THC 9 Chapter 1 3
THC 9 Chapter 1 3
THC 9 Chapter 1 3
HOSPITALITY
LEARNING OUTCOMES
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 excursionists
5. Understand the various elements of travel used as criteria for defining travelers and/or tourists
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
9. Appreciate the importance of tourism and hospitality
COMPONENTS:
1. Food and beverage services 2. Lodging services 3. Recreation services 4. Travel related
(tourism) services
These components constitute the tourism and hospitality network. Network means a complicated
interconnection of parts or components. The components of the tourism and hospitality network may be
independent and competitive businesses; yet, they are interrelated and interdependent. Although
the components of the tourism and hospitality network are constantly changing, the network will
continue to dominate as a global industry.
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3. RECREATION AND ENTERTAINMENT COMPONENT
Entertainment originated from the traditional duties of a host to entertain his or her guests. 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. Nowadays, the concept of entertaining guests is broader. Guests
are offered different kinds of entertainment and recreational activities such as golf, tennis, hiking,
boating, swimming, handball, casino gambling, and concerts.
Travel agencies and tour operators are modern additions to the travel and tourism world.
Travel agent – one who sells travel services in a travel agency, he or she sells travel services that are
assembled by others into “packages”
Package – a bundle of related travel services offered to a buyer at a single price
Tour operators – wholesalers who make the necessary contacts with hotels, airlines, and other
providers of travel services abd devise packages which will appeal to retail buyers
DEFINITION OF TOURISM
DEFINITION OF HOSPITALITY
The word hospitality is derived from the Latin word hospitare, which means “to receive a guest”. Several
related words come from the same Latin root, including hospital, hospice, and hostel. In each of these
words, the principal meaning is a host who receives, welcomes, and caters to the needs of people who
are temporarily away from their homes.
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MEANING OF TOURIST
CLASSES OF VISITORS
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ELEMENTS OF TRAVEL
DISTANCE – The difference between local travel or travelling 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
LENGTH OF STAY AT THE DESTINATION – Tourists are temporary visitors who make at least one
overnight stay. Excursionists are temporary visitors who do not stay overnight in the country that they
visit.
RESIDENCE OF THE TRAVELER – For business and research purposes, it is important to know where
people live.
PURPOSE OF TRAVEL –
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THE NATURE OF A TOUR
1. ATTRACTIONS
2. AMENITIES OR FACILITIES
Include accommodation, food, local transport, communications, and entertainment at the site. Differ
according to the attraction of the site.
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3. ACCESSIBILITY
Accessibility means having regular and convenience of transport in terms of time/distance to the
destination from the originating country at a reasonable price.
TOURIST SERVICES
DISCUSSION QUESTIONS
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2. Describe the components of the tourism and hospitality network.
3. Define tourism.
4. Explain the meaning of hospitality.
5. Differentiate tourism from recreation and migration.
6. How do tourists differ from excursionists?
7. Describe the four elements of travel.
8. Explain the basic factors of a tourist destination.
9. Differentiate site from event attractions; natural from man-made attractions.
10. Describe tourist services.
11. How is tourism and hospitality different from other industries?
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CHAPTER II – THE HISTORY OF TOURISM AND HOSPITALITY
LEARNING OUTCOMES
1. Describe the history of the tourism and hospitality industry
2. Explain the origin of tourism and hospitality in the Philippines
3. Identify the international travel patterns
4. Describe the factors that favor the growth of tourism and hospitality
EARLY TOURISM
• The term tourism was only used in the 19th Century
• Tourism is derived from the Hebrew word torah which means studying, learning, or searching
• Tourism can trace its ancestry in the Old Testament
• Early tourism has two forms: travel for business such as trading, and religious travel
• At this time, there were also travel for private purposes. Examples are the Olympic Games held
in 776 BC by the Greeks as well as the travel by rich Romans for enjoyment and to visit friends
and relatives.
• By employing relays of horses, distances of 100 miles or more could be covered in one day. In
between distances of six miles were stables where horses could be changed. They are the
equivalent of the present gasoline stations.
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MODERN TOURISM - 19TH CENTURY
Two technological developments: railway, and steam power
• The railroads created not only more business, but also more competition as various private
companies invested heavily in hotels, resorts and entertainment facilities
• The use of steam powers provided increased mobility. It provided reliable and inexpensive
transportation
• Travel organizers emerged. The first and most famous was Thomas Cook - “Father of the Travel
Agency Business”
EGYPTIAN EMPIRE
• By 3200 BC, various groups had been united under one government ruled by a pharaoh, the
Egyptian term for king
• The famous pyramids or tombs for pharaohs became tourist attractions that many people
traveled long distances to see
• People also travelled to attend religious festivals
• The ancient Egyptians were the first to see that food service and lodging should be provided to
travelers
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• They were the first to begin the activity we now call tourism and hospitality
GREEK EMPIRE
Ancient Greek civilization began to develop about 1100 BC. It evolved in the form of independent
city-states
• Their land and sea travels made them dominant in the Mediterranean region
• Inns and taverns became common in ancient Greece. As in the middle east they had a bad
reputation
• In contrast to inns and tavers, their restaurants were often respected and served fine food
ROMAN EMPIRE
• The Romans constructed elaborate inns along the main roads for officials and couriers of the
Roman government
• These inns were described as “fit for a king”
• It is believed that they were the first to establish the first restaurant chain
• In ancient Persia, large caravans carried elaborate tents that were used along caravan routes.
Frequently, these caravans stopped at Khans, a combination of stables, sleeping accommodations,
and fortresses which provided shelter from sandstorms and enemies who attacked the caravans.
MEDIEVAL PERIOD
• Throughout the Dark Ages, the Roman Catholic Church took over the job of feeding and housing
travellers
• Number of inns increased but the standards of comfort and cleanliness differed greatly in different
countries and regions
• During the Renaissance, concern about table manners increased and rules to be observed at the
dinner table developed
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• The establishment of railroad stations became excellent locations for new hospitality business in
England and other countries that developed rail networks
• Inns, taverns, restaurants, and hotels opened near railroad stations
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ORIGINS OF TOURISM AND HOSPITALITY IN THE PHILIPPINES
• Tourism in the Philippines began when the original inhabitants of the country roamed around in
search for food, often through inter-tribe travel.
• A more recognizable form of tourism in the Philippines happened when galleons or wooden boats
sailed between Mexico and the Philippines during the galleon trade.
• In the 1920’s the steamship and the airline pioneers, the “China Clipper” and the “Manila
Clipper”, brought some passengers to Manila via Hong Kong.
• Travelers from the U.S., China, Japan, and Europe were provided inland tours by entrepreneurs
with their unregistered private cars and coaches called “colorum”.
• There were some offices like the American Express International which informally arranged land
tours for foreign travelers.
• There were only few tourist attractions and destinations.
• In 1952, the first tourism association in the Philippines was organized – Philippine Tourist and
Travel Association (PTTA).
• The government organized the Board of Travel and Tourism Industry (BTTI).
• In the late 1950’s, more hotels and restaurants and entertainment facilities were established.
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• Higher educational levels.
• The growth of the cities.
• Simplification of travel through the package tour.
• Growth of multinational business.
• Modern transportation technology.
• Shift in values.
• Advances in communication.
• Smaller families and changing roles.
DISCUSSION QUESTIONS
CHAPTER ACTIVITIES
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CHAPTER III – THE ECONOMICS OF TOURISM AND HOSPITALITY
LEARNING OUTCOMES
1. Explain the role of tourism and hospitality in economic development
2. Analyze the economic impact of tourism and hospitality on a destination area
3. Differentiate the direct effects from the secondary effects of tourist expenditures on the economy
of the host area
4. Elucidate the meaning of tourism multiplier and its effect on the economy of the host country
5. Describe the undesirable effects of the economic aspects of tourism and hospitality
6. Identify the strategies which can maximize the economic effects of tourism and hospitality
The Organization for Economic Cooperation and Development (OECD) has concluded that tourism and
hospitality provides a major opportunity for growth to countries that are at the intermediate stage of
economic development and require more foreign exchange earnings.
Tourism and hospitality is an invisible export which differs from international trade in many ways:
1. In tourism and hospitality, the consumer collects the product from the exporting country, thereby
eliminating the freight costs for the exporter
2. The demand for pleasure travel is largely dependent on non economic factors
3. By using specific fiscal measures, the exporting or tourist receiving country can manipulate
exchange rates so that those for tourists are higher or lower than those in other foreign trade
markets
4. Tourism and hospitality is a multifaceted industry that directly affects several sectors in the
economy and indirectly affects many others
5. Tourism and hospitality brings many more non-monetary benefits and costs than other export
industries
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ECONOMIC IMPACT
TOURISM MULTIPLIER
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COST-BENEFIT RATIO
Those concerned with developing the tourism and hospitality industry, whether a government or a
private individual, would like to know the extent of potential benefits and their costs. Benefits divided by
costs equal the cost benefit ratio. To arrive at these ratios, the following procedures are used:
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GROWTH THEORIES
ECONOMIC STRATEGIES
IMPORT SUBSTITUTION
INCENTIVES
The most common forms of incentives are:
1. Tax exemptions/reductions on imported machineries, materials etc.
2. Reduction in company taxation
3. Tax holidays (limited period)
4. Guarantee of stabalization of tax conditions (for up to 20 years)
5. Grants
6. Subsidies
7. Loans at low rates of interest
8. Provision of land freehold at nominal or little cost or at low rents
9. Free and unrestricted repatriation of all or part of invested capital profits, dividends, and interest
subject to tax provisions
10. Guarantees against nationalization or appropriation
FOREIGN EXCHANGE
• Many countries have placed restrictions on spending in order to maximize foreign exchange
earnings
• They have limited the amount of their own currency that tourists can bring in and take out of the
destination to ensure that foreign currency us used to pay bills in the host region
• Tourists may be required to pay bills in foreign currency
• Visitors may be required to show that they have enough money for their stay before they are
permitted to enter the country or they may even be required to enter with a specified amount of
foreign currency for the duration of their visit
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DISCUSSION QUESTION
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