MICRO PERSPECTIVE

OF TOURISM AND HOSPITALITY

Introduction

Alejandro D. Jacinto III, LPT

Richwell COlleges, Inc.
BSTM Faculty
TOURISM BUSINESS VALUE CHAIN
How do we define value chain?
A tourism value chain is simply defined as a SYSTEM which
describes how private sector firms in collaboration with
government and civil society receive or access resources as inputs,
add value through various processes
(planning, development, financing, marketing, distribution, pricing,
positioning, among others) and SELL the resulting products to
customers. (Hawkins, 2005).

Topic 1: Tourism Business Value Chain

 Service
Consumers Distribution Intermediaries
Providers

Direct Booking
Leiusure Tourism
Inputs
Online Booking International
Online Portals GDS Transport

Package Booking Domestic

Consumers Transport
Travel Agents Global Tour Operators

Lodging

Destination
Management Companies Hospitality

GDS
Excursions
Inbound Tour Operators

Flow of Direct flow of Indirect flow of Activities performed Activities performed Activities performed
communication consumer’s money consumer’s money by international actors by domestic actors by both

Tourism Value Chain

TOURISM MULTIPLIER EFFECT
 TOURISM MULTIPLIER EFFECT
Direct Travel and
Tourism Contribution
COMMODITIES
Accommodation
Transportation Indirect Travel and Indirect Travel and Indirect Travel and
Entertainment
Tourism Tourism Tourism
Attractions
Contribution Contribution Contribution
INDUSTRIES
Accommodation services
Food & beverage services T&T investment spending T&T investment spending T&T investment spending
Retail Trade Government collective Government collective Government collective
Transportation services T&T spending T&T spending T&T spending
Cultural, sports & recreational Impact of purchases from Impact of purchases from Impact of purchases from
services suppliers suppliers suppliers

SOURCES OF SPENDING
Residents' domestic T&T spending
Businesses' domestic travel
spending
Visitor exports Individual
government T&T spending
 ECONOMIC
CONTRIBUTION
OF TOURISM

=
MORE tourists MORE Gov’t
income

= =
MORE business
MORE developments and employment
TOURISM SECTORS
Transportation
Accommodation
Food Service
Travel Trade
Cruise
MICE
Others