Entrepreneurship in

tourism and hospitality

CHAPTER 8
BUSINESS SUSTAINABILITY
 ECONOMICS, SOCIAL, ENVIRONMENTAL, AND
LEGAL ISSUES
Economics, social, environmental, and legal issues underscore CSR or Corporate Social Responsibility
agenda in the tourism and hospitality sector. Its value in the travel and accommodation enterprise
resonates with a wider group of stakeholders. The resources involved in enterprises of this nature range
from service accompanying products and raw materials, to workforce down to customers and
shareholders that are enhanced by the environment, society, and governance paradigms of CSR. The
future of this sector has become more exciting as far as the business relevance of CSR is concerned,
particularly in the face of the challenges brought about by the worldwide health crisis, which is the COVID-
19.
In the tourism and hospitality sector, the avenues where critical business sustainability presence must
would be created would be in having a supportive government presence, on inactive involvement in
voluntary disclosures, in heightened consumer awareness, in greater environmental protection and in
compliance pressure. Economic issues that have far-reaching effects on this sector would be on labor
markets, strategic supply chains, funding and investment, and refunneling of profit to community
development.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 ECONOMICS, SOCIAL, ENVIRONMENTAL, AND
LEGAL ISSUES
Social issues on the other hand would be largely on cultural commercialization, loss of community
identity, labor exploitation, and even sexual abuse. Any strategy that is aimed at confronting economic,
social, environmental, and legal issues in this sector must be done in equal importance. It is expected that
strategies on CSR would result in better financial performance, enhanced brand reputation, reduction in
operating costs, heightened sales, renewed customer loyalty, increase in productivity, better service
quality, ability to attract and retain outstanding talents, greater access to new funding for expansion and
development, greater workforce diversity, and the reduction of risks.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 CURRENT TRENDS IN SUSTAINABLE
TOURISM AND HOSPITALITY BUSINESS
Sustainable tourism and hospitality are more than emerging phenomena. The rise in
activities on tourism and hospitality has induced new considerations for strategic
business direction. The thrust of people, planet, and profit have become apparent, with
new ideas and business models emerging from this new set of priority. The growth in the
tourism and hospitality business, the slump that it experiences on a regular basis, and the
marked recovery that follows thereafter, are critical reasons behind the ever-dynamic
sustainable tourism and hospitality agenda.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 CURRENT TRENDS IN SUSTAINABLE
TOURISM AND HOSPITALITY BUSINESS
According to the statistics, the pace of travel, as well as hospitality-related property development
will continue to rise with the increase in population and the new earning activities that allow
people to spend on travel and tourism. Some of the more urgent concerns relative to this
development are as follows:

a. Reduction on wastes on consumable items

b. Reduction in the use of water resources
c. Reduction and ultimate elimination of plastics
d. Reduction in the use of non-renewable energy
e Reduction in the use of paper
f. Reduction in non-eco-friendly and non-sustainable new construction activities

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 RISK IDENTIFICATION AND MANAGEMENT IN
TOURISM AND HOSPITALITY ENTERPRISES
In travel, restaurant, lodging, and general hospitality industry, risk management is all
about keeping in pace with the rapid and dynamic change including technological
changes. Potential risks in the travel and hospitality industry include issues on safety,
innovation, on situations prompted by natural disasters, and reputational risk. The travel
and hospitality industry has its challenging set of risks in its efforts to deliver high-quality
service and ultimate client satisfaction. Conducting a thorough risk assessment and
developing a risk management plan will serve enterprises well, as it allows them to
properly identify and prioritize potential problems and put in place effective solutions.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
As companies allow their risk managers to work their way, it can make smart risk decisions to
improve the chance of success. Generally, risks can be classified into three types:

> Business Risk

> Non-Business Risk
> Financial Risk

Common Safety Hazards in the Travel and Hospitality Industry

> Slips, trips, and falls. Businesses in the hospitality sector have many operational
challenges, especially when they are at or above capacity
> Injury from incorrect manual handling
> Hazardous chemicals
> Fires
> Food Poisoning

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The basic methods for risk management are the following: avoidance, retention, sharing,
transferring, and loss prevention and reduction, which can be applied to all facets of an
individual's life and can pay off in the long run. The five steps in the risk management
process include:
Step 1: Identification of the risk
Step 2: Analysis of the risk
Step 3: Evaluation of the risk
Step 4: Treatment of the risk
Step 5: Monitoring and review of the progress of risk analysis action

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.
Fierce competition. As a dynamic industry, businesses within the
tourism and hospital realm will have their natural rise and fall,
but will always be outlined with heavy competition. Short and
long-term risk-creating situations will eventually result in
innovation and differentiation in service and product offerings.
Challenges will be hurdled through necessary changes and
adaptation, which will create a cycle of competition and
continuous improvement.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.
Inappropriate marketing actions. Oftentimes, technology
is not maximized well enough to augment actual
marketing efforts. The fear of losing a "personal touch"
may sometimes result in inefficient and inappropriate
marketing efforts on the part of the service providers. As
such, the virtual space must be continuously visited, with
old practices revisited and new efforts seamlessly
integrated.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Inefficient Energy Utilization. Hotels that early enough

cared to invest in renewable and environment-friendly
energy supply stands to gain in the long run. The profile of
new tourists is tilted toward those who are more.
sustainability-conscious, and are willing to trade off some
modern perks for a more rustic and natural vibe.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Careless Customer Relationship. Image is a crucial selling

point for any tourism and hospitality business. This image
may be enhanced by selling service at a standard that is
just a notch higher. In the same way, this image may be
destroyed with just a single and simple flaw.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Insufficient Skilled Service Providers. The availability of the

right personnel in the service industry is crucial for
mitigating any risk that may arise in this area of business
operation. The proper investment in the training of the
members of the local community, for a steady stream of
service providers, is an initiative worth exploring.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Prohibitive Service Rates. Quality service should not be

synonymous with expensive service. Quality service at
reasonable rates results to repeat patronage and a more
sustainable income flow. Creativity in service and process
oftentimes makes up for an inexpensive staging of the
customer experience.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Inadequacy in Maintenance and Cleanliness Response.

Cleanliness and well-maintained facilities are important for
accommodation-related businesses. Proper space utilization
and efficiency of room equipment and appliances are
important. The lack of in-service maintenance time should
never be a reason for having unkept rooms and common
areas.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Inefficient Mobility and Accessibility. While accommodations

that are situated in the so-called "off the beaten track" is
increasingly becoming a choice among travelers, this does not
mean having to hurdle colossal difficulties on mobility and
accessibility. The right balance of distance appeal and fast delivery
must be ensured to mitigate the risk in this area. Even a basic but
efficient transportation facility that runs round the clock is already
a huge add-on for the promotion of an accommodation business.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
 The following are some of the risks that are unique and
identifiable under the tourism and hospitality sector.

Uncertainty in Security Conditions. People who go on vacations

or who travel for business would appreciate having the risk of
security removed from their time of enjoyment or from the stress
of their work. Security issues like theft, public violence, terrorism,
armed robbery, credit card fraud, cybercrime issues, identity
theft, sexual abuse on women and children, racial discrimination,
and risk of food poisoning must be eliminated at all costs to
ensure that the business will thrive.

Reference: Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021. Entrepreneurship in tourism and hospitality. Rex Book Store. 856 Nicanor Reyes Sr. St. Manila
References
Bajao, G. T., Osorno, R. D. 2020. Entrepreneurship in tourism and
hospitality, Wisemen’s Book Trading’s Inc. ISBN: 978-621-418-095-0

Areola, E.M. Q., Manzano, R. G., Trinidad, F. V. 2021.

Entrepreneurship in tourism and hospitality. Rex Book Store. 856
Nicanor Reyes Sr. St. Manila