MACRO

PERSPECTIVE OF
TOURISM &
HOSPITALITY
By: FRANCIS LLAGA
 MACRO PERSPECTIVE OF
TOURISM & HOSPITALITY
This course is designed to give a clear and overview of tourism and hospitality
as an ecosystem and goes beyond the usual closed-concept of tourism. It
introduces the concepts and terms that are common throughout the different
sectors. It also intends to develop, update and maintain local knowledge as well
as tourism industry knowledge. It shows the structure and scope of tourism
as well as the impact of Tourism as an industry in relation to the world
economy and society. It also illustrates that effects of the convergence of
tourism with the other local industries and let the students appreciate the
multiplier effect in various fonts. It discusses the major factors that
influence the history and future of tourism in the world and in the Philippines.
It also introduces the sustainable goals of tourism and discusses, among
others how to develop protective environment for children in tourism
destinations; observe and perform risk mitigation activities; etc. The students
will also learn to appreciate the key global organizations and the roles they play
in influencing and monitoring tourism trends.
 CHAPTER 1:
THE MEANING AND IMPORTANCE
OF TOURISM AND HOSPITALITY
LEARNING OUTCOMES
At the end of this chapter, you should be able to:
1. Explain the relationship of tourism and hospitality;
2. Discuss the components of the tourism and hospitality
industry;
3. Define tourism and hospitality;
4. Differentiate tourists from excursionist;
5. Understand the various elements of travel used as
criteria for defining travellers and/or tourists;
 LEARNING OUTCOMES
6. Explain the nature of a tour;
7. Describe the characteristics of a tourist product and
a tourist destination;
8. Compare tourism and hospitality with other
industries; and
9. Appreciate the importance of tourism and hospitality
Tourism and hospitality has been one of the largest and
fastest-growing industries in the world. It contributes greatly
to global economic development. Countries that are leading
in tourism and hospitality revenues are the United States,
France, Germany, the United Kingdom, Mexico and Japan.
 THE RELATIONSHIP OF TOURISM AND
HOSPITALITY
The tourism and hospitality industries strongly affect one
another. Several associations and industry leaders consider the
combined industries of tourism and hospitality as one large
industry-

COMPONENTS OF TOURISM AND

HOSPITALITY INDUSTRY
1. Food and Beverage Services
2. Lodging Services
3. Recreation Services
4. Travel-related (tourism) services.
 COMPONENTS OF TOURISM AND
HOSPITALITY INDUSTRY
These components constitute the tourism and hospitality
network. “NETWORK” means complicated intersection of
parts or components. See Figure 1 for an overview of the
tourism and hospitality network.
Figure 1. The Tourism and Hospitality Network
 COMPONENTS OF TOURISM
AND HOSPITALITY INDUSTRY
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 is strong especially in those
countries which rely on tourism and hospitality for their
economic development. Although the components of the
tourism and hospitality network are constantly changing
in connection with labour, opportunity, and growth, the
network will continue to dominate as a global industry.
 THE FOOD AND BEVERAGE COMPONENT

• 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
 THE FOOD AND BEVERAGE COMPONENT

• Aside from restaurants, taverns, bars, kiosks,

vending machines, supermarkets, food stalls, food
carts, and food trucks now offer food and beverage
services.
• 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 FOOD AND BEVERAGE COMPONENT
 THE LODGING COMPONENT
• Lodging involves providing overnight or even long-term services
to guests. For many people, lodging is a place to sleep. For others,
lodging facilities not only provide beds but also entertainment and
recreational facilities. Hence, the lodging industry component has
began to accommodate several customer preferences- from
budget motels to luxury hotels and expensive resorts.
• Lodging facilities such as inns, motor hotels, lodges, or motor inns
are hotels and motels that use different names. There are lodging
establishments that use different term such as bed and breakfast,
resort hotel, resort condominium, conference center, and time
sharing. There are lodging establishments that offer special
facilities such as ski lodges in Colorado and casino hotels in Las
Vegas and Atlantic City.
 THE LODGING COMPONENT
• 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.
• In other countries, there are lodging establishments such as the”
PARADOR” (an old Spanish monastery or castle that was
converted to a hotel); “PENSION or PENSIONE” (a French or
Italian home in which guests are provided with a room and
board); “CHATEAU” (a French castle or elegant country home
used as a hotel); “RYOKAN” (a Japanese inn in which traditional
customs are observed, and hostel).
• A lodging facility in which inexpensive accommodations are
provided to students and guests on non-profit basis.
THE LODGING COMPONENT
 RECREATION AND ENTERTAINMENT
COMPONENT
• Entertainment originated from the traditional duties of a
host to entertain his or her guests, whether they are
neighbors or travellers 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, tavern-keepers, and their
descendants have attended to their guests needs for
entertainment by talking to their guests. Others told stories.
Some provided games such as darts, draughts, backgammon, or
chess. Others employed jugglers and travelling minstrels.
 RECREATION AND ENTERTAINMENT
COMPONENT

• Nowadays, the concept of entertaining guests

is broader. Guests are offered different kinds
of entertainment or recreational activities
such as golf, tennis, hiking, boating,
swimming, handball, casino gambling, and
concerts.
 RECREATION AND
ENTERTAINMENT COMPONENT
 TRAVEL AND TOURISM COMPONENT

• Travel and tourism are used together as an

umbrella term to refer to those businesses
that provide primary services to travellers.
These include not only for food and beverage
services, lodging services, recreation and
entertainment services, but also
transportation services, and the services of
travel agencies and tour operators.
TRAVEL AND TOURISM COMPONENT
 TRANSPORATIONS
• The main purpose of transportation 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 the modern and
complex. The common means of transportation
are automobiles, recreational vehicles (RV’s),
buses, trains, ships, and airplanes.
TRANSPORATIONS
 TRAVEL AGENCIES AND TOUR OPERATORS

• Travel agencies and tour operators 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.
TRAVEL AGENCIES AND TOUR OPERATORS
 TRAVEL AGENT
A TRAVEL AGENT- is one who sells travel
services in a travel agency. He or she 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.
TRAVEL AGENT
 TOUR OPERATORS
• TOUR OPERATORS- are wholesalers who
make 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 who are able to sell tour
TOUR OPERATORS
 DEFINITION OF TOURISM

The task of defining tourism is not easy as it

may appear. Since tourism is a multidimensional
phenomenon, it is difficult to describe. Attempts
have been made in the past to formulate a
standard definition of tourism and tourist
among countries throughout the world.
 ATTEMPTS TO DEFINE TOURISM
• Tourism is the temporary short-term movement of people to
destinations outside the places where they normally live and
work and their activities during they stay at these
destination;
• Tourism in the pure sense is essentially a pleasure activity
in which money earned in one’s abode is spent in places
visited, In this sense, tourism represents a particular form
of leisure and a particular form of recreation, but does not
include all uses of leisure and all forms of recreation.
 ATTEMPTS TO DEFINE
TOURISM
• It includes much travel, but not all
forms of travel. Tourism therefore,
is distinguished from the concepts
of leisure and recreation on one
hand, and from travel and
migration on the other hand.
DEFINITION OF TOURISM
 DEFINITION OF HOSPITALITY
• The word “HOSPITALITY is derived from the Latin word
hospitare, which means “to receive as a guest.” This phrase
implies that a host is prepared to meet a guest’s basic
requirements while the guest is away from home. The
requirements of a guest of these circumstances are food,
beverages, lodging, or shelter.
• Several related words come from the same Latin root, including
hospital, hospice, and hostel. In each in these words, the
principal meaning is a host who receives, welcome, and caters to
the needs of people who are temporarily away from their homes.
HOSPITALITY
 MEANING OF TOURIST
• A tourist is a person who visits a country other than that
in which he usually resides for a period of at least 24
hours. This was held to include persons travelling for
pleasure, domestic reasons or health, persons travelling
to meetings or on business, and persons visiting a country
on a cruise vessel even if for less than 24 hours.
• In 1963, A 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
TOURIST
 2 TYPES OF VISITORS
1. TOURISTS- Temporary visitors staying at least 24 hours, whose
purpose could be classified as:
• Leisure, such as recreation, holiday, health, study, religion, or sport;
• Business;
• Family;
• Mission; and
• Meeting
2. EXCURSIONISTS- temporary visitors staying less than 24 hours in
the destination visited and not making an overnight stay, including cruise
travellers, but excluding travellers in transit.
TOURISTS V EXCURSIONISTS
 ELEMENTS OF TRAVEL
Four (4) basic 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 non-local
travel or travelling away from home. A measure
that has been used to distinguish travel away
from home is the distance travelled on a trip.
DISTANCE
 2. LENGTH OF STAY AT THE DESTINATION

• The second basic element of travel used as some

criteria for defining travellers is the length of
stay at a destination. The definition of tourists
and excursionist as proposed by the WTO (World
Tourism Organization) is largely teased on
length of stay.
• Tourists are temporary visitors who make at
least one overnight stay, while excursionists are
LENGTH OF STAY AT THE
DESTINATION
 3. RESIDENCE OF THE
TRAVELER
• The residence or origin of the
traveller is the third basic element
of travel. For business and
research purposes, it is important
to know where people live.
RESIDENCE OF THE
TRAVELER
 4. PURPOSE OF TRAVEL
• 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, theatre, sports
f) personal- family, medical, funeral, wedding; and
g) others
 ACTIVITY No. 2
1. Select a local tourist attraction. It could be a historic site,
museum, park, beach area, or shopping center that caters to
tourists. Write one page report describing the features of this
attraction that actually draw tourists.
2. Select a local tourist destination. Make a research on the
following
3. What type of visitor does the destination draw?
4. What does the destination’s management do to bring in visitors?
5. What features has its management added to lengthen the visitors’
stay?
 THE NATURE OF A TOUR

To analize 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
 Domestic Tourism

refers to travel taken exclusively

within the national boundaries of
the traveller’s country. People
find it easy to do so because there
is no language, currency, nor
documentation barriers.
 International Tourism
Involves the movement of people across
international boundaries. It is more
difficult to travel outside one’s own
country because the country visited has a
different language, currency, and
documentation requirements such as
passports, visas, and other conditions of
entry to be met by tourists
 Package Tour
sometimes called inclusive tour is 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.
The tour operator who organizes the
package tour purchases transport and
hotel accommodation in advance,
usually obtaining these at a lower
price because he or she is buying
them in bulk. He or she then sells the
tours individually to tourists direct or
 Independent Tour
Is an arrangement in which the tourist buys these
facilities separately, either making reservation in
advance through a travel agent or en route during
his tour. Is one in which the tourist travels to his
or her destination individually, while in group
inclusive tour, he or she travels in the company of
other tourists. The abbreviations IIT and GIT are
used for individual inclusive tour and group
inclusive tour respectively
 THE TOURIST PRODUCT

Consists of what the tourist

buys. In a wider sense, the
tourist product is a combination
of what the tourist does at the
destination and the services he
uses during his or her stay.
 CHARACTERISTICS OF A TOURIST PRODUCT

1. Service. It is an intangible item. It

cannot be inspected by prospective
purchasers before they buy as they
can with a washing machine, a stereo,
or other consumer goods. The
purchase of a package tour involves a
high degree of trust on the part of the
 CHARACTERISTICS OF A TOURIST PRODUCT

2. Largely psychological in its

attraction. It is a temporary use of
a strange environment plus the
culture and heritage of the region
and other intangible benefits such
as atmosphere and hospitality
 CHARACTERISTICS OF A
TOURIST PRODUCT
3. Tends to vary in standard and
quality overtime- A package tour
cannot be consistently of equal
standard. A bumpy flight can change an
enjoyable experience into a nightmare;
A good room in a hotel may be spoiled
by poor food; and a holiday at the
seaside can be destroyed by a
 THE TOURIST DESTINATION
Tourist Destination - 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:
1. Amenities or facilities
2.Attractions
3. Accessibility
 ATTRACTIONS
1.Site Attractions is one in which the destination itself
has appeal. May be a country, a geographical region
2.Event Attraction- is one in which tourists are drawn
to the destination solely because of what is taking
place there.
3.Natural Attractions- includes mountains, beaches,
and climate features such as sunshine and pure air.
4.Man-made Attraction- includes buildings of historical
or architectural interest such as Fort Santiago, holiday
camps, or theme parks.
 AMENITIES OR FACILITIES
includes accommodation, food, local transport,
communications, and entertainment at the site.
However attractive destination, its potential for
tourism will be limited unless the basic amenities
which a tourist requires are provided. Amenities will
differ according to the attraction of the site.
Sometimes, the amenity is itself the principal
attraction as in the case when a resort hotel is built
to offer different kinds of entertainment in a
previously undeveloped region.
 ACCESSIBILITY
means having 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 like. 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. Distinctions in transport are
between public and private, domestic and
international, and among the various
modes- land, sea, and air.
 TOURIST SERVICES
Accommodation, food and beverage, and
entertainment Constitute the second group of tourist
services. Hotels are of vital concern to a large proportion
of tourists. However, many stay with friends and relatives,
and in other private accommodations; others provide their
own accommodation in the form of caravans and tents. At
present, food and beverage operations cut across all
sectors of the travel industry since eating is a necessity,
as well as a pleasure for travellers. Entertainment,
combined with amusement and recreation, is the primary
reason why millions of people travel.
 Travel Agent

Is the distributor of the product.

Provides an intermediary function
between the tourist and the providers of
transport and accommodation.
 Tour Operator

Is the manufacturer of the product.

Combines the individual components of
a holiday into a product, which is sold
directly to the public or through travel
agents.
 CHARACTERISTICS OF TOURISM AND
HOSPITALITY

Tourism has special characteristics which

makes it different from other industries.
1.In tourism, the product is not brought to the
consumer; rather, the consumer has to travel
and go to the product to purchase it. In other
industries, an item manufactured in a factory
is brought to the wholesaler and retailer and
ultimately to the consumer.
 CHARACTERISTICS OF TOURISM AND
HOSPITALITY

2. The products of tourism are not

used up; thus, they do not exhaust
the country’s natural resources. The
products of other industries have a
limited life and at the end of it are
either junked or replaced with new
 CHARACTERISTICS OF TOURISM AND
HOSPITALITY

3. Tourism is labor-intensive
industry. It requires more
manpower than other industries.
 CHARACTERISTICS OF TOURISM AND
HOSPITALITY

4. Tourism is people-oriented one of

the most important motivation of
tourists is to meet other people and
see how other people live.