CHAPTER 1
global industry.
Meaning and Importance of Tourism and
Hospitality
The Relationship of Tourism and
Hospitality
● The tourism and hospitality
industries strongly affect
one another.
● Several industries leaders
and associations consider
the combined the industries
of tourism and hospitality
as one large industry - the
tourism and hospitality
industry.
● The components of this
large industry include:
1. food and beverage,
2. lodging services
3. recreation services
4. travel-related
(tourism services).
The Components of Tourism and
Hospitality
● 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 of 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
The Food and Beverage Components
● The public looks for food
and beverage services
everywhere - in hotels,
motels, airlines, airports,
cruise ships, trains, and
shopping malls. There must
be food service available
to them for breakfast,
lunch, dinner and snacks.
● There are commercial
restaurants that provide
food and beverage services
such as fast service
restaurants, ethnic
restaurants, and specialty
restaurants.
● Food service establishments
are found in theme parks,
in schools and colleges, in
hospitals and homes for
senior citizens, in
prisons, and halfway houses
and in shelters for the
homeless
The Lodging Component
● Lodging involves providing
overnight or even long term
services to guests. This
can also be a place to
sleep. For others, lodging
facilities not only provide
beds but also entertainment
and recreational
facilities.
● Lodging facilities include
inns, motor hotels, lodges,
motor inns. The are also
different terms such as bed
and breakfast, resort
 hotel, resort condominium,
conference center and
time-sharing.
● Campgrounds, transient
trailer parks, school and
college dormitories, summer
camps, and health spas also
attend to the lodging needs
of those who are away from
home.
Recreation and Entertainment
Component
● Entertainment originated
from the traditional duties
of a host to entertain his
or her guests, whether they
are neighbors or travelers
from other places. The host
has always felt an
obligation to attend to the
needs of his or her guests
not only for food and
beverages and lodging but
also for entertainment.
● Many centuries ago,
innkeepers provided
entertainment by talking to
other guests. Others told
stories. Some provided
games such as darts,
draughts, backgammon, or
chess. Others employees
jugglers and traveling
minstrels.
● Today the concept of
entertainment is broader.
Guests are offered
different kinds of
entertainment such as golf,
tennis, hiking, boating,
swimming, handball, casino
gambling and concerts, etc.
Travel and Tourism Component
● These two terms are used
together as an umbrella
term to refer to those
businesses that provide
primary services to
travelers.
● These include not only food
and beverage services,
lodging services,
recreation and
entertainment services, but
also transportation
services and the services
of travel agencies and to
Transportation
● This is to make it possible
for people to go from one
place to another,
there are many ways to do
this, from the primitive
and simple to
modern and complex.
● The common means of
transportation are
automobiles, recreational
vehicles (RVs), buses,
trains, ships and airplane.
Travel Agencies and Tour Operator
● These are modern additions
to the travel and tourism
world. Both have
become important in the
survival of many businesses
in the tourism and
hospitality industry.
● A travel agent is the one
who sells the travel
services in a travel
agency. He or she sells
them into “packages” or a
bundle of related travel
 services offered to a buyer
at a single price.
● Tour operators are
wholesalers who make the
necessary contacts with
hotels, airlines and other
providers of travel
services and devise
packages which will appeal
to retail buyers, they are
volume purchasers who are
able to negotiate lower
prices because of their
high-volume purchases. They
are able to sell tour
packages at a cheaper price
than the individual
consumer.
Definition of Tourism
● Professors Hunziker and
Krapf of Berne University,
Switzerland defined tourism
as the “sum of the
phenomena and relationships
arising from the travel and
stay of nonresidents,
insofar as they do not lead
to permanent residence are
not connected to any
earning activity” this
definition distinguishes
tourism from migration,
which involves taking up
permanent residence.
● Tourism Society of Britain
defines it as: “the
temporary short-term
movement of people to
destinations outside the
places where they normally
live and work and their
activities selected by
choice and undertaken
outside the home
environment.”
Burkart and Medlik (1997) cited five
main characteristics of tourism:
1. Because of its complexity,
tourism is a combination of
phenomena
and relationships;
2. It has two essential
elements: the dynamic
element or the journey
and the static element or
the stay;
3. The journey and stay are
to-and-fro destinations
outside the place of
residence and work;
4. The movement to
destinations is temporary
and short-term, with the
intention to return within
a few days, weeks, or
months; and
5. Destinations are visited
for purposes not connected
with paid work, that is not
to be employed and not for
business or vocational
reasons.
Definition of Hospitality
● The word “hospitality” is
derived from the Latin word
“hospitare”, which means
“to receive as a guest”.
● This implies that a host is
prepared to meet a guest’s
basic requirements like
food, beverages, lodging or
shelter, while the guest is
away from home. Several
related words come from the
same Latin root, including
 hospital, hospice, and
hostel.
● In all these words the
meaning is a host who
receives, welcomes, and
caters to the needs of
people who are temporarily
away from their
homes.
Meaning of Tourist
● In 1937, the League of
Nations defined “tourist”
as a person who
visits a country other than
that in which he or she
usually resides for a
period of at least 24
hours.
● This includes persons
travelling for pleasure,
domestic reasons or
health, persons travelling
to meetings or on business
and persons visiting and
persons visiting a country
on a cruise vessel even if
for less than 24 hours.
● In 1963, United Nations
Conference on International
Travel and Tourism
recommended a new
definition of a “visitor”
as “any person visiting a
country other than that of
earning money.:
This definition covers two classes of
visitors:
1) Tourists. Temporary
visitors staying at least
24 hours, whose purpose
could be classified as:
a) Leisure, such as
recreation, holiday,
health, study,
religion or sport
b) Business
c) Family
d) Mission;
e) Meeting;
2) Excursionists. Temporary
visitors staying less than
24 hours in the destination
visited and not making an
overnight stay, including
cruise travelers, but
excluding travelers in
transit.
Elements of Travel
A. Distance
The difference between
local travel or travelling
within a person’s
home community and
non-local travel or
travelling away from home.
It excludes commuting to
and from work and change in
residence. A trip
is defined as “each time a
person goes to a place at
least 100 miles
away from home and then
returns.
B. Length of Stay at a Destination.
Tourist 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
C. Residence of the Traveler
D. Purpose of Traveler
1. visiting friends and
relatives (VFR)
2. Conventions, seminars
and meetings
3. Business.
4. Outdoor recreation -
hunting, fishing,
boating and camping
5. Entertainment -
sightseeing, theater
and sports
6. Personal - family,
medical, funeral,
wedding
7. Others.
The Nature of a Tour
● Domestic tourism - travel
taken exclusively within
the national boundaries of
the traveler’s country.
● International tourism-
involves movement of people
across international
boundaries.
● Inclusive tour - 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 - 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.
● Independent inclusive tour
(IIT)- one in which the
tourist travels to his or
her destination
individually.
● Group inclusive tour (GIT)
- he or she travels in the
company of other to
The Tourist Product
This consists of what the
tourist buys. In a wider sense
this is a combination of what
the tourist does at the
destination and the services he
or she used during his or her
stay.
● Service. It is an
intangible item. It cannot
be inspected by prospective
purchasers before they buy
as they can with a washing
machine, stereo or
computer.
● Largely Psychological in
its attraction. It is more
than a collection of
services such as an
aircraft seat and a hotel
room. It is the temporary
usage of a strange
environment plus the
culture and heritage of the
region and other intangible
benefits such as atmosphere
and hospitality.
● Tends to vary in standard
quality. A package tour
cannot be consistently of
equal standard.
 ● Supply of the product is
Fixed. The number of hotel
room or aircraft seat
cannot be stored for
another sale as is the case
with intangible products
The Tourist Destination
● This is a geographical unit
where the tourist visits
and stays. It may be
a village, a town, a city,
a district, a region, an
island, a country, or a
continent. The success of a
tourist destination depends
upon the
interrelationship of three
basic factors: attractions,
amenities or
facilities and
accessibility.
● Attractions. Maybe a site
and event attractions. A
site attraction is one in
which the destination
itself has appeal, while
event attraction is one in
which tourists are drawn to
the destination solely
because of what is taking
place there. A site
attraction may be a
country, a geographical
region such as the Alps, a
city, a resort such as
Boracay.
● Amenities or facilities.
Include accommodation,
food, local transport,
communications, and
entertainment at the site.
However attractive a
destination is, the
potential for tourism will
be limited unless the basic
amenities which tourists
require are provided.
● Accessibility. This is
having a regular and
convenience of transport in
terms of time/distance to
the destination from the
originating country at a
reasonable price. If
private transport is to be
the means of access,
tourism flow will depend
upon adequate roads,
gasoline stations, and the
likes. Good railways and
coach services, airports,
and seaports are designed
to facilitate
accessibility.
Tourist Services
The travel and stay of tourists
give rise to a wide range of
services in the course of a
holiday. The principal tourist
services are supplied by
passenger transport, which
provides the means to reach the
destination, as well as the
movement at the destination.
Accommodation. Food and beverage
and entertainment constitute the
second group of tourist
services. Hotels are a vital
concern to a large proportion of
tourists. Eating is a necessity
as well as pleasure for
travelers. Entertainment with
amusement and recreation may
also be the reason why people
travel.
Services provided by travel
agencies and tour operators. The
travel agent is the distributor
of the product while the tour
operator is the manufacturer.
Characteristics of Tourism and
Hospitality
1. The product is not brought
to the consumer; rather the
consumer has to travel and
go to the product to
purchase it.
2. The products of tourism and
hospitality are not used
up; they do
not exhaust the country’s
natural resources.
3. Tourism and hospitality is
a labor-intensive industry
4. Tourism and hospitality is
people-oriented.
5. Tourism and hospitality is
a multi-dimentional
phenomenon. It is dependent
on many and varied
activities which are
separate but
interdependent.
6. The tourism and hospitality
industry is seasonal.
7. The tourism and hospitality
is dynamic. Characterized
by changing
ideas and attitudes of its
customers.
Importance of Tourism and
Hospitality
1. Contribution to the balance
of payments. Tourism and
hospitality
can help correct the
balance of payments and
deficits of many
countries by earning the
much needed foreign
currency in
international trade.
2. Dispersion of development.
this is the best means to
spread wealth among
countries; thus bridging
economic gaps between rich
and poor nations.
3. Effect on general economic
development. Expenditures
by tourists can have
beneficial effects on all
economic sectors and can
lead to the development of
different industries and
other economic
activities.
4. Employment opportunities.
For countries with high
unemployment rate, this can
be a great solution.
5. Social benefits. This takes
place when tourists come in
contact with the
inhabitants of the places
they visit.
6. Cultural enrichment.
Tourism and hospitality
emphasizes a sharing
and appreciation of
cultures rather than the
lack of trust brought
about by isolation.
7. Educational significance.
Tourism and hospitality
enhances one’s education.
International conferences,
seminars, and study trips
held each year enable
people of all nations to
exchange ideas, propose
solutions to problems and
share their concerns.
8. A vital force for peace. A
properly designed and
developed tourism
and hospitality can help
bridge the psychological
and cultural distances that
separate people of
different races, colors,
religions, and stages of
social and economic
development.