SOUTHERN LUZON STATE UNIVERSITY

COLLEGE OF ADMINISTRATION,
BUSINESS, HOSPITALITY,
AND ACCOUNTANCY

MACRO PERSPECTIVE OF TOURISMAND

HOSPITALITY

Claire Ann M. Yao

cabhayao@gmail.com
09175133880

Student Name:________________________
Course and Year:______________________
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15

THE ECONOMICS OF TOURISM AND HOSPITALITY

Economic Expectation for 2018 is Positive. Retrieved from https://www.fmanet.org/blog/2018/02/12/18468

OVERVIEW
Tourism as an economic activity has been gaining tremendous importance in today's
world and is currently the fastest growing sector of the world economy. Tourism has
grown over a period, both in terms of volume and monetary value. The World Tourism
Organization (WTO) preliminary tourism statistics for 2002 indicate international tourist
arrivals at about 715 million with a 3.1% annual growth rate.

Objectives:

1. Identify roles of tourism in economic development

2. Know the different economic impact; direct and secondary effects.
3. Identify the origin of tourism and hospitality in the PhilippinesThe Economics of Hospitality
and Tourism
 16

ECONOMICS
According to Investopedia , Economics is a social science concerned with the
production, distribution, and consumption of goods and services.
Economic analysis often progress through deductive processes, much like
mathematical logic, where the implication of specific human activities are considered in a
“means-ends” framework.

TYPES OF ECONOMICS
Microeconomics
It focuses on how individual consumers and producers make their decisions
includes a single person, a household, a business or a governmental organization
Macroeconomics
Studies the overall economy. It includes a distinct geographical region, a country, a
continent or even the whole world.
Two of the most common schools of Economic Thought are:
Classical View
- believes than free markets are the best way to allocate resources and the
government‟s role should be limited to that of a fair, strict referee.
Keynesian Approach
- believes that markets don‟t work well at allocating resources on their own and that
governments must step in from time to time and actively reallocates resources efficiently.
The Economics of Labor and Trade
-The building blocks of economics are the studies of labor and trade. Since there
are many possible applications of human labor and many different ways to acquire
resources, it is difficult to determine which methods yield the best results in equilibrium.
Incentives and Subjective Value
Economics, with its focus on labor, relates to the actions of human beings. Most
economics model are based on assumptions that humans act with rational behavior,
seeing the most optimal level of benefit or utility.

ECONOMIC INDICATORS
Economic indicators are reports that detail a country‟s economic performance in
a specific area. These report usually published periodically by governmental agencies or
private organizations and they often have a considerable effect on stock, fixed income,
and forex markets when they are released
These are some of the Major U.S economic reports and indicators used for fundamental
analysis:
GROSS DOMESTIC PRODUCT (GDP)
- considered by many to be the broadest measure of a country‟s economic
performance.
- represents the total value of all finished goods and services
RETAIL SALES
- reported by the Department of Commerce during the middle of each month
- retail sales report is very closely watched, and measures the total receipts, or
dollar value, of all merchandise sold stores
INDUSTRIAL PRODUCTION
- released monthly by the Federal Reserve
 17

- reports on the changes in the production of factories, mines and utilities in the
U.S.
- one of the closely watched measures included in this report is the capacity of
utilization ratio, which estimates the level of production activity in the economy
EMPLOYMENT DATA
- Bureau of Labor Statistics (BLS) releases employment data in a report called
the non-farm payrolls, on the first Friday of each month
CONSUMER PRICE INDEX (CPI)
- issued by the Bureau of Labor Statistics
- measures the level of retail price changes (the cost that consumers pay)
- the benchmark for measuring inflation
TOURISM
Tourism is the activities of people travelling to and staying in places outside their usual
environment for leisure, business or other purposes for not more than one consecutive
year. It is also a dynamic and competitive industry that requires the ability to adapt
constantly to costumer's needs and desires, as the customer's satisfaction, safety and
enjoyment are particularly the focus of tourism business.
Tourism is one of the most important social and economic activities in the world today.
The number of domestic and international travelers is steadily increasing and many
countries are now seeking to develop tourism for its many benefits.
Tourism encompasses:
Outbound Tourism
Outbound is what is what you may be most familiar with. It involves the people going
from British Columbia to other provinces, territories or countries.
Inbound Tourism
Is the activities of the visitor travelling to a place outside his usual environment for not
more than one consecutive year and not less than 24 hours. The travel for leisure is for
leisure, business and not forperment work and gaining money.
Domestic Tourism
It comprises the activities of residents of a given country travelling to and staying in
places inside their residential country, but outside their usual environment for not more
than 12 consecutive months for leisure, business or other purposes.
Tourism Sectors
There are different ways to measure the size of the tourism industry, as tourism does not
conform to the usual ways that industries are defined, such as manufacturing, forestry
and other industries. Tourism constitutes a wide variety of sectors that provide diverse
products and services to visitors. However, these businesses also provide products and
services to local residents
HOSPITALITY
Hospitality is the friendly reception and treatment of guests or strangers. The quality or
disposition of receiving and treating guests and strangers in a warm, friendly, generous
way. It is friendly, welcoming behavior towards guests or people you have just met
Hospitality is the food, drink, and other privileges which some companies provide for
their visitors or clients at major sporting or other public events.
Economics of Tourism
Tourism development brings with it a mix of benefits and costs and the growing field of
tourism economics is making an important contribution to tourism policy, planning and
business practices.

ECONOMICS OF HOSPITALITY
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Economic importance of the hospitality industry is well established. Business managers

in the Hospitality industry across the globe face the challenges such as: continuously
satisfying guests, highlighting hotel attributes and ensuring that guests make a repeat
visit
Role of Tourism and Hospitality in Economic Development
 Tourism is a major industry globally and a major sector in many economies
 According to the United Nations World Tourism Organization(UNTWO),over the
past six decades, tourism has experienced continued growth and diversification to
become one of the largest and fastest growing economic sectors in the world
Reasons why many countries used tourism development as an alternative to help
economic growth:
First, there is a continuous demand for international travel in development countries
Second, as income in developed countries increase, the demand for tourism also
increases at a faster rate
Third, developing countries need foreign exchange to aid their economic development
Tourism is an invisible export which differs from international trade in many ways.
1. In tourism, the consumer collects the product from the exporting country; thereby
eliminating the freight costs for the exporter, except in cases in which the airline used is
those of the tourist receiving country.
2. The demand for pleasure travel is largely dependent on non-economic factors,
such as local disturbances, political unrest the changes in the fissionability of
resorts/countries created mostly by media coverage.
3. Tourism is a multifaceted industry that directly affects several sectors in the
economy such as hotels, shops, restaurant, local transport firms, entertainment
establishment, and handicrafts producers and indirectly affects many others such as
equipment manufacturers and utilities.
4. Tourism is a multifaceted industry that directly affects several sectors in the
economy such as hotels, shops, restaurant, local transport firms, entertainment
establishment, and handicrafts producers and indirectly affects many others such as
equipment manufacturers and utilities.
5. Tourism brings many more non-monetary benefits and close than other export
industries such as social, cultural and environmental benefits, and costs.

EMPLOYMENT, INCOME OF THE COUNTRY, POPULARITY OF THE

COUNTRY

CREATES EMPLOYMENT
The biggest contribution that the industry makes to the economy country is
creating a host of new jobs Direct job opportunities are available as tour guides, tour
planners and operators, travel consultants and in hotels, restaurants and resorts.
BOOSTS OTHER LOCAL INDUSTRIES
Indirect jobs are also created for instance in the agriculture and food production sector,
in retail industry and so on.
Generates Income
HOSPITALITY AND TOURISM GENERATES INCOME IN A VARIETY OF WAYS
The Government earns revenue from the industry. The tourists put in a lot of
money in their travel plans these days. Tour businesses and individuals involved in the
sector also earn much. They, in turn, put the money back for the further growth of the
industry.
FOREIGN EXCHANGE EARNINGS
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This is the most important contribution the industry can make to the economy of a
country. All touring expenditure incurred by foreign tourists is a source of foreign
exchange earnings.
Foreign tourists are the best means of bringing in foreign currency to the host nation.
FOREIGN DIRECT INVESTMENT
As Hospitality and tourism in a nation, is strengthened by the Government of the
country investment in the sector rise, too. Foreign direct investment is found more in
economics which are open and have excellent growth prospects.
PRESERVES TRADITIONAL INDUSTRIES
Another advantage that the Hospitality and Tourism industry confers on to an
economy is preservation of traditional industries and handicrafts. Tourists all over the
world take great interest in the indigenous products of the places they visit. So
communities make all efforts to maintain any quaint or form of art they specialize in.
DEVELOPS DIVERSIFICATION
In places where only a single industry predominates, Hospitality and Tourism
comes as a lucrative industry. Be it farming, mining, manufacturing or any other industry
an economy depends on, this sector develops diversification and reduces risk.

BUILDS INFRASTRUCTURE
This functions both ways. More and more tourists are attracted by good
infrastructural facilities. At the same time, when tourists come, much development of
infrastructure takes place with the income generated.
Tourism and Hospitality
The terms tourism and hospitality are co-related and grouped together as a
single industry. However these both hospitality and tourism industries are viewed as two
individual sectors. There exist overlapping between these two.
Tourism is defined as the persons travel and goes for the places outside of their
usual environment for less than one year to accomplish their business purpose, and for
leisure. Hospitality is the provision of the accommodations, venues, meals and drinks to
those people who are out of their house.
Hospitality
The hospitality industry is growing very rapidly and contributing nearly 10% of the world‟s
GDP (Beolla, 2000). In the last decades the hospitality industry has got much
importance of vigorous process of expansion. Consequently the hospitality industry is
expanding globally and promoting its growth in a changing multicultural environment.
Hospitality and Hotels
We are interested to know about the business types of the business covered by
the large resort hotels. Hotel provision comes into general context of hospitality with
many dimensions providing the shelter and body comforts.
Hospitality and Employment
Hospitality is providing more than 10% employment in UK approximately to 2.5
million people. The hospitality business can be divided into two main categories. Firstly
the hospitality business (clubs, bars, restaurants, hotels and contract catering), it
counted the two third of this industry. Secondly hospitality services like food outlets and
hospitals and account one third of the industry.
STATISTICS
The Gross Domestic Product (GDP) in Philippines expanded 6 percent in the second
quarter of 2018 over the same quarter of the previous year. GDP Annual Growth Rate in
Philippines averaged 3.78 percent from 1982 until 2018, reaching an all time high of
 20

12.40 percent in the fourth quarter of 1988 and a record low of -11.10 percent in the first
quarter of 1985.
ECONOMIC IMPACT
Tourism Impact- when travelers outside the destination are spend on goods and
services within the destination, tourism acts as an experiment industry by bringing in
revenues from outside sources. Tourist expenditures also increased the level of
economic activity in the host are directly. Many countries have utilized tourism as a
means to increase foreign exchange earnings to produce investment to finance
economic growth.
Positive impacts- are contributes to income and standard of living, improve local
economy, increase employment opportunities, increase investments and tax revenue
and many more. (Kreag, 2001)
Negative Impacts- are the increase in process and goods and service, increase in price
of land and housing, increase in cost of living, job may pay low wages and many more.
(Kreag, 2001)
Tourism in the Philippine- helped the Filipino economy rise by giving jobs to the
unemployed. This tourism activity gives opportunities for the country to have investments
which could help the economy of the Philippines in terms of giving jobs to the jobless
Filipinos here in the country.

THE ECONOMIC EFFECTS OF TOURISM

Like any other industry, tourism affects the economy of those areas in which it
takes place. The area affected may be a resort, a region or the entire nation. The area
affected may be a resort, a region or the entire nation.
The Economic Effects of Tourism
 Income
- The tourism industry obviously generated income without a destination country.
Nations wanting to increase their income have used tourism as a means for reasonably
quick growth.
 Employment
- As in the case with income, employment is an important benefit of tourism at all
levels, from local to national. In general, the tourist industry offers more employment
opportunities than other economic sectors. Generating employment is perhaps the
greatest advantage of tourism on a developing economy.
Three types of employment:
1. Direct employment
Is that which is generated as a result of providing goods and services directly to
tourist in hotels, restaurants, bars, nightclubs, and the like.
2. Indirect employment
Consist of that position that are associated with other tourism related activities
but are used by both the local resident and the tourist.

3. Induced employment
Refers to people working in positions only peripherally related to tourism but generated
because of it. Examples are construction workers, merchants, and professionals, such
as doctor and accountants who service the employees working directly in tourism-related
position.
Balance of payment
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Tourism has a major influence on the country‟s balance of payments. Balance of

payments is an accounting of flow of goods, services and funds in and out of the country
during a given period. If country pays or agrees to pay more than is receives, it has a
deficit in its balance of payments. If it receives more money than it sends or exports, it
has surplus in its balance of payments.
Investment and development
Once an area has become economically successful, more businessman and
government agencies may be influenced to invest in tourism and other industries in the
area. This is known by economist as an accelerator concept.
Hospitality Impact
The hospitality sector encompasses accommodation, food, and drink in external
venues, that aren‟t a person‟s home.

HOSPITALITY IN THE PHILIPPINES

Part of the Filipino culture is to always treat our guests warmly, whether
they are foreigners or not, therefore if there is one thing that foreigners would usually
comment about right after they visit the Philippines, it would probably not be the food or
the places they visited, bit the hospitality of the people.
DIRECT AND SECONDARY EFFECT
In order to measure the economic impact of tourism on the destination is, it is
important to know the direct and secondary effects of visitor expenditures on the
economy are. Tourist expenditures received as an income by business 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 – the income is received directly
 Indirect or Secondary effects – the money paid by tourist to businesses are turn
used to pay for supplies, wages of works, and other items used in producing the
products or direct service brought by tourist.

TOURISM MULTIPLIER
- The term “multiplier” is used to describe the total effect, both direct and
secondary, of an external source of income introduced into the economy. Tourism
multiplier or multiplier effect is used to estimate the direct and secondary effects of
tourist expenditures on the economy of a country.

Local Tour Spend

Operator Increased
Personal
Income Seed
Handicrafts
Save Fertilize
Import
Tourist Purchase of (leakage
Supplies
…
Raw
…
Material
Wages

Wages

Hotelier
 22

Services
(e.g., taxi)
Multiplier Ef fec
Formula: t
K
where:
K= the multiplier
y = the change in income generated by E
E = the change in expenditure (the initial sum of money spent by the tourist)
When the tourism and hospitality sectors buy heavily from other local economic
sectors for goods and services, there will be a smaller tendency to import and the
multiplier will be greater than if the reverse were true.
Simplified formula:
K
where:
K = the multiplier
L = the direct first- round leakages
c = the tendency to consume
cj = the portion of that propensity spent abroad
tic = the indirect tax
td = the value of direct deductions (income tax, national insurance, and so on)
b = the level of government benefits
m = the value imports

Economic Strategies- The key to maximizing the economic effects of tourism is to

maximize the amount of revenue and jobs developed within the region. To attain this
objective, some economic strategies have been adopted, such as important substitution,
incentives, and foreign exchange.
Import Substitution- It imposes quotas or tariffs on the important goods, which can be
developed locally. It also grants subsidies, grants, or loans to local industries to
encourage the use of local materials. Its objective is to minimize the leakage of money.
Incentives- The wise use of incentives can encourage the influx of capital both local and
foreign, necessary development tourism supply, and the most common forms of
incentive are:
1. Tax exemptions/reduction on imported machinery, materials, etc;
2. Reduction in company taxation by means of favorable depreciation allowances on
investment, or special treatment in relation to excise taxes, sales taxes, income
taxes, turnover taxes, profit taxes, or property taxes;
3. Tax holidays;
4. Guarantee of stabilization of the tax condition;
5. Grants;
6. Subsidies;
7. Loans at low rates of interest;
8. Provision of land freehold at nominal or little cost or at low rents;
9. Free and unrestricted repatriation of all part of invested capita profits, dividends, and
interest subjects to tax preventions; and
10. Guarantees against the nationalization or appropriation.
Foreign Exchange- Many country has placed restriction on spending in order to
maximize foreign exchange earnings. They limited the amount of their own currency that
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tourist can bring and take out of destination to ensure that foreign currency is used to
pay bills in the host region.
Top 5 most visited destination in the world as of 2019
1. Bangkok 22.78 million
2. Paris 19.10 million
3. London 19.01 million
4. Dubai 15.93 million
5. Singapore 14.67 million

EVALUATION
1. Enumerate the role of tourism in our Economic development.
2. In your own words, describe economics.
3. Compare and contrast the direct and indirect effect of tourism in our
Economic growth.
4. In your own words discuss the negative economic impact of tourism
5. Elaborate the positive economic impacts of tourism.

References:
Beolla, (2000) Retrieved from https://www.collinsdictionary.com
Chappelow, J. (2019 June 29). Economics. Retrieved from
https://www.investopedia.com
Cruz, Z.L. (2018). Macro Perspective of Tourism and Hospitality. (1st ed.).Metro Manila,
REX
Knowledge Center.
Lexico.com.(n.d.) Tourism. Retrieved from https://www.lexico.com
go2hr ca .(2009). What is tourism?. Retrieved from hhtps://www.go2hr.ca
.
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4 TOURISM AND HOSPITALITY NETWORK

AND SUPPLYCOMPONENTS

Mamorworks / Getty Images Retrieved from https://www.networkworld.com/article/3438840/3-

strategies-to- simplify-complex-networks.html
OVERVIEW
Tourism components the travel industry is a tourism network which includes both
the public and private sectors. Gee, choy and makens 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 clearly identifies both the direct and
indirect components of the travel industry. Businesses and corporations are
regarded as components of the travel industry classified as direct providers,
support services and developmental organizations.

Objectives:
 Demonstrate tourism and hospitality supply components
 To explain the tourism and hospitality network
 Identify the tourism and hospitality supply component
 Familiarize the different aspect of hospitality and tourism industry in terms of their
supply component and network.
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TOURISM NETWORK AND SUPPLY COMPONENTS

TOURISM NETWORK

Tourism network is a form of partnership involving different interacting elements,

which include tourists, enterprises, institutions and the host community.
A tourist is a person who is visiting a place for pleasure and interest,
especially when they are on holiday.
An enterprise is a company or business, often a small one.
An institution is a large important organization such as a university, church, or
bank.
A „host community‟ refers to a group of people who share a common identity,
such as geographical location, class, and ethnic background.
The travel industry is a tourism network which includes both the public and
private sectors.
Direct providers are those areas of the tourism industry which come into direct
contact with tourists such as sales, accommodation, transport, activities,
attractions, and ancillary services.
In direct providers it include businesses that are associated with travel, such as
airlines, hotels, restaurants, ground transportation, travel agencies and retail
shops. These businesses provide services, activities, and products that are
consumed and/or purchased directly by travellers. They represent the sectors of
the industry that are visible to the travellers.
Indirect Components also called as support sectors, are those parts of the
tourism industry which may not come into direct contact with tourists, but without
the rest of the industry could not function. They include infrastructure, Roads,
Airports, Communications, Public Toilets, Signs, Manufacturing, Building Industry,
Electricity, Water supply and Sewerage and waste disposal. Support services
lends support to direct providers. It also includes basic supplies and services
such as contract laundry and contract food services. Support services sell goods
and services directly but not exclusively to tourist.

Developmental organizations- it includes

planners, government agencies, financial
institutions, real estate developers, and
educational and vocational training institutions.
These organizations deal with tourism
development which tend to be more complex and
broader in scope than production of daily travel
services.
TOURISM SUPPLY COMPONENTS

The tourism supply of an industry is derived by summing the value of tourism

products sold by the tourism industry to the tourists It takes into account
accommodation services, food, transport, and other retail sales.
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The tourism and hospitality supply components are classified into the five main
categories:
 Natural Resources
 Infrastructure
 Superstructure
 Hospitality Resources
 Transportation and transportation equipment

Natural Resources – Includes elements in an area for the use and enjoyment of
visitors such as climate, landforms, terrain, flora, fauna bodies of water, beaches,
natural beauty, and water supply for drinking, sanitation and similar uses.
Infrastructure – Consists of all undergo and surface developmental construction
such as water supply systems, sewage disposal systems, gas lines, electrical
and communication systems, drainage systems and other constructed facilities
such as highways, airports, rail roads, roads, drives, parking lots, parks, night
lighting, marinas, and dock facilities, bus and train station facilities and similar
tourist service installations.
Superstructure – The above ground facility services such as airport buildings,
passenger traffic terminals, hotels, motels, resorts, restaurant, shopping centers,
places of entertainment, museums, stores, and similar structures.
Superstructure –Types of Accomodation
 Hotels
 Condominium
 Motels or Motorhotels
 Inns
 Apartments
 Paradores
 Pensions
 Bed-and- breakfast accommodations
 Hostels
 Camp Grounds
Hospitality Resources –refers to the general feeling of welcome that the visitors
receive while visiting a destination area. It is the way that tourist services is
delivered by service providers. As well as the general feeling of warmth from the
local population.
Transportation includes passenger transportation facilities used on land,
air, and sea. Transportation is of paramount importance in developing tourism.
Tourists need an easy access to various forms of transportation such as road,
rail, air, and water.
Land Travel
Taxi and Limousine Service – adequate taxi and limousine services is important
in a tourist area. Taxi should have removable and washable seat covers so that
they will present a clean appearance to the passenger.
Bus Service – Tour buses should have large windows, comfortable seats, air-
conditioning unit and restroom facilities
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Air Travel- Porter service is important at air terminals. The porter‟s helpful
behaviour and attitude is essential and their training and supervision should be
adequate.
Sea Travel- Sea travel is a major factor in tourism. Cruise Ships have developed
into “floating resorts” or “floatels”. Because of this idea, the demand for sea
travels has increased and cruises have become popular in recent years.
Rail Service – Majority of seasoned travellers prefer to travel by train because of
its safety record and the convenience and satisfaction of viewing the scenery
from a comfortable air-conditioned car.

HOTEL CLASSIFICATION
There are different ways of classifying hotels. One way is location such as
center city, suburban, airport, highway, and resort. Another way is type of guest
such as commercial, convention, and resort. A more meaningful classification is
one based on price such as economy or budget, standard or midscale, first
class or deluxe.
FOOD AND BEVERAGES
Most of the tourist dollars is spent on food and beverage than on any other
service. Countries which are highest in per capita eating place, sales are also on
the 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. Restaurants
are establishments offering refreshments and/or meals to the public.
Evaluation
Search for an establishment; conduct an interview with the owner
regarding their operations in aspects such as their suppliers and their networks
and how did it technically help their operations. Present it to class

References

IGI-Global.com. (1988-2019). What is Tourism Network?. Retrieved September 9,

2019, from https://www.igi-global.com/
Tutorialpoints.com. (2019). Tourism Management Supply. Retrieved September
9, 2019, from https://www.tutorialspoint.com
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TOURISM AND HOSPITALITY

ORGANIZATION

Organization Chart in abstract

background Retrieved from https://www.123rf.com/photo_10329992_organization-chart-in-abstract-background.html

OVERVIEW

Since tourism 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, regional, and national levels.
Aside from the suppliers of services and facilities to tourists, there are also several tourism
organizations that play significant roles in the tourism industry. These organizations influence
and contribute to the smooth running of the tourism industry. In this module, different
international and regional, national tourism organizations both from public and private entities are
comprehensively identified.
Learning Objectives:
At the end of this module, you will be able to:
1. Identify and classify the different local and international tourism organizations,
2. Understand each organization's function in the tourism industry, and
3. Explain the relationships of tourism organizations
 29
TOURISM AND HOSPITALITY ORGANIZATION
What is Organization?
It is a social unit of people that is structured and managed to meet a need or to
pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open
systems--they affect and are affected by their environment.

CLASSIFICATION OF TOURISM ORGANIZATION: INTERNATIONAL

ORGANIZATIONS

UNITED NATIONS WORLD TOURISM

ORGANIZATION (UNWTO)

 The Secretariat is led by Secretary-General Taleb

Rifai of Jordan
 Intergovernmental technical body which
deals with all aspects of tourism.
 Market research and statistics is its most
significant contribution.
 Provides an international forum where
tourism officials can discuss problems and exchange their ideas.
 Only organization whose activities cover all sectors of tourism on a world-wide basis.

UNWTO Objectives:

1. Monitors and identifies trends in world tourism.

2. Studies travel demands, marketing trends, tourist motivation and alternative
approaches to marketing.
3. Surveys the environmental effects of travel growth and makes recommendations
for the protection of natural and cultural resources.
4. Provide services for developing ang organizing tourism for countries.
5. Serves as a clearing house for tourist information.
6. Informs members about tourism development.
7. Conducts vocational training programs.
8. Works for the elimination or reduction of governmental measures for international
travel and the standardization of requirements
9. Assists and develops technical cooperation projects.
10. Works to standardize equipment, terms, phraseology, and signs.
 30

Official Publication of UNWTO:

 International Travel Statistics

 Travel Abroad – Frontier Formalities
 Economic Review of World Tourism
 Technical Bulletins
 Manuals

INTERNATIONAL CIVIL AVIATION ORGANIZATION

(ICAO)

 Adapts international standards and to recommend

practices for regulating air navigations.
 Encourage the improvement of the art of aircraft
design and operation for peaceful purposes.
 Aims to promote safe, regular and economical air
transport, faster air commerce and study problems connected
with the industry.
 Involves standardizing of tickets, prices, airline air waybills, baggage checks and other
documents.
ICAO Objectives:

1. Adopt international standards and to recommend practices for regulating air

navigation.
2. Recommended installation of navigation facilities by member countries.
3. Set forth proposals for the reduction of customs and immigration formalities.
4. Plan for the safe and orderly growth of international civil navigation throughout
the world.
5. Encourage the improvement of the art of aircraft design and operation for
peaceful purposes.
6. Seek the development of airways, airports, and air navigation facilities for
international aviation.
7. Provide for safe, regular, efficient, economical air transportation.
8. Discourage unreasonable competition
9. Insure that the rights of contracting countries are fully respected, and that every
member has a fair opportunity to discrete international airlines
10. Discourage discrimination between contracting countries
11. Promote and development of all aspects of air transportation

INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)

 31

 Involves standardizing of tickets, prices, airline air way bills, baggage checks and other
documents
 Aims to promote safe, regular and economical air transport, faster air commerce and
study problems connected with the industry.

INTERNSTIONAL-COUNCIL ON HOTEL, RESTAURANT, AND

INSTITUTIONAL EDUCATION (CHRIE)

 1946- the council on Hotel, Restaurant, and Institutional

Education was founded.
 is governed by an elected Board of Directors and a
professional staff
 Has 2,300 members
 CHRIE provides
 Access information
 Research
 Shared resources
 Talented people
 Progressive ideas

WORLD TRAVEL & TOURISM COUNCIL

 The only global forum whose members are the top

decision makers in the travel and tourism industry.
 WTTC campaigns on three strategic priorities which it has
identified as impeding the successful development of Travel &
Tourism now and in the future – Freedom to Travel; Policies for
Growth; and Tourism for Tomorrow.
 The 150 members are the CEO, President or Chairman of - airlines, airports, hotels,
cruise lines, travel agencies, tour operators and travel technology suppliers
 The only body representing the private sector in all parts of the industry worldwide.
 The WTTC retains a professional staff in its London office, under the leadership of
President & CEO, David Scowsill. This organisation is headed by a board of executive directors,
who have responsibility for guiding the work of the Council in the fulfillment of its mission.

CLASSIFICATION OF TOURISM ORGANIZATION:

REGIONAL ORGANIZATIONS

ASSOCIATION OF SOUTHEAST ASIAN NATIONS

(ASEAN)
 32

 It was established on 8 August 1967 in Bangkok.

 Brunei Darussalam joined on 8 January 1984
 Vietnam on 28 July 1995
 Laos and Myanmar on 23 July 1997
 Cambodia on 30 April 1999

AIMS AND PURPOSES OF ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)

 To accelerate the economic growth, social progress and cultural development in the
region
 To promote regional peace and stability
 To promote active collaboration and mutual assistance on matters of common interest in
the economic, social, cultural, technical, scientific and administrative fields;
 To provide assistance to each other in the form of training and research facilities in the
educational, professional, technical and administrative spheres;
 To collaborate more effectively for the greater utilisation of their agriculture and
industries, the expansion of their trade, including the study of the problems of international
commodity trade, the improvement of their transportation and communications facilities and the
raising of the living standards of their peoples;
 To maintain close and beneficial cooperation with existing international and regional
organisations with similar aims and purposes, and explore all avenues for even closer
cooperation among themselves

GOALS OF ASEAN

 To accelerate the economic growth, social progress and cultural development in the
region.
o To promote
o Regional peace
o Stability
o Southeast Asian studies &
o Active collaboration and mutual assistance on matters of common interest in economic,
social, cultural, technical, scientific and administrative fields.
 To provide assistance to each other in the form of training and research facilities in the
educational, professional, technical and administrative spheres.
 To collaborate more effectively for greater utilisation of their agricultureand
 industries, expansion of their trade, improvement of their transportation and
 communications facilities and raising of the living standards of their peoples.
 To maintain close and beneficial cooperation with existing international and

ASIA – PACIFIC ECONOMIC COOPERATION

 33

 Focus on tourism and which recently achieved official status as an international

governmental organization.
 It represents 15 countries
 Aims to establish coordination of national economies for the benefit of countries in the
Asia-Pacific region
 Permanent Secretariat is located in Singapore., which serves as the coordinating body
and central repository for all APEC documents
 U.S Travel and Tourism Administration is the first country chair of the Tourism Working
Group for APEC. It is working to coordinate activities with telecommunications and transportation
groups.

Program:

 Business Travel Card Program

ORGANIZATION OF AMERICAN STATES (OAS)

 MTO

CLASSIFICATION OF TOURISM ORGANIZATION:NATIONAL ORGABIZATIONS

DEPARTMENT OF TOURISM (DOT)

 Primary government agency charged with the

responsibility to formulate tourism policies, plans and projects for
the development of tourism as an engine of socioeconomic and
cultural growth
 To generate foreign currency and employment
 34

 Assure the safe, convenient, enjoyable stay and travel of the foreign and local
tourists in the country.
 Spread the benefits of tourism to wider segments of the population.
 The fifteen (15) regional offices of DOT are responsible for domestic tourism
promotion, tourism marketing accreditation, tourism assistance, public relations, and coordination
with local government units and tourism stockholders in the region.

The regional offices are located in the following areas:

 Baguio, City
 San Fernando, La Union with sub- offices in Laoag City
 Tuguegarao, Cagayan
 San Fernando, Pampanga with sub-office in Clark
 Legaspi, City, Iloilo City, with sub- office sin Bacolod City and Boracay Island
 Cebu City
 Tacloban City
 Zamboanga City
 Cagayan de Oro City
 Davao City
 Cotabato City
 Butuan City
 The offices of region IV and the NCR are housed in the DOT Building on T.M.
Kalaw St., Manila

SECRETARY OF TOURISM

1. Assistant secretary of Internal Service and Legislative Liaison

2. Undersecretary for Planning, Product Development, and Coordination
3. Undersecretary for Tourism Service
4. Undersecretary for Tourism Promotion

5 Attached Agencies that help the DOT in the performance of its function:

 Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

 Tourism Promotion Board (TPB)
 Intramuros Administration (IA)
 National Parks and Development Committee (NPDC)
NAYONG PILIPINO FOUNDATION (NPF)
 35

TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE

AUTHORITY (TIEZA)

 Formerly known as PTA or Philippine Tourism Authority.

 Develop, manage and supervise tourism infrastructure
projects in
 the country ; the primary objective of encouraging
investments in
 TEZ's (Tourism Enterprise Zones).

TOURISM PROMOTIONS BOARD (TPB)

 Formerly known as PCVC or Philippine Convention and

Visitor's Corporation
 Responsible for international marketing, participates in
trade missions and travel trade expositions sponsored by
international and regional tourism organizations.
 It is an attached agency of DOT which is primarily
responsible for implementing an integrated domestic and
international promotions and marketing program for the Philippines as a tourism destination as
well as for tourism investments

INTRAMUROS ADMINISTRATION (IA)

 Established in 1979
 Sponsors, conducts and supports festivals and cultural
activities in Intramuros
 Give grants, contributions and donations for the
restoration, repair and maintenance of historic structures of
Intramuros.

 National Parks Development Committee (NPDC)

 Was created on January 14, 1963 by virtue of Executive Order No. 30 as amended by
E.O. Nos. 3, 93, 270 and 299.
 Became an attached agency of the DOT in January 1987 through E.O 120
 36

FUNCTIONS:

1. Undertake development of new parks

2. Upgrade and maintain park facilities
3. Facilitate private sector participation in appropriate aspect of parks development
and maintenance

PHILIPPINE TRAVEL AGENCIES ASSOCIATION

(PTAA)

 Was established in 1979

 Born out of a union of the national associations of
the outbound travel agencies and inbound tour operators.
 Aims to foster unity in the travel industry and to
promote the welfare of its members and the travelling

public
 Uphold dignity and the ethics of the travel and tour business.
 To cultivate friendly relations between the Philippines and other countries

OBJECTIVES:

 To unite the members in a common purpose, working on a close bond of

cooperation, fellowship, and assistance in furthering and protecting the interest of its
member.
 To strive towards the attainment of the highest standards of services and
facilities for travel and tourists.
 To uphold dignity and the ethics of the travel and tour business and to strive
towards its professionalization
 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
 To cultivate friendly relations between the Philippines and other countries among
their people
 To act as an effective liaison with government agencies and other trade
organization involved in local, regional, or international tourism and travel for the benefit
of its members.
 To encourage, support, and help develop Philippine tourism.
 37

CIVIL AERONAUTICS BOARD

(CAB)

 The Civil Aeronautics Board (CAB) is the agency of the government mandated to
regulate the economic aspect of air transportation, and shall have the general
supervision, control and jurisdiction over air carriers, general sales agents, cargo sales
agents, and air freight forwarders as well as their property, property rights, equipment,
facilities, and franchise (R.A. No. 776, as amended by P.D. 1462). CAB is an attached
agency of the Department of Transportation and Communications (DOTC). In the
exercise of its regulatory powers, it is authorized to issue Certificates of Public
Convenience and Necessity (CPCN) to domestic carriers, Foreign Air Carrier's Permit
(FACP) to foreign carriers, and Letters of Authority to airfreight forwarders, general sales
agents, cargo sales agents who are fit, willing, and able to perform services as required
by public convenience and necessity. CAB likewise performs quasi-judicial functions.

EVALUATION

A. Name the following organization and categorize whether it is International,

National, and Regional organization.
LOGO Name of the Organization Category
38
 39

B. Give at least five functions of the following tourism organizations and state its
relationship to the development of the tourism and hospitality industry.
 40

a. World Tourism Organization (UNWTO)

b. Department of Tourism (DOT)

c. International Civil Aviation Organization (ICAO)

d. Tourism Promotions Board

e. Civil Aeronautics Board

REFERENCES

"Facilitation of Tourist Travel - Resilience of Tourism Development". rcm.unwto.org.

"Hotel Energy Solutions - World Tourism Organization". hotelenergysolutions.net.
"Statutes of UNWTO" (PDF).
"The Postal History of ICAO". icao.int. Retrieved 17 December 2014.
"Tourism Stories - World Tourism Organization UNWTO". www2.unwto.org.
"United Nations Official Document". www.un.org.
"Where we are". Retrieved 20 January 2016.
"World Committee on Tourism Ethics - Ethics and Social Responsibility".
ethics.unwto.org.
(UNWTO), World Tourism Organization (2017). Yearbook of Tourism Statistics, Data
2011 – 2015 (2017 Edition) - World Tourism Organization.
doi:10.18111/9789284418428. ISBN 9789284418428.
Jafari, Creation of the intergovernmental world tourism oration
Jafari, Creation of the intergovernmental world tourism organization, 241
Schipper, Frank; Tchoukarine, Igor; Bechmann Pedersen, Sune (2018). The History of
the European Travel Commission 1948-2018 (PDF). Brussels: European Travel
Commission. pp. 14–16. ISBN 978-92-95107-20-5.
Tourism Towards 2030 / Global Overview - Advance edition presented at UNWTO 19th
General Assembly - 10 October 2011 - World Tourism Organization. 2011.
doi:10.18111/9789284414024. ISBN 9789284414024.
unwto.org. (2014)."Global Code of Ethics for Tourism". World Tourism Organization.
Retrieved 17 December 2014.
World Tourism Organization, WTO news, 2003, 3
6
41

IMPACTS OF TOURISMAND
HOSPITALITY

Before-
and-After Photos Paint a Grim Picture of Venice’s Tourism Problem Retrieved from
https://www.insidehook.com/article/travel/before-and-after-photos-of-venice-tourism-
problem
OVERVIEW
The tourism industry can be categorized into three: economic impact, socio-cultural
impact and environmental impact which refers to the changes that the tourism and
hospitality industry impact to the world. Economic impacts are usually seen as positive,
contributing to employment, better services, and social stability. Cultural education may
also be improved, which can be overlooked. Yet these impacts can also contribute to
high living costs within the community, pushing out local businesses, and raising costs
for local residents. Sociocultural impacts are refers to the interactions between people
with differing cultural backgrounds, attitudes and behaviors, and relationships to
 42

material goods. The introduction of tourists to sensitive areas can be detrimental,

cause a loss of culture, or, alternatively, contribute to the preservation of culture and
cultural sites through increased resources. Environmental impacts affect the carrying
capacity of the area, vegetation, and air quality, bodies of water, the water table,
wildlife, and natural phenomena.
Learning Outcome:
 Know the different impacts of tourism
 Analyze its implication to the industry
 Propose measures to manage the impacts well

THE IMPACTS OF TOURISM AND HOSPITALITY

MANAGEMENT

The rapid growth of tourism and Hospitality in the 20th century has produced both
problems and benefits for destination countries. It has visible impacts on the socio-
cultural and socio- economic environment. Although Tourism and Hospitality can bring
economic advantages to a destination country, it also brings it with serious long-term
problems which, without careful control and planning can threaten the society.

POSITIVE AND NEGATIVE ECONOMIC EFFECTS OF TOURISM AND

HOSPITALITY

POSITIVE ECONOMIC EFFECTS OF TOURISM AND HOSPITALITY

Like any other industry, tourism and hospitality affects the economy of those areas in
which it takes place. The area affected may be a resort, a region or the entire nation.
Notwithstanding the size of the affected area the economic effects of tourism and
hospitality may be classified into four groups, namely:
Income- tourism and hospitality industry obviously generates income within a
destination country. Nations wanting to increase their income have used tourism
and hospitality as a means for reasonably quick development.
Employment- In general, the tourist industry offers more employment
opportunities than other economic sectors. Generating employment is perhaps
the greatest advantage of tourism and hospitality on a developing economy.
Balance of Payment- tourism and hospitality has a major influence on the country‟s
balance of payments.
Investment and Development- once an area become economically successful,
businessmen and government agencies may be influenced to invest in tourism and
hospitality and other industries in that area.

NEGATIVE ECONOMIC ASPECTS OF TOURISM AND HOSPITALITY

While most countries encourage tourism and hospitality for its economic benefits, there
are some negative economic aspects of tourism and hospitality that have to be identified
and discussed.
Inflation and Land Values- the inflationary effects of tourism and hospitality can
arise in different ways. Inflation within destination areas is also caused by increasing
land values.
High Leakages- It occurs from the cost of goods and services that must be
imported to satisfy the needs of the tourists.
 43

Seasonality- Many tourist regions experience low returns on investment because of

seasonal fluctuations in demand.
Overdependence on Tourism and Hospitality- Some destinations have made
themselves vulnerable to changes in tourist demand by becoming over dependent on
tourism and hospitality for their livelihood.

POSITIVE AND NEGATIVE SOCIAL IMPACTS OF TOURISM AND

HOSPITALITY

SOCIAL IMPACTS OF TOURISM AND HOSPITALITY

The social impacts of tourism and hospitality should not be confused with the popular
term "social tourism". The social impacts of tourism and hospitality refers to the changes
in the quality life of residents of destinations.
Host-visitor Interaction
Tourism and hospitality causes more interaction between people particularly between
tourist or visitors to the local residents or host. Smith (1997), categorized tourist into
several types and outlined her view on the intensity of interaction between tourist
(visitors) and local residents (host.
1. Explore - this type of visitor is interested in being active participant observer
among the population.
2. Elite - this type of tourist is few in number. It can afford to pay well for unusual
vacation. He is well traveled and usually known as "the jet-setter". His arrangements are
either made by travel agent or may be planned.
3. Offbeat - this tourist adopts well to simple accommodations and services
provided for occasional guest.
4. Usual Tourist - this kind of tourist loves sub-exotic cultural rites, and the usual
or primitive site as long as he/she can quickly and safely return to more familiar
surroundings and groups.
5. Incipient Mass Tourist - visitor who looks for amenities of Western society in
hotels and other travel-related facilities. Mixture of both pleasure seeker and business
traveler.
6. Mass Tourist - this tourist comes from the middle class. Arrives in a destination
with other tourist. There is a dive of taste among them and their attitude "you get what
you pay for”
7. Charter Tourist - comes in "en masse" with other of his/her kind creating an
extremely high amount of business and receiving a high degree of standardization in
services and product.

POSITIVE SOCIAL EFFECTS OF TOURISM AND HOSPITALITY

1. It creates a new medium for social change and multicultural understanding;
2. It encourages adaptation to the realities of modern life and works toward
improving the host country's environment and lifestyle options;
3. It promotes knowledge and use of foreign languages; and;
4. It improves health conditions and disease control.
Social Change and Multicultural Understanding
One of the most important benefits of tourism and hospitality is the bringing
together of diverse people to help them understand one another. The United Nations
World Tourism Organization (UNWTO) considers tourism as an encounter between a
person and a destination in its natural setting then between individual groups of people
as well as between social groups and becomes an encounter between nations and
exchange of values. The impact this exchange is significantly different between
 44

industrialized nations and developing agricultural nations. The more isolated the country
visited, the more significant the social changes are likely to be.
Adaptation to the Realities of Modern Life and Improvement of the Host Country's
Lifestyle
This positive social benefit is the result of the following:
1. The quality of life improves in places where tourism and hospitality is being
developed by bringing both the urban infrastructure and population benefits;
2. The changes that occur in occupation and income patterns create a middle class
with its different attitudes, values and social concerns;
3. Increased social mobility results in new employment opportunities in tourism and
hospitality; and
4. Changes in family relations through the employment of women outside the home.
Use of Foreign Language
Use of foreign language brings people in contact with those of other language
groups. The need and the desire to communicate increase interest in between the host
and visitors to learn another language.

Improve Health Conditions and Disease Control

The desire of tourists for high quality public health facilities can contribute to the
maintenance and improvement of those facilities in destination areas and provide
additional sources of revenue which, in turn, can be invested in upgrading water and
sewage disposal facilities.

NEGATIVE SOCIAL EFFECTS OF TOURISM AND HOSPITALITY

Social Saturation- The presence of large numbers of tourists in particular places at
specific time results in saturation or congestion of facilities and services and competition
for limited resources. The local residents frequently resent having to share their facilities
and services with visitors.
Changes in the social structure, behavior, and roles- Tourism and hospitality
changes the traditional forms of employment which results in the lowering of the status
of agricultural workers, migration of the population, and the breaking up of families. They
also disregard social norms such as respect for elders and close family ties. Young
women who enter the workforce have changed their traditional dress to tourist clothes.
Community Problem Prostitution - often called the "oldest profession," certainly
existed before the growth of mass tourism. It is difficult to say how responsible tourism
and hospitality has been for the rise of prostitution in tourist destinations. The use
of erotic pictures and suggestive slogans in an advertisement leads some tourists to
anticipate sun, sea, sand, and sex as part of their vacation experience.

POSITIVE AND NEGATIVE EFFECTS OF TOURISM AND

HOSPITALITY ON CULTURE

POSITIVE EFFECTS OF TOURISM AND HOSPITALITY ON CULTURE

1. Intercultural Communication - Is necessary for different social groups,
nationalities and cultures to meet and interact. Cross-cultural communications between
tourists and their host may promote change in local culture while preserving or
revitalizing local ethic and cultural identity. The quality of cross-cultural communication is
of prime importance if it contributes to the promotion of understanding between tourists
and their host.
 45

2. Renaissance of Native Culture - Tourism and hospitality may be important to

the host country to remind it's people of its history and culture. In Eastern and Western
Europe, many traditional folks customs and costumes are preserved for the benefits of
tourists.

NEGATIVE CULTURAL IMPACT OF TOURISM AND HOSPITALITY

Acculturation effects
As noted in contemporary literature the acculturation is a process of adaptation and
adjustment. When local people entertain tourists, they adapt tourists needs, attitudes,
and values and ultimately start following them. This often happens in a less
sophisticated society where stronger culture dominates the weaker. By following tourists
lifestyle young people bring changes in the material goods they use and in their gestures
and postures.

POSITIVE AND NEGATIVE ENVIRONMENTAL IMPACTS OF TOURISM

AND HOSPITALITY

POSITIVE ENVIRONMENTAL IMPACTS OF TOURISM AND HOSPITALITY

Conservation - Conservation and preservation of the environment not only benefit the
local area but they also determine the future of tourism and hospitality.
The aim of the National Park Service with the inclusion of conservation, is much broader
now than it was in the past.
In some places, birds sanctuary is one of the major attractions.

Development of Attraction- Several countries around the world are identifying areas
which have the potential to attract tourist.
High

mountain areas have been developed

 46
Historical Preservation
Many historical sites in both urban and rural areas have been preserved to attract
tourists.

Resident Benefits
Tourism and hospitality benefits the local residents in a number of ways; The first benefit
is that the results of conservation and preservation can be enjoyed by local community
as well as the tourists.
Another benefit which results from tourism and hospitality development can be seen in
coastal areas.

NEGATIVE ENVIRONMENTAL IMPACT OF TOURISM AND HOSPITALITY

Exceeding the carrying capacity and saturation levels of an area will negatively affect
that area. If the tourist development becomes saturated, the attraction will draw the
visitors to a place maybe destroyed.

Environmental Conflict
 The destruction of vegetation occurs in large numbers of tourist who trample on
the vegetation, like, campers who cut down branches of trees and completely cut down
small trees.
 Air pollution results from the gas fumes emitted by automobile, taxis, buses, air
craft and factories
 Water pollution is the result of the discharge of untreated waste from resorts or
boats into seas, rivers, lakes, and spring.
 Noise pollution is associated in traffic congestion on land and on air.
 Destruction for wildlife results from killing of animals such as birds and the
disruption
Some of the problems affecting the quality of the environment are destruction of
vegetation, pollution( air ,water, and noise) and the destruction of wildlife.

Geological Conflict
Tourism and hospitality affects geological formations.
Resident Conflict
A number of conflicts frequently occurs between residents and tourists or
tourism developers. In cities, hotels are built at the expense of residential
accommodation. Conflict between tourists and the local residents may also arise
because of damage to the area bought by littering, vandalism, and traffic congestion.

Evaluation
Search for a case study in the internet about impacts of tourism and hospitality.
Analyze it and create recommendations. Format will be announced.

Reference:

Cruz, Z. (2017). Micro perspective of tourism and hospitality. Manila, Philippines: Rex
Bookstore.
 47

7 CURRENT TRENDS AND ISSUES IN THE

TOURISMANDHOSPITALITYINDUSTRY
Food trends driven by science Retrieved from https://www.supermarketperimeter.com/articles/4121-

forecasting-
future-food-trends
OVERVIEW
The Hospitality & Tourism industry has grown multiple folds in the last few
decades. We are all tourists from heart and soul and the hospitality and tourism
industry has made sure that our travel is easy, fun, cost-effective and safe. But
we all know that the trends and issues are a big part in tourism and hospitality
industry because having a new trends and issues are appearing and taking hold
all the time. Whatever aspect of the tourism sector your business is involved in,
you need to keep your finger on the pulse.
Objectives
 Forecast bright future of tourism and hospitality industry both local andnational
setting
 48

BRIGHT FUTURE OF TOURISM

EARLY RETIREMENT- At present, many workers retire at an earlier age than the case in
previous years. The US social security system provides benefit to workers as young as 62 years
of age and many employee retirement programs are based on years on service rather than
on age.
LONGER LIFE SPAN- The average individual can now expect to live beyond the age 70 and
many will live longer. This is in contrast to earlier generations when the average life span
was much less the increasing population of older , retired citizens who are richer due to pension
programs and are healthier provides a larger base of potential customers for tourism and
hospitality operations.
SHORTER WORK WEEK- In the past the six-day workweek was the standard for most-working
people. At present the five day workweek is standard and the four-day workweek is becoming
common leaving several days for other activities. The resulting increase in leisure time,
combined with faster and easier transportation, makes possible for many individuals to take
weekend vacations and travel to a degree they could not have made a few years ago. The
tourism and Hospitality industry will surely benefit from this increase in travel.
GREATER DISPOSABLE INCOME- Families now a days has higher income than before , due
to higher wages and two earner households. A large portion of the additional disposable income
is spent on consumer goods and services. The tourism and hospitality operations receive an
important share of it;
GREATER MOBILITY- Improvement of roads and better transportations make it easier to
travel every year. The moderrn highway system has reduced the time required for automobile
travel between any two points. New planes use new technologies which enable them to carry
more passengers while using less fuel. These increases in travel have a positive impact on
tourism and hospitality industry sales; and
SMALLER 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 INDUSTRY

MARKETING ISSUES
A. CHANGING DEMOGRAPHIC
Population (Older vs. younger)
The population of developed countries is aging. The median is now 33 years and is projected to
increase in the coming years. This is an issue that is significant to the tourism and hospitality
industry. An older population has preferences that differ from those of a younger population.
Thus, service providers will find it necessary to adjust their service products to the changing
preferences of the market.
Number of households
Another changing of demographic characteristic is the increase in the number of single-parent
households generally have lower levels of discretionary income. To reach this market, service
providers will have to develop new service products that will appeal to this demographic
segment at affordable prices
People travelling for personal than business purpose
A third demographic change is the continuing growth in the number of people traveling for
personal rather than for business purposes. Approximately 74% of domestic travelers travel
primarily for a nonbusiness purpose. This group is responsible for the increased percentage of
the travel market in he past 45 years and the growth is sure to continue.
Increasing international travelers
 49

The fourth demographic change is the growth in the number of international travelers. One of
the primary reasons is the decreased cost of transportation relate to income, making travel more
affordable to everyone. Another is increased vacation time and a greater number of holidays in
many countries.

B. CHANGING VACATION PATTERNS

Traditional once a year vacation vs. 3 days holiday weekend
Citizens of industrialized countries are changing their vacation patterns. The traditional once-a-
year vacation of two weeks is declining in popularity. For a growing number of people usually
plan mini vacations, adding two of their annual vacation days to a three-day holiday weekend. In
this way, they manage to get away for a mini-vacation of five days using only two actual
vacation days.

C. MARKET SEGMENTATION
Types of Lodging
Since 1980, the principal term in tourism marketing has been marketing segmentation. Until the
late 1970s, lodging establishments attempted to appeal to broad general markets. Their aim
was to appeal to a broad group of potential visitors. In the recent years, the success of the
limited service properties has led to the development of other properties intended to appeal to
selected market, segments. Some of the types of lodge properties intended to appeal to
selected market segments. Some of the types of lodge properties to become apparent include
all suite properties, residence properties, sub-budget properties, and a variety of budget
properties, which differ by their varying service and amenities.
Types of foodservice
Example of market segmentation have been evident in food service in the past 10 years. A
number of restaurants that additionally offered extensive something-for-everyone menus has
began to see reductions in business, as customers have chosen to patronize restaurants
offering specialized service products.
As a new market segments are identified properties designed to appeal to those segments are
likely to be developed.
D.FREQUENTS GUEST PROGRAMS
Tie cups with hotel and airlines are possible to gain customers
Because of the proliferation of properties and the increasing competition among them, some
lodging operators have begun to develop programs to gain repeat business. Modeled on the
frequent-flyer programs which were successfully used by many airline companies, these plans
give credits to regular guests. They can be redeemed in the form of reduced rates, upgrades,
free accommodations, free meals, or any variety of amenities. As competition becomes keener,
the number of these kinds of programs will certainly grow, many believe that these programs will
gain in the lodging business the same favor they have achieved among airline customers.

E. MATURATION IN SEGMENTATION OF THE FAST-FOOD INDUSTRY

Ability to create new product to maintain the desire sales level
Segments of the fast-food industry are no longer expanding to the extent that was formerly
possible. The demand for hamburger is not growing as fast as it once did, so operations find it
necessary to develop new products to maintain the desired sales level. At present
establishments that previously offered few products other than hamburger now offer pizza,
salads, poultry, or other meat products. As public tastes continue to continue to change, food
service operators will have to develop specialty products to retain an adequate share of the
market.

F.CONSOLIDATION IN COMMERCIAL LODGING INDUSTRY

 50

Larger number of firms vs. small 3 of firms

Some experts are now predicting that the number of large nationwide lodging companies will
decrease in the coming years; that a small number firms will dominate the lodging industry by
acquiring smaller chains of regional or national properties. This will enable successful
companies to obtain the funds required to expand their operations internationally.
The trend toward consolidation will have a tremendous impact on all commercial logging
operations. Both independent operations and owners of smaller chains will find difficult to
compete with heavily advertised national and internationals brands.

LEGAL ISSUES
LIQUOR LIABILITY- Serving Liquor is prohibited because it causes accidents and injuries to
customers. Their tendency is to change their market strategies.
ETHICS IN 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 RESOURCES ISSUES
SEXUAL HARASSMENT- may be defined as unwelcome sexual advances, requests for sexual
favors and other verbal or physical conduct of sexual nature that take p-lace under any of the
following conditions:
1. Submission is made a condition of the person‟s employment
2. Submission to or rejection of such conduct is used as a basis for employment
discussion affecting the person
3. It unreasonably interferes with the person‟s work performance or creates an intimidating,
hostile or offensive work environment.
Most cases of sexual harassment involve complaints by female about co-workers or superiors.
In the last 10 years, the number of cases has grown because an increasing number of women
have become willing to speak out.
Because employers are liable for the actions of their employees at work. It is very
important for employers to take the ff. steps:
1. Institute a strict policy banning all forms of sexual harassment in the workplace;
2. Develop appropriate training programs for managers and employee so that all
will understand and become sensitive to the nature of sexual harassment; and
3. Establishment procedure for handling all complaints promptly, fairly, and in a
sensitive manner
EMPLOYEE TURNOVER- One of the major issues confronting managers of tourism and
hospitality enterprises. With turnover rates averaging approximately 100% per year managers
are always faced with the problem of losing experienced employees replacements, several
managers believed they have only two choices to shoulder the high training costs associated
with developing new employees into efficient workers or to incur the equally high costs
associated with working with untrained employees.
EMPLOYEE ASSISTANCE PLAN- Include in the discussion of major issues in the tourism and
hospitality industry because they are one of the secular steps to pay attention regarding the
problems of their employees. The problems of those employed in the tourism and hospitality
industry include psychological problems, family issues, financial problems, legal issues, health,
as well as education issues.
EMPLOYEE EMPOWERMENT- In some tourism and Hospitality establishments managers
have developed rules and procedures that employees are directed to follow. These include
directives such as inflexible rules for checkout time, rules prohibiting free prohibiting
substitutions on special dinner menus. These may affect the overall impression of a guest
 51

regarding a particular food service or lodging enterprise. For some guests these rules may be
enough to make them decide never to return.

OPERATION ISSUES
AUTOMATION
Automation is the process of using electronic and mechanical equipment and machinery to
complete some or all of the tasks associated with a given enterprise.
The two primary reasons for automating an enterprise are:
1. To increase the speed of work; and
2. To reduce the cost of work.
Automation in the travel industry is here to stay, computerization will affect the industry
principally in three areas, namely:

a. Communications. Business travelers frequently change their itineraries to suit their

changing requirements. Much time at present is lost in making alternative arrangements through
vendors or distributors from payphones, hotel rooms, or secretaries‟ phones. Portable
communication data units [PSDUs], a portable telephone or computer, allows a business
traveler to communicate with any travel entity from any place including airplanes and rearrange
or reconfirm his travel plane;
b. Interactive CRTs. Interactive televisions is now being used in some cities, within a few
more years, more cities will be using it. It is possible that much of the order placement process
will be shifted to interactive television. Specific order forms can be programmed into a database
that can be accessed by any number of users. If calls are reduced to one-third by interactive
CRTs, travel counselors will be reaching productivity levels of $2.5 million to $5 million per
annum each. Hence, the cost of getting a traveler on the distribution system as well as the cost
to the traveler is maximized; and
c. Elimination of Tickets. There is no longer a need for the travelers to carry an actual
document for an airplane seat or hotel reservation. A traveler may place the order about his
impending trip on his interactive television, and insert his travel card into the appropriate slot on
the side of the console. After all arrangements and confirmations have been made, the
computer magnetically codes his card. The traveler arrives at the airport, goes to the
appropriate gate, and as he enters the airplane right before he hangs up his carry-on bag, there
is a slot into which he simply sticks his card. If the response is positive, he presses a button and
receipt pops out of the wall.

SMOKING OR NON-SMOKING AREA

As more and more customers of tourism and hospitality entities demand smoke-free areas for
dining and smoke-free sleeping accommodations, the industry will continue to exert tome these
demands. This is specially available. Hence, restaurants apportion sections of their dining
facilities to accommodate the requests of nonsmokers. Some even install or improve ventilation
equipment.

SANITATION AND PUBLIC HEALTH

Proper food handling has always been an issue in the industry. Managers must always be sure
that food is bought from responsible vendors. Food must be kept as suitable temperatures to
prevent the growth of bacteria. It should be placed under proper conditions to prevent infestation
by insects or rodents. The surface of equipment must be cleaned very well to ensure that food is
not contaminated during preparation. Washing is a necessity in food service such as the
washing of the hands of the employees, the washing of the fresh food to remove chemical
 52

residue, as well as the through washing of china, glassware, flatware, pots, and pans that are
used in the preparation and service of food and beverages.

RECYCLING SOLID WASTE

In some cities, the cost of removing solid wastes is increasing to the extent that government and
citizens are unable to pay. In many of these areas, separating recyclable plastic, glass, and
other items from other solid wastes greatly decreases the quantities that require disposal.
The trend toward recycling is likely to increase. Many in the tourism and hospitality industry who
have not been previously affected by this issue will eventually find it necessary to adopt a
recycling program.

CONSUMER AFFAIRS ISSUES

FIRE SAFETY
Fire safety has always been an important issue in the tourism and hospitality industry. In earlier
century, taverns, inns, and hotels which were usually constructed of wood were regularly
destroyed by fire. Many were burned to the ground and a large number of people were killed of
crippled.
However, a number of dangers associated with fire remains to be considered. In case of fire,
guests in hotels and other lodging operations may face danger from toxic smoke resulting from
the burning of furniture, fixtures, and fibers produced from man made materials. In a fire, many
of the artificial fibers that can be more dangerous than the fire itself.
Another problem is related to construction. In recent years, new buildings were well-insulated to
decrease heating and cooling expenses. In some buildings, windows were not designed to
opened. Temperature and air were controlled by very complicated central systems. In case of
fire in such building, there is a danger that smoke may spread quickly throughout the building.
At present individual room ventilation is installed to preempt the danger.

TRUTH IN MENUS
For food service operations, preparing truthful menus is an ethical practice that should never be
violated, However, a small minority have produced menus that are not accurate indicators of the
food served in their establishment. Some serve US choice beef when their menu states US
prime beef. Other serve portions with fever ounces than the number listed in the menu. Still,
others have not used the actual ingredients suggested by their menus and have substituted one
product for another such as turkey for chicken, margarine for butter, generic products for name
brands, and domestic products for imported ones.
In some areas, consumer production laws have been passed so that those who violate the
regulations risk fines and loss of licenses. It is important that those in the tourism and hospitality
industry conduct their operations ethically in order that consumers will have complete faith in the
truth of their menus, the wholesomeness of their food, and the honesty of their business
practices.
DIET/ NUTRITION/ HEALTH
Since public is very much concerned about healthy diets containing less fat and lesser, many
food service operators are adjusting their menus to the changing public tastes, some are
devoting sections of their menus to food for the diet-conscious; others are assigning certain
menu items for those interested in food that is low in sodium and cholesterol. An increasing
number of restaurants exert efforts to attract health-conscious diners. Some have eliminated
unhealthy food from their menus.
The trend to healthier dining will surely continue. Successful food service operators will have to
give greater attention to the nutritional content of food in the years to come.
THE FUTURE OF TOURISM AND HOSPITALITY
 53

The World Travel and tourism Council forecast that travel and tourism will grow bat 40%
to 50% in the next 10 years . This tremendous increase presents great challenges and career
opportunities for tourism and hospitality graduates nowadays. According to John Naisbitt the
futurist the global economy of the twenty-first century will be propelled by three super service
industries namely telecommunications, information technology and travel and tourism. The
following tourism and hospitality items are but a few examples of the wave of the future:
1. Increased speed and shopping use of the internet in develop countries.
2. Extended reach in less-develop countries
3. Improved security of personal information
4. Robotic labor sources
5. Reservation system with more sophisticated, voice activated, artificial intelligence.
6. Improved navigational system for rental cars
7. Electronic entertainment venues in rental cars and on planes and cruise ships.
8. Upgraded Internet personal digital assistant for operations
9. Marketing mass customization.

Evaluation
 Giveissuesandtrendsinthetourismandhospitalityindustryandstatehowit affectstheindustry.
 Discuss the trends in the tourism and hospitality industry today and compare the changes and
contribution of those in the tourism and hospitality industry.
 How do you see the hospitality industry 10 years from now?
 What form of tourism is the most applicable during this time of pandemic. Search for your answer and
present it in class.
Reference:

Cruz, Z. (20 17). Micro perspective of tourism and hospitality. Manila, Philippines: Rex
Bookstore.
 8
54

FUTURE WORLDTOURISM
AND HOSPITALITY ISSUES

etri
eve
d

https://www.roboticsbusinessreview.com/download/hospitality-robots-find-new-ways-to-serve/

OVERVIEW
Tourism is a well-known and world‟s largest industry that provides new business
opportunities and helps to develop countries and growth of many industries. It is wide-
range industry including Hospitality Industry, an industry that manage activities of a
place where people meet and visit such as Restaurants, Hotels, Cruises and other
tourism-related-services. As the Tourism and Hospitality continue to develop and
become popular, it also encounters issues that causes the industry to decline if not
immediately solve or recover. These issues may positively or negatively affect the
economic, environmental and socio-cultural aspect of the country.
Objectives
• Discuss the importance of safety and security in tourism and hospitality;
• Describe the impact of the world‟s economy on tourism and hospitality;
• Explain the impact of partnerships and strategic alliances on tourism and hospitality;
• Discuss the impact of health issues on tourism and hospitality; and
• Explain the effect and natural disasters on tourism and hospitality
 55

SAFETY AND SECURITY IN TOURISM AND HOSPITALITY

Relationship of tourism and hospitality to terrorism

The terrorist attack in the United States on September 11,
2001 paved the way for the adoption on international and
national policies to counteract the impact of terrorism.
The result of this tragic event encouraged many
countries to act together to combat the devastating
effects of terrorism. Since the September 11, 2001
terrorist attack in the Unites States, there has been an
increased awareness regarding the vulnerability of the
tourism and hospitality industry to the challenges of world
events.

Figure 1:
Terrorism Attacks Targeting Tourism (1970-2004)
Travelers now demand security measures. Safety and
security must be included in the destination development
strategies especially in areas where terror and danger
exist. The following are important items to be included in
a destination‟s security strategy. Dr. Peter Tarlow, an expert on tourism and security issues,
proposed these points;
1. Destination and attractions must compete on their readiness to keep visitors safe
and secure;
2. Destinations that provide sound security coupled with costumer service will
prosper;
3. The lack of a comprehensive approach will create a false sense of security;
4. All members of the local tourism and hospitality system should be included when
developing a comprehensive tourism and hospitality strategy;
5. Media coverage of a local incident can spread the negative public relations
effects to the entire continent;
6. The safety development needs of the components of the visitor experience,
including transportation, infrastructure, accommodations, highway rest areas, and food sources
should be assessed; and
7. Establish a place for visitor to turn to, if a terrorist attack were to occur, and
openly communicate the location and purpose of the center in advance incase of threats.

THE IMPACT OF THE WORLD‟S ECONOMY ON TOURISM AND HOSPITALITY

The world economy has a major impact on the future of international travel. With a flourishing
world economy, more people will have the financial means to travel. If there is a greater
distribution of a country‟s wealth, more people will have the financial means to travel. Related to
the world economy is the population growth. According to the US Census Bureau “World POP
Clock Projection,” the present world population is more than 6.5 Billion.
Five most populous countries:
 China
 India
 United States
 Indonesia
 Brazil
 56

Table 2. International Arrivals into the Year 2020

The UNWTO strongly encouraged tourism growth to the world‟s poorest countries to bring out
economic well-being, social development, and mutual understanding. If other regional
organizations such as the Asia- Pacific Economic Cooperation (APEC), the Organization for
Economic Cooperation and Development (OCED), and others will place tourism and hospitality
as a high priority, the economies of many countries will be strengthened.
Managing Sustainable Tourism in a Responsible Manner
• third tourism issue
• utmost importance at present and in the future
• measures to advocate tourism agencies, host communities, and travelers about
sustainable tourism must be continued as the world population increases
• Respect for our natural and built environments will be the country‟s legacy for
future generations
• A major concern for destination planning as well as regional and national policy-
making in the last decade

Tourism Policy and Strategic Planning

• Fourth major issue
• Sustainable benefits of tourism and hospitality for local communities will continue
to grow in importance
• Greater efforts toward partnership of private and public sectors to alleviate
poverty, develop policies to combat the negative impacts on tourism and hospitality and support
the economic, socio-cultural, and environmental contributions of tourism and hospitality to the
world
• Developing new tourism and hospitality projects maintaining present destinations,
and improving travel-related facilities and services require comprehensive policies and detailed
plans that combine local needs, market competitiveness, and tourism and hospitality
sustainability

USING e-COMMERCE tools In tourism and hospitality

• Fifth world tourism and hospitality issue
• More than 50% of travelers in the United States use the internet in planning their
travel and vacations and this occurrence is growing globally
• A positive effect in developing destination websites is that developers can find
good websites that are similar to their destinations and copy the best features
 57

• As internet access continues to increase in many countries, online travel

revenues will also increase
• The number of Internet users around the world was estimated to be 747 million in
2007, a 10% increase from 2006
• The growth was due to the expanding economies of India (33%), and China
(20%). Online revenues were expected to reach two billion US dollars by 2010.

It is an evident that the use of e-commerce tools for tourism and hospitality will continue to grow
in the future. Several e-commerce tools equip tourism and hospitality for a high-tech future.
Since tourism and hospitality is a combination of products and services, the multimedia qualities
of electronic commerce can be applied effectively to tourism and hospitality in order to increase
the attractiveness of a destination.
Since a large part of tourism and hospitality is marketing, tourism and hospitality promoters who
are technically knowledgeable about interactive marketing will have competitive advantage over
less-skilled competitors. The emerging e-commerce tools are web blogs, podcasts, and internet
marketing.

Tourism and hospitality education and training

• Sixth major tourism and hospitality issue
• Globalization and innovation will be the outstanding feature of tourism and
hospitality education and training in the future
• New trends include the collaboration between tourism agencies and educators of
tourism colleges and universities to address the changing needs of the tourism and hospitality
industry
• Globalization and political stability

Emerging tourism and hospitality markets

• Seventh major tourism and hospitality issue
• China and India
a. two emerging tourism and hospitality markets in the near future
b. account for about one-third of the world‟s population
c. Economy is exploding and a greater segment of the population is
anxious to travel
d. Emerging as important receiving and generating countries for
tourism and hospitality

In the terms of arrival and tourist receipts, Europe continues to account for one-half of the
world‟s tourism and hospitality market. Asia and the Pacific have been the fastest-growing
regional market, surpassing the Americas. The Americas will still be strong, insofar as
international tourist receipts are concerned, largely due to the combined influences of the United
States, Canada, and Mexico. In terms of major generating and receiving countries, the United
States and much of Europe will continue to produce millions of tourists every year.
UAE ( United Arab States) will be an emerging tourism and hospitality market in the future. In
the past, this small country has been economically dependent on its petroleum industry. The
UAE launched the first major indoor ski slope in 2001 in Dubai. This made UAE a global tourism
destination. The UAE intends to launch many new tourism and hospitality products over the next
years.
Gabon in Africa is another emerging tourism and hospitality market. Gabon is an oil-rich country
turning to tourism and hospitality. Gabon‟s leaders realized that their economic future cannot
depend solely on oil. So, they have made a policy decision to develop ecotourism as an
 58

alternative to the petroleum industry. Their plan is that 11% of the country will become national
parks with emphasis on outdoor-related tourism (Edgell, 2008)
South America is a continent that could emerge as a tourism and hospitality market in the future.
South America has tremendous potential for tourism and hospitality development. It is still
largely undeveloped and has many opportunities for tourism and hospitality development. If
strong policies and plans are established for sustainable tourism and hospitality development,
South America could emerge as an important tourism and hospitality market (Edgell, 2008).

Quality and hospitality products and experiences

• Eight major tourism and hospitality issue
• Tourists demand greater variety, flexibility, and quality in their tourism and
hospitality products
• Quality in tourism and hospitality experiences is usually on the tourist‟s list
• Air travel remains a travel issue as far as quality is concerned
• Air travel receives several complaints in terms of quality
• Air travelers experienced higher quality airline services in the 1970s and 1980s
In the future, the number and variety of tourism and hospitality products will change. Adventure
travel (jungle, tours, safaris, trekking, underwater exploration) to space travel is being
experienced by adventure travelers. There will be no shortage of activities for the active
travelers (Edgell, 2008)
Tourist look for a clean environment, more nature-based tourism, and cultural tourism.
Tomorrow‟s travelers will be better informed that today‟s travelers with regard to tourism
destinations because e-commerce tools are used more effectively in the planning of travel. Thus,
the future of tourism and hospitality will greatly depend on the introduction of new quality
tourism and hospitality products and experiences.
Space tourism, regarded as the century‟s newest tourism product, will grow tremendously as
soon as price becomes more reasonable. At present, a space trip package costs $20 million.
Dennis Tito, a US businessman, became the first tourist to reach outer space in 2001, traveling
in a Russian space shuttle to the International Space Station. The others were Mark
Shuttleworth in 2002; Gregory Olsen in 2005; Anousheh Ansari, the first female space tourist in
2006; and Charles Simonyi who paid $25 million for a two-week trip to the International Space
Station in 2007.In the every near future, Russia may begin to offer trips around the moon for
$100 million. So far, Russia is the only country with an effective space tourism policy.
Undersea tourism, is emerging as a tourism market that will likely expand in the future.
Exploring the bottom of the ocean is not as expensive as space tourism. Another new global
tourism product that is gaining popularity is volunteer vacations. In 2006, 6% of the world‟s
population undertook a vacation to help less fortunate people or to support a humanitarian
cause.

Partnership and strategic alliances in tourism and hospitality

• Ninth major tourism and hospitality issue
• New partnerships are occurring such as the partnership between the UNWTO
and the Meeting Industry on November 28, 2006 in which the United Nations Tourism Satellite
Account will measure the global economic contribution of the meeting industry.
• Other partnerships are introducing coopetition, the use of cooperation and
competition.
A recognized form of coopetition is the rewarding of frequent travelers with points which can be
used with car rental companies, hotels, airlines, and other components of the tourism and
hospitality industry. Hotels that have strategic alliances with certain airlines will give the visitor
points for room nights spent at a hotel which accumulate and are redeemable for free airline
tickets or upgrades or for use in booking future hotel rooms.
 59

The impacts of health issues on tourism and hospitality

• the tenth major tourism and hospitality issue
• Most travelers avoid the areas that have a high health risks.
• Diseases spread more rapidly due to travel, particularly through international
aviation.
Fear of disease reduces travel demand. Other diseases that affect tourism and hospitality are
AIDS, SARS, and foot to mouth disease. AIDS was originally brought to the United States and
Canada by a flight attendant who contracted the disease in Africa. SARS spread rapidly
throughout Asia and Canada. The foot and mouth disease spread from the United Kingdom to
continental Europe.
Policy makers now need to react to health crises in their own countries. They should formulate
strategies to provide support to individual countries and recommend restricted travel to affected
countries. Tourism and hospitality organizations must take leading roles in the development and
support of tourism and hospitality health measures and safeguards.
Effects of natural disasters on tourism and hospitality
• Eleventh major tourism and hospitality issue
• Have devastating impacts on the tourism and hospitality industry

Evaluation
Give one (1) Future World Tourism and Hospitality Issue and the reason why it can
possibly occur. What should the tourism and Hospitality Industry do to prevent this kind of issue?
(10 points)
As a Tourism and Hospitality Management student, cite one (1) example of Future World
Tourism and Hospitality Issue and the reasons why it can possibly occur. What should you do to
prevent or conquer this kind of issue? (10 points)
References
http://www.unesco.org/education/tlsf/mods/theme_c/mod16.html?fbclid=IwAR1K955_hLGeOXR
1vy3kG75lNP7aplcie3G0PLYbioeMkrsd9j9iIXp1TTI
http://www.who.int/topics/millennium_development_goals/about/en/
http://www.un.org/esa/sustdev/natlinfo/indicators/guidelines.pdf
http://www.un.org/esa/sustdev/natlinfo/indicators/factsheet.pdf
 9
61

SUSTAINABLE MANAGEMENTOF
TOURISM AND HOSPITALITY
Sustainability logo Retrieved from https://www.capgemini.com/2019/09/applying-technology-to-sustainability-

challenges
/ OVERVIEW
Sustainable tourism, one that establishes a suitable balance between the
environmental, economic and socio-cultural aspects of tourism development, plays an
important role in conserving biodiversity. It attempts to minimize its impact on the
environment and local culture so that it will be available for future generations, while
contributing to generate income, employment, and the conservation of local ecosystems.
By doing so, sustainable tourism maximizes the positive contribution of tourism to
biodiversity conservation and thus to poverty reduction and the achievement of common
goals towards sustainable development. Sustainable tourism provides crucial economic
incentives for habitat protection. Revenues from visitor spending are often channeled
back into nature conservation or capacity building programmed for local communities to
manage protected areas. Furthermore, tourism can be a key vehicle in raising
awareness and fostering positive behavior change for biodiversity conservation among
the millions of people travelling the globe every year.
Objectives
 Identify the sustainable management of tourism and hospitality.
 Know the sustainable development goals and;
 UNDP‟s Role in sustainable development.
 62

SUSTAINABLE TOURISM
Sustainable tourism is the concept of visiting a place as a tourist and trying to make a
positive impact on the environment, society, and economy. Tourism can involve primary
transportation to the general location, local transportation, accommodations, entertainment,
recreation, nourishment and shopping.
Tourism is one of the world‟s fastest growing industries and is a major source of income for
many countries. Being a people-oriented industry, tourism also provides many jobs which have
helped revitalise local economies.

THE TRIPLE BOTTOM LINE BY JOHN ELKINGTON

The Triple Bottom Line is one of the main systems being used by businesses to
assess the profits they are making through their corporate sustainability solutions. The Triple
Bottom Line method asks you to see beyond the traditional bottom line of business to the profits
that your business makes socially, environmentally, and economically.

Social Sustainability
The Social bottom line measures your business‟ profits in human capital, including your
position within your local society. Your social bottom line is increased by having fair and
beneficial labour practices and through corporate community involvement, and can also
be measured in the impact of your business activities on the local economy.

Environmental Sustainability
The Triple Bottom Line approach to sustainability takes the view that the smaller impact
your business has on the environment and the fewer natural resources you consume,
the longer and more successful your business will be.

Controlling your Environmental bottom line means managing, monitoring, and reporting
your consumption and waste and emissions. This is typically the work of your EHS
department, though most sustainable business models also make waste reduction and
green policies corporate-wide values across all levels of management.

Economic Sustainability
The business that strengthens the economy it is part of is one that will continue to
succeed in the future, since it contributes to the overall economic health of its support
networks and community.

SUSTAINABLE TOURISM DEVELOPMENT INDICATORS

CSD- Commission on Sustainable Management

MDG- Millenium Developmental Goals

CSD INDICATOR THEMES

• Poverty
• Oceans, seas and coasts
• Freshwater
• Biodiversity
• Economic development
 63

• Global economic partnership

• Consumption and production patterns
• Land
• Governance
• Education
• Health
• Demographics
• Natural hazards
• Atmosphere

Millennium Development Goals (MDGs)

The United Nations Millennium Development Goals are eight goals that all 191
UN member states have agreed to try to achieve by the year 2015. The United Nations
Millennium Declaration, signed in September 2000 commits world leaders to combat poverty,
hunger, disease, illiteracy, environmental degradation, and discrimination against women.
The MDGs are derived from this Declaration, and all have specific targets and indicators.

MDG Indicators
Millennium Development Goals
 Eradicate extreme poverty
 Achieve universal primary education
 Promote gender equality and empower women
 Reduce child mortality
 Improve maternal health
 Combat HIV/AIDS, malaria and other diseases
 Ensure environmental sustainability
 Develop a global partnership

SUSTAINABLE MANAGEMENT OF TOURISM AND HOSPITALITY

Sustainable management of tourism and hospitality means achieving quality growth in

a manner that does not deplete the natural and built environments and preserve the culture,
history, and the heritage of the local community.

The key to sustainable of tourism and hospitality is to balance the number of the visitors
with the capacity of the given environment in the manner that allows the greatest interactions
and enjoyment with the least destruction.
The importance of managing the cultural, natural, and social impacts of tourism and
hospitality cannot be overemphasized.
Aspects of the environment and local culture will benefit as government revenues from
tourism and hospitality-related goods and services help restore monuments, museums, art
galleries, and increase local crafts and establish national parks.

Global Code of Ethics for Tourism (GCET) is a comprehensive sets of principles

formulated to direct stakeholders in tourism and hospitality development.
The 10 principle codes that comprises the economic, social, cultural, environment components
of the travel and tourism:
 64

Article 1: Tourism 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: Obligation of stakeholders in tourism development.
Article 7: Right to tourism.
Article 8: Liberty of tourist movement.
Article 9: Rights of the workers and entrepreneurs in the tourism industry
implementation.
Article 10: Implementation of the principles of the global codes of ethics for tourism.

SUSTAINABLE DEVELOPMENT GOALS

The Sustainable Development Goals (SDG's), also known as the global goals are a
universal call to end poverty, protect the planet and assure that all people enjoy peace and
prosperity.
The SDGs give clear guidelines and targets for all countries to follow based on their own
priorities and the current world environmental challenges.

 What is UNDP's role?

The SDGs came into effect in January 2016, and will continue to direct UNDP policy and
funding for the next 2015 years. As the lead UN development agency, UNDP is tasked
to help carry out the goals in 170 countries and territories.
 The 17 Global Goals:
1. End poverty in all its forms everywhere;
2. End hunger, achieve food security and improved nutrition, and promote sustainable
agriculture;
3. Ensure healthy lives and promote well being for all at all ages;
4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all;
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation forall;
7. Ensure access to affordable, reliable, sustainable, and modern energy for all,
8. Promote sustained, inclusive, and sustainable economic growth, full and productive
employment, and decent work for all;
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and
foster innovation.
10. Reduce inequality within and among countries;
11. Make cities and human settlements inclusive, safe, resilient, and sustainable;
12. Ensure sustainable consumption and production patterns;
13. Take urgent action to combat climate change and its impact (taking note of
agreements made by the United Nation
Framework Convention on Climate Change (UNFCCC forum);
14. Conserve and sustainability use the oceans, seas, marine re-sources for sustainable
development;
15. Protect, restore, and promote sustainable us
e of terrestrial ecosystem, sustainably manage forest, combat desertification and halt
and reverse land degradation, and halt biodiversity loss;
16. Promote peaceful and inclusive societies for sustainable development, provide
 65

success to justice for all and build effective, accountable, and inclusive institutions at all
levels;
17. Strengthen the means of implementation and revitalize the global partnership for
sustainable development.

Accounting for 7% of worldwide exports, one in 11 jobs, and 10% of the world's GDP,
the tourism sector, if well managed, can stimulate economic growth, social inclusiveness,
and the protection of cultural and natural resources.
growth;

THE POLICY RATIONALE FOR A STATISTICAL FRAMEWORK

A common and robust set of data is critical for governments and stakeholders to design,
implement and monitor effective sustainable tourism policies. Indeed, evidence-based decision-
making requires the development of a rigorous, statistical approach to the measurement of
sustainable tourism. Important achievements have been made in tourism measurement over the
past decades, in particular the two UN statistical standards adopted in 2008: the International
Recommendations on Tourism Statistics and the Tourism Satellite Account: Recommended
Methodological Framework. Together, these statistical frameworks enable countries to produce
data that is credible and comparable– across countries, over time and in concert with other
standard-based data. These frameworks help integrate and organize data for the purposes of
deriving indicators such as tourism GDP.

The need for more and improved data is patent across all stakeholder groups, cutting
across global, national and subnational (including local) levels. In addition to the interest from
national governments and its relevance in international agendas, sustainable tourism is
especially important at subnational levels. For example, UNWTO‟s International Network of

Sustainable Tourism Observatories (INSTO) gathers Observatories that are dedicated to

better understanding, monitoring and advising on policies for the sustainable development of
tourism in their destinations. In order to support measurement initiatives worldwide and building
on this past work, the World Tourism Organization (UNWTO), with the support of the United
Nations Statistic Division (UNSD), launched the Measuring Sustainable Tourism (MST) project
to develop an international statistical framework for measuring tourism‟s role in sustainable
development. The resulting Statistical Framework for Measuring Sustainable Tourism (MST
Framework) aims to extend the current statistical frameworks beyond their economic focus, to
incorporate environmental, and social dimensions and at relevant spatial levels: global, national
and sub-national.

Evaluation

I. True or False. Determine whether the statement is True (T) or False (F).

1. Sustainable Tourism is a process of making positive impact on the

environment, economy and society.
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2. Management of Viable Tourism is the main factors of economic

sustainability encompass enhancing the local economy by purchasing local
products and using regional services.

3. Economic Incentive is focused on providing numerous opportunities for

all numbers of the local society as well as human rights.

4. Cost savings is a cost always a driving factors and reducing operating

costs provides a compelling incentive for hoteliers.

5. Local Tourism industry is the management and development guidelines

apply to all forms of tourism including niche tourism sectors and mass tourism.

II. Multiple Choice. Read and analyze each statement carefully then encircle
the letter of the correct answer.

6. Promote sustained inclusive and sustainable economic growth, full and

productive employment and decent work for all

A. Sustainable economic growth

B. Employment economic growth

C. Decent work and economic growth

D. Partnership for the goals

7. Strengthen the means of implementation and revitalize the global partnership

for sustainable development

A. Partnership for the development

B. Partnership for the goals

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A. Partnership for the economic growth

B. Sustainable cities and communities

8. As the lead UN development agency, UNDP is well-placed to help implement

the goals through our work in some

A. 170 countries and territories

B. 200 countries and territories

C. 250 countries and territories

D. 300 countries and territories

9. Ensure access to affordable, reliable, sustainable and modern for all

A. Affordable and clean energy

B. Clean water and sanitation

C. Industry, innovation and infrastructure

D. Reduced inequalities

10. Conserve and sustainably use the oceans, seas and marine resources for
sustainable development

A. Clean water and sanitation

B. Responsible consumption and production patterns

C. Life below water

D. Affordable and clean energy

III. Enumeration. (11-20) Give at least 5 Sustainable Development Goals. 2

points each.

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IV. Essay.

21-25.What makes a Tourism and Hospitality sustainable?

26-30. Why Sustainable Development Goals is important?

References
http://www.unesco.org/education/tlsf/mods/theme_c/mod16.html?fbclid=IwAR1K955_hLGeOXR
1vy3kG75lNP7aplcie3G0PLYbioeMkrsd9j9iIXp1TTI
http://www.who.int/topics/millennium_development_goals/about/en/
http://www.un.org/esa/sustdev/natlinfo/indicators/guidelines.pdf
http://www.un.org/esa/sustdev/natlinfo/indicators/factsheet.pdf
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