SIHM REVIEWER.gdoc

CHAPTER 1 Overview of Tourism and Hospitality *GLOBAL TOURISM INDUSTRY DYNAMIC COMPLEX - We can work on land, air, and water. bread range of opportunity INTERCONNECTED - They have a connection w/each other ( mawala lang yung i service. it’ll compromis...

CHAPTER 1 Overview of Tourism and Hospitality *GLOBAL TOURISM INDUSTRY DYNAMIC COMPLEX - We can work on land, air, and water. bread range of opportunity INTERCONNECTED - They have a connection w/each other ( mawala lang yung i service. it’ll compromise customers satisfaction). ACCORDING TO UNITED NATIONS OF WORLD TOURISM ORG. - Travel and Tourism generates 10.4% of the world's GDP WTTC 2018 - 313 million jobs representing 9.9% of total employment WTTC 2014 - Travel and Tourism is a major export sector for many countries. WTTC 2017 - Travel and Tourism generates 20% more for the wider economy than the average of all sectors. outperforming the majority of the other industries combined. CURRENT THEMES IN TOURISM AND HOSPITALITY 1. Accessibility - should be accessible. destination should be reach % hassle. 2. Inclusibility - ensure that the service will be given to them properly. 3. Co-Creation of tourism products - destinations should give satisfaction to the customers. They should also be aware that we can contribute to avoiding the effect of climate change. 4. Artificial Intelligence 5. Virtual Tourism - exploring places thru technology 6. Climate Change 7. Big data analytics 8. Social Media - We have to make sure we can contribute to sustainability 9. Sustainability - they have to make every area of the place secure 10. Safety & Security 11. Risk Assessment 12. Code of Conduct for Responsible and Ethical travelers 13. Privacy due to big data analysis 14. Special Interest Tourism 15. Authentic Experience 16. Experiential Travel 17. Child Protection  18. Gender Sensitivity 19. Drug Trafficking 20. Animal Rights TOURISM FORECASTS TO 2030 GLOBAL The world Travel and Tourism Council ( WTTC ) - The industry generated US $8.3 trillion to global economy in 2017 (WTTC 2018) The United Nations of World Tourism Organization ( UNWTO ) - Predicted there will be 1.8 billion int’l tourist arrivals by 2030, an average increase of 48 million a year. between 2010 & 2030 (UNWTO 2011) - In the same year between (2018 & 2030), 58% of arrivals will be seen in emerging destinations in Asia, Latin America, Central & Eastern Europe, Eastern Mediterranean Europe, Middle East, and Africa. - However, it's asia and pacific destinations for the period between 2011-2017 PHILIPPINES - ranked 13th among top 15 destinations for the period between 2011-2017 4 KEY INDICATORS 1. Contribution to GDP 2. Int’l visitor spend 3. Domestic Spend 4. Capital Investment - The PH is referred to as “tourism powerhouse” ranked: - 6th for domestic travel and tourism - 7th based on fastest growth for contribution of travel and tourism to GDP - 15th based on annual compound growth rate. - 21st based on visitor export growth. THE STUDY OF TOURISM - Tourism is multidisciplinary and interdisciplinary. It can be studied using perspectives of the liberal arts, education, and business. TOURISM AND LIBERAL ARTS - liberal arts include social sciences and humanities. TOURISM AND BUSINESS - Your understanding of tourism would be Incomplete w/o the study of management, marketing, finance, accounting, statistics, operations, business policy and law. TOURISM AND CORPORATE SOCIAL RESPONSIBILITY  - TRIPLE BOTTOM LINE -first coined by John Elkington - often referred as “the balance scorecard” - it refers to an orgs interest in full disclosure and accountability. 1. PROFIT - measured by financial statements and can be based on metrics such as return on investment, liquidity, sales, and revenues. 2. PEOPLE - refers to human resources; includes employees, suppliers, and members of the community and where the establish is located 3. PLANET - refers to environmental responsibility and contributions to sustainability TOURISM AND 21ST CENTURY LEARNING - To be a successful tourism and hospitality professional, you need to develop several skills. Categorized as learning, literacy, or life skills. 1. Critical Thinking 2. Creativity 3. Collaboration 4. Communication 5. Information Literacy 6. Media Literal 7. Tech. Literacy 8. Flexibility 9. Problem-Solving TOURISM AND ETHICS - The UNWTO recommends the application of 10 principles anchored on a two-prong approach: maximizing possible benefits to be gained from tourism activities while reducing their potential negative impacts. THE GLOBAL CODE OF ETHICS ARTICLE 1: Tourism's contribution to mutual understanding and respect between people & societies ARTICLE 2: Tourism as a vehicle for individual and collective fulfillment ARTICLE 3: Tourism, a factor of sustainable development. ARTICLE 4: Tourism, as a user of the cultural heritage of maximized, and contributor to its enhancement ARTICLE 5: Tourism is a beneficial activity for host countries and communities. ARTICLE 6: Obligations of stakeholders in tourism development. ARTICLE 7: Right to tourism ARTICLE 8: Liberty of tourism movements ARTICLE 9: Rights of the workers and entrepreneurs in the tourism industry ARTICLE 10: Implementation of the principles of the Global Code of Ethics for Tourism RESPONSIBLE TOURISM The UNWTO published a manifesto on how to become a more responsible tourist 1. Open your mind to other cultures and traditions 2. Be tolerant and respect diversity 3. Help preserve natural environments 4. Respect Cultural resources 5. Learn as much as possible a out your destination and take time to understand the customs, norms, and traditions 6. Familiarize yourself with the law. KEY CONCEPTS Tourism and Hospitality focus on providing of goods and services TOURISM - According to UNWTO 1994. Tourism comprises the activities of persons traveling to, and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes not related to the exercise of an activity remunerated from w/in the place visited. HOSPITALITY - comes from the Latin word “hospitare” = to receive as a guest - refers to tradition that a host is ready to provide food, drinks, and lodging for someone away from home Dittmer & Griffin (2009) - Includes the reception and entertainment of travelers Resigner (2001) Pineapple: symbol of warmth, friendship, and hospitality TRAVEL - the regular movement of people usually to and from school and/ or work. LEISURE - discretionary time is the time remaining after working, commuting, sleeping & doing necessary household work which can be used in a chosen way. RECREATION - pursuits undertaken in leisure time. - any activity which an individual associates with enjoyment. THREE MAIN MOTIVATIONS FOR TRAVEL TRAVEL - movement of people from one place to another TRAVELLER - someone who moves between geographic locations. 1. LEISURE - travel meant for relaxation 2. BUSINESS - travel categorized under M.I.C.E industry. 3. BLEASURE TRAVEL - people usually combine business and travel with leisure activities. FORMS OF TOURISM DOMESTIC TOURISM: e.g. Manila - Bohol - resident visitor w/in the country: either part of domestic/outbound trip. INBOUND TOURISM: e.g. Thailand - Philippines - non-resident going within the country OUTBOUND TOURISM: e.g. Philippines - Japan - resident going outside the country 3 OTHER CATEGORIES INTERNAL TOURISM: e.g. Malaysia - Philippines - Bohol - comprises of inbound and domestic tourism NATIONAL TOURISM: e.g. Philippines - Japan - Sapporo - comprises of domestic and outbound tourism INTERNATIONAL TOURISM: e.g. Philippines - Italy - comprises of inbound and outbound tourism DISTINCTION BETWEEN TRAVELLERS AND VISITORS INTERNATIONAL VISITORS - returning outbound visitors INTERNATIONAL TRAVELLERS - a traveller taking a trip outside usual environment TOURIST OVERNIGHT VISITOR - a visitor whose trip includes an overnight stay. EXCURSIONIST - a visitor who does not include an overnight stay. GLOBAL ORGANIZATIONS 1.UNITED NATIONS WORLD TOURISM ORGANIZATION ( UNWTO) - With 156 member-countries and more than 400 affiliate members. - agency responsible for the promotion of the responsible and sustainable and universally accessible tourism 2. WORLD TRAVEL AND TOURISM COUNCIL ( WTTC ) - the body which represents the travel and tourism private sector globally. - works to raise awareness of travel & tourism as one of the world's largest economic sectors. - prioritizes security and travel facilitation. 3. PACIFIC ASIA TRAVEL ASSOCIATION ( PATA ) - established in 1951 - a non-profit organization providing direction for the development of the Asia Pacific travel and tourism industry. 4.INTERNATIONAL HOTEL AND RESTAURANT ASSOCIATION ( IHRA ) - established in 1859 - the only business organization representation the hospitality industry worldwide 5. ASIA-PACIFIC ECONOMIC COOPERATION ( APEC ) TOURISM WORKING GROUP ( TWG ) - formed in1991 - a platform for tourism administration of APEC economies, to share information, exchange views, and develop areas of cooperation in tourism and policies. 6. UNITED NATIONS EDUCATIONAL, SCIENTIFIC, AND CULTURAL ORGANIZATION ( UNESCO ) - mission is to contribute to the building of a culture of peace etc. 7. ASSOCIATION OF SOUTHEAST ASIA NATIONS ( ASEAN ) - agree to develop and implement a marketing strategy to seek tourists. WORLD HERITAGE SITES IN THE PHILIPPINES 1. Baroque Churches San Agustin Church in Intramuros Manila Panay Church in Ilocos Norte Santa Maria Church in Ilocos Sur Miagao Church in Iloilo 2. Historic Town of Vigan 3. Rice Terraces of Cordilleras 4. Puerto-Princesa Subterranean River National Park  CHAPTER 2 Philippine Tourism & Hospitality Industry Former President Gloria Macapagal - Arroyo - Signed Republic Act 9593 / Tourism Act of 2009, to strengthen the role of tourism in economic growth. - “It declared tourism as an engine of investment, employment, growth and national development, and strengthening the DOT, its attached agencies, to effectively implement the policy.” Dept. of Tourism (DOT) Attached Agencies According to Rep Act 9593 (Tourism Act of 2009) and its implementing Rules and Regulations (IRR), these are the DOT attached agencies and their respective mandates: TOURISM PROMOTIONS BOARD (TPB) - formerly named Philippine Conventions Visitors Corporation (PCVC) - responsible for marketing and promoting the Philippines domestically and internationally. TOURISM INFRASTRUCTURE and ENTERPRISE ZONE AUTHORITY - TIEZA is mandated to designate, regulate, and supervise the Tourism Economic Zones (TEZs) established under Tourism Act 2009, as well as develop, manage, and supervise tourism infrastructure projects in the country. DUTY FREE PHILIPPINES CORPORATION (DFPC) - mandated to operate the duty - and - tax - free merchandising system in the PH to augment the service facilities for tourists and to generate foreign exchange and revenue for the government. INTRAMUROS ADMINISTRATION (IA) - responsible for the orderly restoration and development of Intramuros as a monument to the Hispanic period in PH history. NATIONAL PARKS DEVELOPMENT COMMITTEE (NPDC) - NPDC vision is to provide fully developed and well - maintained parks for the Filipinos, wholesome recreation, and Socio - Cultural education which will contribute towards the enrichment of the national identity heritage. PHILIPPINE COMMISSION on SPORTS SCUBA DIVING (PCSSD) - PCSSD is responsible for providing and understanding measures regarding the standard basic dive rules to all levels or kinds of divers, regulate Scuba Sports and technical diving and ensure the safety of the sport.  NAYONG PILIPINO FOUNDATION (NPF) - a non-stock, non-profit organization established under P.D No.37, Nov 6, 1972. - the foundation is tasked to promote, encourage, and/ or initiate research and development projects on social sciences and humanities and related fields. PHILIPPINE RETIREMENT AUTHORITY (PRA) - mandated to attract foreign nationals and former Filipino citizens to invest, reside, and retire in the Philippines with the end-view of accelerating the socio-economic development of the country. MAIN REASONS FOR VISITING THE PH (JAN, 2018) 1. Pleasure / Vacation: 54.7% (45.3% - 24 to 30 y/o) 2. Business / Professional Work: 18.9% (47.7% - 34 to 44 y/o) 3. Visit Friends / Relatives: 17.9% (25.9% - 45 to 54 y/o) 4. M.I.C.E: 0.6% (57.1% - 25 to 34 y/o) ACTIVE PARTICIPATION in GLOBAL TOURISM INITIATIVES The PH has been a signatory to and host of major global tourism initiatives. THESE ARE: Manila Declaration on Tourism (1980) - this document was signed in Manila during the World Tourism Conference held in 1980. - this emphasized the role of tourism as a driver of peace. - this is also seen as an engine of socio-economic growth for developing countries. - considered a landmark declaration that can be seen as the start of global tourism activity. Manila Declaration on The Social Impact of Tourism (1997) - this document adopted in Manila on May 22, 1997. - this paved the way towards the creation and adoption of the Global Code of Ethics for Tourism. 6th International Conference on Tourism Statistics (2017) - held on June 21-24, 2017; hosted by the PH in cooperation with UNWTO. - the highlights of the event was the presentation of the new metric for tourism that incorporates all the aspects of sustainable tourism. Statistical Framework for Sustainable Tourism - Manila Call for Action on Measuring Sustainable Tourism FOREIGN VISITOR ARRIVALS BY AIR (JAN, 2018) By airport = 710, 040 1. Manila 5. Bohol 2. Cebu 6. Davao 3. Kalibo 7. Palawan 4. Clark 8. Iloilo FOREIGN VISITOR ARRIVALS BY SEAPORT (JAN, 2018) By seaport = 22, 466 5. Manila 5. Davao 6. Boracay 6. Batangas 7. Laoag 7. Palawan 8. Cebu 8. Subic HISTORY OF TOURISM IN THE PH 1946 - PH becomes a tourist hub. Philippine Airlines (PAL) - first Asian airline to cross the Pacific 1950 - Philippine Tourist & Travel Association was organized as a private initiative to encourage tourists to visit the Philippines. 1956 - PH congress created the Board of Travel and Tourist Industry. 1970 - early 1980s - tourism flourished in the PH. 1973 - P. Ferdinand Marcos Sr. created the Department of Tourism (DOT) to further oversee the economic potential of tourism. PH Tourism Authority (PTA) & PH Convention Bureau (PCB) - renamed as Ministry of Tourism. Asia’s 1st Convention Center - PH International Convention Center (PICC). PICC - hosted the World Bank International Monetary Fund Meeting in Sept, 1976. PHILCITE - organized and managed large-scale trade and consumer events. PHILCITE - known for its International agriculture, aquatic and livestock & poultry trade exhibits, all held-annually, boasting local and foreign exhibitors and trade visitors. 1982 - Manila has become the top convention city in Asia. According to the Union of International Association (UIA) - Manila moved up from 18th position on the list to 8th – making it the top city in the Asian Region. 1986 - former Pres. Corazon Aquino renamed PCB to PCVC (PH Convention & Visitors Corporation) Between 1994-1996 - AACYB began its “Convene in Asia” campaign helping focus the attention on Asia as a major M.I.C.E. hub. 2016 - PH has included M.I.C.E. and Events Tourism as part of Product Portfolio. PRESTIGIOUS EVENTS HOSTED BY THE PH 1. ASEAN Tourism Summit 2018 6. Visit Philippines 2013 2. ASEAN Tourism Forum 2016 7. 1994 Visit Island Philippines 3. Global Farm Tourism 2018 8. 1994 Miss Universe Beauty Pageant 4. Miss Universe 2017 9. 1975 Thrilla in Manila 5. NBA Global Games 2013 10. Conference (March, 2014) NATIONAL TOURISM DEVELOPMENT PLAN (NTDP) DOT - envisions to develop a globally competitive, environmentally sustainable and socially responsible tourism industry that promotes inclusive growth through employment generation and equitable distribution income. PRODUCT PORTFOLIO - DOT will focus more on the 9 Tourism Products. 1. Nature Based Tourism 6. Health, Wellness, and Retirement Tourism 2. Cultural Tourism 7. Cruise, and Nautical Tourism 3. Sun and Beach Tourism 8. Diving and Marine Sports Tourism 4. Leisure and Entertainment Tourism 9. Education Tourism 5. M.I.C.E. Tourism STRATEGIC DIRECTIONS AND PROGRAMS These are anchored on 2 key strategies: Improving competitiveness and enhancing growth, and pursuing sustainability and inclusive growth. 1. Intensify Transport Infrastructure Development 2. Pursue Travel Facilitation Incentives 3. Attract Investment and Improve Business Environment 4. Expand Product Development Initiatives 5. Implement an Expanded Marketing Program 6. Expand and Promote Cultural Offerings 7. Promote Gender and Women Empowerment 8. Implement Risk and Crisis Management Program  CHAPTER 3 SCOPE OF TOURISM THE COMPONENTS OF TOURISM GOELDNER AND RITCHIE (2012) - discuss the inter-relationships among the various components of the tourism industry. TOURISTS - the reason why the tourism and hospitality industry exists. 7 KEY COMPONENTS OF TOURISM 1. TOURISTS - the heart of the industry and they are predicted to continue to travel - Their motivations include relaxation, meeting w/friends and family, and the interest in experiencing different cultures. 2. STAKEHOLDERS - an individual, organization, and/or community who has an interest in the success of the industry. 1. Tourists and Visitors 2. Employees 3. Property Owners 4. Government 5. Communities 6. Suppliers 7. Academy 8. Media 9. Clients and Customer 10. Competitors DEMAND SIDE Domestic Tourist International Tourist SUPPLY SIDE 1. RESOURCE PROVIDERS - include government agencies, parks, museums, etc. 2. TOURISM OPERATORS - private companies running tourism - related businesses 3. TOURISM MANAGERS - Tourism commissions and other organization involved 4. INFRASTRUCTURE AND SUPPORT SERVICES - public and private agencies that are primary involved in road, bridge, and highway construction & maintenance  3. ENVIRONMENT - The environment, including the climate, weather, and its attractions represent the primary reason for travel. NATURAL Mayon Volcano Chocolate Hills Boracay Island Puerto Princesa Underground River Taal Volcano & Taal Lake Tubbataha Reefs Natural Park Geophysical-landscape-aesthetic: include mountain, river, aurora borealis etc. Ecological-biological: organisms and events or process i wildebeest migration in Serengeti BUILT ENVIRONMENT - Great Wall of China The Parthenon, Athens National Museum of Anthropology Eiffel Tower Angkor Wat Disneyland Hk. Cultural-Historical: include artifacts, archeological finds, church, etc. Recreational: museums, arena, spas. “structures built for entertainment & education” 4. TOURISM SECTOR - The main tourism sectors are accommodations, attractions, food & beverages services, gaming entertainment, M.I.C.E and Special Events, Transportation, Travel trade, and tourism support services. ACCOMODATIONS - refers to various types of lodging that provide facilities for rest and relaxation such as hotels, resorts, villas, pensions houses and motels. ATTRACTIONS - the major reason for visiting a destination (why people travel) Man-made buildings, structures and sites designed for Tourism Enchanted Kingdom Manila Ocean Park (Metro Manila) Philippine Arena (Bulacan) Sky Ranch, Tagaytay  Star City, Pasay Resort World Manila Man-made buildings, structures, sites that aren't original, made for tourism The Leaning Tower of Pisa, Italy Great Wall of China The Parthenon, Athens Intramuros, Manila Eiffel Tower, Paris Angkor Wat, Cambodia Fort Santiago Banaue Rice Terraces Natural Environment Special Events FOOD AND BEVERAGE SERVICES - refers to food and drinks served to guests. Restaurants Food Stands Cafeteria and Canteens Bars and Pubs Vendo Machined Bake Shops and Bakeries GAMING AND ENTERTAINMENT - refers to casinos and integrated resorts INTEGRATED RESORTS (IR) - a mixed-use property providing facilities for gaming and entertainment M.I.C.E and SPECIAL EVENTS M.I.C.E - generally referred to as a business tourism or the meetings industry. Meetings Industry - provides immense benefits to the broader economy SPECIAL EVENTS - refer to social, religious, cultural and historical festivities. e.g. parties, weddings, parade, debut, fashion shows. Bowdin, et al (2016) - ‘special events’ has been coined to describe specific rituals, presentations, performance/celebrations that are consciously planned and created to mark special occasions. TRANSPORTATION - transport sector facilities travel from one place to another using one or a combination of the different modes of transport, namely, land, water, air, and trail. TRAVEL TRADE - composed of intermediaries such as travel agents, tour operators, consolidators, and wholesalers - they bridge the tourists with the best possible trips and tour packages TOURISM SUPPORT SERVICES - are provided by DOT; other pertinent governor agencies; private organizations; the education sector: and civic action groups. 5. PROCESSES and SYSTEMS - all the key divisions of any organization are represented in any-tourism-related enterprise. 6. ORGANIZATION FUNCTIONS - a cycle of planning, organizing, managing, controlling, and evaluating products, systems, personnel, and market must occur for organization to thrive. - driven by its mission and vision, an enterprise must continuously revisits its operations and objectives and make adjustments whenever necessary 7. GOVERNANCE - the gov. and its related agencies, non-profit organization, and members of the community myst coordinate and collaborate to ensure the success of tourism and hospitality initiatives - these groups are key stakeholders who must establish the parameters for the legal, political, and fiscal systems. (Goeldner and Ritchie, 2012)  CHAPTER 4 Impact of Tourism and Hospitality IMPACT OF TOURISM - its impact on politics, society, business, and on the environment is both visible and indistinguishable ADVANTAGES OF TOURISM - Tourism can bring economical, political, environmental, and socio-economic ECONOMICAL 1. It creates employment 2. It generates foreign & local investments 3. It generates an increase in foreign exchange 4. It leads to an increase in government income 5. It creates a multiplier effect 6. It can be developed along with existing products & services 7. It provides opportunity for small & medium enterprises to participate thru business opportunities 8. It provides alternative forms of livelihood & employment 9. It encourages the creation of innovative & sustainable sources of income. ENVIRONMENTAL 1. It can spur the development of built environment 2. It can be built an available Infrastructure 3. It helps maintain and preserve attractions 4. It can raise environmental awareness POLITICAL 1. Issues and concerns can be solved by legislation 2. Civic actions groups can lobby for changes in regulations to town, city, or municipality 3. Communities can monitor and police their own ranks SOCIO-CULTURAL 1. It helps preserve the heritage of communities 2. It promotes understanding of different peoples and their culture 3. It helps improve the quality of life and the standard of living in the communities 4. It promotes the culture of sustainability 5. It helps create a favorable impression about destination DISADVANTAGES OF TOURISM - Despite the numerous benefits that can be gained from tourism activities, these can also lead to problems that can overturn whatever benefits have been gained. ECONOMICAL 1. It may cause inflation 2. It may leads to excess demand and/or supply 3. It can lead to lack of supply due to high demand for products ENVIRONMENTAL 1. It damages the environment by overpopulation. 2. The influx of tourists can leads to damage 3. It exacerbates the effects of climate change 4. It causes pollution 5. It can lead to a loss of biodiversity 6. It can lead to ecological imbalance POLITICAL 1. It may create power struggles 2. It can lead to corruption SOCIO-CULTURAL 1. The presence of vandals, petty criminals, and prostitutes may adversely impact a destinations image 2. It may create social problems due to displacement and migration. 3. It can degrade a community's pride in its culture & heritage because of over-commercialization CLIMATE CHANGE - Tourism is affected by the increase in temperature, sea levels, and greenhouse gas emissions. NICHOLLS (2014) - details the direct and indirect effects of climate change - He enumerated the tourism sectors most affected by climate change. 1. Mountain and Snow Tourism 2. Forest and Lake Tourism 3. Biodiversity and Cultural Tourism 4. Cities and Urban Center Tourism 5. Beach and Coastal Tourism 6. Ocean and Sea Life Tourism Caribbean Islands Nations and Southeast Asia - most affected by Climate Change MITIGATION - defined by Grimm, Alcantara, and Sampaio (2016) - Mitigation, Adaption, and Resilience - “mitigation as actions that reduce the use of natural resources, and implement measures that reduce GHG emissions and benefit the recovery, regeneration, and creation of sinks” ADAPTATION - refers to the “possible responses of ecosystem to the current and potential impacts of climate change, seeking to minimize possible anomalies and to explore potential opportunities” RESILIENCE - refers to “capacity of social, economic, and environment systems to cope with a hazardous event or trend or disturbance, responding, or reorganizing in ways that maintain their essential, identity, and structure.” (NICHOLLS, 2014) TOURISM MULTIPLIER - the movement of spending in the industry. LEAKAGE - refers to taxes, salaries, wages, and import charges that are paid outside of the country.  CHAPTER 5 The Nature of Tourism and Hospitality VISITOR EXPERIENCE - The accessibility of ICT has inevitably led to the availability of more options enabling customization of tourism products and services. - it has become imperative for stakeholders to collaborate in the creation of tourism products and services that will match (& exceed) tourists expectations. ASEAN states that “Experiential Travel” - is a dominant force in the industry. VALUE CHAIN - identifies the most important activities that will deliver value and customer satisfaction. COMPOSED OF TWO CATEGORIES PRIMARY AND SUPPORT ACTIVITIES CO-CREATION - Prahlad & Ramaswamy (2004) introduced the concept of value co-creation - referring to mutual benefits that can be derived by consumer and the organization. TOURISM VALUE CHAIN - Zhang et. al (2009) define tourism supply as - a network of tourism organization engaged in different activities going from the supply TYPES OF ACTIVITIES PRIMARY ACTIVITIES - refers to actual production, sales, and delivery of a tourism product to a customer 1. Itinerary 2. Air/Land and Water transpo from their origin to their destination and back 3. Accommodations and Meals 4. Recreational Activities SUPPORT ACTIVITIES - the manpower, technology and other resources necessary to facilitate exceptional service: 1. Tour Operators 2. Computer Reservation System (CRS) 3. Global Distribution System (GDS) 4. Info.Comm.Tech. (ICTS) 5. Local Tourism Board HOSPITALITY VALUE CHAIN PRIMARY ACTIVITIES 1. Planning and Development 2. Construction 3. Marketing 4. Sales 5. Service Delivery 6. Operations 7. Franchise Relationships 8. Property Development 9. Evaluation SECONDARY ACTIVITIES 1. Human Resources 2. Maintenance 3. ICTs 4. Accounting 5. Engineering 6. Purchasing 7. Legal 8. Research TOURISM SYSTEM - tourism consist of several independent, but interrelated sectors, working together to achieve common objectives TOURISM AS ONE COMPOSITE PRODUCT - You can analyze the industry in its totality where each product/service complements each other. But the individual components are seen as one-composite products. TOURISM AS SUM OF INTER-RELATED SECTORS - You can view tourism as a sum of interrelated sectors. This means that you rate each sector individually (you may enjoy your trip but not the food) SYSTEMS APPROACH 5 ELEMENTS OF TOURISM PROCESS - ACCORDING TO LEIPER (1979) 1. Tourists 2. Generating Regions 3. Transit Routes 4. Destination Regions 5. Tourists industry operates w/in physical, cultural, sociological, economical, political, and tech environment 8 TOURISM OPERATING SECTORS THAT OPERATE W/IN BUILD ENVIRONMENT - GOELDNER AND RITCHIE (2012) EXPANDED LEIPER’S DESTINATION. 1. Attractions 2. Accommodations 3. Adventures & Outdoor Recreation 4. Events 5. Foods and Beverages Services 6. Transportation 7. Tourism Services. TOURISM AS BOTH PRODUCT AND SERVICE - The complexity of the industry comes from its very nature. The final tourism product enjoyed and experienced by travelers is a result of inputs from several suppliers. TANGIBLE TOURISM PRODUCT - refers to buildings, machinery, equipment, land, inventory. product that you can see, touch, hear, feel, taste - can be quantified and solo INTANGIBLE TOURISM PRODUCT - have no physical dimension - unlike customer satisfaction and loyalty. - examples: Friendly, Knowledgeable tour guides, speed of process, warmth and hospitality of flight attendant, brand and image, attention to detail of conference organizer. CHARACTERISTICS OF TOURISM AS A SERVICE THERE ARE 4 CHARACTERISTICS 1. INTANGIBILITY - it is difficult, if not impossible to taste, smell, touch, see the product before you purchase. (like dream vacations & luxury accommodation) 2. INSEPARABILITY - production, distribution, and consumption simultaneously, This means that the tourism product is directly linked to the tourism supplier. 3. VARIABILITY - Consistency is one of the keys to success in the tourism business. Any discrepancy will be seen as evidence of poor service. - “halo effect” can positively influence decisions - fault ng isa, fault ng lahat, negatively man or positively. 4. PERISHABILITY - Unlike most products, service cannot be restored SEASONALITY - add to the challenge of tourism products. - The unpredictability of demand and supply of tourism products and services affects not only the value chain but the management and operations of enterprises. CHAPTER 6 History of Tourism and Hospitality EARLY BEGINNINGS The Sumerians invented the wheel around 3000 B.C. Considered as one of the most important contributions to travel. Phoenicians are credited for the invention of money. They’ve also built ships that enabled their neighboring countries to trade. They were the first maritime empire. Shulgi, a Babylonian was credited to have developed rest houses, and roads to serve the needs of travelers. Queen Hatshepsut - the first female and pharaoh to travel for peace and tourism. Sphinx and Pyramids - around 1600-1200 B.C. they’ve begun attracting travelers from faraway lands. Inscriptions found by Archaeologists are said to have been the “graffiti” written by the visitors. SILK ROAD (all about routes, roads) Term that first appeared at the end of 19th century. Refers to a network of caravan routes traversing Central and West Asia. Used to carry goods between East and West from approximately the 2nd Century B.C. to the 15th Century A.D. Trade routes connected East, South, and West Asia within the Mediterranean and Europe as well as parts of North & East Africa. MIDDLE AGES (all about Christianity, Pilgrims, and Expeditions) The spread of Christianity encouraged travel to holy sites. Pilgrimages were undertaken to pay homage to their faith. The Egyptians started the tradition of celebrating festivals. The Greeks - credited for 2 major contributions to the hospitality industry. 1. Language - that is used when trading 2. Their currency - trusted as the medium of exchange for business. King Henry V. of England - credited for inventing the considered first passport. Benjamin of Tudeia & Ibn Batutah - wrote about their extensive travels. Marco Polo - stayed in Asia for 25 years – inspired explorer Christoper Columbus – attempted to reach Asia but instead discovered America. some of the famous explorers:  - Ferdinand Magellan, a Portuguese ; his trips were funded by Spain. - Juan Sebastian Elcano - recognized for having circumnavigated the world in a single expedition. - Vasco Da Gama - 1st European to sail from Europe to India thru The Cape of Good Hope. - Italian Amerigo Vespucci - credited to have explored the east coast of South America. THE ROMAN EMPIRE (travel with horses, pleasure, travel, and spas) Romans - credited with the construction of a large network of roads spanning hundreds of miles. Considered as the first pleasure travelers. RISE OF SEASIDE RESORTS Inland Spa - for the elites. Coastal Resorts - for the working class = both types was popularized known as “Mass Tourism”. Alternative to Roman Spa. First noteworthy resort area was developed in Belgium in 1326 in a town now called Spa. “Spa”. means fountain. GRAND TOUR Around 1660-1820, Grand Tours - considered to be the best way to complete a gentlemen’s education. Their most popular destinations were the great towns and cities of the Renaissance, along with the remains of Ancient Roman and Greek Civilization. MODERNIZATION OF FOOD SERVICE Restaurant (restoratives) and the cafe (coffee shops) marked the start of the modernization of food. Boulanger, a vendor in 1765 - opened a small business in Paris selling soup & broth – known to be the first to add sheep’s feet in the sauce. RAIL TRAVEL First working railway steam locomotive - built by Richard Trevithick in the U.K in Feb, 1804. Thomas Cook - father of the travel agency. American G.M Pullman in 1870 - developed luxurious trains referred to as the Pullman coaches. BIRTH OF THE CRUISE INDUSTRY If trains made inland movement faster & more comfortable ; ships covered even farther distances. Augusta Victoria - first ever cruise, which traveled across the Mediterranean and the Near East: trip lasted 3 months with 241 passengers. Prinzessin Victoria - first luxury cruise for wealthy passengers. It has 120 1st class cabins, library, and gymnasium. Floating Resort - concept intensified competition among cruise ships. USE OF PRIVATE VEHICLES FOR TRAVEL Stagecoach - one of the forerunners of the private car. Autobahns - express ways providing a quick route between cities. MILESTONES (8 MILESTONE OF TOURISM) 1. Passport - the Paris Conference on Passport and Customs formalities that a standard passport is produced. (ICA) International Civil Aviation is currently responsible for providing guidelines for passports. 2. Trade Exhibitions - the modern exhibitions industry traces its roots to the “Great Exhibition of 1851” held from May - Oct 1851 at Crystal Palace, London. - The Great Exhibition was under the Patronage of Queen Victoria & her consort Albert, it resulted in a tradition of exhibitions. - The Paris Exposition of 1889 and the World’s Fair in Chicago in 1893, became 2 of the most distinguished exhibitions after the British Event. 3. Traveller’s Cheques - Marcellus F. Berry created the “Traveller’s Cheque” – Dilemma of James Fargo – “How would tourists cash their cheques when they are abroad?” 4. Accommodation - The Hilton Hall, established the first hotel chain in the U.S in 1943. - Monasteries and abbeys – first establishments providing refuge. - Inns – built by the religious orders for the weary traveler. 5. Air Travel - In 1952, British launched jet air flights by the British Airways Overseas Corporation (BAOC) 6 years after – American inaugurated its Paris - New York flight on Board the Boeing 707. 6. Low Cost Carriers (LCCS) - Southwest Airlines started the idea of a domestic carrier offering cheapest fares to its passengers. 7. The Schengen Agreement - signed on June 14, 1985 to facilitate internal travel across specific borders in Europe.  - Schengen, derived from a village in South Luxemburg, where the document is signed. - The Uniform Schengen Visa, allows visitors to “transit in desired territory for a maximum of 90 days every 6th month.” 8. The Use of Mobile Payments - Mobile payments are defined as “payments that are authenticated, authorized, and initiated through any mobile device.”