REPORT

ON
SIGNIFICANCE OF HOSPITALITY INDUSTRY FOR THE ECONOMIC GROWTH
OF THE COUNTRY

In Partial Fulfillment of the Requirements

for the Operations Management in the Hospitality Management
for the Degree of Master in International Hospitality Management

Claro M. Recto Academy of Advanced Studies

Lyceum of the Philippines University
Intramuros, Manila

Submitted to
Dr. Gloria Baken Wong-Siy
Professor

Submitted by
Antonio G. Niegas Jr.
 Chapter 1

Significance of hospitality industry for the economic growth

of the country.
 The hospitality industry is growing very rapidly and contributing nearly 10 % of the
world’s GDP (Boella, 2000).
 In the last decades the hospitality industry has got much importance of vigorous process of
expansion.
 Consequently, the hospitality industry is expanding globally and promoting its growth in a
changing multicultural environment.
 Hospitality is being built at regional, national and global levels. Internationally oriented
hospitality industry with different companies competes also locally and regionally.
 A great number of indicators show the sign of economic growth predicted by the
International Monetary Fund and this growth will be distributed unevenly in developing
countries (6.4 %) and (2.2 %) in advanced nations.
 Hospitality industry constitutes many subsectors; hotels and restaurant is one of most
source of economic growth.

Tourism and Hospitality Introduction

 Nowadays, tourism and hospitality industries have become the main investors in World’s
economy and taking the world on great height.
 There are some directions for making the tourists more attractive and flexible, also few
patterns, which makes the destinations stronger.
 These are pull and push factors. The pull factors play a significant role to make the
destinations more attractive and tourists value their interests towards the culture and
heritage.
 Destinations should have some intense attributes can either by tangible resources. In this
report, Hong Kong is a destination that shows the important features of cultural and
heritage demand in tourism industry in the Asia Pacific region. In Hong Kong, tourists
influence by the attractiveness of this place for example, natural and man-made
attractions, climate, heritage sites and nature-based tourism.
 The study of religion and culture gives the knowledge of cultural resources and
opportunities to make cultural destinations. Although, tourism industry studies on various
factors are cultural tourism, tourist behavior, the business of tourism, Global Distribution
system, history of tourism and social studies.
 Tourism is so vast and so multifaceted organization of tourism and hospitality industries
need to obtain a wide range of knowledge related to tourism. However, tourists are
showing their interests towards Asia- Pacific regions impressively and these countries
have maximum tourist arrivals and becoming famous.
  Hospitality industry has gained much more importance in today’s scenario for handling
the public who travel from one place to another either for some entertainment or for
business purpose. It is the industry of hotels, restaurants comforts and leisure.
 Good communication skills are required in this industry, for good communication skills
proper skills and training is provided by the hotel management and train their staff
properly.
Hospitality industry may include the following sectors.
1. Licensed clubs
2. Food shops
3. Catering activities
4. In-house catering
5. Exhibition and fair organizer’s activities
6. Activities of conference organizers
7. Other food services

 These are the areas of the hospitality industry which provide the services in different
ways.
 Hospitality is the focal point in those countries where tourism is the major export
industry.
 Cross border flow of business people and capitals has flourished the hospitality industry.
 The hospitality is the main source of foreign currency exchange and largest employers to
employ the workforce.
 Hospitality brings the different cultures together in global community. Countries
suffering from trade balances look the hospitality and tourism to close the gap.
 Therefore, the hospitality is a not concept but it is a driving force in the global market.
Lifestyle and globalization of business is communicated in foreign languages and coping
with different political and social systems.

Importance of Hotels
 Hotels are important globally as providing the facilities for recreation and entertainment,
meeting and conferences and business transmission.
 When hotels are essential for the economies and societies are appropriate to transport.
 Hotels contribute the output of goods and related services which build well-being of their
nations and communities.
 Visitors spend the hotels and contribute the local economies directly and indirectly.
 When foreign visitors avail the facilities of these hotels the foreign currency is earned
through the visitor’s payments.
 Hospitality industry becomes the source of employment especially for the labors and
management. Thousands of jobs are provided to locals as well as foreigners by these
hotels in its different occupations.
 Hotels are also an alternative source for the locals as amenities. Many hotels are the
social canter of their communities.
History of Tourism and Hospitality Industry:
 Tourism is one of the world’s major economic success stories, like time, that has no
beginning or end. It is a phenomenon that has been created and is difficult to define
because of its complexity. When time began so did tourism.
 With the Babylonian invention of money and the development of trade in 4000 BC, travel
and tourism were invented. Not only were the Babylonians the first to grasp the idea of
money and use it in business transactions,
 According to Goeldner and Brent Ritchie (2006), had they founded the travel business.
People could now pay for transportation and accommodation with money or barter.
Beginning in 2700 BC, the Egyptians started building pyramids as elaborate burial tombs,
including the step Pyramid of Djoser, the Sphinx and pyramid at complexes Ciza and
Abusir.
 So wonderful were these tombs that they attracted large number of visitors. In the words
of Casson “As each monument was a hollowed spot, so the visitors always spent some
moments in prayer, yet their prime motivation was curiosity or destination enjoyment,
not religion.”
 Around 1500 BC, Queen Hatshepsut took a cruise from Egypt to Punt (on the
East Coast of Africa), the journey is recorded in the temples of Deir -el- Bahari at
Luxor.
 Another Egyptian, Hartheuf, was an envoy of the pharaoh to Sudan. They
brought home a pygmy trained in native dances as a present for his ruler – the first
recorded souvenir.
 Easily Egyptians also purchased bargains or specialties abroad for
their friends and relatives.
 In 1800 BC, a young Uzalum received this request. “I have never before written to you
for something precious I wanted. But if you want to be like a father to me, get me a fine
string of beads, to be worn around the head.”
 As countries civilizations and economics developed, travel and tourism grew for business
and pleasure. Indian civilization, also one of the oldest civilizations in the history of
mankind has been explored by various travelers and traders. Though ancient written
records B.C could not be traced; few books and records lead us through the ancient
discovery of India through travelers’ perspective.
 With the end of Mughal Empire in India, the British East India Company
spread her wings all over the India and slowly British started replacing old federal
system of small kingdoms then existed in India.
 India being a vast country, distances to travel from East to West and North to South were
enormous. The one who wishes to rule such a huge country needs to have faster and
easier communication from one 23 end to the other.
 So to facilitate their rule in India, British developed roads and faster means to travel.
India was a major market place for British goods and was raw material provider for
Britain. So, faster and cheaper means to transport goods were essential to
keep the trade going to prosper the British Empire. Local people were encouraged to
 educate and join British trading companies, as manpower was required at all levels.
 it introduced certain new developments like railway, post-office, printing press and use of
machinery in production.
 The concept of summer vacation was introduced, as they would find Indian summers in
the plains too hot to bear.
 Hill stations were developed and good accommodation facilities were specially built at
these places.
 One can gain more knowledge by observing these things and being part of it than rather
just trying to learn it from the books. It is a way to educate oneself about social and
business environment and give a different perspective to one’s thought process. (tilak)

What Are The 4 Segments of The Hospitality Industry?

 While many business niches are composed of only a handful of different businesses, the
hospitality industry applies to nearly any company that deals with customer satisfaction
and is focused on meeting leisurely needs rather than basic ones.

 With the broadness of this industry, some defining aspects are important to
understanding.

 The hospitality industry is a broad category of fields within service industry that includes
lodging, event planning, theme parks, transportation, cruise line, and additional fields
within the tourism industry.

 A hospitality unit such as a restaurant, hotel, or an amusement park consists of units such
as facility maintenance and direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, management, marketing, and human resources, etc.).

 The hospitality industry is a multibillion-dollar industry that depends on the availability

of leisure time, disposable income, and complete customer satisfaction
There are four segments of the hospitality industry: Food and
beverages, Travel and Tourism, lodging, and recreation.

1. FOOD AND BEVERAGES

 The food and beverage sector which is professionally known by its initials as F&B is the
largest segment of the hospitality industry.
 The F&B industry is estimated to provide 50% of all meals eaten in the US today. It
comprises of establishments primarily engaged in preparing meals, snacks, and beverages
for immediate consumption on and off the premises. When a restaurant is part of a hotel,
services it renders can enhance the guest experience by providing excellent food and
first-class customer service.
  It can symbiotically function as part of other businesses, such as in bowling alleys or
movie theaters.
2. TRAVEL AND TOURISM
 Travel and tourism deal with services related to moving people from place to place.
Buses, cabs, planes, ships, trains and so on are all part of the travel industry.
 Leisure travel is when a person spends money on lodging, food, and recreation while
taking a vacation trip, and business travel is when a person travels for work and spends
money on lodging and food. Some people also spend on recreation while on a business
travel.
 The major function of the tourism is to encourage people to travel. When people travel,
either for business or leisure, they spend money on hospitality.
3. LODGING
 Lodging means accommodation for a period or a place to sleep for one or more nights.
Fancy hotels, youth hostels, elder hostels, campgrounds, motels and other businesses that
provide a place for people to sleep overnight are all in the lodging industry.
 Lodging businesses markets to other market segments such as business travelers, leisure
travelers, long-stay travelers, budget travelers, and special travelers like people working
with the government, airlines, and military.
4. RECREATION
 Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal of
recreation is to refresh a person's body and mind. Any business that provides activities for
rest, relaxation and enjoyment, to refresh a person's body and mind is in the recreation
business.
 Entertainment businesses which provide shows such as movie or theater, attractions
which are places of special interest of visits such as zoos and museums, spectator sports
and participatory sports are all parts of the recreation business.

The hotel’s different departments and their functions all

play a crucial role in ensuring the successful run of the business, while providing a
positive experience to its guests.

1. Front Office – Nerve Centre of The Hotel

Every day is different with the arrival of new personalities from different walks of life.
The Front Office Department is often referred as the nerve center of the hotel as it is in
constant contact with our guests, and has the most diverse operating exposure. Our team
is passionate about guest service and look at every possible opportunity to make our
guests comfortable during their stay. Our front office associates have a keen intuition that
allows them to anticipate our guest’s needs and exceed them. With its excellent
communication skills, it is not unusual for our staff to multi task and work diligently in
order to resolve any issues that may arise.

2. Concierge – Always at Your Service

Our concierge is constantly looking for ways to enhance your guest experience. Travel
routes, recommendations of tours, attractions, and short cuts around town are just a few
services offered by our remarkable Concierge Team, topped by, of course, a lovely
friendly welcome! Our experienced Concierge Team has been offering insights to
provide all our guests with useful information that will positively enhance their stay in
Philippines!

3. Housekeeping – Professional Quality Cleaning with a Personal Touch

Every morning is a busy one in the Housekeeping Department. The team has an eminent
eye for attention to detail to provide our guests with a spotless guest experience. Our
housekeepers are in charge of almost every detail of your stay from the fluffy pillows and
sheets in your guest rooms to the replenishment of your bathroom amenities. The
Housekeeping Department is a critical function to the hotel’s continued success!

4. Maintenance – To the Rescue!

Running an effective hotel requires careful planning and hard work. Equipment does
break down; meaning repairs and regular preventive maintenance are required around the
hotel. Our professional Maintenance Team performs a wide range of essential tasks to
help ensure a smooth operation resulting in happy guests.

5. The Edge Social Grille & Lounge Restaurant- Serving You with a Smile
Our team at The Edge social Grille & Lounge restaurant are a vibrant bunch with a
combination of proficiency and bubbly personalities. Whether it’s for breakfast, lunch,
dinner cocktails or appetizers, our team will always serve you with a smile.

6. Kitchen – Cooking with Passion

Our experienced team of chefs offers a great variety of scrumptious dishes to keep our
hungry customers happy. Although our chefs work in a fast-paced environment, the
kitchen is far from what you see on Reality TV! There is a less drama and more fun as
our chefs handle the line with their experience, great personalities and talent.

7. Accounting- Working the Numbers

The Accounting Team plays a significant role in the managing of the BEST WESTERN
PLUS Chateau Granville. They provide the hotel with relevant financial data and
forecasts which are used for daily decision making to ensure we are thriving and keeping
the books up to date. The team offers a great support service to all departments with
financial recommendations.
 8. Sales & Marketing – Creative Selling
Our Sales Team works hard to promote the brand and the amenities of the hotel. The
Sales Department is in charge of negotiating and prospecting large business and leisure
groups, tours operators and individual travelers. The Marketing Department is the
analytical backbone of Sales as well as being responsible for increasing exposure for the
hotel through various advertising opportunities both in print and on the Web. Be sure to
engage with us on our various social media platforms such as, Facebook, Twitter, Google
Plus, or Pinterest!

9. Catering Department – Meeting your expectations

Our Catering Department is responsible for the smooth operation and sales of our
beautifully appointed conference center. From corporate meetings to large celebratory
events, the catering team must to take ownership of every detail with excellent teamwork
and efficient communication in order to meet and exceed the expectations of our clients.
10. Executive Team – The Pack Leaders
The Executive Team plays a decisive role in the hotel operations as the final decision-
maker. The team is comprised of the Department Heads and is led by the Director of
Operations, and the General Manager. The team ensures the smooth running of hotel
operations, each member responsible for the management of its own department. Regular
meetings are organized to discuss any issues and find ways to continuously improve
business profitability and guest experience.

We are at our best when we collaborate, listen to each other and combine our expertise to
create a strong, focused, supportive and trusted team of professionals.