MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY (BSCHT) - BSCA 1-YB-1

Overview of Tourism
and Hospitality
Industry
Learning Outcomes:
• Discuss Nature of the Tourism and Hospitality
Industry
• Explain the characteristics of Tourism and
Hospitality products
• Analyze Factors that affect the Industry
• Differentiate macroeconomics and
microeconomics in relation to the industry
• Discuss the concept of the Tourism Basket of
Goods
• Analyze an organization using SWOT and Porter’s
Five Forces Model

Overview
•The Tourism and Hospitality industry is
dynamic, complex and highly inter-connected.
•The study requires multi-disciplinary, and
inter-disciplinary approach
•Tourism is often referred to as an “engine of
socio-economic growth and prosperity.
Characteristics of Tourism and
Hospitality Products
•Tangible
• Hotels
• Restaurant
•Intangible
• The speed of check-in procedure at the Front Desk
• The attitude of the Food Server
• The queue at the museum entrance

Major Factors that Influence

the Industry
•They include issues pertaining to
• Globalization
• Safety and security,
• Health and wellness
• Diversity
• Service Expectations
• Technology
• Green Practices
• Legal Issues and
• Changing travel interests

ISSUES AFFECTING THE

INDSUTRY
Accessibility Climate Change Animal Rights
Inclusivity Sustainability Gender Sensitivity
Artificial
Intelligence
Use of Information and
Communication Technologies
Globalization
Authentic
Experiences
Child Protection in Tourist
Destination
Changing
Preferences
Niche Segments Ethnic Rights Health and Wellness
Diversity Foreign Relations Immigration Policies
Green Practices Risk, Safety and Security New Demographics
Virtual Tourism Special Interest Tourism Role of Women
Politics Protection of Local Culture Environment Issues

New Paradigms in Tourism

and
Hospitality
• Experience Economy
• Creative Tourism Model
• Sharing Economy
• Need for Learning and Enrichment
• Authenticity versus Commodification
• Anthropocene
• Cultural Appropriation and Cultural Appreciation
• Use of Big Data Analytics
• Engagement and Connectivity
EXPERIENCE ECONOMY
•It can help organizations design a customer-
focused company that manages the intangible
while focusing on revenues and profits.
•It can be achieved by 4 Es
• Education – “edutainment”
• Entertainment
• Esthetic (Aesthetic)
• Escapist

CREATIVE TOURISM
•It is “travel directed toward an engaged and
authentic experience” with participative
learning in arts, heritage or special character
of a place.
•It is based either on the destination or
activity.
•It requires active involvement of visitors in co-
creating their experiencesCREATIVE
TOURISM
•It is “travel directed toward an engaged and
authentic experience” with participative
learning in arts, heritage or special character
of a place.
•It is based either on the destination or
activity.
•It requires active involvement of visitors in co-
creating their experiences
SHARING ECONOMY
•Its objectives are to provide speed, flexibility,
convenience and efficiency thru a shared
economy.
•Example is mobile application to rent cars –
grab and uber
•This is the result of the rise of collaborative
economy, increasingly demanding consumers
and the need for transparency and interactive
communication
LEARNING AND
ENGAGEMENT
•Vacation that includes experiences to learn
that “provide greater insights, increased
understanding and personal connection to the
people and places visited”
•This is providing authentic and interactive
experiences such as Guided expedition to
Antartica
AUTHENTICITY VS
COMMODIFICATION
•Authenticity
• It means that the product is not manufactured
specifically for the market
•Commodification
• A process by which things and activities come to
be evaluated primarily in terms of their exchange
value, in a context of trade

Examples:
•Tribes of Cordilleras are encouraged to wear
costumes for photo opportunities
•Whang-Od (last remaining tattoo artists) came
to Manila for a “meet and greet” during
tourism event
Issues with “Staged
Experience”
•Disrespect for the culture and traditions
•Exploitation of the local residents
•Tourist-oriented prostitution
•Reduces interests to visit the actual site
•Destroy the authenticity of local cultural
products
•Discourages desire to see authentic culture
and traditions
•Residents are required to “play native”
ANTHROPOCENE
•The Anthropocene paradigm refers to the
“assertion that the human influence has so
come to dominate all non-human processes
that it can now be potentially identified as a
district layer in the geological record
•Anthropocene ecotourism wherein the
“problems resulting from capitalist
development are transformed into new
tourism products”
Examples of Anthropocene
•War Tourism (Museum in Cambodia)
•Disaster tourism (Post-Hurricane Katrina tours)
•Slum tourism
•Extinction tourism (must-see attractions
before they disappear)
•Volunteer tourism
•Scientific Tourism
CULTURAL APPROPRIATION VS
CULTURAL
APPRECIATION
•Cultural Appropriation occurs when a person
from one culture adopts the fashion,
iconography, trends or styles from one culture.
•It refers to as “privileged culture borrowing or
stealing from a marginalized culture and strips
elements of the culture to use it as a prop or for
profit”
•It occurs without any real understanding of why
the original culture took part in the activities
•Cultural Appreciation is when someone seeks
to understand and learn about another culture
in an effort to broaden their perspective and
connect with others cross-culturally.
•It is important to think about the context and
symbolic significance of the traditions or
cultural icons as well as your personal
intention in using it.
USED OF BIG DATA
ANALYTICS
•Big Data – “the synthesis of the large amount
of information, experiences, feedbacks, and
thoughts, that is a structured or unstructured
way, people around the world create and
share instantaneously
•Big Data Analytics can review visitor patters,
previous contact and past behaviors and
recommended specific services based on
individual preferences.
ENGAGEMENT AND
CONNECTIVITY
• Internet and Communication Technologies (ICTs)
continues to change the way people
communicate, do business and consume products.
• These technologies that enable tourist to engage
and immerse themselves to travel experiences
• Internet
• Mobile applications
• Virtual reality
• Artificial intelligence
• Holograms
• Beacons

ECONOMICS
•It is the study of resource management
•These resources are classified into man
(labor), machine (land and raw materials) and
money (capital).
•Another expert include entrepreneurship
since it is the driving force behind the design,
production and distribution of products and
servicesECONOMICS
•It is the study of resource management
•These resources are classified into man
(labor), machine (land and raw materials) and
money (capital).
•Another expert include entrepreneurship
since it is the driving force behind the design,
production and distribution of products and
services
ECONOMICS
•It refers to the relationship between demand
and supply under different market scenarios
and circumstances
•It is also referred to as the analysis of choices
based on scarcity and opportunity
•Tourism Economics review the economic
development of a destination, the dynamics
between the laws of supply and demand,
investment, foreign exchange, taxation,
employment and other
factors.ECONOMICS
•It refers to the relationship between demand
and supply under different market scenarios
and circumstances
•It is also referred to as the analysis of choices
based on scarcity and opportunity
•Tourism Economics review the economic
development of a destination, the dynamics
between the laws of supply and demand,
investment, foreign exchange, taxation,
employment and other factors.
TOURISM BASKET OF
GOODS
•The “Basket of Goods” concept can be used to
understand the economics of tourism.
•This “denotes a set of available consumption
goods in which the consumer picks up the
preferred quantity for each good based on
substitutability, complementarity and its
lexicographic order”
•SUBSTITUTABILITY
• Consumer choose between available products and
services that are interchangeable which can be
substituted for one another
•COMPLEMENTARITY
• The right combination of products and services
will encourage more revenues.
•LEXICOGRPAHIC ORDER
• Pair of elements within basket wherein one good is
always preferred over another one.
MACROECONOMICS AND
MICROECONOMICS
MACROECONOMICS
• Looks at the big picture
• Highlights factors that directly affect the entire
industry
• Review the globalimpact of major issues
• Seeking solutions tocentral bank policies, fiscal
laws and legal regulations
MICROECONOMICS
• Focuses on details
• Emphasizes factorsthat directly influence an
organization
• Studies the effects ofkey concerns
• Finding answers to number of workers, pricing
strategies and possible damage

ANALYSIS USING SWOT

•It is a techniques used to review the internal
and external position of an organization in
relation to the business landscape.
•The acronyms refers to four variables: S –
Strenghts; W – Weaknesses; O – Opportunities
and T – Threats which are the main factors
that influence an enterprise
•It is an analysis yields two key advantages
• distinctive competencies
• Opportunities to take advantage

Analysis using Porter’s Five

Forces Model
Porter’s Five Forces Model
•It enables organization to analyze the industry
based on the following criteria:
• Rivalry among competing sellers
• Threat from new entrants
• Bargaining Power of buyers
• Bargaining power of suppliers
• Competition from substitute products
THE TOURISM AND
HOSPITALITY
PROFESSIONAL
Learning Outcomes:
•Explain the characteristics of a tourism and
hospitality professional
•Discuss the importance of ethics in the
workplace
•Discuss the career paths available to the
graduates of tourism and hospitality
management
EMPLOYMENT
•Direct
• Deals with the demand-side of the business, refers
to jobs where employees have face-to-face
contact with tourists.
•Indirect
• Works with the supply side, includes jobs with
intermediaries such as restaurant suppliers,
contractors, marketing consultants and handicraft
producers
Employment in the Industry
•International Labor Organization (ILO)
describes it as “labor-intensive where working
conditions are often precarious due to the
seasonability, low wages, low union density
and long working hours.
•It “provides opportunities for women, young
adults and migrants who generally receive
limited training.
•Women represent as much as 70% of the
global
tourism workforce
Forecasts
• WTTC forecasted that by the year 2030, there will
be 1.8 million international tourists (UNWTO, 2011).
• IATA reveals that there will be 7.8 billion air
passengers by 2036.
• Data from Economic Impact of Travel and Tourism
2015 Annual Update Summary reports that total
travel and tourism gross development product
(GDP) will grow at an average of 3.8% per yar from
2015 – 2025.
• The industry are projected to generate 72.9 million
new jobs
Diversity in Workplace
•Diversity – “the mix in the workplace of
people from different race, cultures and
backgrounds”
•“Cultural Diversity refers to the cultural
differences between people that includes
language, manner of dressing, traditions,
morality, religion, social organizations as well
as the way they interact wit the enviroment
Layers of Culture
•Internal Dimensions
• Refers to demographic information such as age,
gender, ethnicity, sexual orientation ,race and
physical ability
•External Dimensions
• Includes person’s appearance, work experience,
educational background, recreational habits,
personal habits, income, marital status, parental
status, and geographic location
•Organization Dimensions
Layers of Culture
•Organization Dimensions
• Involve the job, position, management status,
union affiliation, work location, seniority,
division/department/unit group, work content and
functional level
21ST Century Skills
•Written and verbal communication
•Technical
•Human Relations
•Conceptual
•Analytical
•Decision-making
•Digital capabilities
•Critical thinking
•Initiative
•Maturity
•Confidence
•Willingness to learn
•Ability to work independently and with a team
•Ability to think quickly
•Integrity
Ethics in the Workplace
•Ethics – “a set of moral principles, especially
ones relating to or affirming a specified
group, field, or for of conduct”
•Ethics – from Greek word “ethikos” – “of or
for morals”.
•Morals – from Latin word “mos” – “distinction
between right and wrong”
10 Ethical Principles for Tourism
and Hospitality Managers
• Honesty
• Integrity
• Trustworthiness
• Loyalty
• Fairness
• Concern and respect for others
• Commitment to excellence
• Leadership
• Reputation and morale
• Accountability
Career Paths
• Front Line
• These are also referred to as rank-and-file employees
• Supervisory
• They are tasked with responsibilities including monitoring
and coaching front-line employees
• Managerial
• These positions involve budgeting, analysis, planning and
change management in order to help employees and the
organization
• Executive
• Entrepreneurs and Business Owners Career
Paths
• Front Line
• These are also referred to as rank-and-file employees
• Supervisory
• They are tasked with responsibilities including monitoring
and coaching front-line employees
• Managerial
• These positions involve budgeting, analysis, planning and
change management in order to help employees and the
organization
• Executive
• Entrepreneurs and Business Owners

Career Paths
•Executive
• These are heads of an organization. They may be
either owners, corporate executives or both. They
have limited contact with the customers since
their role is more strategic in nature.
•Entrepreneurs and Business Owners
Career Opportunities in the
ASEAN Region
•The Association of
Southeast Asian Nations
(ASEAN) Mutual
Recognition Agreement on
Tourism Professional (MRA-
TP) enables qualified
professionals from
member-countries to work
in any country within the
region.
Career Opportunities in the
ASEAN Region
• The Association of Southeast Asian Nations
(ASEAN) Mutual Recognition Agreement on
Tourism Professional (MRA-TP) enables qualified
professionals from member-countries to work in any
country within the region.
• The ASEAN member countries:• Brunei
• Cambodia
• Indonesia
• Lao
• Malaysia
• Myanmar
• Philippines
32 Job Titles under MRA-TP