Thus the number of inns increased although standards of comfort and cleanliness
differed greatly in different counties and regions.
Renaissance: 1350 AD to 1600 AD
During the Renaissance, there were no restaurants or dining establishments. In England, there
were taverns, pubs, and inns. None of these provide food. They were generally avoided by the
upper-classes who dined and entertained in their homes.

Early Modern Period: 1600 AD to 1800 AD

In the sixteenth century, ordinary, a type of eating place for commoners appeared in England
that serves a fixed price and fixed menu meal. A common beverage in this era were coffee and
tea that influence culinary habits it became widespread in England
The first English coffee house was in St. Michael’s alley, London in 1652. In 1683, Kolschitski
opened the first coffee house in Central Europe. It was in this coffee house that the first cup of
coffee sweetened with honey and milk was served.

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 The advent of stagecoach travels revolutionized hospitality on read, regular stagecoach routes
were established followed by stagecoach or coaching inns. Other developments of the period
included an increase in the quality on inns, application of common law to the hospitality industry,
and in France, the reintroduction of restaurants for public dining.
The food service element of the hospitality industry changed dramatically in France in 1765. A
man named Monsieur Boulanger operated a small business which served soups and broths in
Paris. These were known as restaurants, a French word which means ”restoratives”. The
traiteurs, member of a caterer’s guild who prepared roasts and meets for consumption in private
homes for creating a dish made of “sheep’s feet with white sauce claiming it wasn’t merely food,
it was a health restorative.
M. Boulanger was recognized as the first to create the first restaurant, an establishment open to
the public with a dining room where a variety of foods could be bought and consumed.
In the late eighteenth century, the restaurant business flourished. After the French revolution,
the number of restaurants increased in the Paris and other parts of the world.
Another type of food-service establishment which developed in France was the café. Café is the
French word for “coffee”. These cafés were the French equivalent of the English coffee houses.
These developments in France in the late eighteenth century marked the beginning of the
modern restaurant industry.
The Industrial Era: from 1800
The industrial revolution, which dates from mid-1700’s, started in England. The development of
railroad networks, first in England, then in other countries, had a greater effect on the hospitality
industry than any other development since the fall of the Roman Empire. Inns, taverns,
restaurants, and hotels opened near the railroad stations.

Modern Period
Nineteenth Century
In the last quarter of the nineteenth century, public dining was not popular. Many hotels were
constructed without dining facilities. In 1875, a dining facility was opened in the Albemarle Hotel
in London. By this time, the term restaurant referred to the dining room of a hotel.
In London, some luxurious hotels began to appear. Some were known for their excellent guest
accommodation and superior food. One of the best-known hotels was the Savoy which was
opened by Richard d’Oyly Carte in 1889. There were employed two men who became famous
throughout the world – Cesar Ritz and August Escoffier.
Although the modern hotel was an American invention, the Europeans contributed the
European plan which meant that a guest need not to pay for both the room and meals in one
lump sum, but could pay for only the room and order the meals separately from an à la carte
menu or eat elsewhere.
Twentieth Century
In 1921, Walter Anderson and Billy Ingraham began the White Castle hamburger chains.
Marriott’s Hot Shoppe and root beer stand opened in 1927. At about this time, the Drive-in and
fast food restaurants also sprang up in America. The Four Seasons opened in 1939. It was the

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first restaurant to offer off season menus (summer, spring, fall, winter) with its modern
architecture and art as a theme.
After the World War II, there was a rapid development of hotels and coffee shops. They sprang
up in almost highway intersection. The 1950s saw the emergence of fast-food restaurants. In the
1960s, fine dining became popular because businessmen like to eat well. In the 1970s, new
establishments were introducing such as Taco Bel, TGI Fridays, Houston’s, and Red Lobster in
the restaurant industry, and Days Inn, Super 8 Motels, and Comfort Inns in the lodging industry
The 1990s started with a recession which began in 1989. The hospitality industry experienced a
downturn due to the Gulf War. 1993, the economic recovery was extraordinarily strong. Thus,
several mergers and acquisitions have taken place. Many corporations have expanded
overseas. Eastern Europe and China have opened.

Name: ____________________________________________Rating: __________________

Subject: ___________________________________________Professor: _______________

Chapter Activity #2

1. Base in own lesson make a summary of:

a. The History of Tourism.
b. The History of Hospitality

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #2
I. Identify the Following.
________________ 1. Temporary visitors staying less than 24 hours in the destination visited
and not making an overnight stay
_______________ 2. Innkeeping almost disappeared after the fall of the Roman empire
_______________ 3. It is more than a collection of services such as an aircraft seat and a
hotel room.
_______________ 4. Refers to travel exclusively with the national boundary.
_______________ 5. Temporary visitors staying at least 24 hours.
_______________ 6. Is one in which the tourist travels to his/her destination individually.
_______________ 7. Purpose can be divided into seven.
_______________ 8. Temporary visitors staying less than 24 hours
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 _______________ 9. “Tourism” is derived from the Hebrew word.
_______________10. A type of eating place for commoners appeared in England that
serves a fixed price and fixed menu meal

II. Enumerate the following.

11 – 12. Two characteristics of Tourist Product.

13 – 20. Benefits from Tourism and Hospitality.

Week 5

Origin and Pioneers in

Tourism and Hospitality

Learning Outcomes:

At the end of this chapter, you should be able to:

1. Determine the Pioneers of Tourism and Hospitality

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 2. Origin of Tourism and Hospitality in the Philippines
3. Identify the Factors that Favor the Growth of Tourism and Hospitality

PIONEERS IN THE TOURISM AND HOSPITALITY INDUSTRY

There are several outstanding individuals who have made a significant contribution to the
growth and development of the tourism and hospitality industry. They are;

Cesar Ritz
He became the general manager of the Savoy Hotel in London, one of the most famous and
luxurious hotels in the world. The Ritz name is synonymous with refine, elegant hotels and
service. At present, the Ritz-Carlton hotels bears his name.
Ellsworth Milton Statler
He was considered the premier hotelman of all time. He brought a high standard of comfort and
convenience to the middle-class travel at an affordable price.
Conrad Hilton
Conrad Hilton founded the Hilton Hotel empire and grew it into one of the largest private
companies in the U.S., consisting of over 3600 hotels worldwide.
Thomas Cook
English innovator of the conducted tour and founder of Thomas Cook and Son, a worldwide
travel agency. Cook can be said to have invented modern tourism.
Howard Dearing Johnson
His main contribution to the fast food industry was the idea of a central commissary system of
preparing food to insure uniform quality and low cost. Howard Johnson's was at one time the
largest commercial food supplier in the United States.

J. Willard Marriott

J. Willard Marriott founded the Marriott Corporation which has continued to be an important
asset to the hospitality industry. Through his strong faith and determination, J. Willard Marriott
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began with a root beer stand which was founded through necessity and built it to a
multimilliondollar company.

Ray Kroc

Ray Kroc was an American entrepreneur best known for expanding McDonald’s from a local
chain to the world’s most profitable restaurant franchise operation.

Isadore Sharp
A first-generation Canadian, was the founder of Four Seasons Regent Hotels, the world’s
largest hotel chain and a multimillion-dollar global hotel empire. The success if the Four Seasons
Regent Hotels is largely due to the drive, determination, and personal taste and style of Isadore
Sharp.

Ruth Fertel

Ruth Fertel created Chris Steak House, the world's largest collection of upscale local
steakhouses. she opened her first restaurant in 1965. In the 1970s, Fertel opened more
restaurants and started franchising her business. It sells more than 11,000 steaks daily with a
gross income of two hundred million dollars a year. Because of this, Ruth Fertel is the most
successful woman entrepreneur at present.

Origin of Tourism and Hospitality in the Philippines

Tourism and hospitality in the Philippines began when the original inhabitants of the country
roamed around in search for food. Inter-tribe travel occurred, although although the mode of
travel was crude. A more recognizable form of tourism and hospitality appeared in the
Philippines when the country was discovered by Ferdinand Magellan and when galleons or
wooden boats sailed between Mexico and the Philippines during the galleon trade.

During the American occupation of the Philippines, Americans were able to reach Manila after
two weeks on board the Pan-American Airways air-clippers. In the 1920s, the steamships and
the airline pioneers, the “China-Clippers” and the “Manila-Clippers” bought some passengers to
Manila via Hong Kong.

Although there were already visitor arrivals from other countries, there were no tour operators
nor travel agencies which existed formally. Travelers were provided inland tours by
entrepreneurs with their unregistered private cars and coaches called “colorum”. Colorum means
illegal tour handling and the illegal use of private vehicles for public use.

There were only a few tourist attractions and destinations in the Philippines. These were Manila,
Pagsanjan Falls, Laguna Lake Tour, Tagaytay and Taal Volcano, Mt. Mayon Tour, Legaspi Tour,
Baguio Tour, and Banaue Tour.

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 In 1947, a more orderly tourism activity started. Steamships and airline began to service the
Philippines from other countries; thus, giving impetus to tourism and hospitality.

In 1952, the first tourism and hospitality association in the Philippines was organized by the
government to promote the country’s tourism and hospitality. This was the Philippine Tourism
and Travel Association (PTTA). Later the government organized the Board of Travel and
Tourism Industry (BTTI) to regulate, supervise, and control the tourist industry.
The Philippines had undergone economic, social, and political crises starting in the 1960s
up to the ‘70s, which hindered the development and promotion of tourism and hospitality. It was
only 1972, after the declaration of martial law, when tourism and hospitality prospered. The
Philippines became a “bargain destination” to foreign visitors. As several tour groups arrived in
the Philippines, more accommodations, food, and beverages facilities, and more airline
frequencies were established. Tourism and hospitality in the Philippines at present are the result
if the continuous development and promotion of tourism and hospitality

International Travel Patterns

Major travel flows occur between the United States and Western Europe. Secondary regional
patters exist between South America, the Caribbean, Africa, the Near East and the Far East.
Travel to Africa is usually one way, originating in Europe.

The top ten countries generating international travel in rank order are: France, Spain, Unites
States, China, Italy, Turkey, Mexico, Germany, Thailand, and United Kingdom. Europe
generated over one-half of overseas travelers to the US. This is one of the reasons for Europe’s
large share of the worldwide travel market.

Factors That Favor the Growth of Tourism and Hospitality

Some of the positive factors that hastened the growth of tourism and hospitality are:

1. Rising disposable income for large sections of the population.

2. Growth in the number of retired persons who have the desire and the energy to travel.
3. Increase in discretionary time.
4. Greater mobility of the population.
5. Growth in the number of “Singles.”
6. Greater credit availability through credit cards and bank loans.
7. Higher education levels.
8. The growth of cities.
9. Simplification of the travel through package tour.
10. Growth of multinational business.
11. Modern transportation technology.
12. Shift in values.
13. Advances in communication.
14. Smaller families and changing roles.

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Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #3
1. What made fast food chains successful in the modern days.
2. What is your opinion to our Tourism and Hospitality in the midst of the current
calamity we are facing today.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #3

III. Identify the Following.

________________ 1. Synonymous with refine, elegant hotels and service.
_______________ 2. Began with a root beer stand.
_______________ 3. began when the original inhabitants of the country roamed around in
search for food.
_______________ 4. Was organized by the government to promote the country’s tourism
and hospitality.
_______________ 5. She opened her first restaurant in 1965
_______________ 6. Means illegal tour handling and the illegal use of private vehicles for
public use.
_______________ 7. General manager of the Savoy Hotel in London.
_______________ 8. The most successful woman entrepreneur at present.
_______________ 9. The founder of Four Seasons Regent Hotels.
_______________10. Owner of McDonald’s.

IV. Enumerate the following.

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 11 – 25. Factors That Favor the Growth of Tourism and Hospitality

Week 6

Tourism and Hospitality in

Economic Development

Learning Outcomes:

At the end of this chapter, you should be able to:

1. Discuss the Role of Tourism and Hospitality in Economic Development
2. Discuss the Tourism Multiplier
3. Determine how to Maximize the Economic Effect of Tourism and Hospitality

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The Role of Tourism and Hospitality in Economic Development
Several development countries have used tourism and hospitality development as an alternative
to help economic growth. The reasons for this are: first there is a continuous demand for
international travel in developed countries; second as income in developed countries increase,
the demand for tourism and hospitality also increases at a fast rate; and third, developing
countries need foreign exchange to aid their economic development.
The Organization for Economic Cooperation and Development (OECD) has concluded that
tourism and hospitality provides a major opportunity for growth to countries that are at the
intermediate stage for economic development and require more foreign earnings.

Economic Impact
When travelers outside the destination area spend on goods and services within the destination,
tourism and hospitality acts as an export industry by bringing in the revenues from outside
sources. Tourist expenditures also increase the level of economic activity in the host area
directly. Many countries have utilized tourism and hospitality as a means to increase foreign
exchange earnings to produce investment necessary to finance economic growth.
The tourism and hospitality industry’s economic impact on a destination area can be immense
since it provides a source of income, employment, and foreign exchange.

Direct and Secondary Effects

In order to measure the economic impact of tourism and hospitality on the destination area, it is
important to know the direct and secondary effects of visitor expenditures in the economy of the
area. Tourist expenditures received as income by businesses such as hotels, restaurants, car
rentals, tour operators, and retail shops serving tourist have a direct effect on the economy of
the host area. Direct, means that the income is received directly. Indirect/secondary, means that
the money paid by tourists to business are, in turn, used to pay for supplies, wages of workers,
and other items used in producing the products or direct service bought by tourist.

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Tourism Multiplier

The term “multiplier” is used to describe the total effect, both direct and secondary, of an
external source in income introduced into the economy. The tourism multiplier on multiplier effect
is used to estimate the direct and secondary effects of tourist expenditures on the economy of a
country. The multiplier effect is illustrated in Figure 2.

Local Tour
Operator
Spend

Increased
Personal
Income Save Seed
Handicraft

Purchased Raw Material Fertilizers

Of Supplies
Tourist Import
(Leakage) Wages

Hotelier Rent •••

Wages Food

Savings

Services •••
(e.g., Taxi)

Undesirable Economic Aspects of Tourism

Some undesirable economic aspects of tourism and hospitality are higher prices and economic
instability. Because of additional demand and/or increased imports. Tourist purchases may
result in higher prices in a destination area. This would mean that local residents would also
have to pay more for products and services.

How to Maximize the Economic Effect of Tourism and Hospitality

Growth Theories

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 Some economic growth theories have been proposed to maximize the economic effect of
tourism and hospitality with a destination area. These are the theories of balanced growth and
the theory of unbalanced growth.

The theory of balanced growth suggest that tourism and hospitality should be viewed as an
important part of a broad-based economy. Its objective integrates tourism and hospitality with
other economic activities. To obtain maximum economic benefit, tourism and hospitality goods
and services should be local produced.
The theory of unbalanced growth sees tourist and hospitality as the spark to economic growth.
The theory emphasizes the need to expand demand.

Economic Strategies
The key to maximizing the economic effects of tourism and hospitality is to maximize the
amount of revenue and jobs developed within the region. To attain this objective, some
economic strategies have been adapted, such as import substitution, incentives, and foreign
exchange.
Import substitution
It imposes quotas or tariffs on the importation of goods which can be developed locally. It also
grants subsidies, grant, or loans to local industries to encourage the use of local materials.
Its objective is to minimize the leakage of money.
Incentive
The wise use of incentives can encourage the influx of capital, both local and foreign, necessary
to develop tourism and hospitality supply.
Foreign Exchange
Many countries have placed restrictions on spending in order to maximize foreign exchange
earnings. They have limited the amount of their own currency that tourist can bring in and take
out of the destination to ensure that foreign currency is used to pay bills in the host region.
Tourist may be required to pay hotel bills in foreign currency.
Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #4

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1. Make your own Tourism Multiplier Chart and Explain each column.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #4
V. Identify the Following.
________________ 1. Used to describe the total effect, both direct and secondary, of an
external source in income introduced into the economy.
_______________ 2. Tourism and hospitality should be viewed as an important part of a
broad-based economy.
_______________ 3. Economic aspects of tourism and hospitality
_______________ 4. The theory emphasizes the need to expand demand
_______________ 5. Its objective integrates tourism and hospitality with other economic
activities.
_______________ 6. It also increases the level of economic activity in the host area directly
_______________ 7. Means that the money paid by tourists to business are, in turn, used to
pay for supplies, wages of workers.
_______________ 8. Means that the income is received directly.
_______________ 9. It concluded that tourism and hospitality provides a major opportunity
for growth to countries.
_______________10. Proposed to maximize the economic effect of tourism and hospitality
with a destination area.

VI. Enumerate the following.

11 – 13. Reasons for using tourism and hospitality development as an alternative to help
economic growth.

14 – 15. Effects of visitor expenditures in the economy of the area.

Week 7 & 8

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 Supply and Components in Tourism and
Hospitality

Leaning Outcomes

At the end of this chapter, you should be able to:

1. Determine the Tourism and Hospitality Components
2. Determine the Tourism and Hospitality Supply Components
3. Discuss Infrastructure
4. Discuss Superstructure

Tourism and Hospitality Components

The travel industry is a tourism and hospitality network, which includes both the public and
private sectors. Gee, Choy, and Makens (1997) define the travel industry as “the composite of
organizations, both private and public, that are involved in the development, production, and
marketing of products and services to serve the needs of the travelers.” This definition is
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illustrated in Figure 3 which clearly identifies both the direct and indirect components of the
travel industry classified as direct providers, supported services, and developmental
organization.

Category I

Travel Agency
THE TRAVELERS
Hotel

Retail Shop

Restaurants

Airlines
Ground Transportation

Direct Providers to

Category II DIRECT
Directly to
Contract Food Services PROVIDERS

Contract Laundry
THE TRAVELERS
Food Suppliers Support Services
Tour Organizers Indirectly to
Travel Publications

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 Affects
Category III Directly and

• Planners

• Government Agencies
• Financial Development
• Real Estate Developers
Educational and Vocational Training
Institution
DIRECT PROVIDERS

Tourism

Developmental SUPPORT SERVICES

Organization

THE TRAVELERS
Indirectly

Figure 3. the Direct and Indirect

Components of the Tourism and Hospitality Network (Travel Industry)
Source: Hudman, Lloyd and Donald Hawkins. Tourism in Contemporary Society: An Introduction Text.
Prentice Hall, 1989.

The first category, direct providers are businesses that provides services, activities, and
products that are consumed and/or purchased directly by travelers. They represent the sectors
that are visible to the travelers.

The second category, support services lend support to direct providers. It includes specialize
services. Support services provide goods and services for both the traveler and for organizations
that sell goods and services directly but not exclusively to tourists.

The thirst category, tourist developmental organizations, is different from the first two, since it
includes planners, government and vocational training institutions. These organizations deal with
tourism and hospitality development, which tend to be more complex and broader in scope that
the production of daily travel services. The decisions and results of tourism and hospitality
development are more long-term in nature that the first two categories which deal more with
operators.

Tourism and Hospitality Supply Components

Tourism and hospitality supply components are classified into five categories:

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Natural resources

The natural resources of a destination are providing an excellent asset to tourist. The
physical characteristics of an area can be generalized as natural scenery, climate, and
environment. The natural scenery is a combination of the general topography, flora and fauna,
proximity to lakes, rivers, seas, islands and islets, hot and mineral water springs, caverns,
waterfalls, and the like. The greater the variety and uniqueness of the scenery, the more
appealing it is. The appeal can be increased if the area has a “comfortable” climate. A
comfortable climate is determined be the wind-chill factor – a term used to express hot
temperature feels to the exposed skin. A comfortable warm climate is determined by the
combination of humidity, temperature, and wind. Specific natural phenomena such as volcanoes,
waterfalls, caves, and canyons also tourists.

Infrastructure

This consists of all the underground and surface developmental construction of a region, which
is made up of water systems, communication network, healthcare facilities, transportation
terminals, power sources, sewage/drainage areas, streets/highways, and security systems.

Hospitality Resources
Hospitality resources refers to the general feeling of being welcomed that the visitors
receive while visiting a destination area. It is the way that tourist service is delivered by the
service provider as well as the general feeling of warmth from the local population.

Hospitality Training

Hospitality training aims to motivate service providers to be hospitable in dealing with tourists. It
is assumed that providing more hospitable services will result to a more satisfied tourist who will
be inclined to return and advertise to other potential tourists through word of mouth.

To enable service providers to render hospitable services, it is necessary to change their

present behavior/attitude and increase the level of knowledge. The three aspects of attitude are
towards self, towards others, and towards the tourism and hospitality.

Attitude Toward Self

If an individual’s self-esteem or attitude toward self is low, that individual will tend to behave in
such a way that the feedback from others will confirm the low opinion of himself. Hence, it is
necessary to change the individual’s perception of self in order to improve his behavior. If
service providers can be made to believe that they and their work are important, their work and
their actions towards tourists will reflect these feelings. If service providers can be viewed as
hosts and hostesses rather than “just” employees, their self-esteem may be raised. It is
challenging to deal with visitors who are dissatisfied for they are very demanding. The ability to
satisfy guests is a very demanding task. People who can do this have skills that should ne highly
regarded by themselves and by others.

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Attitude Towards Others

The second aspect is the attitude toward others, service providers should be assisted in
developing positive feeling toward fellow employees and tourists that will result in positive
behavior toward the tourists. This can be achieved by training the individual regarding teamwork
and interdependencies in getting the job done.

The key to the development of positive attitude toward visitors is to be able to develop the ability
to put oneself in the visitor’s place. Role playing can be used for the purpose. If the service
providers can empathize with the tourists, accept tourists as they are, understand that for
tourists, the vacation is something that they have saved up for the whole year or for a lifetime,
and appreciate how tired they may be after a long trip, then, the attitude is likely to be more
positive.

Attitude Towards Tourism and Hospitality Industry

The third aspect is the attitude toward the tourism and hospitality industry. A positive attitude as
service providers towards tourists can be brought about only when employees are made aware
of how important tourism and hospitality is to their country, city, and community. By being aware
of the amount of revenue, jobs, taxes generated, and dispersion of the tourist dollar throughout
the community, employees may become convinced of the economics and social significance of
the industry of which they are a part of.

Community Awareness Programs

Although the tourists are most directly affected by the degree of hospitality shown by service
providers, the overall feeling of being welcomed within a community will also enhance or detract
from the vacation experience. Residents of a destination area cannot be trained to act hospitable
manner towards tourists, but a community awareness program can help develop a more positive
attitude towards the tourists. The aim of the program is to build acceptance of tourism and to
build an understanding of the tourists.

Transportation

Transportation is of paramount importance in developing a tourism a hospitality. Tourists need

easy access to various forms of transportation, such as road, rail, air, and water. Thus, the
amount of time from major population centers vi each mode of transportation is important to
have convenient access and quality service. The cost of reaching the destination and staying
there must be considered. This should include special needs, such as road tolls, gasoline
stations, repairs, parking, car rentals and cashier, and scheduled bus service.

Superstructure
Accommodation

While away from home, the tourist needs to eat and sleep. Sleeping accommodations range
from hotels of international standards and condominiums to campgrounds and homes of

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relatives and friends. The demand for accommodations varies according to the price the guests
are willing to pay, service required, and similar considerations. The type of accommodations
provided is also partly determined by what competitors are providing. An important thing to
remember in marketing is that the facilities should ate least equal those provided by the
competition for the same market.

Appropriate accommodations should be available for all segments of the market. In planning
accommodations, the nature of the environment, the destination, the expected market, the mode
of transportation, the type of activities engagement in at the destination, and other related factors
determine the type of accommodations which shall be made available.

Types of Accommodation

Tourist accommodations may be classified into the following categories.

1. Hotels – provide accommodation, meals, and refreshments for those who may reserve
their accommodations in advance but need not do so. They provide facilities that meet
the needs of the modern travelers. They portray an image of efficiency and service;
2. Condominium – is an apartment or individual dwelling unit owned by an individual but the
management and services, such as maintenance and security are handled by an
independent company.
3. Motel - Originally designed for motorists, motels are roadside hotels equipped with
minimal amenities and ample parking areas for motor vehicles.
4. Inn - A small establishment offering overnight accommodation, food, and drink to
travelers.
5. Apartment - Also known as flat (British), an apartment is a self-contained accommodation
unit housed in a building containing a number of such units.
6. Parador - Paradors are Spanish government-operated hotels, frequently located in former
castles, monasteries, or other beautiful historic settings.
7. Pension - A type of guesthouse or B&B, where in addition to lodging and breakfast, guests
are also offered lunch and dinner. Pensions are usually family-run and cost less than
other accommodation options.
8. Bed and Breakfast - A Bed and Breakfast (B&B) is an intimate, independently run lodging
establishment, where breakfast is included in the room rate.
9. Hostel - Ideal for budget travelers and backpackers, a hostel is an inexpensive type of
accommodation, usually with shared bedrooms and communal facilities.
10. Camp - A collection of tents, huts, or other temporary structures used for travelers to
lodge in.
11. Health spas – are hostels and resort which cater to individual who go to spas or mineral
springs for weight reductions or medical treatment; and
12. Private homes – provide lodging to tourist when accommodations are not available during
peak periods.
Hotel Classifications

There are different ways of classifying hotels. One way is by location, such as city center,
suburban, airport, highway, and resorts. Another way it by type of guest, such as commercial,

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convention, and resort. A more meaningful classification is one based on price such as economy
or budget, standard or midscale, first-class, or deluxe.

A star rating system is often used to classify hotels in Europe and other parts of the world
outside the United states. Stars are assigned according to the quality od restaurants, rooms,
amenities, and services. The highest is five-stars hotel and the lowest is the one-star hotel.
Other classifications are deluxe, first-class, standard, and economy.
Food and Beverage

More of the tourist dollar is spent on food and beverage than on any other service. Countries
which are highest in per capita eating place and sales are also top tourist countries.
The type of food service provided will be related to the needs of the tourists. Many destination
areas have successfully developed menus which are indigenous to the area to promote local
economy food.
Restaurants

Besides hotels, motels, and other types of accommodations, restaurants are also classified as
superstructure. Restaurants are establishments offering refreshments and/or meals to the public.

Name: ____________________________________________Rating: __________________

Subject: ___________________________________________Professor: _______________

Chapter Activity #5

1. Do you think that education should be one of the main functions of any tourism
organization? Why and why not?

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #5
I. Identify the Following.
________________ 1. Aims to motivate service providers to be hospitable in dealing with
tourists.

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 _______________ 2. Its objective is to enable service providers to render hospitable
services, it is necessary to change their present behavior/attitude and increase the level of
knowledge.
_______________ 3. Paramount importance in developing a tourism a hospitality.
_______________ 4. An apartment or individual dwelling unit owned by an individual but the
management and services.
_______________ 5. Consists of all the underground and surface developmental
construction of a region.
_______________ 6. Are businesses that provides services, activities, and products that are
consumed and/or purchased directly by travelers.
_______________ 7. These organizations deal with tourism and hospitality development.
_______________ 8. A type of guesthouse or B&B, where in addition to lodging and
breakfast, guests are also offered lunch and dinner.
_______________ 9. Provide lodging to tourist when accommodations are not available
during peak periods.
_______________10. Establishments offering refreshments and/or meals to the public.
II. Enumerate the following.

11 – 22. Types of Accommodation.

23 – 25. Three aspects of Attitude.

Week 9

Roles of Tourism Organization

Leaning Outcomes

At the end of this chapter, you should be able to:

1. Determine the Tourism Organization
2. Discuss the Roles of National Organization in Tourism and Hospitality

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Tourism Organization
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
United Nations World Tourism Organization (UNWTO)
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 body first set up at the Hague, Netherlands 1925,
then later transferred to Madrid to promote tourism for the economic, social, and cultural
advancement of all nation.
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 World
Tourism Organization (WTO).
In October 2003, the WTO became an established agency of the United Nations and thus, the
name was change to UNWTO. It is the only organization whose activities cover all sectors of
tourism on a worldwide basis. It provides an international forum where tourism officials, whether
in the government or not, can discuss problems and exchange ideas.
The UNWTO works in cooperation with all international organizations, particularly the United
Nations, as well as with commercial and noncommercial bodies involved in tourism.

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Regional Organization
Some countries and regions feel that it is important to bond together to strengthen their
respective tourism programs. These regional organizations have become excellent sources of
information.

The Organization for Economic Cooperation and Development (OECD)

The OECD was set up in a convention signed in Paris on December 14, 1960. It provides that
the OECD shall promote policies designed to achieve the highest sustainable economic growth
and employment and a rising standard of living in member countries, while maintaining financial
stability and contributing to the development of the world economy; to contribute to sound
economic expansion in economically developing nonmember countries.
Tourism is an integral part of its objectives. Recognizing this, the OECD established a tourism
committee responsible for coordinating studies, organizing meeting of member countries to
improve statistical methods of monetary exchange and accounting, and assessing the policies of
member countries and their impact to tourism.

Roles of National Organizations in Tourism

The government plays an important role in formulating policies to guide tourism development
and promotion in line with other national economic and social objectives. The WTO Manila
Declaration provides the basic foundations and guidelines that help governments in defining
their tourism role. Government play a decisive role in the following areas;
1. Planning - attracts foreign investments and funds infrastructure development.
2. Employment and training - determines manpower needs, develops tourism
training programs.
3. Coordinating Public and Private Sectors - determines roles in mixed economics.
In order to achieve national development, the government should clearly delineate its policy with
regard to tourism and other development options.

National Tourism Office (NTO) 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 subcabinet level or a council or information post. in some
countries, tourism 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.

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Department of Tourism in the Philippines
The Department of Tourism (DOT) is the primary government agency charges with the
responsibility to encourage, remote, 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, to assure the safe, convenient, enjoyable stay and travel of foreign and local
tourist in the country.
The Department of Tourism is headed by the Secretary of Tourism who's assisted by three
undersecretaries and one assistant secretary. the Assistant Secretary for Internal Services and
Legislative Liaison is responsible for the legal service, Administrative Service, as well as the
Financial and Management Services. The Undersecretary for Planning, Product Development,
and Coordination is responsible for the Office of Tourism and Development Planning, Office of
Product Research and Development, as well as the Office of Tourism Standards. The
Undersecretary for Tourism Service is Responsible for the Office of Tourism Standards, National
Capital Region, and all Regional Offices. The Undersecretary for Tourism Promotions is
responsible for the Bureau of Domestic Promotions, Bureau of International Tourism
Promotions, as well as the Office of Tourism Information.
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.
There are five (5) attached agencies that help the DOT in the performance of its functions.
these are the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), Tourism Promotions
Board (TPB), Intramuros Administration (IA), National Parks Development Committee (NPDC),
and the Nayong Pilipino Foundation (NPF).
Professional Tourism and Hospitality Organizations
Several professional tourism organizations have been established to bridge the gap between
government and industry. by working together, they promote a very favorable tourism climate.
Some of these organization are The United States Travel Data Center (USTDC), Travel Industry
Association of America (TIAA), Universal Federation of Travel Agents Association (UFTAA),
World Association for Professional Training in Tourism (WAPTT).
Travel Industry Association of America (TIAA)
The Travel Industry Association of America is a nonprofit association of companies and
government organizations which was formed to promote travel to and within the United States.
Its main objective is to develop and implement programs that benefit travel supplier and
consumer. It concentrates its activities on those programs that represent a national industry
need but which no single component in the tourism industry could be expected to carry out. The
programs are classified as following categories:
1. Marketing facilitation – promotes and facilities travel to and within the United States
through special promotions and travel marts;
2. Tourism research – works with the United States Travel and Tourism Administration
(USTTA) and the US Travel Data Center in order to promote an understanding of the
economic and social well-being of the nation as a result of travel;

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 3. Government affairs – active in legislation issues in an effort to represent the views of the
travel industry. It assists the government in the development of tourism programs,
policies, and legislation;
4. Education programs – provide a communication network for travel-related information for
education purposes; and
5. Travel promotion – encourages and promotes reciprocal travel between nations and acts
as a watchdog on programs that would restrict travel.
Universal Federation of Travel Agents Association (UFTAA)
The objectives of the Universal Federation of Travel Agents Association are: to act as
negotiating body for the various branches of the tourism and travel industries on behalf of travel
agents; to give professional and technical advice and assistance to travel agencies on the world
economy and tourism; and to improve the prestige and public recognition of travel agents.
World Association for Professional Training in Tourism (WAPTT)
The World Association for Professional Training in Tourism is concerned with vocational
training.
Tourism and Hospitality Organizations in the Philippines
Philippine Travel Agencies Association (PTTA)
The PTAA 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.
The objectives of the PTAA are:
1. to unite the members in a common purpose, working in a close bond of cooperation,
fellowships, and assistance in furthering and protecting the interest of its members;
2. to strive toward the attainment of the highest standards of services and facilities for
travelers and tourists;
3. to uphold its dignity and the ethics of the travel and tour business and to strive toward its
professionalism;
4. to work for the general welfare of the members by acting as the true 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 people;
6. to act as an effective liaison with government agencies and other trade organizations
involved in local, regional, or international tourism and travel for the benefit of its
member;
7. to encourage, support, and help develop Philippine Tourism.

Council of Hotel and Restaurant Educators of the Philippines (COHREP)

The council of the Hotel and Restaurant educators of the Philippines is a bona fide organization
of the hotel and restaurant educators of the Philippines founded by Dr. Ignacio Pablo and duly
registered with the Securities and Exchange Commission.

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The Council has the following objective.
1. to generate a wide acquaintance and closer cooperation among those interested in hotel
and restaurant education;
2. to provide educational opportunities for Hotel and Restaurant management (HRM)
educators who are interested chiefly in particular areas within the general field of HRM
to pursue their specialties;
3. to provide a forum for the dissemination and exchange of information about such topics
as course content and structure, teaching methods, materials, services, facilities and
techniques, continuing adult education, and other such topics as may be of material
interest to the members;
4. to provide opportunities for HRM educators to publish scholarly papers based upon their
conceptual as well as experimental findings;
5. to act as liaison between the schools and universities which the Council members
represent and the agencies in the hospitality industry;
6. to foster better understanding, communication, and cooperation amine educational
institutions concerned with HRM and the hospitality industry; and
7. to support a culture of hospitality that embodies the value system, ethics, and morals of
a hospitality educator.

The Philippine Tour Operators Association (PHILTOA)

The Philippine Tour Operators Association Inc. is an organization of tour operators and allied
members actively involved in the advocacy of responsible tourism. Founded on June 12, 1986, it
is registered with the Securities and Exchange Commission as a nonstock and nonprofit
organization. Membership includes travel agencies, airlines, hotels, resort, transportation
companies, handicraft stores, and other tourism-oriented establishments and associations.
Vision
To be the National Tour Operators’ Association of the Philippines’ Mission
1. To create/organize different chapters;
2. To enhance networking between the government sector and the private sector
particularly in the tourism industry; and
3. To provide natural tourist destinations through the promotion of environment
consciousness projects. Goals
1. To encourage and foster nationwide chapter extensions;
2. To pursue an active role in product development (emerging destinations);
3. To strive for international recognition and affiliations;
4. To upgrade industry knowledge through education/workshop;
5. To conduct national information campaign on relevant issues;

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 6. To develop active membership through participation and involvement in team building
activities;
7. To developed and update database;
8. To revise and amend the by-laws to conform to the needs of the times;
9. To encourage sales mission;
10. To address needs and concerns of members in a timely manner; and
11. To endeavor for financial sustainability.

Name: ____________________________________________Rating: __________________

Subject: ___________________________________________Professor: _______________

Chapter Activity #6

1. If you are to make your own Tourism Establishment. What is the first thing you are going to do
and why?

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #6
III. Identify the Following.
________________ 1. A bona fide organization of the hotel and restaurant educators.
_______________ 2. Promotes and facilities travel to and within the United States through
special promotions and travel marts
_______________ 3. It acts as negotiating body for the various branches of the tourism and
travel industries
Delas Llagas, J.| Macro Perspective of Tourism and Hospitality
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 _______________ 4. This determines roles in mixed economics.
_______________ 5. The chief international organization in the field of travel and tourism.
_______________ 6. The primary government agency responsible to encourage and
develop tourism.
_______________ 7. The one responsible for the promotion of tourism in a particular country
and for the overall development of the tourist industry
_______________ 8. It improves the prestige and public recognition of travel agents
_______________ 9. It provides an international forum where tourism officials, whether in
the government or not, can discuss problems and exchange ideas.
_______________10. Its duty is to uphold its dignity and the ethics of the travel and tour
business and to strive toward its professionalism

IV. Enumerate the following.

11 – 15. Travel Industry Association of America program classification.

16 – 18. Government play a decisive role.

19 – 20. Agencies that help the DOT in the performance of its functions.

Week 10 & 11

Issues and Future of Tourism and

Hospitality

Leaning Outcomes

At the end of this chapter, you should be able to:

2. Determine the Bright Future of Tourism and Hospitality
3. Discuss the Marketing Issues in the Tourism and Hospitality
4. Discuss Legal Issues in Tourism and Hospitality

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 5. Discuss Human Resource Issues in Tourism and Hospitality
6. Discuss the Operational Issues in Tourism and Hospitality

The Bright Future of Tourism and Hospitality

In recent years, a number of significant social and economic changes have occurred that
suggest a bright future for the tourism and hospitality industry. These are:

1. Early retirement – people used to retire at a very young age to get benefits. Examples.
SSS members at the age of 60.
2. Longer life span – pensioners used to enjoy tourism operators due to pension programs.
3. Shorter workweek – it increases leisure time and lesser work week to let customer enjoy
their vacation time with family and friends.
4. Greater disposal income – families nowadays has higher income than before, due to
higher wages.
5. Greater mobility – improvement of roads and better transportations make it easier to
travel every year.
6. Similar families - the average family sized has decreased thus easier for the family to
travel and travel cost less if few family members travel.

Issues in Tourism and Hospitality

1. Marketing
2. Legal
3. Human resources
4. Operations
5. Consumer affairs

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MARKETING ISSUES
A. CHANGING DEMOGRAPHICS
1. populations;
2. older vs. younger;
3. number of households;
4. people traveling for personal than business purpose;
5. increasing international travelers.
B. CHANGING VACATION PATTERNS
- traditional once a year vacation vs. 3 days’ holiday weekend
C. MARKET SEGMENTATIONS
- Types of lodging
- Types of foodservice
D. FREQUENT GUEST PROGRAMS
- tie-ups with hotel and airlines are possible to gain customers E. MATURATIONS
IN SEGMENTS OF THE FAST FOOD INDUSTRY
- ability to create new product to maintain the desire sales level F.
CONSOLIDATION IN THE COMMERCIAL LODGING INDUSTRY
- larger number of firms vs. small 3 of firms

LEGAL ISSUES
A. Liquor liability
- SERVING LIQUOR IS PROHIBITED because it causes accidents and
injuries to customers. Their tendency is to change their market strategies.
B. Ethics in the tourism industry
- Ethics is an academic discipline that deals with the study of the codes of
moral conduct practiced by individuals or groups. The ability to know what is
RIGHT from WRONG.

HUMAN RESOURCE ISSUES

ISSUES THAT PERTAINS TO STAFF OR EMPLOYEES of a particular business
establishments

A. Sexual harassment’s – It may have defined as unwelcome sexual advances request for
sexual fevers and other verbal or physical conduct of a sexual nature that take place
under any of the following conditions:
• Submission is made a condition of person’s employment
• Submission to or rejection of such conduct
• Unreasonably interferers with the persons work performance or creates an
intimidating, hostile or offensive work environment
B. Employee turnover – Losing experienced employees and hiring less experienced
employees as replacement. Issues are the ff.
• High salary
• Work environment

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 • Workers relationships
C. EMPLOYEE ASSISTANCE PLANS – It discuss the major issues of employees in tourism
industry
• Psychological problems
• Family issues
• Financial problems
• Legal issues
• Health issues
• Educational issues
D. EMPLOYEE EMPOWERMENT – It asses’ employee in following rules and regulations
directed. It empowers employees to make decisions that will improve the quality service
to guest.

OPERATIONAL ISSUES IN TOURISM AND HOSPITALITY

A. AUTOMATION – Is the process of using electronic and mechanical equipment to complete

all task associated w/ a given enterprise.

Two primary reasons for automating an enterprise

1. To increase the speed of work

2. To reduce the cost of work

Automation affects the industry in 3 principal areas:

1. COMMUNICATIONS – business travelers frequently change their itineraries to suit their

changing requirements.
2. INTERACTIVE TELEVISION - its affects the productivity of the distribution system as
marketing strategy as well.
3. ELIMINATION OF TICKETS – traveling is hassle free. Traveler don’t need to bring too
much travel documents to complete tour

B. SMOKING / NO SMOKING AREAS – It penetrates people to meet their service for guest
satisfactions.
C. SANITATION AND PUBLIC HEALTH – It is very important issue in foodservice.
D. RECYCLING SOLID WASTE – One of the activity that will save the environment
E. CONSUMER AFFAIRS ISSUES
• Fire and safety
• Truth in menus

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 • Diet / nutrition health

Name: ____________________________________________Rating: __________________

Subject: ___________________________________________Professor: _______________

Chapter Activity #7

1. In 10 years from now, in your own opinion. What would be the face of Tourism and
Hospitality in the Philippines.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #7
I. Identify the Following.
________________ 1. It is very important issue in foodservice.
_______________ 2. Its affects the productivity of the distribution system as marketing
strategy as well.
_______________ 3. It may have defined as unwelcome sexual advances.
_______________ 4. One of the activity that will save the environment.
_______________ 5. An academic discipline that deals with the study of the codes of moral
conduct practiced by individuals or groups.

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 _______________ 6. They are pensioners used to enjoy tourism operators due to pension
programs.
_______________ 7. Issues that pertains to staff or employees of a particular business
establishments.
_______________ 8. The process of using electronic and mechanical equipment to
complete all task associated w/ a given enterprise.
_______________ 9. Business travelers frequently change their itineraries to suit their
changing requirements.
_______________10. It penetrates people to meet their service for guest satisfactions.

II. Enumerate the following.

11 – 15. Issues in Tourism and Hospitality.

16 – 20. Operational issues in tourism and hospitality

Week 12 - 13

CURRENT TRENDS AND ISSUES IN THE

TOURISM AND HOSPITALITY
INDUSTRY

Leaning Outcomes

At the end of this chapter, you should be able to:

1. discuss the social and economic changes that suggest a bright future for the tourism and
hospitality industry;

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2. be familiar with the specific issues that owner and manager of the tourism and hospitality
establishments are likely to face in the following areas: marketing, legal, human
resources, operations, and consumer affairs; and

3. identify the steps taken by the owners and managers of tourism and hospitality entities to
address the major issues confronting the industry,

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The Impacts of Tourism and Hospitality
The rapid growth of tourism and hospitality in the twentieth century has produced both
problems and benefits for destination countries. It has had visible impacts on the sociocultural
and socioeconomic environment. Although tourism and hospitality can bring economic
advantages to a destination country, it also brings with it serious long-term problems which,
without careful control and planning, can threaten the society.

The Positive Economic Effect of Tourism and Hospitality

Income generation

The income from tourism contributes to the gross national product of a country. The
tourism contribution is the money spent by tourists minus the purchases by the tourism sector
to service these tourists. In most developed and many lesser-developed countries the
percentage share of international tourist receipts in the gross national product is low, typically
between 0.3 and 7 per cent. Adding in the effects of domestic tourism increases the percentage
significantly because domestic tourism is usually much more extensive than foreign tourism.

Employment

Employment, from local to national, benefits as well from tourism and hospitality. Several
points can be made. First, there is a close, though not perfect, relationship between
employment and income. There is both a direct and an indirect effect for both. Direct
employment would be for jobs that directly result from tourist expenditures. Indirect employment
is generated from jobs resulting from the effects of the tourist expenditures.

Second, it can be noted that the type of tourist activity affects the type and number of jobs
generated. Accommodation facilities, for example, tend to be more labor intensive than other
tourism businesses. They are also highly capital intensive; large amounts of capital are
required to create a job.
Small business development
Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 47
 Many tourism businesses are small, family-owned concerns. It might be a taxi service, a
souvenir shop or a small restaurant. The extent to which the direct employers such as hotels
and transportation companies can develop links to other sectors of the economy will determine
how many jobs and how much income tourism can generate. Too often, when massive
development of tourism occurs in developing countries, local suppliers cannot supply the
quantity or quality of goods desired. As a result, good are imported, leakage occurs and
potential income and jobs are lost.

The extent to which tourism can establish ties with local businesses depends upon the
following factors:

• the types of supplies and producers with which the industry's demands are
linked;
• the capacity of local suppliers to meet these demands;  the historical
development of tourism in the destination area;  the type of tourism
development.

More and more tourists seek authenticity as they travel. If this can be translated into buying
locally produced souvenirs and eating locally produced food and staying in rooms furnished
with local artifacts, then tourism will have generated the backward linkages necessary to
contribute to the economy.

Balance of payments

Tourism and hospitality has a major influence on the country’s balance of payments. Balance
of payments in an accounting flow of goods, services, and funds in and out of the country
during a given period. If a country pays or agrees to pay more money that it receives, it has a
deficit in its balance of payments. If it receives more money that it sends or exports, it has a
surplus in its balance of payments.

Negative Economic Aspects of Tourism and Hospitality

While most of the countries encourage tourism and hospitality for its economic benefits, there
are some negative economic aspects of tourism and hospitality and other industries in that
area. This is known by economists as an accelerator concept.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 49

These are high inflation and Land speculation destination, high leakage from the economies of
developing countries, and overdependence on tourism and hospitality.

Increase in Prices

One of the most obvious economic impacts of tourism is that the very presence of
tourism increases prices in the local area. Increasing demand for basic services and goods
from tourists will often cause price hikes that negatively impact local residents whose income
does not increase proportionately.

Infrastructure Cost

Another negative economic impact of tourism is the cost of infrastructure. Tourism

development can cost the local government and local taxpayers a great deal of money.
Tourism may require the government to improve the airport, roads and other infrastructure,
which are costly.

Leakage

Economic leakage in tourism is when money spent does not remain in the country but
ends up elsewhere; therefore, limiting the economic benefits of tourism to the host destination.
The biggest culprits of economic leakage are multinational and internationally-owned
corporations, allinclusive holidays and enclave tourism.

Seasonal Character of Jobs

Problems that seasonal workers face includes:
• Job (and therefore Income) insecurity
• No guarantee of employment from one season to the next
• Difficulties in getting training, employment-related medical benefits,
and recognition of their experience.
• Unsatisfactory housing and working condition.
Overdependence on Tourism and Hospitality
Some destinations have made themselves vulnerable to changes in tourism demand by
becoming over dependents on tourism and hospitality for their livelihood. Tourism is highly
susceptible to changes from within and outside the industry. Examples of changes from within

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 50

are price and fashions; while global economic trends, political situations, and energy availability
are examples of outside changes. Many tourists avoid destinations which are politically
unstable but they usually select an alternative. The decrease in demand for a destination
results in underutilization of service, unemployment, and loss of income.

IMPACT CONTROL MEASURES

1. Develop tourism gradually
2. Maintain a scale of tourism development that is appropriate for the local as well as
national environment.
3. Involve residents and their spokesmen in planning and decision making so that they can
participate in determining the future of the sector.
4. Apply the concept of tourism development zones
5. Make certain that residents have easy access to products of tourism
6. Provide incentive to the local business sectors
7. Develop strong linkages between tourism and other economic activities
8. Train local people to work effectively in all levels of tourism
Social and Cultural Impacts of Tourism and Hospitality
Tourism may have different effects on the social and cultural aspects of life in a
particular region depending on the strengths of the region. The effect can be positive or
negative.
Host-Visitor Interactions
Tourism and hospitality causes more interaction between people particularly between the
tourist or visitors and the local residents or hosts. To understand the social impact tourist, have
on an area, the characteristics of various types of visitors and the level of interaction with the
host should be clarified. Smith (1997), categorized tourist into several types and outlined her
views on the intensify of interaction between the tourist (visitors) and the local residents (hosts).
Her classification are as follows:
1. Explorer - very limited numbers looking for discovery and involvement with local people.
2. Elite - special individually tailored visits to exotic places
3. Off-beat - the desire to get away from the crowds
4. Unusual - the visit with peculiar objectives such as physical danger or isolation
5. Incipient mass - a steady flow travelling alone or in small organized groups using some
shared services
Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 51
 6. Mass - the general packaged tour market leading to tourist enclaves overseas
7. Charter - mass travel to relaxing destinations which incorporate as many standardized
western facilities as possible.

Positive Social and Cultural Effect of Tourism and Hospitality

To boost huge tourism money is invested in preserving the local heritage, in improving
infrastructure, in providing better local facilities which in turn creates better education, better
leisure facilities, organizing frequent social events and thus a better lifestyle for the local
people. They interact with the tourists, mix with people from diverse backgrounds, which
creates a cosmopolitan culture in the region. Due to the demand for better services, varied
employment opportunities have created within the region, and therefore, people do not feel the
need to migrate to other cities to earn their living.
Negative Social and Cultural Effect of Tourism and Hospitality
Due to the heavy traffic in the region, the infrastructure may not be able to cope up the
increased rush thus leading to overcrowding, poor sanitation which may further lead to
diseases bot to the tourists as well as local people. The intrusion of outsiders in the area may
disturb the local culture and create unrest among the people. The local people may copy the
lifestyles of tourists through the demonstration effect, and the result could be the loss of native
customs and traditions. Some people may enter into criminal activities to fetch easy money
from tourists, which leads to increased crime and anti-social activities and loss of moral and
religious values.
IMPACT CONTROL MEASURES
1. Reducing the contact between hosts and guests.
2. Designing Community education and citizen involvement programs centered on tourism
development, policy and regulatory issues.
3. Expanding human resources development and training programs in all components of
the tourism system.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 52

Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #8

1. State your own reasoning on how you will alleviate the negative effects of tourism
relating to Philippine culture.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #8
I. Identify the Following.
________________ 1. The most obvious economic impacts of tourism are that the very presence of
tourism.
_______________ 2. Tourism and hospitality has a major influence on the country’s
__________.
_______________ 3. If it receives more money that it sends or exports, it has a _____ in its
balance of payments.
_______________ 4. Tourist classification that desire to get away from the crowds.
_______________ 5. Tourist classification with steady flow travelling alone or in small
organized groups using some shared services.
_______________ 6. It is when money spent does not remain in the country but ends up
elsewhere. _______________ 7. Tourist classification with special individually tailored visits
to exotic places
_______________ 8. Tourist classification with peculiar objectives such as physical danger
or isolation.
_______________ 9. Tourist classification with very limited numbers looking for discovery
and involvement with local people.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 53

 _______________10. The decrease in _______ for a destination results in underutilization
of service, unemployment, and loss of income.

II. Enumerate the following.

11 – 15. Tourist Classification.

16 – 20. Negative Economic Aspects of Tourism and Hospitality.

Week 14 & 15

FUTURE WORLD TOURISM AND

HOSPITALITY

Leaning Outcomes

At the end of this chapter, you should be able to:

1. Discuss the Future of Tourism and Hospitality

2. The Travel, Safety and Security in Tourism and Hospitality

3. Discuss the Impact of the World’s Economy of Tourism and Hospitality

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 54

THE FUTURE OF TOURISM AND HOSPITALITY

• Increased in speed and shopping use of the internet in develop countries.

• Extended reach in less develop countries.
• Improve security of personal information.
• Robotic labor sources.
• Reservation system / voice activated.
• Improved navigational systems for car rentals.
• Electronic entertainment.
• Upgraded internet.
• Marketing mass customization.
• Comprehensive branding campaigns for large and small operations.
• Virtual online customer communication.
• Just in time seats.
• Electronic travel agents.
• Blended hybrid accommodations.
• Global anti-terrorist micro ship security system.
• More nutritional fast food offerings.
• Emphasis an eco-tourism.
• Improved customer relationship marketing information.

Travel, Safety and Security in Tourism and Hospitality

The risks and hazards of travel generally depend on your destination, how informed and
prepared you are before departure, your state of health, and your perceived level of importance
to those who might wish to cause harm. Therefore, it is important to learn as much as possible
about the destination so that you can cope well, not offend local traditions, and avoid health
and safety issues.

Lack of preparation and knowledge about potential travel-related risks can have serious
consequences. Risks include:

• Impact on health caused by:

1. Disorders such as jet lag, barotrauma, blood clots in legs

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 55

 2. Diseases caused by contaminated food, contaminated water, contaminated air,
plus insect-borne, animal-borne, soil-borne and parasitic diseases
3. Lack of acclimatization before starting work at high altitude illness, in hot climates
4. Inadequate immunization, which may consequently require receiving injections
with potentially unsanitary needles in developing countries
5. Inadequate preparation for unfamiliar temperature and weather related risks,
including hypothermia and hyperthermia
• Injuries or death caused by:
1. Transportation related crashes – aircraft, vehicles, trains, boats, motorbikes
2. Lack of training to carry out field work in unfamiliar terrain
3. Lack of an escape plan from a hotel fire
4. Kidnapping, carjacking
5. Terrorist activities
• Assault, robbery and/or loss of possessions caused by:
1. Lack of proper business contacts or a knowledgeable guide
2. Unsecure hotel room
3. Street crime, muggings, kidnapping civil unrest
• Kidnapping caused by carjacking, lack of a knowledgeable guide, terrorism  Adverse
impact on company business and reputation caused by:
1. Lack of familiarity with cultural differences, unfamiliar laws and regulations
2. Corruption

The Impact of the World’s Economy on Tourism and Hospitality

International tourist arrivals have increased from 25 million globally in 1950, to 278 million
in 1980, 527 million in 1995, and 1.32 billion in 2017. They are expected to reach 1.8 billion by
2030. The average international tourist receipt is over US$700 per person and travelers spent
over $1.4 trillion. Travel and tourism represents approximately 10% of total global Gross
Domestic Product (GDP) in 2016 (if it includes tourism related business (e.g. catering, cleaning)
(US $7 trillion). The global travel and tourism industry creates approximately 11% of the world’s
employment (direct & indirect) in 2016. At least 25 million people spread over 52 countries are
displaced by violence, persecution and/or disasters – tourism receipts in every country are
affected by this. Leakage in tourism is as high as 80% in the Caribbean (of every dollar earned
in tourism-80 cents leaves the country).

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 56

Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #9

1. If you are to make you own state of the art Security measures. What is it and explain
its function.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #9
I. Elaborate the Following.

1. Electronic entertainment.
2. Increased in speed and shopping use of the internet.
3. Emphasis an eco-tourism.
4. Upgraded internet.
5. Irrelevance of actual cash.
6. Virtual online customer communication.
7. Reservation system / voice activated
8. Extended reach in less develop countries
9. More nutritional fast food offerings
10. Improved customer relationship marketing information

II. Enumerate the following.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 57
 11 – 15. Future of Tourism and Hospitality
14 – 15. State 5 Future trends in Safety and Security in Tourism and Hospitality

Week 16 & 17

SUSTAINABLE TOURISM AND

HOSPITALITY

Leaning Outcomes

At the end of this chapter, you should be able to:

1. Determine the Management of Tourism and Hospitality in a Responsible Manner
2. Discuss Tourism Policy and Strategic Planning
3. Discuss the Meaning of Sustainable Tourism
4. Discuss Global Ethics of Tourism
5. Determine the Tourism and Sustainable Development Goals

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 58

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 59
Managing Sustainable Tourism in a Responsible Manner

As more regions and countries develop their tourism industry, it produces significant impacts
on natural resources, consumption patterns, pollution and social systems. The need for
sustainable/responsible planning and management is imperative for the industry to survive as a
whole.

10 Ways to Promote Sustainable Tourism

If you want to become a more responsible tourist, here are some ways you can try:
1. Include sustainable tourism alternatives in your trip.
2. Go green at your hotel.
3. Reduce your carbon footprint.
4. Say NO to illegal trade.
5. Support sustainable options in island destinations.
6. Take care of heritage places.
7. Challenge yourself to step outside of your comfort zone.
8. Support community-based tourism and initiatives.
9. Respect the practices of local people.
10. Use reusable bags.

Tourism Policy and Strategic Planning

What is Tourism Policy and Planning?
These two terms are largely interchangeable.
Tourism policy can be defined as;
‘A set of rules, regulations, guidelines, directives, and development/promotion objectives and
strategies that provide framework within which the collective, as well as individual decisions
directly affecting long-term tourism development and the daily activities within a destination are
taken’
Planning can be defined as;
The process of making decisions for the future, and not simply the physical preparation of
a ‘plan’. Planning involves implementing decisions and monitoring the outcomes. Tourism
policy and planning typically involves a number of components, namely: 1. Tourism
attractions and activities
2. Accommodation
3. Other tourist facilities and services
 Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 58
4. Transportation facilities and services
5. Other infrastructure
6. Institutional elements

Impact of Natural Disasters on the Tourism Industry

Tourism has always been regarded as the impetus that brings in new business
opportunities and economic development for a region. As an industry, there are several factors
that have an impact on tourism both positively and negatively. One such aspect is the natural
disasters and climate changes that occur in a place unexpectedly.

On the positive side, natural disasters have increased tourism in some places. An
example of such a place is the Cornish village of Boscastle. This place witnessed the worst
flash floods in 2004. A record amount of 200 mm of rain fell in 24 hours and everything in the
place were destroyed. Fortunately, there were no casualties as all the people were airlifted to
safety. Within the next few years, the central government spent millions of dollars in
reconstruction which brought in more jobs and businesses. Also, the images and videos of
Boscastle were shown in the media and this brought publicity to the place, which in turn
increased the number of tourists. In short, the flash floods proved to be a boon for Boscastle.

In most cases, natural disasters have a negative impact on the economy and on the
people who depend on it for livelihood. For this reason, it is important to have a disaster plan in
Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 61
place when nature strikes with her fury. A better option is to adapt to the change because
natural disasters are inevitable and uncontrollable. If a disaster causes physical changes, then
it is best to go with the change, which means the tourism industry should be prepared to make
changes to its business.

Meaning of Sustainable Tourism

The United Nations World Tourism Organization defines sustainable tourism as tourism that
meets the needs of present tourists and host regions while protecting and enhancing
opportunity for the future. Rather than being a type of product, it is an ethos that underpins all
tourism activities. As such, it is integral to all aspects of tourism development and management
rather than being an add-on component. The objective of sustainable tourism is to retain the
economic and social advantages of tourism development while reducing or mitigating any
undesirable impacts on the natural, historic, cultural or social environment. This is achieved by
balancing the needs of tourists with those of the destination.

Sustainable tourism: Tourism that is economically, sociocultural and environmentally

sustainable. With sustainable tourism, sociocultural and environmental impacts are neither
permanent nor irreversible (John Beech and Simon Chadwick)

The Global Ethics of Tourism

As a fundamental frame of reference for responsible and sustainable tourism, the Global
Code of Ethics for Tourism (GCET) is a comprehensive set of principles designed to guide
keyplayers in tourism development. Addressed to governments, the travel industry,
communities and tourists alike, it aims to help maximize the sector’s benefits while minimizing
its potentially negative impact on the environment, cultural heritage and societies across the
globe.

Adopted in 1999 by the General Assembly of the World Tourism Organization

(GAWTO), its acknowledgement by the United Nations two years later expressly encouraged
UNWTO to promote the effective follow-up of its provisions. Although not legally binding, the
Code features a voluntary implementation mechanism through its recognition of the role of
the World Committee on Tourism Ethics (WCTE), to which stakeholders may refer matters
concerning the application and interpretation of the document.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 62

 The Code’s 10 principles amply cover the economic, social, cultural and environmental
components of travel and tourism:
Article 1: Tourism's contribution to mutual understanding and respect between peoples and
societies
Article 2: Tourism as a vehicle for individual and collective fulfillment
Article 3: Tourism, a factor of sustainable development
Article 4: Tourism, a user of the cultural heritage of mankind and contributor to its
enhancement
Article 5: Tourism, a beneficial activity for host countries and communities
Article 6: Obligations of stakeholders in tourism development
Article 7: Right to tourism
Article 8: Liberty of tourist movements
Article 9: Rights of the workers and entrepreneurs in the tourism industry
Article 10: Implementation of the principles of the Global Code of Ethics for Tourism

T O U R I SM & S U ST A I N A B L E D E V E L O P M E N T G O A L S

The historic agreement among world leaders at the United Nations in 2015 on a
universal 2030 Agenda for sustainable Development committed all countries to pursue a set of
17 Sustainable Development Goals (SDGs) that would lead to a better future for all. The bold
agenda sets out a global framework to end extreme poverty, fight inequality and injustice, and
fix climate change until 2030.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 63

Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #10

1. As a Student of Hospitality Management. How important sustainable tourism is to our

country.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #10

I. Identify the Following.
________________ 1. A comprehensive set of principles designed to guide key-players in
tourism development.
_______________ 2. Its objective is to retain the economic and social advantages of
tourism development.
_______________ 3. Tourism that is economically, sociocultural and environmentally
sustainable.
_______________ 4. This are hotels and other types of facilities.
_______________ 5. This phenomenon has increased tourism in some places.
_______________ 6. All natural, cultural and special features of an area that attracts tourist.
_______________ 7. Process of making decisions for the future.
_______________ 8. It involves implementing decisions and monitoring the outcomes.
_______________ 9. A set of rules, regulations, guidelines, directives, and development.
_______________10. Water supply, power and sewage systems, telecommunications as well
as drainage system.

II. Enumerate the following.

11 – 15. Ways to Promote Sustainable Tourism

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 64
 16 – 20. Tourism policy and planning components

Week 18

SUSTAINABLE TRENDS AND

BENEFITS OF SUSTAINABLE
TOURISM

Leaning Outcomes

At the end of this chapter, you should be able to:

1. Determine Sustainable Trends in Tourism and Hospitality
2. Benefits of Sustainable Tourism in Tourism and Hospitality

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 65

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 66
Sustainability Trends
Sustainability has undoubtedly become the central issue in tourism development
policies throughout the world. Ever get the feeling that forest fires, record-defying storms, and
heavy droughts are more common than they used to be? Or that images of whales, fish, turtles
and birds with stomachs full of plastic weren’t such a familiar sight at one point in time? The
effects of global warming and unsustainable living are catching up with us, and with that
behaviors are changing for the better. There is certainly reason to be hopeful, as
sustainability experts and judges from the World Travel & Tourism Council’s Tourism for
Tomorrow Awards program believe there is ‘a change in the air’ within Travel & Tourism.
1. Reduction of plastic waste – It is disgusting for travelers to come across mounds of waste
plastic in the tourism sites.
2. Eco-friendly practices – Make the travelers feel contributing something good to the
environment.
3. Wildlife protection – Accepting the existence of wildlife equally valuable as human beings
and developing a caring attitude towards them.
4. Enjoying local cuisine supporting the local producers – Not only is it a different culinary
experience, savoring fresh and uncontaminated products are good for health too.
5. Giving back to communities – A unique experience in community development projects
6. Respecting culture – Getting acquainted with a different culture is an experience of its
own.
7. Preferring green accommodations – Pristine ambiance with lesser energy emissions
helps in getting the feel of pure nature.
8. Preserving nature and historical sites – Realizing its value and extending cooperation in
preservation is another interesting tourism activity.
9. Sustainable travel helps in a positive trip – Many global travelers admit that sustainable
travel adds a lot of positive experience during the trip.
 Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 64
Benefits of Sustainable Tourism
You may be wondering why you should care.

I mean, it’s obvious why you should care; but, for in terms of concrete benefits, there are
many. Some include:
1. It benefits the local community
Offering not just employment to local residents but through non-profits, when you
explore as a sustainable tourist by frequently locally owned and operated businesses your
money goes directly back into the community.

This means that your business as a tourist brings in profits that will help the local
community stay profitable long after you have left.

2. It helps to conserve precious natural resources

Earth’s many unique ecosystems are made the way they are for specific reasons, and
they are not renewable. Any chance we have to avoid damaging it, we should take.

3. It gives tourists a more honest look into the local area

By supporting locally-run tour guides and businesses, what you learn from them will be
the truth about their culture and environment, from people who live there. You won’t be fed the
traditional scripted tourist-friendly information, but rather will get a first-hand glimpse into life as
a local and learn to love the community for what it is.

4. Sustainable tourism isn’t just about creating better places to visit

It’s about creating better places to live. Traditional tourist-heavy areas rely on tourist
money pouring into their hospitality and services to keep their local economy afloat. There are
two possibilities as to how that scenario plays out.

• The first option: Heavy tourist traffic — often called “over tourism” — will deplete the natural
beauty and culture of the area, leaving a ghost of the original place for locals to live in.
• The second option: The tourism industry helps to maintain the natural land and culture of
the area, while also employing and empowering locals who get to live in their community
yearround without having to change it all for tourists.
Sustainable tourism practices help ensure that the second scenario is the one we find
ourselves in

5. It can help avoid the displacement and resettlement of local communities

This is unfortunately often a consequence of tourism coming to a location previously
untouched by major businesses. For instance, in the past when a new beach town is

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 68

“discovered” by tourists — typically from the First World — major hotel and food companies
come in to benefit from the influx of potential customers.

They don’t tend to care about the survival of local life that was there before.

Sustainable tourism does, and it advocates for finding the best combination of exciting
and profitable tourism and the continued existence of indigenous communities. You can make
efforts to be sustainable in this way by not supporting programs that exploit the local culture for
entertainment or tourist photo ops.

6. It prepares us for the future

The traditional tourism industry, with its very large eco-footprint — supporting heavy
vehicle traffic, traveling and construction of large hotels — is not sustainable.

Travel will become more expensive, and rarer – especially the experience of going to
unique lands and cultural areas. Every major tourist destination may start to conform and look
the same, contorting themselves to offer the same services and experiences. But every
community isn’t supposed to be the same, and not every experience should be either.

Sustainable tourism ensures that one-of-a-kind communities retain that which makes
them special. A simple way to be more environmentally conscious while traveling is to use
bikes as well as our own feet as transportation. At the very least, use them for short distances
when possible. This helps cut down on the air pollution in the area, which is often magnified by
the throngs of tourists.

7. It is our duty to follow “campsite rule”

Leave the person or places you encounter in at least the same state, if not a better one,
than it was in before you.
Tourism is supposed to encourage and make feasible the experience of visiting the rest
of the world and stepping into someone else’s shoes for a bit.
It isn’t supposed to grind the small communities down to a pulp, in favor of large tourism hubs.

8. Supporting sustainable tourism is a responsible thing to do

You lose nothing by taking part in it, and you get a guarantee that the beautiful forest,
mountain town or pristine beach you spent a few delightful days in will still be thriving far into
your future.
And when you return in the future it will be there waiting for you.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 69

Name: ____________________________________________Rating: __________________
Subject: ___________________________________________Professor: _______________

Chapter Activity #11

1. Research on the latest sustainability trends of today and explain how is it beneficial to the
Tourism and Hospitality industry.

Very Good Good Needs

( 5 points ) ( 3 points ) Improvement
Clear explanation, free from With explanations but are ( 2 points ) Some
grammatical errors. not sufficient to support the explanations given are
answer to the question or incorrect and needs
some errors on grammars. further explanations.

Chapter Quiz #11

I. Identify the Following.

_________________1. Make the travelers feel contributing something good to the

environment.
_______________ 2. Pristine ambiance with lesser energy emissions helps in getting the feel
of pure nature.
_______________ 3. It is disgusting for travelers to come across mounds of waste plastic in
the tourism sites
_______________ 4. Many global travelers admit that sustainable travel adds a lot of
positive experience during the trip
_______________ 5. Realizing its value and extending cooperation in preservation is
another interesting tourism activity

_______________ 6. A unique experience in community development projects

_______________ 7. Getting acquainted with a different culture is an experience of its own
_______________ 8. Pristine ambiance with lesser energy emissions helps in getting the feel
of pure nature
_______________ 9. Accepting the existence of wildlife equally valuable as human beings
and developing a caring attitude towards them.

_______________10. Often called “over tourism”.

II. Enumerate the following.

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 70

11 – 15. Sustainable Trend.
16 – 20. Benefits of Sustainable Tourism.
References

Book

Zenaida Lansangan-Cruz, PhD, Macro Perspective of Tourism and Hospitality, Manila, Rex
Bookstore Inc

Carlos M. Libosada Jr., Carmela A. Bosangit (2007), Introduction to Tourism, Anvil

Publishing, Inc.

Websites

http://citeseerx.ist.psu.edu/viewdoc

http://org/stories/tourism-and-hospitality

https://www.thindustry.org./tourism-and-hospitality

Delas Llagas, J.| Macro Perspective of Tourism and Hospitality 71