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MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM Five main characteristics of tourism by...
MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM Five main characteristics of tourism by BUKART and MEDLIK 1. Tourism is a combination of phenomena and WEEK 1-5 TOPICS relationship; 2. Tourism has two essential elements: Dynamic TOPICS OVERVIEW element (the journey) and the Static element (the Definition of Tourism stay) 3. The two essential elements must be to and from Components of tourism destinations outside the place of residence Perspectives in Hospitality 4. The duration of stay is temporary and short-term, Relationship of hospitality and Tourism with intention of returning to the place of residence Definition of Tourist, Consumer Behavior 5. Destination are visited for purposes of recreation Elements of Travel and leisure. Tourism Organizations The most widely utilized definition of tourism, History of Tourism proposed by the World Trade Organization (WTO) Economic of Tourism and United States (UN) Nations Statistics Division or Multiplier Effect United Nation World Tourism Organization (UNWTO). DEFINITION OF TOURISM They prescribes that in order to qualify as a tourist: "One must travel and remain in a place outside of Its definition varies source by source, person by their usual residential environment for not more person and country by country. Because of the than one consecutive year for leisure, business or complexity and multidimensionality of tourism, other purposes" (UNWTO, 1994). individualism of the travelers themselves and the "Tourism is a social, cultural and economic activities that they demand. Therefore, tourism has phenomenon which entails the movement of people no universally accepted definition. to countries or places outside their usual The first definition of tourism is made by Guyer - environment for personal or business/professional Feuler in 1905. Tourism as: "A phenomenon unique purposes. These people are called visitors (which to modern time which is dependent on the people's may be either tourists or excursionists; residents or increasing need for a change and relaxing, the wish non-residents) and tourism has to do with their of recognizing the beauties of nature and art and activities, some of which imply tourism expenditure" the belief that nature gives happiness to human (United Nations World Tourism Organization, 2008). beings and which helps nations and communities' approaching to each other thanks to the COMPONENTS OF TOURISM developments in commerce and industry and the communication and transportation tools' becoming As discussed, tourism and hospitality is a coordinated excellent”. summation of many components. It involves accommodation, In 1976, the Tourism Society of England defined recreation, sight-seeing and different services. Tourism also Tourism as: "Tourism is the temporary, short-term has its own components and highly depends on all of these movement of people to destination outside the factors which are known as the 5'As. places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes In 1997, 1 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM and car rentals. This causes problem such as long lines in waiting to be accommodated, slow serving 1. Attraction: Is considered to be the most important of products, shortage of materials or of human basic 5 A's of Tourism. Attraction means any things resources and these problems may lead to or any places that a person desires. Attraction unsatisfactory reactions from guests and customers. determines the choice of the tourists to visit a With technology, restaurants and hotels use destination or choose a particular thing to buy reservations, seating and guests management too is rather than others. to reduce such problems. 2. Accessibility: This component means the reachability of the place of destination the tourists RELATIONSHIP OF TOURISM & HOSPITALITY wants to visit via various means of transportation. It is the primary service that the tourist needs to make Tourism and hospitality industries go hand in hand even though considered to be independent from travel possible. 3. Accommodation: Another important component of each other this is because both industries strongly tourism is accommodation which is the primary affect one another. service that the tourist needs at the destination. The hospitality industry acts as the main supplier of safe and satisfying products and services for tourism Accommodation is a place where the tourists can (supply chain integration). Examples of these find food and shelter. It is a comfortable place products and services offered are accommodation, where the tourist after a long exhaustible day of transportation, food and beverages, leisure and touring can relax. recreational activities. 4. Amenities: Are extra facilities that can add attractiveness, accessibility and accommodation for Tourism on the other hand is the activity of tourists where they engage in travelling to other places the tourists. This may include room service, hot tub, where they can experience different activities where and spa and so on. most of the time avails products from the hospitality 5. Activities: It is an event in which individuals participate in certain actions for various purposes industry. such as traveling, having fun individually or Components of Tourism and Hospitality which collectively, spending time, improving, and resting constitute the tourism and hospitality interconnection include: voluntarily. Flow Experience in Tourism Activities. a. Food and Beverage services PERSPECTIVES OF HOSPITALITY b. Accommodation or Lodging services a. The Guest Perspective: This is the perspective c. Leisure and Recreation services wherein as people who serve and give products must have achieved the expectations of their guests- receive good hospitality making customers or the guest feel comfortable and well-served. b. The Operator Perspective: In a hospitality setting, the guest exists to be served; the operator exists to serve. To be able to be considered as hospitable, the operator must be successful in making guests feel comfortable and well-catered to. c. The Tech Perspective: The increase in the needs of the people results to increase in demand of tourism and hospitality services such as restaurants, lodging 2 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM The United Nations World Tourism Organization (UNWTO) states that tourists can be: DEFINITION OF TOURIST a. Domestic Tourist The origin of the word `tourist' dates back to the b. Inbound Tourist year 1292 A.D. c. Outbound Tourist Tourism' or 'Tourist" word is related to the word 'tour' which is derived from the Latin word "tornus" It means a tool for describing a circle-or a turner's CONSUMER BEHAVIOR IN TOURISM wheel. The following factors immensely alter tourist behavior: It is from the word "tornus" the notion of a "round A. Factors Affecting Tourist Behavior. tour" or a "package tour" has come in vogue. Geographical Factors: Some physical factors like In 1643 the term was first used in the sense of going geographical and climatic conditions, facilities and round or travelling from places to places, around an amenities available at the destination, advertising excursion, a journey including visits to many places and marketing conducted by tourism business alter in circuit or sequence, circuitous journey, embracing the decision making of the tourists. the principal places of a country or region. Social Factors: A few social factors such as a person's A more balanced description may be that a tour social network, which provide first hand information represents an attempt by the traveler to discover that can alter a person's decision of visiting or not something about a place he visits. visiting a particular place. At present, the most widely accepted definition of Place of Origin: There can be a broad spectrum of tourist is by the UN Conference on International tourist behavior depending upon the place they Travel and Tourism held in Rime in 1963: belong to. North Americans like to follow their own "Visitors are any person visiting a country cultural framework. Japanese and Korean tourists for reasons other than that of earning like to visit places in groups money.“’ Tourism Destination: It is a major contributing factor The definition classifies two classes of altering tourist behavior, If a destination has all basic visitors: provisions such as electricity, water, clean surroundings, proper accessibility, amenities, and a. Tourists- are temporary visitors staying in a place at has its own significance, it largely attracts tourists, least or more than 24 hours. The following persons were to be considered as tourists within this Education of Tourist: The more educated the tourist is the wider range of choices, curiosity, and the definition: knowledge of places he would have. This drives the Persons travelling for pleasure or leisure decision making when it comes to choosing a and for domestic reasons, for health etc. Destination. Persons travelling to any meeting/ B. Plog's Model of Tourist Behavlor Plog classifies tourists into conference/convention or in a three categories as described below: representative capacity of any kind Allocentric (The Wanderers) a tourist or a person: (scientific, administrative, diplomatic, Who seeks new experiences and adventure religious, sports etc.) in a wide range of activities. Persons travelling for business purposes Outgoing and self-confident in behavior. b. Excursionists- are temporary visitors staying in a Prefers to fly and to explore new and place less than 24 hours in the destination that they unusual areas before others do so. have visited. They do not make overnight stay and Enjoy meeting people from foreign or may include cruise travelers. different cultures. 3 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM They prefer good hotels and food, but not heritage, culinary experience, and necessarily modern or chain-type hotels. language. Their holidaying is well-planned On tour package, basics such as but not well-structured. transportation and hotels is a requirement , but not be committed to a structured ELEMENTS OF TRAVEL itinerary. They would rather have the freedom to Are criteria for defining tourists. These may include: explore an area, make their own Reason for Journey: The first element of travel is the arrangements and choose a variety of purpose of why a tourist will travel in the first place. activities and tourist attractions. This is a crucial element of travel as if there is no Psychocentric (The Repeater): A tourist falling in this reason for a person to visit a place then there would category is usually non-adventuresome. They prefer be no any travel or journey. Some of the reasons for to return to familiar travel destinations where they travel may be classed as: can relax and know what types of food and activity a. Work or business to expect. Such tourists prefer to drive to b. Outdoor recreation- boating, fishing destinations, stay in typical accommodations, and c. Visiting family and friends eat at family-type restaurants. d. Holiday celebration Midcentric (Combination): This category of tourists e. Entertainment-Sports and Theater covers the ones who swing between the above said f. Personal- wedding, funeral, medical two types. g. Conventions and meetings C. Henley Centre Model of Holiday Making: A British Consultancy of Futurology, Henley Center Distance to Travel: The second element of travel is has divided the tourists into four phases: the distance of travel. The distance of travel is Phase I- Bubble Travelers: They do not another important element and can determine what have much money as well as knowledge. form of transport would be taken to complete the They prefer packaged tours. They long to journey. Under this the tourist must consider the observe different cultures without being a difference between local and international traveling part of it. They travel mostly out of Preparing and planning may. differ from local curiosity. traveling- which may include using local money Phase II- Idealized Experience Seekers: (Philippine peso), using the right transport They are confident tourists with the mechanism and choice of clothes; international experience of foreign tours. They are traveling- convert local money to the currency of the flexible and comfortable. They prefer tour place to travel, transport such as planes or ships. offers made for individuals. Length of Stay at the Destination: The third element Phase III-Seasoned Travelers: These tourists of travel is the length of stay at the destination. The are more affluent than the idealized- definition of tourists and excursionists by UNWTO is experience seekers. They are more directly associated to this element confident to experiment and experience Residence of the Tourist: The fourth basic element of different places and environments. They travel is the residence of the tourist. This is an are more adventurous and prefer important element for the destination's government individualistic tours. for them to monitor which country or race visits their Phase IV- Complete Immersers: These country frequently. This will be analyzed statistically tourists have an intention of immersing and may help the destination's government to plan completely into the foreign culture, for better development of tourism and hospitality 4 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM sectors available in their country and to help them books that it became the leading guidebook for Europeans in attract more tourists. the century. Form of Travel: The last element of travel is the 19th CENTURY forms of transport which is also considered to be a The success of tourism and hospitality steadily continued crucial element to travel and as mentioned before even though for the most part it was only limited to a small the other factors can contribute to what form of number of locations because of its expensiveness. transport is selected. 1903 – Wright Brother invented the first successful powered airplane. It first flew at Kitty Hawk, North Carolina TOURISM ORGANIZATIONS 1960s - increase of employment a. making people have disposable incomes Other Organizations In Tourism and Hospitality Industry: and extra money 1. Tourism Infrastructure and Enterprise Zone Authority b. development of transportation for tourism: (TIEZA) the creation of railway system and the 2. Tourism Promotions Board (TPB) development of steam power. 3. Intramuros Administration (IA) c. creation of railways/railroads transportation 4. National Parks Development Committee (NPDC) became cheaper and became more 5. Nayong Pillpino Foundation (NPFI) reliable. d. steam power provided ways to increased 6. Philippine Retirement Authority (PRA) mobility that is reliable and inexpensive 7. Philippine Commission on Sports Scuba Diving needed to travel throughout major rivers (PCSSD) which in turn led to the popular day-trip 8. Duty Free Philippines Corporation (DFPC) cruises and the growth of resorts in the 9. Phillippine Tour Operators Association (PhilTOA) coastal areas of large towns around 10. World Tourism Organization (UNWTO) different countries. 11.Tourism Educators and Mover (TEAM) Philippines 20TH CENTURY 12.Travel Cooperative of the Philippines (TCP) The beginning of increased in wealth, curiosity and 13.Hotel and Restaurant Association of the Philippines adventure attitudes of the people. Development of more accessible, safer and easier 14.Philippine Hotel Owners Association transportations continued the industry of leisure travel. 15.Philippine Travel Agencies Association (PTAA) The World War II brought about many changes in tourism one of which is stagnation in tourism as a result of wars. HISTORY OF TOURISM But together with these wars was the formation of large 1800s: scaled migration- which created opportunities to increase Travel organizers materialized. volume of travelers- caused a balance in the number of 1841 - Thomas Cook was one of the first travel organizers travelers. or firm that managed a train trip between Leicester and OTHER IMPORTANT INFORMATION IN THE 20TH CENTURY: Loughborough in United Kingdom. The first organized a. The development of motor cars in the post-World trip was successful and this encouraged Thomas Cook to War I changed travel radically- motorized public arrange similar ventures using chartered trains. road transport boosted popularity of seaside tours 1866 - he organized an American tour. b. Interest in international also was popularized by the 1874 -he introduced "cook's circular notes" which were the close encounter of military men of the foreign precursor for traveler's check. countries. 1839 -The Baedeker, first published by Karl Ludwig c. The World War Il also increased travel as the Johannes Baedeker, was the most popular of the guide war introduced more combatants to new countries 5 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM and new continents (i.e., American soldiers to the and options-such as investing in these industries’ Philippines during the Japanese Era) generating businesses. new forms of friendships. The development of these industries greatly d. The development of commercial aircraft in the 19th affected economic activities around the world century also led to the development of war aircraft compared to other industries. technology in the 20th century. The importance of The role of these industries is very dynamic that it aircraft technology were seen as air travel became made is great impact to social-economic evolution more comfortable, safer, cheaper and faster (can generating huge revenues from money-making travel for a day or hours) compared to other forms concepts of the of industry. of transport such as sea travel which could travel in The contributions of these industries in social and days or weeks. financial growth are so significant that economists e. The 1970s seen the emergence of new patterns in called it "invisible export. tourism. As business and trade prospered, business travel, conferences and incentive travel also The travelers or tourists buys product in the country flourished. they are visiting thereby exporting the product f. The major developments that emerged in the 20 th from the specific country to their country of century is considered to be the most important and origin without paying freight cost for exportation or most promising for the continued growth of world other taxes. tourism. These industries bring not only monetary g. Tourism and hospitality remains to be one of the value but also non-monetary benefits which are major contributors to economic diversification and vitally important part of the economy; social source of foreign exchange. education, culture preservation and exposure h. Thus tourism and hospitality is still one of the and environmental awareness and benefits significant businesses in the whole world. These industries are multidimensional industry i. But beyond its economic significance, tourism and that affects many other industries such as hospitality is also one of the businesses that have a industrial businesses, engineering, architecture, role in promoting cultures and history of different government and even the health sectors. countries- their arts, people and natural attractions. The demand for these industries is highly seasonal. This means that in some of the month's activity is ECONOMICS OF TOURISM great while in other months it is not. The Role of Tourism and Hospitality in Economic The demand for these industries are also influenced Development by outside and unpredictable factors such as One of the largest components of the global currency exchange rates, political unrest and economy. changes in weather. Consumption of these industries products and services even supersede that of most other goods and services. It is projected to create 328 million jobs and support 10 percent of the work force of the world, back in ECONOMIC IMPACT 2022. Tourism and hospitality industry acts as an These industries is one of driving force in export industry by bringing revenues from outside expanding economic opportunity especially in sources. developing countries which enables people to The activity of tourist in the destination sites also manage their assets in ways that generate incomes creates and mobilizes economic growth and development for the benefit of their own country. 6 |M P T H 1 1 1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MPTH111 1ST SEMESTER – MR. ARVEEH AVILES – M 7:00 AM – 10:20AM The tourism and hospitality industry's economic The more self-sufficient the community, the less will impact provides; be the imports and the more the MPC. a. increase in the gross domestic product These conditions will lead to a circular flow of of the country by increasing tourist income and spending. arrivals the tourism revenues increase as Everything is connected. well, Money that is earned flows from demand of people b. generation of employment, one person to another, and most of it gets spent c. foreign exchange and creation of economic again not just once, but many times by the local tour opportunity and even poverty reduction. operators, store owners, hoteliers and taxi operators. The Overseas Development Institute (ODI) World This process continues until the additional income Bank identified three main pathways of how the generated by a new round of spending essentially tourism and hospitality industry impacts the becomes zero. economy of a country: "Leakage”, is the value of goods and services a. Direct effects- The wages and earnings of those that must be imported to service the needs of who participate directly in the sector as workers tourism and hospitality. or entrepreneurs which directly receives the actual payment or income from tourist expenditures. b. Indirect effects- Occur through the tourism value chain. The money received from the tourist expenditures will be used in turn to buy supplies such as raw materials, food, beverages, and materials for construction, transportation, and furniture and so on. This is also known as secondary effect. c. Dynamic effects- Tourism and hospitality can affect the livelihood strategies of local households, the business climate for small enterprise development, patterns of growth of the local or national economy and the infrastructure or natural resource base of the destination. TOURISM MULTIPLIER The total direct and indirect effects of an infusion of an external source of income into an area are termed the "multiplier." Multipliers can be generated in terms of sales, income, employment or payroll. The initial spending of money by a tourist will generate more income in the community. The money generate can be either saved or spent. The extent to which businesspeople spend part of their income is termed as the marginal propensity to consume (MPC) while the extent to which businesspeople will save part of their income is termed as the marginal propensity to save (MPS). 7 |M P T H 1 1 1
