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MACRO
Chapter 1: The meaning and importance off the Tourism and Hospitality Industry
The Relationship of Tourism and Hospitality
The tourism and hospitality industries strongly affect one another. Several association and industry leader’s
consider the combined industries of tourisms and hospitality as “one larger industry”,
- The components of the tourism and hospitality network may be independent and competitive
businesses; yet, they are interrelated and interdependent.
- The interdependence among the components is strong especially in those countries which rely on
tourism and hospitality for their economic development.
- Although the components of the tourism and hospitality network are constantly changing in
connection with labor, opportunity, and growth, the network will continue to dominate as a global
industry
Transportation
The main purpose of transportation is to make it possible for people to go from one place to another.
There are many ways to do this…
Travel Agent
1. One who sells travel services in a Travel Agency.
2. He/She sells travel services that are assembled by other into “Packages”
Package – is a bundle of related travel services offered to a buyer at a
single price.
Tour Operator
1. Are wholesalers who make necessary contacts with hotels, airlines, and other providers of travel services and
devise packages which will appeal to retail buyers.
2. Volume purchasers who are able to negotiate lower prices because of high- volume purchases. They are able to
sell tour packages at a cheaper price than the individual consumer.
Definition of Tourism
According to Hunziker and Krapf of Berne University, Switzerland.
“The Sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as they do
not lead to permanent residence and are not connected to any earning activity.”
This definition distinguishes tourism from migration, which involves taking up permanent residence. Since it
necessarily includes both travel and stay, it excludes day tours.
The definition of the Tourism Society in Britain was:
“Tourism is the temporary short-term movement of people to destinations outside the places where they normally
live and work and their activities during their stay at these destinations.”
This definition was reformulated by the Tourism in Cardiff (capital of Wales, United Kingdom)
“Tourism may be defined in terms of particular activities selected by choice and undertaken outside home
environment.”
Until in 1997, Bukart and Medlik cited five (5) main characteristics of tourism:
1. Because of its complexity, tourism is a combination of phenomena and relationships.
2. It has two (2) essential elements: the dynamic element or the journey and the static element or stay.
3. The journey and stay are to-and-fro destinations outside the place of residence and work
4. The movement to destinations is temporary and short-term, with the intention to return within a few days, weeks,
or months; and
5. Destinations are visited for purposes not connected with paid work, that is not to be employed and not for
business or vocational reasons.
Definition of Hospitality
The word “hospitality” is derived from the Latin word “Hospitare”, which means “to receive a guest”.
This phrase implies that a host is prepared to meet a guest’s basic requirement while the guest is away from home.
The requirements of a guest in these circumstances are food, beverages, lodging, or shelter.
Several related words comes from the same Latin root, including hospital, hospice, and hostel. In each of these
words, the principal meaning is a host who receives, welcomes, and caters to the needs of people who are
temporarily away from their homes.
Meaning of a Tourist
According to The League of Nations (1937)
• A person who visits a country other than in which he or she usually resides for a period of at least 24 hours.
This was held to include persons travelling for pleasure, domestic reasons or health, persons travelling to meetings
or on business, and persons visiting a country on a cruise vessel even if for less than 24hours.
In 1963, the United Nations Conference on International Travel and Tourism recommended a new definition of a
“visitor”
“Any person visiting a country other than that of earning money.”
This definition covers two classes of visitors:
1. Tourists – Temporary visitors staying at least 24 hours, whose purpose could be classified as:
a) Leisure, such as recreation, holiday, health, study, religion, or sport.
b) Business
c) Family
d) Mission
e) Meeting
2. Excursionists – Temporary visitors staying at less than 24 hours in the destination visited and not making an
overnight stay, including cruise travelers, but excluding travelers in transit.
Elements of Travel
Four (4) basic elements have been used as criteria for defining travelers and or tourists. These elements are
discussed in the following slides.
1. Distance
What must be considered under this element is the difference
between local travel or travelling within a person’s home community
and nonlocal travel or traveling away from home.
Trip
A trip is defined as “each time a person goes to a place at least 100
miles (160 kms) away from home and returns.
2. Length of Stay at the Destination
The second basic element of travel used as a criteria for defining
travelers is the length of stay at a destination. The definition of tourists
and excursionists as proposed by WTO is largely based on the length of
stay.
Tourists are temporary visitors who make at least one overnight stay,
while excursionists are temporary visitors who do not stay overnight in
the country that they visit.
3. Residence of the Traveler
The residence or origin of the traveler is the third basic element of
travel. For business and research purposes, it is important to know
where people live.
4. Purpose of Travel
The fourth basic element is the purpose of travel. It can be divided
into the following:
1. Visiting Friends and Relatives
2. Conventions, Seminars, and Meetings
3. Business
4. Outdoor Recreation – Hunting, Fishing, Boating, and Camping
5. Entertainment
6. Personal – Family, Medical, Funeral, Wedding
7. Others
Nature of a Tour
Domestic Tourism – Refers to travel taken exclusively within the national boundaries of the traveler’s country.
International Tourism – Involves the movement of people across international boundaries.
Packaged Tour – sometimes called “inclusive tour”, is an arrangement in which transport and accommodation is
bought by the tourist at an all-inclusive price and the price of the individual elements cannot be determined by the
tourist.
Independent Tour – Is an arrangement in which the tourist buys these facilities separately, either making
reservations in advance, through a travel agent or en route during his or her tour.
Tourist Destination
The geographical unit where the tourist visits and stays.
Tourist Services
- With the continuous demand from the tourists, the tourism and hospitality industry gave rise to a wide
range of services in the course of a holiday.
It was difficult to measure tourist activities before World War II, since there were no statistical
records and data available at this time. in 1947, a more orderly tourism activity started. Steamships and
airlines began to service the Philippines from other countries; thus, giving impetus to tourism and
hospitality.
In 1952, the first tourism and hospitality association in the Philippines was organized. This was the
Philippine Tourist and Travel Association (PTTA) which was organized to put together all existing
travel establishments serving both domestic and International travelers.
The PTTA was funded by the government to promote the country’s tourism and hospitality
industry. Later the government organized the Board of Tourism and Tourist Industry (BBTI) to
regulate, supervise, and control the tourist industry and to subsidize the PTTA as it promotional arm.
In the late 1950s, more hotels and restaurants and entertainment facilities were established.
The Philippines had undergone economic, social, and political crises starting in the 1960s up to the
1970s, which hindered the development and promotion of tourism and hospitality.
Accommodations were inadequate and airline companies were not given much incentive to
rpomote the Philippines as a visitor destination.
Due to the turbulent conditions in the country, the tourist industry was denied the peace and order,
sanitation, financial support, and other important factors for tourism and hospitality development.
It was only in 1972, after the declaration of martial law, when tourism and hospitality in the
Philippines prospered. This was due to favorable conditions, such as safety of tourism and hospitality,
better services and sanitation facilities, more financial support from the government, and the vigorous
cooperation of the private sector.
Thus, the Philippines became a “bargain destination” to foreign visitors. As several tour groups
arrived in the Philippines, more accommodations, food and beverage facilities, and more airline frequencies
were established. A temporary “tourist boom” existed in the Philippines in the early 70s.
Tourism and hospitality in the Philippines at present is the result of the continuous development
and promotion of tourism and hospitality from 1950 to the present.
However, the growth in the tourism and hospitality industry is not very spectacular compared to
our neighboring countries in terms of tourist arrivals.
Records show that the Philippines is still in the Tail-end of arrivals compared to other Asian
destination, such as Hong Kong, Singapore, Thailand, Korea, Taiwan, and Japan.