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THC 01-Module Nine &ten
THC 01-Module Nine &ten
THC 01-Module Nine &ten
Bangued, Abra
Module Nine
The Impacts of Tourism and Hospitality
Learning Outcomes
At the end of this lesson, you should be able to…
2. Employment – from local to national, benefits as well from tourism and hospitality. 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. Tourism and
hospitality generates employment faster for developing nations than for the developed ones. In general,
tourism and hospitality employees in developed nations are usually paid less. In developing countries the
opposite is true. There are three types of employment generated by tourism and hospitality:
a. Direct Employment – is generated as a result of providing goods and services directly to tourist in
hotels, restaurants, bars, nightclub, and the like.
b. Indirect Employment – consists of those positions that are associated with other tourism- related
activities but are used by both the local resident and the tourist. Shops and food wholesalers are
considered to be sources of indirect employment.
c. Induced Employment – refers to people working in positions only peripherally related to tourism
and hospitality, but generated but because of it. Examples are construction workers, merchants,
and professionals such as doctors and accountants who service the employees working directly in
tourism- related positions.
3. Balance of Payments – tourism and hospitality 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 a country pays or agrees to pay more money than it receives, it has a deficit in its balance
of payments. If it receives more money than it sends or exports, it has a surplus in its balance of payments.
Most countries, particularly those with good tourism and hospitality facilities but little industrial or
agricultural exports potential, appreciate the contribution that incoming tourists can make to their balance of
payments account. They therefore take steps to maximize their tourist receipts through the development of new
attractions, promotions, subsidized exchange rates, and other measures. They also try to keep their own residents
within the country by taxation on outgoing tourists, limitations on foreign exchange availability, or refusal to grant exit
permits (as in many communist countries).
4. Investment and Development – once an area has become economically successful, businessmen and
government agencies may be influenced to invest in tourism and hospitality and other industries in that area.
This is known by economists as an Accelerator concept.
● Inflation and land values – the inflationary effects of tourism and hospitality can arise in different ways. Rich
tourist can afford to buy items at high prices. Retailers, realizing that their profits can be greatly increased by
catering to tourists, increase their prices on certain products and provide more expensive goods and
services. Such stores can compete more successfully with those catering to local residents. They can afford
to pay higher rents and taxes which are passed on the customers through higher prices. Thus, local
residents have to pay more for their goods.
Inflation within destination areas is also caused by increasing land values. Growth in the tourist
trade creates additional demand for land, and competition from potential buyers increases the price land.
The demand for more hotels, vacation homes, and tourist facilities may bring more income to builders, real
THC 01|Macro Perspective in Tourism and Hospitality 83
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estate agents, and landowners, but local residents are forced to pay more for their homes because of the
increased value of land.
● High leakages – leakage occurs from a variety of sources. It occurs from the cost of goods and services that
must be imported to satisfy the needs of tourists. Examples of these are developing countries which have to
import cars, buses, manufactured materials, and technology from developed nations to meet the demands
of tourists. Another source of leakage is the remittance of profits and wages to outside sources. If foreign
capital is invested in the country’s tourism and hospitality industry, plant interest payments, rents, or profits
may have to be paid to the foreign country; thereby reducing profits in the destination country. A third source
of leakage is the expenditure for promotion and publicity to encourage tourists to visit a certain destination.
The cost of advertisement is a large expense that reduces the earnings of a destination area.
● Seasonality – many tourist regions experience low returns on investment because of a seasonal fluctuations
in demand. The seasonality of demand is reflected in hotel occupancy rates. Many hotels experience greatly
reduced revenues during the off season. Nevertheless, most hotels prefer to remain open all year round to
secure as much revenue as possible. Accommodation investments are not only ones with a low rate of
return; tour operators also face similar problems.
● Overdependence on tourism and Hospitality – some destinations have made themselves vulnerable to
changes is tourist demand by becoming over dependent on tourism and hospitality for their livelihood.
Tourism is highly susceptible to changes from within and outside the industry. Examples of changes from
within are price and fashions; while global economic trends, political situations, and energy availability are
examples of outside changes. Many tourists avoid destinations which are politically unstable but they
usually select an alternative. The decrease in demand for a destination results in underutilization of
services, unemployment, and loss of income.
8. Train local people to work effectively in all levels of tourism and hospitality, including managerial and
technical positions, in order to reduce the number of imported employees and to lessen possible
misunderstanding between tourist and local employees.
1. The quality of life improves in places where tourism and hospitality is being developed by bringing both the
urban infrastructure (water, housing, sewerage) and population benefits (medical care, social assistance,
schools) together;
2. The changes that occur in occupation and income patterns create a middle class wit 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 occur through the employment of women outside the home. This increases the
family income and gives the worker’s children more opportunity for higher education.
Thus, tourism and hospitality promotes progress and hospitality promotes progress and modernization
through exposure to other attitudes and values. It brings about improvements and facilities and services as well as
improvements in the lifestyles and quality of life of the residents of the host country.
►Social Saturation – the presence of large numbers of tourists in particular places at specific times 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.
In destinations that attract a large number of tourists, public transportation is so crowded with tourists that
there is hardly any room for local residents. Shops are full of travelers, forcing the locals to change their shopping
patterns. Streets are full of visitors resulting to traffic jams. Thus, saturation or congestion brought about by tourism
and hospitality is often cited as a social cost.
►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 the families. Many young people demand for the freedom from their families. They also disregard
social norms such as respect for elders and close family tires. Young women who enter the workforce have changed
their traditional dress to tourist clothes.
Tourism and hospitality in some areas leads to other social problems in the family. Some wives who work in
tourism and hospitality establishments have higher salaries than their husbands. This often leads to the loss of self
THC 01|Macro Perspective in Tourism and Hospitality 86
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confidence among their husbands. In addition, their improved way their dressing and grooming causes their hisbands
to be jealous and suspicious. This had led to a higher divorce rate.
►Community Problems – prostitution, often called the “oldest profession,” certainty 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. Increase of prostitution in tourist resorts are the following:
1. The processes of tourism and hospitality have created locations and environments which attract prostitutes
and their clients.
2. By its very nature, tourism and hospitality means that people are away from puritanical bonds of normal
living, anonymity is assured away from home, and money is available to spend hedonistically. This
circumstances are conducive to the survival and expansion of prostitution;
3. As tourism and hospitality affords employment for women, it may upgrade their economic status. This, in
turn, may lead to their liberalization and eventually to their involvement in prostitution to maintain or acquire
new economic levels; and
4. Tourism and hospitality may be used as a scapegoat for the general loosening of morals.
An increase in visitors increases criminal activity. Wealthy tourists present tempting targets. Lin and Loeb
(1977) identified the following three factors in the relationship between crime and tourism and hospitality:
1. Population density during the tourist season increases, creating the availability of a large number of targets
and congestion;
2. The differences in income between hosts and tourists encourage robbery; and
3. The proximity of resorts to an international border may attract undesirable migrants, resulting in increased
expenditures for law enforcement and monetary losses for businesses that become targets.
Impact Control Measures – A number of control measures can be adapted to decrease the negative change in an
area. Some of these are:
1. Reducing the contact between hosts and guests by limiting the carrying capacity of the destination and by
regulating the tourist flow;
THC 01|Macro Perspective in Tourism and Hospitality 87
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system, distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part,
without prior written permission from the owner is strictly prohibited.
Divine Word College of Bangued
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heirlooms explains the destruction of the archeological sites or the desecration of monuments in Egypt, Bali, India, or
Central America.
Moreover the increasing demand for artifacts has led to changes in its form and functions as art objects. The
artifacts many no longer be represented as traditional arts due to the following reasons:
1. Mass production due to increase in demand result to losing the careful and precise product workmanship;
2. The impersonal nature of the tourist market has decreased the spiritual relevance of the artist’s work;
3. Art is produced according to the taste of tourists which, in Africa, means carving animals, grotesqueness,
and gigantism; and
4. The increased demand has led to the misrepresentation of the age or authenticity of objects resulting in a
large number of limitations.
Even model cultural villages may be encouraging the loss of culture. Tourist, who wants to keep up with
their schedules, as well as entertainment, require shorter and therefore less authentic activities. Thus, the
entertainment loses its cultural value. Cultural villages and large hotels giving floor shows may manipulate authentic
host traditions and events to conform to the time schedules and taste of tourists. This effort to turn folklore, religious
or secular ceremonies, and artistic productions to material advantage leads to commercialism, thus, prostituting the
values of the local residents.
The architectural designs of most international hotels are of Western styles and often exhibit little knowledge
and appreciation of the social traditions of the local inhabitants.
Impact Control Measures – the following control measures may be adapted to reduce the negative impct of tourism
and hospitality culture:
1. Develop programs which enhance tourism and hospitality’s contribution to intercultural communication and
interaction such as matching tourist types with destination characteristics and designing programs for the
interaction of local residents and guests promoting goodwill “ambassador” tourist education; and
2. Incorporate local indigenous features within Western- style structures such as decorating hotel interiors with
local painting, murals, and sculpture, and encouraging porters, maids, and waiters to dress in native
costumers.
2. Environmental awareness has been heightened by mass tourism which caused direst and indirect
destruction.
In develop countries, several national parks and monuments have been created to preserve the natural,
cultural, and recreational resources of the land for the enjoyment, appreciation, and education of the present and
future generations. The development of parks was intended to open up areas for viewing as well as to control the
flow of traffic within the park.
Tourism and hospitality has provided reasons for the preservation of historical buildings and the creation of
museums. At present, many developing nations are realizing that their monument means tourists income. Thus,
desire to preserve their national monuments have increased. In developed countries, unspoiled natural attractions
are becoming rare.
Tourism and hospitality has created appreciation of the environment by bringing scenic attractions to the
attention of the public. In Switzerland for example, mountain sports and vacations, both in winter and summer, have
mushroomed as a result of a rapid tourist growth.
►Conservation – conservation and preservation of the environment not only benefit the local area but they also
determine the future of tourism and hospitality. First, the local residents benefit from preservation. Second, tourism
and hospitality, for as long as it draws tourists, will continue to be socioeconomic and cultural asset. The aim of the
National park Service, with the inclusion of conservation, is much broader now than it was in the past. The National
parks in East Africa, Kenya, and Tanzania were founded to protect wildlife.
In some places, bird sanctuary is one of the major attractions for tourists who want to seek a change from
their sun, sea, and sand experiences. Natural trails and bird-watching areas have been established to help the
visitors enjoy the area and to maintain the quality of the environment.
Gunn (cited by Valene, 1995) gave the following factors which led to the conservation movement:
1. There was a social concern to which the park movement owes its beginnings. The growth of industry and
commerce and their associated ills stimulated a demand for the parks and open space. The provision for
public land was seen as an antidote to the immoral values of urban society and as an escape from the
routine work and urban living.
2. There was an emphasis on the efficiency of resources being used, particularly on nonrenewable resources.
Early expectations stresses maximum utilization but with a minimum of environment degradation;
3. Conservation also incorporated aesthetic enhancement. This is particularly significant as one major tourist
activity is sightseeing which depends heavily on the qualities of the natural environment; and
4. Protecting the natural environment from irresponsible human manipulation.
Mathieson and Wall (cited by Landberg, 1995) identified four ways in which tourism and hospitality has been
important to conservation. These are:
1. Stimulating the rehabilitation of existing historic sites, building, and monuments;
2. Stimulating the transformation of old building and locations into new tourist facilities;
3. Creating the impetus for the conservation of natural resources; and
4. Bringing about the introduction of administrative and planning controls necessary to maintain the quality of
the environment to ensure a satisfying and rewarding experience for the tourists.
It can be concluded that tourism and hospitality provides incentives and the economic means and incentives
for the conservation and preservation of natural and historic sites. Many monuments, historic houses, villages, and
old churches cannot be maintained without tourist income.
►Development of Attractions – several countries around the world are identifying areas which have the potential to
attract tourists. In the Caribbean island of St. Croix, the US National Park Service has established and developed an
underwater national park. This unique site attracts snorkelers and those interested in corals. It helps preserve the
area and creates an awareness of the character of the coral reefs and the sea floor.
High mountains areas have been developed. A very good example is Jungfran in Switzerland which boats of
having the highest railway in Europe. Other examples are the Banaue Rice Terraces and Baguio city in the
Philippines.
● Historic Preservation – many historical sites in both urban and rural areas have been preserved to attract
tourists. Examples are Intramuros or Walled City in the Philippines, this restoration and rejuvenation process
is occurring throughout the world and serves as major characteristics of an area intended to impress
tourists.
● Resident Benefits – tourism and hospitality benefits the local residents in a number of ways. The first benefit
is that the results of conversation and preservation can be enjoyed by the local community as well as by the
tourists. The creation of national parks and monuments provides quick access to a variety of nature’s
wonders and outdoor activities to both the local residents and visitors.
Another benefit which results from tourism and hospitality development can be seen in coastal areas. The
development of a coastal resort allows free access to tourists and local residents.
► Environmental Conflicts – some of the problems affecting the quality of the environment are destruction of the
vegetation, pollution (air, water, and noise), and the destruction of wildlife. The destruction of the vegetation occurs
because of the large number of tourists who trample on the vegetation. In many parks, campers have cut branches of
trees and completely cut down small trees. In areas such as ocean fronts and islands, many visitors going to and
from the area destroy the vegetation cover, thus changing the natural habitats for birds and habitats for birds and
animals and, in some cases, even changing the temperature of the area. Sometimes, the loss of vegetation leads to
soil erosion and the further debasement of the environment.
Air pollution results from the gas fumes emitted by automobiles, taxis, buses, aircrafts, and factories. Ares
with large numbers of vehicles usually suffer from air pollution.
Water pollution is the result of the discharge of untreated waste from resorts or boats into seas, rivers,
lakes, and springs. The lack of an effective sewerage system in some areas has led to the widespread pollution of
the inshore waters making fish consumption inadvisable and swimming unhealthy. Moreover, such diseases as
cholera, typhoid, viral hepatitis, and dysentery are caused by seafood from polluted waters.
Noise pollution is associated with traffic congestion on land and on air. Many recreational vehicles such as
motorcycles, motorboats, and aircrafts cause a lot of noise.
Problems associates with wildlife results from killing of animals such as birds and disruption of the normal
habits of feeding and breeding. A very good example is the killing of elephant for tusks, zebras for hides, antelopes
for their heads, lion claws for necklaces, monkeys for skin throw-rugs, gazelles for hoof-key rings, and the like. The
prevalence of many tourists in an area changes the breeding habits and living patterns of much of the wildlife. The
animals are forces to move to a less traditional habitat.
►Geological Conflicts – tourism and hospitality affects geological formation. Some tourists collect minerals, rocks
fossils, and corals from tourist attractions; other destroy natural formations by vandalizing.
►Resident Conflicts – a number of conflicts frequently occur between residents and tourists and tourism developers.
In cities, hotels are built at the expense of residential accommodations. Increasing value of land often forces
residents to move away from the area. Hotel; development also brings traffic congestion and air pollution. In fishing
and hunting areas, the increasing demand creates problems for local fishermen hunters who now compete with the
tourists as well as with each other.
Conflict between tourists and the local residents may also arise because of damage to the area brought
about by littering, vandalism, and traffic congestion. In rural areas, the damage to crops, farm building, and livestock
are common complaints of farmers, together with the increasing value of lands, competition for labor, and land
erosion.
References:
Module Ten
Current Trends and Issues in the Tourism and Hospitality Industry
Learning outcomes
At the end of this lesson, you should be able to;
1. Discuss the social and economic changes that suggest a bright future for the tourism and hospitality
industry;
2. Be familiar with specific issues that owner and managers of the tourism and hospitality establishments are
likely to face in the following areas: marketing, legal, human resources, operations, and consumer affairs;
and
3. Identify the steps taken by the owners and the managers of tourism and hospitality entities to address the
major issues confronting the industry.
In recent years, a number of significant social and economic changes have occurred that suggest a bright
future for the tourism and hospitality industry. These are:
1. Early retirement – at present, many workers retire at an early age than the case in previous years. The US
social security system provides benefits to workers as young as 62 years of age and many employee
retirement programs are based on years of service rather than on age. In some retirement program,
specifically government programs, it is possible to work 25 to 30 years and receive benefits at the age of 55
or younger. The increasing number of people who retire early is beneficial for the tourism and hospitality
industry because these people use their time to travel and see the world;
2. Longer Life Span – the average individual can now expect to live beyond the age of 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 citizen who are richer due to pension programs and are healthier provides a
larger base of potential customers for tourism and hospitality.
3. Shorter workweek – 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;
4. Greater disposable income – the average family has more money to spend than before. This is 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;
5. Greater mobility – improve roads and better transportation make it easier to travel every year. The modern
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 to have a positive impact on tourism and hospitality industry; and
6. Smaller families – the average family size has decreased. Thus, it is easier for the family to travel costs less
if few family members travel.
business purpose. This group is responsible for the increased percentage of the travel market in
the past 45 years and the growth is sure to continue. The fourth demographic change is the growth
in the number of international travelers. One of the primary reasons is the decreased cost of
transportation relative to income, making travel more affordable to everyone another is increased
vacation time and a greater number of holidays in many countries.
● Changing Vacation Patterns – 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, vacations are becoming shorter and more frequent. At present, more
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 from a mini- vacation of five days while using only
two actual vacation days.
● Market segmentation – 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 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 to become apparent
include all-suites properties, residence properties, sub-budget properties, and a variety of budget
properties, which differ by their varying services and amenities.
● Frequent guest programs – 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 airlines
companies, these plans give credits to regular guests. They can be redeemed in the form of
reduces rates, upgrades, free accommodations, free meals, or any variety of amenities. As
competition becomes keener, the number of these kinds of grams will certainly grow. Many believe
that these programs will gain in the lodging business the same favor they have achieved among
airlines customers.
● Maturation in Segment of the fast- food Industry – 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 at once did, so operators find it necessary to develop new products to maintain the
desired sales level. At present, establishment that previously offered few products other than
hamburgers now offer pizza, salads, poultry, or other meat products. As public tastes continue to
change, food service operators will have to develop specialty products to retain an adequate share
of the market.
● Consolidation in the Commercial Lodging Industry – some experts are now predicting that the
number of large nationwide lodging companies will decrease in the coming years; that a small
number of firms will dominate the lodging industry by acquiring smaller chains of regional or
national properties. This will enable successful companies to obtain the funds requires to expand
their operations internationally.
The trend toward consolidation will have a tremendous impact on all commercial lodging
operations. Both independent operation and owners of smaller chains will find it difficult to compete
with heavily advertised national and international brands.
2. Legal Issues – are liquor liability and ethics in the tourism and hospitality industry.
● Liquor Liability – in the past, there was a growing public concern over the increasing number of
alcohol- related automobile accidents. At present, alcohol and the use of drugs is a factor in more
than half of all automobile accidents. This led the public to pressure state legislatures to act.
Legislators have responded by lowering the levels of blood alcohol in which an individual is
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considered intoxicated and by increasing penalties on offenders. In addition, several states in the
US have imposed new regulations on the serving of alcoholic beverages. In several states,
establishments and their owners can be held financially accountable if they serve alcoholic
beverages to an intoxicated individual who causes damage or injury after leaving the
establishment. in some places, this has caused tremendous increase in the cost of liability and
insurance. This prompted some bar owners to go out of business. It has also caused some
restaurant owners to stop serving alcoholic beverages. Some restaurant and bar owners have
changed their market strategies. They now feature and promote non-alcoholic drinks. As societal
attitudes toward alcoholic drinks continue to change, it will be necessary for food service and
lodging operators to adjust.
● Ethics in the Tourism and Hospitality Industry - ethics is an academic that deals with the study of
codes of moral conduct practiced by individuals or groups. Business ethics refers to the application
of a particular moral code to industry. It is the code that enables the individual in business to
distinguish right from wrong; to different between ethical and unethical behavior.
Ethics in the tourism and hospitality industry has been the issue for thousands of years. The business
practices of some operators of tourism and hospitality establishments are questionable. For example, a
manager of a new restaurant may hire 20 waiters but intends to keep only the 12 most able after the second week of
operation. An owner may fail to report all sales on his income tax returns. Another owner may cheat on his taxes by
charging personal expenses no the business. An employee in the purchasing department may accept gifts from
vendors in return for buying inferior products. Business ethics is likely to remain forever n the list of tourism and
hospitality issues.
3. Human resources – some of the human resource issues are sexual harassment, employee turnover,
employee assistance plans, and employment empowerment.
● Sexual harassment – may be defined as unwelcome sexual advances, requests for sexual favors,
and other verbal or physical conduct of sexual nature that take the place under any of the following
conditions:
⮚ Submission is made a condition of the person’s employment;
⮚ Submission to or rejection of such conduct is used as a basis for employment discussions
affecting the person; and
⮚ It unreasonably interferes with the person’s work performance or creates an intimidating,
hostile, or offensive work environment.
Because employers are liable for the actions of their employees at work, it is very important for
employers to take the following steps:
⮚ Institute a strict policy banning all forms of sexual harassment in the workplace;
⮚ Develop appropriate training programs for managers and employees so that all will
understand and become sensitive to the nature of sexual harassment; and
⮚ Establish procedures for handling all complaints promptly, fairly, and in a sensitive
manner.
● Employee turnover – is 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 and hiring less- experienced employees
as replacements. Faced with inexperienced replacements, several managers believe they have
only two choices – to shoulder the high raining costs associated with developing new employees
into efficient workers or to incur the equality high costs associated with working with untrained
employees. Very few realize that there is a third alternative – to retain valuables employees and
reduce turnovers.
● Employee Assistance Plans – employee assistance plans (EAPs) are included 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 educational issues.
The tourism and hospitality manager who establishes EAPs to benefit employees will eventually
develop a more loyal workforce, one that is willing to make great effort to attain the operational goals of the
enterprise. In addition, the manager who helps the employees will reduce employee turnover.
● 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 refills on coffee, strict limits on the
number of hand towels per guest, or directives prohibiting substitutions on special dinner menus.
These may affect the overall impression of a guest regarding a particular food service lodging
enterprise. For some guests, these rules may be enough to make them decide never to return.
Many owners and managers have realized the ineffectiveness of setting strict rules governing
every detail of guest service. Thus, they now set policies that are guest- oriented. They empower their employees to
make decisions that will improve the quality of service to guests without having a negative impact on operations.
4. Operations – include automation, smoking/nonsmoking areas, sanitation and public health, and recycling
solid waste.
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:
⮚ No increase the speed of work; and
⮚ To reduce the cost of work.
Automation in the travel industry is here to stay. Computerization will affect the industry principally in three areas:
● Communication – 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
(PCDUs), 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;
● Interactive CRTs – interactive television is now being used in some cities. Within a few more years,
more cities will be using it. It is possible 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 reduces to one third by interactive CRTs, travel
counselors will be reaching productivity levels. Hence the cost of getting a traveler on an airplane,
into hotel, or a car is highly reduces and the profitability of the distribution system as well as the
cost to the traveler is maximized; and
● Elimination of Tickets – there is no longer a need for a traveler to carry an actual document for an
airplane seat or a 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 arrangement 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 into which
he simply sticks his card. If the response is positive, he presses a button and a receipt pops out of
the wall.
● Smoking/ Nonsmoking Areas – 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 efforts to meet these demands. This is specifically true in places in which
legislation orders that appropriate facilities to accommodate the request of nonsmokers. Some
even install or improve ventilation equipment.
Many lodging establishments have set aside accommodations for nonsmokers. In some hotels, smoking is
prohibited in the lobbies, corridors, elevators, and other areas. Airlines have also established nonsmoking areas. The
prohibition of smoking in tourism and hospitality enterprises is an issue that is of increasing importance to owner and
managers in the coming years.
● Sanitation and Public Health – a very important issue in food service is sanitation. Everybody
agrees that all steps should be taken to prevent illnesses that are caused by the manner in which
food is handled or to the food itself.
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 at suitable temperatures to prevent the growth of bacteria. It
should be placed under proper conditions to prevent infestation by insects or rodents. The surfaces of equipment
must be cleaned very well to ensure that food service such as the washing of the hands of the employees, the
washing of china, glassware, flatware, pots, and pans that are used in the preparation and service of food and
beverages.
To ensure compliance with local sanitary codes, many food and beverages operators hire consultants to
conduct regular inspections and to help in the immediate correction of any violation, as consumers become more
aware of the potential harm brought by improperly handled food, preventing possible violations of local codes will be
significant issue to food and beverage operators.
● Recycling Solid Waste – in previous years, there has been a gradual closing of the landfills that
were used for disposing solid wastes and a growing awareness of the harmful effects of either
burning solid waste or dumping it into the sea. This has resulted in major waste disposal problems
in some places.
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 waste
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.
5. Consumer Affairs Issues – these are the fire, safety, truth in menus, and diet/nutrition/health.
● Fire Safety – has always been an important issue in the tourism and hospitality industry. In earlier
centuries, taverns, inns, and hotels were usually constructed of wood were regularly destroyed by
fire. Many were burned to the ground and a large number of people were killed or crippled.
During the twentieth century, hotels motels, and other lodging establishments have
instituted many changes, among which are improvements in design and construction as well as
improvements in the fire control systems installed in buildings. Examples are electronic smoke
detectors, automatic systems to summon fire departments, better sprinkler systems, and so on.
Because of these systems, people became safer.
However, a number of dangers associated with fire remains to be considered. On case of
fire, guests in hotels and other lodging operations may face danger from the toxic smoke resulting
from the burning of furniture, fixtures, and fibers produced from man- made materials. In a fire,
many of the artificial fibers used in wall coverings, carpets, draperies, and upholstery produce toxic
fumes that can be more dangerous than the fire itself.
Another problem is related to construction. In recent years, new buildings wee well-
insulated to decrease heating and cooling expenses. In some buildings, windows were not
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without prior written permission from the owner is strictly prohibited.
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designed to be 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 operators, 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 establishments. Some serve US choice beef when their menu
states US prime beef. Others serve portions with fewer ounces than the number listed in the menu.
Still, other have not used the actual ingredients suggested by their menus and have substituted
one product for another such as turkey for chicken, margarine or 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 risks 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 the public is very much concerned about healthy diets containing less
fat and lesser calories, many food service operators are adjusting 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 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 – the word travel and tourism council forecasts that travel and tourism
will grow at 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 examples of the wave of the future:
1. Increased speed in shopping use of the internet in develop countries;
2. Extended reach in less- developed countries;
3. Improved security of personal information;
4. Robotic labor sources;
5. Reservation system with more sophisticated, voice- activated, artificial intelligence;
6. Improved navigational systems for rental cars;
7. Electronic entertainment venues in rental cars and on planes and cruise ships;
8. Upgraded internet personal digital assistants for operations;
9. Marketing mass customization;
10. Comprehensive branding campaigns for large and small operators;
11. Virtual online customer communication;
12. Just-in-time seats/rooms/ car inventories;
13. Electronic travel agents;
14. Blended hybrid accommodations;
15. Global anti-terrorist microchip security systems;
16. More nutritional fast-food offerings;
17. Emphasis on ecotourism; and
THC 01|Macro Perspective in Tourism and Hospitality 99
This module is a property and is exclusively used by the DWCB College Department. Any duplication and reproduction, storing in any retrieval
system, distribution, posting or uploading online as well as transmitting in any form or means ( photocopying & electronic sharing ) of any part,
without prior written permission from the owner is strictly prohibited.
Divine Word College of Bangued
Bangued, Abra
References