Reviewer - Midterms

Friday, 15 September 2023 13:01

CHAPTER 1: The Meaning and Importance of Tourism and Hospitality

What is TOURISM?
- Tourism - the “sum of the phenomena and relationship 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” -Professor Hunziker and Krapf of Berne University, Switzerland
- Tourism in the pure sense is essentially a pleasure activity in which money earned on one’s abode is
spent in places visited.
- 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”
- The definition was reformulated by the Tourism Society in Cardiff: “Tourism- may be defined in terms
of particular activities selected by choice and undertaken outside the home environment.
- The word Tourism is derived from the Hebrew word “Torah” which means studying, learning, and
searching.
- Tourism is the act and process of spending time away from home in pursuit of relaxation, leisure,
and pleasure.

-Migration - permanently staying in a different country.

What is Hospitality?
- The term is derived from the Latin word “hospitare” which means “to receive a guest”
- Hospitality implies whereby a guest who is away from home is welcomed by a host where basic
necessities are provided such as food, beverages, and lodging.
- Hospitality - an industry comprises business entities of food, beverages, lodging or a combination of
these businesses to travelers during a stay in a destination

COMPONENTS OF THE TOURISM AND HOSPITALITY INDUSTRY

Food and Beverage Component

- There must be food service available to them for breakfast, lunch, dinner and snacks
- The Public looks for food and beverage services everywhere - in hotels, motels, airlines, airports, cruise
ships, trains and shopping malls.

Lodging Component
- Involves providing overnight or even long-term services to guests; a place to sleep

Recreation and Entertainment Component

- Entertainment originated from the traditional duties of a host to entertain guests
- The host has always felt an obligation to attend to the needs of his/her guests not only for food and
beverages and lodging, but also for entertainment.
- Nowadays, guests are offered different kinds of entertainment and recreational activities.

Travel and Tourism Component

- Are used together as an umbrella term to refer to those businesses that provide primary services to
travelers.

Transportation
- Its purpose is to make it possible for people to go from one place to another.
- e.g buses, trains, ships and airplanes

Travel Agencies and Tour Operators

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 Travel Agencies and Tour Operators
- Are modern additions to the travel and tourism world
- Travel Agent - is one who sells travel services in a travel agencies; they sell travel services that
are assembled by others into "packages"; a package is a bundle if 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
able to sell tour packages at a cheaper price than the individual consumer.

1. Tourist Attraction - A tourist attraction is a place of interest that tourists visit, typically for its
inherent or exhibited natural or cultural value, historical significance, natural or built beauty,
offering leisure and amusement.

2. Accommodation - a group of rooms or buildings in which someone may live or stay and is
important to any tourists who want to travel to another destination or on a trip as you are
always going to need a place to stay such as hotels, caravan parks, campsites etc.

3. Transportation - is the means to carry passengers, that is, the tourist to the actual site where
tourism services are performed. The development of transportation, transportation vehicles,
infrastructure, and the use of new technologies in this sector speed up the development of
tourism.
a. Types of Transportation
i. Roadways Transportation
ii. Railways Transportation
iii. Water Transportation
iv. Air Transportation
v. Pipelines Transportation

4. Tourist information and guiding services

- Tourism is about visiting places you are not familiar with, so tourists certainly need someone to
guide them. For that reason, tourism information and guiding services are necessary in the tourism
industry.

- Tour guides are people who accompany tourists to a destination, explaining to them about the place,
and its culture and suggest them with suitable activities that can be done in the area. Moreover,
there are TICs, Tourist Information Centers, in destinations that provide a wide range of brochures,
books, and even maps to help inform the visitors about the area.

1. Tour operator
- An organization, firm, or company that buys individual travel components, separately
from their suppliers and combines them into a package tour, which is sold with their own
price tag to the public directly or through middlemen, is called a Tour Operator.

2. Travel Agents
- a person whose job it is to arrange travel for end clients (individuals, groups,
corporations) on behalf of suppliers (hotels, airlines, car rentals, cruise lines, railways,
travel insurance, package tours). Their task is to simplify the travel planning process for
their customers in addition to providing consultation services and entire travel packages.

HOSPITALITY TOURISM
- Accommodation - Attractions
- Food and Beverage Services - Transportations services
- Timeshare - Tour operators
- Events/Entertainment - Tourism Information centers

The relationship between tourism and hospitality

- Tourism affects hospitality
- Hospitality affects tourism
- it promotes each other and interacts with each other

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- Making a contribution to the national economy and promoting the development of the society.

Differentiate a tourist from an Excursionist?

Tourist
- A temporary visitor at least 24-hours, whose purpose is leisure; business; family; mission; and
meeting
- A tourist goes to a specific location to see specific things. Like a visit to Paris to see the Louvre.
Also, a tourist will usually stay overnight and sleep in the location he is visiting.

Excursionists
- Temporary visitors staying less than 24-hours; visitors are not making an overnight stay
- AN EXCURSION is a short trip, just for pleasure. Like a hike in the woods or a walk in the park.
Also, an excursionist will usually go back to his/her town, hotel, or residence that is different from the
visited destination, when sleep/rest is needed.

THE NATURE OF A TOUR

- To analyze the nature of a tour systematically, it will be helpful to understand the difference between
domestic and international tourism, as well as independent and package tours.

- Domestic Tourism - refers to travel taken exclusively within the national boundaries of the traveler’s
country. People find it easy to do so because there is no language, no currency, no document
barriers.

- International Tourism - involves the movement of people across international boundaries. It is

more difficult to travel outside one’s country because the country visited has a different language,
currency, and documentation, such as passports, visas, and other conditions of entry to meet
tourists.

- Package tour or inclusive tour - is an arrangement in which transportation 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 end route during his or her tour.

- Independent inclusive tour (IIT) - is 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 tourists

CHARACTERISTICS OF TOURISM AND HOSPITALITY

1. Intangibility
a. One of the characteristics of tourism products is that they cannot be touched. Tourism
products are intangible so after using the product there is no physical proof that one has
used it.
i. For example, a tourist books a hotel and sleeps in his room for four days. When he
checks out, there is no physical or tangible proof that he was in that hotel. There
are no products to show proof of purchase.
2. Inseparability
a. Another feature of tourism products is that they cannot be separated from the provider,
that is, it is inseparable.
i. If a tourist enters a restaurant and orders food or drink, the person who is bringing
the food or drink cannot separate him or herself from the food or drink being
brought to the customer. The service provider and the service itself are conjoined.
3. Tourism products are perishable
a. tourism product is perishable when it is not consumed at the time and point that they are
provided.
i. Let us say, for example, that a bus tour from Ibadan to Lagos in Nigeria has been

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 i. Let us say, for example, that a bus tour from Ibadan to Lagos in Nigeria has been
arranged and tickets have been sold out. If a passenger is unable to be present on
time to board the bus, the product perishes. That particular product cannot be
consumed again. It is lost.
1) Similarly, a tourist booked a hotel at Lekki in Lagos but for some strange
reason was not able to sleep in that room on the said date, that service is lost.
He has to pay again to get another room on another day.
4. No ownership
a. The ownership of a tourism product is not transferable to the consumer. The consumer
only owns the right to use the product because he has paid for it for a predetermined
period of time or days.

i. If a tourist pays for a hotel room, he or she has the right to use the room for the
days that he or she paid for. After that, he or she must vacate the room or pay for
additional days if he or she wants to prolong the stay. The hotel continues to belong
to the owner even if it is booked and paid for. Ownership does not transfer to the
renter because he or she has paid for the room.
5. Customer Participation
a. In the tourism industry, the customer by all means would have to partake in the delivery
of the service being offered, otherwise, the service delivery would never be complete. In
the industry, a product is being sold and a product is being consumed; there is no way
this can happen without the customer getting involved.
i. A tourist must be on a bus otherwise the service is not being consumed. If one pays
for a hotel or a hotel is booked on a person’s behalf, the person must of necessity
sleep in the hotel room for the product to be consumed.
6. Heterogeneous
a. Another characteristic of tourism products is that they are heterogeneous. In tourism,
tourists make use of several services, including transport, hotels, restaurants, car rentals,
and many types of indoor and outdoor recreational activities. However, what a tourist
experiences at one place is not similar to what one experiences at another place.
i. Even in the same restaurant, since there are many servers, the way one customer
is served may not be the same as the way another is served. The element of the
human factor creates a difference between one product and the other. Two different
bus companies could transport tourists to the same destination but the tourists
would have different stories to tell just because the drivers are different.
7. Immovability
a. Another feature of tourist products is immovability. A tourist attraction such as a waterfall,
mountain, beach, flora, and fauna cannot be moved from where it is originally located to
another place. Heritage sites have to remain where they are because that is how the
tourist will enjoy and have value for his money. It is partially impossible to move a hotel or
restaurant from where it is to another place without destroying the edifice.

ELEMENTS OF TRAVEL
1. Distance
- What must be considered under distance is the difference between local travel or traveling
within a person’s home community and nonlocal travel or traveling away from home. It
excludes commuting to and from work and change in residence.
- Trip -defined as “each time a person goes to a place at least 100 miles away from home and
returns.
2. Length of Stay and the Destination
- The second basic element of travel used as a criterion for defining a traveler is the length of
stay at a destination.
- The definition of tourist and Excursionist as proposed by the WTO is largely based on length of
stay.
- Tourists - are temporary visitors who make at least one overnight stay
- Excursionists - are temporary visitors who do not stay overnight in the place 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 the Traveler
- The fourth basic element is the purpose of travel. It can be divided into seven:

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- The fourth basic element is the purpose of travel. It can be divided into seven:
a. Visiting friends and relatives
b. Conventions, seminars, and meetings
c. Business
d. Outdoor recreation - hunting, fishing, boating, and camping
e. Entertainment - sightseeing, theater, and sports
f. Personal - family, medical, funeral, wedding
g. Other

Importance of Tourism and Hospitality

- The tourism and Hospitality Industry: a powerful driver of the economic engine of nations.
- Contributions to the balance of payments
- Dispersion of development
- Effect on general economic development
- Employment opportunities
- Social benefits
- Cultural Enrichment
- Educational significance
- A vital force for peace

CHAPTER 2:
THE HISTORY OF TOURISM AND HOSPITALITY
Early Tourism
- Man has traveled since the earliest times although the term tourism was used only in the 19th
century
- Tourism can trace its ancestry to the Old Testament. Noah with his Ark must have been the first
large-scale operator even though his passengers were mostly animals.
- Chapters 26 and 27 of the book of Ezekiel describe trade and commerce in ancient Tyre and
recount the travels abroad made by merchants.
- The word Tourism is derived from the Hebrew word “Torah” which means studying, learning, and
searching.
- Two forms of Early Tourism:
1. Travel for business such as trading
a. Sumerians invented money, writing, and wheels that facilitated the travel and exchange
of goods.

b. Phoenicians toured the Mediterranean as traders.

c. Greeks and Romans were well-known traders and as their perspective empires
increased, travel became necessary. The Olympic Games were held in Olympia, Greece
in 776 BC by the Greeks as well as the rich Romans for employment and to visit friends
and relatives.

d. The Roman traveler was largely aided by improvements in communications, first-class

roads, and inns (forerunners of modern hotels)

a. Mutations or stables are in between distances of six miles where horses could be
changed. They are equivalent to the present gasoline stations.
2. Travel for Religious Reasons
a. This took the form of pilgrimages to places of worship such as Chaucher’s tale of
pilgrimage to Canterbury. Beginning in 1388, English pilgrims were required to obtain and
carry permits, the forerunner for the modern passport.

TOURISM IN THE MEDIEVAL PERIOD

- Travel, derived from the word travail, became burdensome, dangerous, and demanding during this
time.
- After the decline of the Roman Empire in the 5th century, roads were not maintained and they
became unsafe.
- Crusaders and pilgrims were the only ones who traveled.

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- Crusaders and pilgrims were the only ones who traveled.

TOURISM DURING THE RENAISSANCE AND ELIZABETHAN ERAS

- Under Elizabeth I, young men seeking positions in court were encouraged to travel to the continent
to widen their education.
- This practice was gradually adopted by others on the lower social scale.
- In time, it became recognized that the education of a gentleman should be completed by a
“Grand Tour” of the cultural centers of the continent which lasted for three years.
- By the end of the 18th century, the practice had become institutionalized for the upper class of
society.
- As young men sought intellectual improvement in the continent, the sick sought a remedy for
their illnesses in “spas” or medicinal baths.
- The term “spa” is derived from the Walloon word espa meaning “fountain”
- Turnbridge Wells in Kent (near London) became famous as a spa in the 1660s.

TOURISM DURING THE INDUSTRIAL REVOLUTION

- The INDUSTRIAL REVOLUTION brought about major changes in the scale and type of tourism
development.
- Social changes made travel desirable as a recreational activity.
- An increase in productivity, regular employment, and growing urbanization gave more people the
motivation and opportunity to go on a holiday.
- The middle class combined higher incomes and growing education into annual holidays.

MODERN TOURISM

- Tourism in the 19th Century

- The railway provided reliable and cheap transportation and competition since various private
companies invested heavily in hotels, resorts, and entertainment facilities.
- Steam power provided increased mobility and reliable and inexpensive transportation that led
to the popular day-trip cruises and the growth of coastal resorts near large industrial towns.
- As tourism became organized in the later years of the 19th century, the organization of travel
became an established institution. Travel organizers emerged. The first and the most famous
of these was Thomas Cook.
- His first excursion train trip was between Leicester and Loughborough in 1841 with 570
passengers at a round trip fare of one shilling.

- Tourism in the 20th Century

- Early post-war prosperity, and large-scale migration, boosted the demand for international
travel
- New forms of mass communication stimulated curiosity about other countries, and with the
influence of posters and the press, the cinema, radio, and television widened knowledge and
interest in travel.

ORIGIN OF TOURISM AND HOSPITALITY IN THE PHILIPPINES

- Tourism and hospitality in the Philippines began when the original inhabitants of the country roamed
around in search of food.
- Steamships and airlines began to service the Philippines from other countries; thus, giving impetus
to tourism and hospitality in 1947.
- The Philippines had undergone economic, social, and political crises starting in the 1960s up to the
‘70s, which hindered the development and promotion of tourism and hospitality.
- 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.

HISTORY OF THE HOSPITALITY INDUSTRY

- Ancient Period (The Sumerians)

- Produced such abundant harvests by selling surplus grain to people in other parts of the
region;
- Invented money and writing as means to record and settle their business transactions;

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 - Invented money and writing as means to record and settle their business transactions;
- Converted grains to alcoholic beverages or beers which became the most commonly
consumed beverages in Sumerian society.

- The Greek Empire

- Their land and sea travels made them dominant in the Mediterranean region; forms of
overnight accommodation became a necessity;
- Many inns and taverns, restaurants in ancient Greece were often respected and served foods;
- In 146 BC, after many years of conflict, Greece became a Roman protectorate and the Roman
efforts at territorial expansion continued.
- Caravans stopped at Khans, a combination of stables, sleeping accommodations, and a
fortress that provided shelter from sandstorms and enemies who attacked caravans.

EARLY MODERN PERIOD: 1600 AD to 1800 AD

- In the sixteenth century, a type of eating place for commoners called ordinary appeared in England.
These places were taverns that served a fixed price, fixed menu meal.
- The advent of stagecoach travel revolutionized hospitality on the road followed by stagecoach or
coaching inns. At coaching inns, tired horses were exchanged with fresh horses, and stagecoach
passengers were fed and given the opportunity to rest overnight. Travel was difficult because the
roads were full of potholes and normally soaked in mud.
- There was an increase in the quality of inns, the application of English common law to the hospitality
industry;
- In France, the reintroduction of restaurants for public dining was seen.

- In the late 18th century, there were no public restaurants.

- In England, coffee houses and taverns served a daily “ordinary” which is a main meal with a fixed
price.
- Most people took their meals at home; the rich had their own cooks and entertained in their own
homes.
- Inns were established for travelers and did not normally serve meals to local residents.
- The food service element of the hospitality industry changed dramatically in France in 1765.
- In that year, a man named Boulanger operated a small business that sold soups and broths in Paris.
- These were known as restaurants, a French word which means “restoratives”

PIONEERS IN THE TOURISM AND HOSPITALITY INDUSTRY

- Cesar Ritz
- Became the general manager of the Savoy Hotel in London, one of the most famous and
luxurious hotels in the world
- He made the hotel a cultural center for high society. The Ritz name is synonymous with
refined, elegant hotels and service. At present, the Ritz-Carlton Nhotels bear his name.

- Ellsworth Milton Statler

- Is considered to be the premier hotel man of all time. He brought a high standard of comfort
and convenience to the middle-class traveler at an affordable price.
- He was the first to put telephones and radios in every guest’s room together with full-length
mirrors, built-in closets, and a special faucet for ice water.

- Conrad Hilton
- Was once recognized as “the biggest hotel man in the world” he was described by the New
York Times as the “master of hotel finance” he was careful not to over-finance and had a
flawless sense of timing.
- In 1954, he formed the first major chain of American Hotels - a group of hotels that allowed
standard operating procedures.

- Thomas Cook
- Is recognized as the first professional travel agent.
- He was the founder of the world’s first travel agency. He is credited for making world travel
possible for the middle class. The phrase “cook’s tour” is still used at present to refer to a tour

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 possible for the middle class. The phrase “cook’s tour” is still used at present to refer to a tour
that goes to many places and stops briefly at each place.

- Howard Dearing Johnson

- Was the pioneer of brand leveraging
- He was one of the first to introduce franchising in the 1930s, at present, Howard Johnsons is
one of the famous names in the restaurant and hotel business.

- J. Willard Marriott
- Founded the Marriott Corporation which has continued to be an important asset to the
Hospitality Industry
- Through his strong faith and determination, J. Willard Marriott began with a rootbeer stand that
was founded by Necessarily and built into a multibillion-dollar industry.

- Ray Kroc
- Has been the most financially successful of all hospitality entrepreneurs
- He founded the McDonald’s Corporation, a multi-billion dollar industry, through his strong
dedication, organizational skills, perseverance, and incredible aptitude for marketing.
- Developed several operational guidelines such as Quality Service Cleanliness and Value or
QSC&V
- Kroc’s motto, “Never be idle a moment” was also incorporated into the business.

- Isadore Sharp
- A first-generation Canadian was the founder of Four Season Regent Hotels, the world’s largest
hotel chain, and a multibillion-dollar global hotel empire.
- The success of the Four Seasons Regent Hotels is largely due to the drive, determination, and
personal taste and style of Isadore Sharp.

- Ruth Fertel
- Was the founder of Chris Steak House, the largest upscale restaurant chain in the United
States. It has 59 operations - 54 in the US and Puerto Rico and five internationally. It sells
more than 11,000 steaks daily with a gross income of two hundred million dollars a year.
- Because of this volume, Ruth Fertel is the most successful woman restaurateur at present.

INTERNATIONAL TRAVEL PATTERNS

- Major travel flows occur between the United States and Western Europe
- Secondary regional patterns exist between South America, the Caribbean, Africa, the Near East,
and the Far East. Travel to Africa is usually one way, originating in Europe.
- The heaviest flow of air traffic into Europe is between New York and London;
- Europe generates about one-half of overseas travelers to the US. Travel between European
countries - intracontinental travel -has been very popular. This is one of the reasons for Europe’s
large share of the worldwide travel market.

FACTORS THAT FAVOR THE GROWTH OF TOURISM AND HOSPITALITY

- Rising disposable income for large sections of the population

- Growth in the number of retired persons with the desire and the energy to travel
- Increase in discretionary time - shorter workweeks and longer vacations
- Greater mobility of the population
- Growth in the number of “singles”
- Greater credit availability through credit cards and bank loans
- Higher educational levels.
- The growth of cities
- Simplification of travel through the package tour
- Growth of multination business
- Modern transportation technology
- Shift in values
- Advances in communication
- Smaller families and changing roles

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-

Lesson 3:

The Economics of Tourism and Hospitality

Role of Tourism and Hospitality in Economic Development

- Many developing countries have used tourism and hospitality development as an aid to economic
growth. The reason for this are: there is a continuous demand for international travel in developed
countries; and the demand for tourism and hospitality will increase as incomes in developed countries
increase. Developing countries need foreign exchange to aid their economic development.
Economic Impact
- The economic impact of tourism and hospitality on a destination area is enormous since it provides a
source of income, employment and foreign exchange.
Direct and Secondary Effect
Direct Effect
- The term "direct" means that the income is received directly.
- Tourist expenditures received as income by businesses such as hotels, restaurants, car rentals,
tour operators, and retail shops serving tourists have a direct effect on the economy of the host
area.
Secondary Effect/ Indirect Effect
- Mean that the money paid by tourists to businesses are, in turn, used to pay for supplies, wages
of workers, and other items used in producing the products or direct services bought by tourists.
Tourism Multiplier - It describes the direct and indirect effect of an external source of income introduced
into the economy.
Cost-Benefit Ratio - A ratio obtained by dividing the benefits with the costs.
Undesirable Economic Aspects of Tourism
- There are some economic aspects of tourism and hospitality which are undesirable. These are higher
prices and economic instability.
- Higher prices are brought about by additional demand and/or increased imports, while economic
instability is the result of fluctuations in prices and income.
How to Maximize the Economic Effect of Tourism and Hospitality
Growth Theories
Some economic growth theories have been proposed to maximize the economic effect of
tourism and hospitality within a destination area. These are the theory of balanced growth and
the theory of unbalanced growth
Theory of Balanced Growth - An economic theory which emphasizes the development of supply.
Theory of Unbalanced Growth - An economic theory which emphasizes the need to expand
demand.
Economic Strategies
The key to maximizing the economic effects of tourism and hospitality is to maximize the amount
of revenue and jobs developed within the region.
Import Substitution
It imposes taxes on imported goods which can be produced locally.
Incentives
Financial aid given by the government to industry.
Common forms of incentives:
1. Tax exemptions
2. Reduction in company taxation
3. Tax holidays
4. Guarantee of stabilization of tax conditions
5. Grants
6. Subsidies
7. Loans at low rates
8. Provision of land freehold at nominal or little costs or low rents
9. Free and unrestricted repatriation of all part of invested capital profits, dividends
and interest subject to tax provisions

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 and interest subject to tax provisions
10. Guarantees against nationalization or appropriation
Foreign Exchange
Limitations established by a country to control the amount of money taken or exchanged within
a country.

Philippines Tourism Industry

History
- Tourism in the Philippines traces its origins to ancient times when the first set of people. Hose to
migrate through land bridges, followed by the other sets of migrations from the Malayan archipelago
in the south and Taiwan in the north.
- Trade also became part of tourism as Arabs, Indians, Japanese, Chines, Malays, and other ethnic
groups in mainland Southeast Asia, Taiwan, and Ryukyu traded goods with the natives.
- When the islands became part of the territory of Spain, an influx of Spanish people migrated into the
country, although still few compared to the Spanish migrations in South America as the Philippines
was farther
- The tourism industry first truly flourished in the late 19th century, immigrants from Europe and United
States.
- One of the Best countries to visit in Asia, aside from Hong Kong and Japan, receiving the nickname
“Pearl of the Orient Seas”.
- Tourism declined during and after World War Two, leaving the country with a completely devastated
economy, and a landscape filled with destroyed heritage towns.
- Second wave of tourist influx in the 1950s.
- Early part of the 2010s “It’s More Fun in the Philippines”.
- Continued growth in 2017, media and the creative tagline, the tourism went to its peak with
5,360,682.
- Due to the drug war and the declaration of martial law in Mindanao, nonetheless, the growth
continued due to an influx of Asian and Russian tourists.
- 2022: “Love the Philippines “

In General
- archipelago consists of 7,641 islands.
- The island of Luzon, is considered the political and economic center of the Philippines.
- The economy is centered in Metro Manila.
- Was ranked 11th most attractive City for American shoppers out of 25 Asia Pacific cities in 2012.
- Visayas, the central island group of the Philippines, is the heart of the country’s biodiversity.
- Boracay: popular island destination
- Mindanao: known for its mountain ranges, it is one of the best climbing destinations in the
Philippines.
- Mount Apo, takes two days to reach the peak; a wide range of flora and fauna, and over 272 bird
species, 111 of which are endemic to the area, including the national bird, the Philippine Eagle.

Resources
- the Philippines is rich in natural resources. It has fertile, arable lands, diverse flora and fauna,
extensive coastlines, and rich mineral deposits.
- The country’s six major crops are rice, corn, sugarcane, coconut, abaca, and tobacco.
- Mineral Resources, except for petroleum and a number of metals, and mineral resources, abound
in the Philippine soil. The country's mineral deposits can be classified into metals and nonmetals.
- Our metal deposits are estimated at 21.5 billion metric tons, while nonmetal deposits are projected
at 19.3 billion metric tons.
- Fishery resources, territorial eaters measuring 1.67 million square kilometer of land located in the
world’s fishing center, the Philippines is definitely rich in marine resp. Of the 2,400 fish species found
in the country. 65 have good commercial value.

Types of Tourism in the Philippines

Beach and Diving Tourism

- Beach tourism is currently the major tourist draw of the Philippines.

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 - Beach tourism is currently the major tourist draw of the Philippines.
- Boracay, El Nido, Coron, Cebu, Siargao

Hiking Tourism
- rising form of tourism in the Philippines, especially locals and Western Foreigners.
- Mount Apo, Mount Pinatubo, Mount Halcon, Mount Banahaw, Mount Makiling, and Mount Pulag

Research and Education Tourism

- biodiversity-led foreign researchers have flocked to various sites within the Philippines.
- Common nationals that seek graduate degrees or reviewer sessions in the Philippines usually come
from India, South Korea, and Palau.

Arts and Craft Tourism

- has recently expanded following several attempts to establish a cultural renaissance.
- The number of art museums, galleries, exhibitions, festivals, and town fairs throughout the country.

Fiesta Tourism
- various festivals are flocked by both locals and foreigners annually.
- Country has been known as the traditional capital of the world’s festivities which happen in the
country, a stop which are annual spectacles,

Wellness Tourism
- Wellness tourism has recently doubled its contribution to Philippine tourism houses, and hotels.
- Surges in patriotism for whole-body firewood pot bathing and due to the rise of hilot (ancient Filipino art of
healing) practices in spas, bath indigenous herbal usage have also helped the industry to prosper in the
village- a trend, along with the increase of yoga, as rooted to the Indian roots of many level.
- Staycation, or staying in hotels for relaxation purposes, has also become indigenous Filipino cultures.

Top Destination in the Philippines

1. Boracay
2. Banaue Rice Terraces
3. Puerto Princesa Subterranean River
4. Tubbataha Reef
5. Donsol
- Vigan
- Taal Volcano
- San Agustin Church
- Puerto Galera
- Mayon Volcano
- El Nido
- Malapascua Island
- Chocolate Hills
- Amanpulo
- Enchanted River

SECTORS OF TOURISM INDUSTRY

1. Accommodation – Accommodation is supplied for convenience or to satisfy a need such as lodging,

food, and services or traveling space and related services.

Types of Accommodation

a. Hotel – and establishment providing accommodations, meals, and other services for travelers and
tourists.

b. Motel – a roadside hotel for motorists, usually having direct access from each room or chalet to a
parking space or garage.

c. Bed and Breakfast – accommodation providing room and breakfast.

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 c. Bed and Breakfast – accommodation providing room and breakfast.

d. Farm House – a house attached to a farm, especially, the main house in which the farmer lives.

e. Resorts - a place that is a popular destination for vacations or recreation, or which is

frequented for a particular purpose.

f. Spas - a commercial establishment offering health and beauty treatment through such
means as steam baths, exercise equipment, and massage.

g. Privately owned housing or homestay - is a popular form of hospitality and lodging whereby
visitors share a residence with a local of the city to which they are traveling.

h. Condos - a large property complex comprised of individual units, and each unit is owned
separately. Rental of units is popular now through Airbnb.

2. Adventure Tourism and Recreation – Clients request active, recreational activity experiences or
travel adventures where they can learn about nature and/or culture are driving the growth.

Two Categories:

a. Hard Adventure – involves some risk and requires strenuous physical exertion on the part of the
participant. Examples: Mountaineering, trekking, spelunking, bungee jumping, rock climbing, scuba
diving, etc.

b. Soft Adventure – is less risky, less strenuous, and requires little to no participation. Examples:
Wildlife viewing, cultural walks, nature studies, wineries visit, etc.

3. Attraction and Activities

- All destinations require features that will attract tourists to come, see, and experience. They can
range from physical features, beauty of mountains, to quality of a beach, to activities, such as jet
boating down a river or shopping and entertainment.

a. Natural Attraction-
the physical characteristics of an area can be generalized as natural scenery, climate, and
environment. Many of these areas have been given a status to protect their environment and
provide facilities so that the public are able to enjoy the sights. There are attractions such as
caves, waterfalls, seashores, and any other scenic view interest that haven't been created by
mankind.
b. Man-made Attraction
the attractions are not natural and were created by man. Man-made tourist attractions can be
separated into two groups: Attractions that were made for tourism purposes and attractions
that were made for other purposes but has since been used for tourism.
- Purpose-built attraction - attractions that have been built purposely to attract tourists into
that area. Theme parks, amusement parks, aquariums etc. are all examples of purpose-
built attractions. In most cases tourists will have to pay an entry charge since the
attractions will be part of the private sector.
- Heritage attraction- are attractions that are old and have been in place for many years.
These attractions are in place so that people can gain an appreciation of the past.
Examples are: Machu Picchu, Peru; Pyramids of Giza, Egypt; Bagan, Myanmar; Angkor
Wat, Cambodia; Great Wall of China.
- Events Attractions - are also attractions that bring in lots of tourists to the area. These are
attractions such as small events like the Blackpool Illuminations or huge events like the
Olympics and the Paralympics. Events play an important part in the tourist attractions
because in different parts of the country, some places can't offer a large amount of
natural or purpose-built attractions therefore the events may be the only reason people
visit that certain area. Also, Events bring in a lot of income which creates jobs and wealth
in the area.
4. Food and Beverages - Food and beverage service is the provision of food and beverage to
persons outside of their homes. Examples are restaurant, lounge, coffeeshop, room service,
banquet service, bar, outside catering service.

5. Tourism Services – These are made up of the organizations, associations, government agencies, and

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5. Tourism Services – These are made up of the organizations, associations, government agencies, and
companies that specializes in serving the needs of the tourism industry.

National Tourism Office (NTO)

○ They can be defined as an organization officially responsible for the development and
marketing of tourism for a country and one that formulate and implements national
tourism policy.

Destination Marketing Organization (DMO)

○ They represent destinations and help develop their long-term travel and tourism strategy.
DMOs come in various forms and have labels such as “tourism board”, “conventions and
visitor bureau, and “tourism authority”.

Tourist Organization.

○ A commercial or noncommercial establishment such as company, bureau, or agency that

organizes and conducts tourist trips. An association, union, or other organized group that
promotes both domestic and international tourism.

6. Transportation – tourism industry needs transport to take tourists from one place to another because
the aim of the tourist is o reach the destination. There are different modes of transportation which consists
of air, rail, water, and road. Hence tourists have a choice to choose which one of the transports is suitable for
them. Tourists may look at the following factors in choosing which mode of transport – speed, safety, price,
and convenience.

a. Water Transportation – is the intentional movement on water over large distances. Transport
by water can be an attraction whether you are travelling on a cruise ship or a ferry. Examples
are: Motorboat. • Cargo ship. • Speedboat. • Sailboat. • Yacht. • Ferry. • Canoe. • Raft boat. •
Cruise ship
b. Air Transportation - is the movement of passengers and freight by any conveyance that
can sustain controlled flight.
i. Scheduled Services – operates on defined routes, domestic or international, for which
licenses have been granted by the government concerned. The airline must operate on the
basis of their timetable regardless of the passenger loading.
ii. Charter Services – it does not operate according to a published timetable and does not
have to operate with economical loadings. They are not advertised or promoted as they
are usually operated by chartered intermediaries.
c. Land Transportation – this is the most popular and commonly used in any country or areas. The
two main forms of land transport are rail transport and road transport.
i. Road Transport – examples are bus, taxi, motor cars, vans.
ii. Rail Transport - is a means of transferring passengers and goods on wheeled
vehicles running on rails, which are located on tracks.

7. Travel Trade

It support the booking and sales in other sectors. People who work in the travel trade make
reservations for accommodations, tours, transportations, food and beverage and/or attractions.

a. 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.
b. Travel Agencies – Private retailer that sells travel services that are assembled by others into
“packages.” In the travel business, a package is a bundle of related travel services offered to a
buyer at a single price.

SECTORS OF HOSPITALITY INDUSTRY

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 SECTORS OF HOSPITALITY INDUSTRY

1. Accommodation

- The demand for accommodations varies according to the price the guests are willing to pay,
services required, and similar considerations. The type of accommodations provided is also partly
determined by what competitors are providing. An important thing to remember in marketing is that
the facilities should at least equal those provided by the competition for the same market.
- In planning accommodations, the nature of the environment, the destination, the expected markets,
the mode of transportation, the type of activities engaged in at the destinations, and other related
factors determine the type of accommodations which shall be made available.

Hotel Classifications

• There are different ways of classifying hotels. One way is by location, such as city center,
suburban, airport, highway, and resorts. Among other way is by type of guests, 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.
• A star rating system is often used to classify hotels in Europe and other parts of the world
outside the United States. Stars are assigned according to the quality of restaurants, rooms,
amenities, and service. The highest is the five-star hotel and the lowest is the one-star hotel.
Other classifications are deluxe, first-class, standard, and economy.

2. Food and Beverages

- Food and beverage sector reigns supreme in the industry. And it can range from something as
simple as a bistro all the way to a high-end restaurant and every catering establishment in between.
- More of the tourist dollar spent on food and beverage than on any other service. Countries which are
the highest in per capita eating place and sales are also top tourist countries.

Sectors of Food Service Industry

Full Service

- establishments with relatively broad menu along with table, counter and/or booth service and
wait staff.

- Commercial restaurants operate for- profit basis.

Bistro

○ A small establishment with check tablecloths, bentwood chairs, cluttered decor, and
friendly informal staff.
○ Offers honest basic and robust cooking.

Coffee shop

○ Some coffee shops open all day and serve all meal types from breakfast through supper.

Specialty Restaurant

○ Serves a specific kind of meal. For example, pancakes or desserts.

○ Targeted at a certain group of people.
○ Food prices may be more expensive because its specially catered meals.

Wine bar

○ Often a mixture of bar and Brasserie- style operations.

○ Commonly wine- themed serving a variety of foods.

Limited Service

- establishments whose patrons generally order or select items and pay before eating.

- Food and drink may be consumed on premises, taken out or delivered to customers’ locations.

Popular catering and fast-food outlets

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 Popular catering and fast-food outlets

○ developed from table service tea shops and cafes through to steakhouses, and now
incorporating snack bars kiosks, then diners, takeaways, and cafeterias, with modern-day
burger, chicken and fish concepts, and with ethnic foods also being incorporated.
Meeting the needs of all-day meal taking and the need for ‘grab and go’ service,
especially for the leisure, industrial and travelling markets.

Public house

○ Licensed environment primarily for drinking alcoholic beverages.

○ Simply a serving bar with standing room for customers or more plush surroundings
incorporating the offer of a variety of foods.
○ Ranges from simple plated dishes through to establishments offering full restaurant
service (sometimes called gastropubs).

Food Court

○ Primarily self-service with customers choosing selection from a counter or counters in

varying designs and layouts.
○ Offered at a cheap price
○ Limited menu

3. Travel and Tourism

- Tourism is the act of traveling to a different location for either business or pleasure for more than
one consecutive year while travel refers to moving from one location to another. It can be long-
distance, short-distance, overseas or domestic travel and can cover a wide variety of different travel
purposes.
- The travel and tourism industry is one of the biggest and fastest-growing industries in the world in
the hospitality. Travel and tourism are not only confined to leisure and travel for fun. People travel
across the globe for different purposes which include business, education, entertainment, holidays
and many other things.

4. Entertainment and Gaming

- Entertainment sector provides recreational activities that is a significant part of traveling these days.
These includes activities that take away people's stress basically come from work or school and give
them properly amusement to relax.
- Some activities which can elevate your experiences when it comes to entertainment are:
a. Marinas – these are one of the most popular places to go when it comes to partying. You can get
along with your friends on a private yacht where you can dance, play games, and enjoy.
b. Sports and gaming – a basic activity which people look for on their travel. As a result, casinos,
swimming pools, and other similar activities are becoming an indispensable part of the hospitality
sector.
c. Cruise – apart from marinas, cruise services are also becoming an essential component of the
hospitality industry. Now, people like to spend their days on luxury ships.

5. Timeshare

- An emerging yet vastly important sector of hospitality industry is vacation ownership of a place. In
this scheme, people, either individuals or parties, own the rights to a place for a specific time period
during the year.
- Timeshare was included in the list because of the raised interest of hospitality enthusiast for this
sector. Timeshare gives an option to own each person’s choice and to enjoy facilities by either
buying a part of a facility or getting into a membership plan.

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