Tourism and Hospitality PDF

Chapter 1: The Meaning and Importance of Tourism and Examples of countries: SPAIN, MEXICO, PHILIPPINES, Hospitality THAILAND, HONG KONG, SINGAPORE 2....

Chapter 1: The Meaning and Importance of Tourism and Examples of countries: SPAIN, MEXICO, PHILIPPINES, Hospitality THAILAND, HONG KONG, SINGAPORE 2. Dispersion of development. Best means to spread wealth United Nations among countries; thus, bridging the economic gap between the rich and the poor nations. Thus, dispersion means the action or NATURE OF TOUR process of distributing things or people over a wide area. 3. Effect on general economic development. Expenditures by DOMESTIC TOURISM - Within the national boundaries of the tourists can have beneficial effects on all economic sectors and traveler's country. can lead to the development of different industries and other INTERNATIONAL TOURISM - movement of people across economic activities. international boundaries. It is more difficult to travel outside 4. Employment opportunities. A source of employment as it is one's country because the country visited has a different a service industry. In Island Garden City of Samal, most of the language, currency, and documentation requirements, such as workers here are employed in resorts and some are earning passports, visas, and other conditions of entry to met by tourists. money through "habal- habal" and other businesses and work INCLUSIVE TOUR - transport and accommodation is bought by related to tourism and tourism. the tourist at an all-inclusive price and the price of the individual 5. Social benefits. Takes place when tourists come in contact elements cannot be determined by the tourist. with the inhabitant of the place they visit. Their social INDEPENDENT INCLUSIVE TOUR - tourist buys these facilities background and their presence affect the social structure and "separately", reservations in advance through a travel agent. way of life of the local residents. 6. Cultural enrichment. Emphasizes a sharing and appreciation The Tourist Product - What the tourist does at the destination of cultures rather than the lack of trust brought about by and the services he or she uses during his or her stay. isolation. Through tourism and hospitality, we can appreciate the ✓ Service. It is an intangible item. rich human and cultural diversity that the world offers and evolve ✓ Largely psychological in its attraction. It is more than a a mutual trust and respect for one another and the dignity of life collection of services such as an aircraft seat and a hotel room. on earth. ✓ Variation in standard and quality over time. A package tour 7. Educational significance. Tourism and hospitality enhances cannot be consistently of equal standard. one's education. International conferences, seminars, and study ✓ Supply of the product is fixed. The number of hotel rooms trips help each year enable people of all nations to exchange available at a particular resort cannot be changed to meet the ideas, propose solutions to problems and share their concerns. changing demands of tourists during a particular season. 8. A vital force for peace. A properly designed and developed tourism and hospitality can help bridge the psychological and The Tourist Destination - A geographical unit where the tourist cultural distances that separate people of different races, colors, visits and stays. It may be a village, a town, a city, a district, a religions, and stages of social and economic development. region, an island, a country, or a continent. The success of a tourist destination depends upon the interrelationship of three SUMMARY basic factors: attractions, amenities or facilities, and ✓ Tourism and Hospitality is one of the world’s largest and accessibility. fastest-growing industries. IT contributes greatly to global economic development. The components of this Attractions large industry; may be independent and competitive ✓ Site attraction - destination itself has appeal. Can be a businesses; yet, they are interrelated and country, a geographical region such as the Alps, a city, or a resort interdependent. such as Samal and Boracay. ✓ The component of the tourism and hospitality network ✓ Event attraction tourists are drawn because of what is taking are: food and beverage services, lodging services, place there; includes congresses, exhibitions, festivals such as recreation and entertainment services, and travel and the Ati-Atihan Festival, and sports or Olympic games. tourism ✓ Attractions may also be natural or man-made. ✓ services. ✓ Amenities or facilities include accommodation, food, local ✓ Tourism is the temporary, short-term movement of transport, communications, and entertainment at the site is also people to destinations outside the places where they present in the attractions normally live and work and their activities during their ✓ Accessibility means having regular and convenience of stay at these destinations. It involves two elements: a transport in terms of time/distance to the destination from the dynamic one – the journey, and a static one – the stay. originating country at a reasonable price. This implies the movement of a person away from his or her place of residence and his or her stay in another IMPORTANCE OF TOURISM AND HOSPITALITY - Tourism and location. The stay is temporary and is motivated by a hospitality has become one of the world's major industries. search for personal pleasure in the form or rest, 1. Contribution to the balance of payment. Help correct the relaxation, and self-improvement. balance of payments and deficits of many countries by earning ✓ The word ‘’hospitality’’ is derived from the Latin word the much-needed foreign currency in international trade. hospitare which means ‘’to receive as guest’’. Other words derived from hospitare are hospital, hospice, and TMC111  hostel. In each of the words, the main meaning is a host Galicia was the foremost destination of English pilgrims in the who receives, welcomes, and caters to the needs of 14th century. Beginning in 1388, English Pilgrims were required people who are temporarily away from their homes. to obtain and carry permits, the forerunner for the modern ✓ Tourists are temporary visitors staying at least 24 hours passport. in the country visited whose purpose is not for employment but for leisure, business, family, mission, TOURISM IN THE MEDIEVAL PERIOD or meeting. During the medieval period, travel declined. After the decline of ✓ Excursionist are temporary visitors staying less than 24 the Roman Empire in the 5th century, roads were not maintained hours in the destination visited and not making an and they became unsafe. Thieves inflicted harm on those who overnight stay. dared to travel. No one during this time traveled for pleasure. ✓ The tour may be domestic or international, Crusaders and pilgrims were the only ones who travel. independent or package. A package tour may either be TOURISM DURING THE RENAISSANCE AND ELIZABETHAN ERAS individual or group. Renaissance - a few renowned universities developed so that ✓ A tourist destination depends on the interrelationship travel for education was introduced largely by the British. Travel of three basic factors: attraction, amenities or facilities, for education became popular in the 16th Century. and accessibility. Elizabethan - young men seeking positions in court were ✓ The principal tourist services are supplied by passenger encouraged to travel to the continent to widen their education. transport. Accommodation, food and beverage, and This practice was gradually adopted by others in the lower social entertainment comprise the second group of tourist scale. In time, it became recognized that the education of a services. The third group of tourist services consist of gentleman should be completed by a ‘’Grand Tour’’ of the cultural those provided by the travel agent and tour operator. centers of the continent which lasted for three years. ✓ Other tourist services consist of currency, documentation, information, sightseeing, and other MODERN TOURISM shopping. Tourism in the 19th Century As young men sought intellectual improvement in the continent, Chapter 2: The History of Tourism and Hospitality the sick sought a remedy for their illnesses in ‘’spas’’ or medical Pineapple Fruit as the Symbol of Hospitality Industry Year baths. The term ‘’spa’’ is derived from the Walloon word espa 1789 to 1797 meaning ‘’fountain’’. Colonial era, explorers (including Christopher Columbus) Tourism During the Industrial Revolution brought rare crops back to Europe when they returned from the It brought about not only technological changes, but also “New World’’ (Days after October 12, 1492) Pineapples were essential social changes that made travel desirable as a among those exotic imports, along with items like cane sugar and recreational activity. The increase in productivity, regular avocados. But the highly perishable pineapple could not grow in employment, and growing urbanization gave more people the European climes. In colonial America, pineapples were tactfully motivation and opportunity to go on a holiday. displayed to symbolize welcome and hospitality in private Two technological development in the early part of the 19th homes; was extremely popular in the 15th and 16th centuries. century: introduction of the railway and the development of steam power. The railroads created more business, and HISTORY OF THE TOURISM INDUSTRY competition as various private company invested in hotels, EARLY TOURISM resorts, and entertainment facilities. Thus, tourism was Travel and exploration are basic to human nature. Man has transformed from a small business catering to the elite into the traveled since earliest times although the term tourism was used start of a mass market, that is, travel by a many individuals. only in the 19th century. ‘’Tourism is derived from the Hebrew Tourism in the 20th Century word torah which means studying, learning, or searching. After World War I, railways as a means of travel declined with the introduction of the motor car. Motorized public road transport Two forms of Early Tourism and improved road conditions led to the popularity of seaside TRAVEL FOR BUSINESS/TRADING: tours. Early Phoenicians toured the Mediterranean as traders. Both World War II led to aircraft technology. The war had introduced the Greeks and the Romans were well-known traders and as their combatants to new countries and new continents, generating respective empires increased, travel became necessary. new friendships and in interest in different cultures. Air travel had Olympic Games held in 776 BC by the Greeks as well as the travel become more comfortable, safer, faster, and cheaper in by rich Romans for enjoyment and to visit friends and relatives. comparison with other forms of transport. HISTORY OF THE HOSPITALITY INDUSTRY TRAVEL FOR RELIGIOUS PURPOSES: Ancient Period -- The Sumerians Took the form of pilgrimages to places of worships such as Hospitality industry began with the Sumerians, a group of people Chaucer’s tale ( 24 stories that runs to over 17,000 lines written who lived in Mesapotamia near Persian Gulf at about 4000 BC. in Middle English by Geoffrey Chaucer between 1387 and 1400) Sumerians invented money and writing to record and settle of pilgrimage to Canterbury. Pilgrimage were made to fulfill a vow their business transactions. The Sumerians were the first to as in case of illness or of great danger or as penance or develop trade in the modern sense of the word. Sumerians atonement for sins. Besides Rome and Jerusalem, St. James of organized themselves into city-states. Since the states covered a TMC111 large geographic area, they required the services of travelers, namely, food, drinks, and shelter. Hence, local Sumerian taverns were established making them the first hospitality business. It is most likely that the hospitality industry began with the Sumerians 5,000 years ago in 3000 BC. Early Traders PIONEERS IN THE TOURISM AND HOSPITALITY INDUSTRY In 2000 BC, In the Middle East, many became traders of exotic goods. They needed hospitality services for their long journeys. Cesar Ritz - General manager of the Some enterprising individuals set up the caravanserai which Savoy Hotel in London, one of the provided food and shelter to travelers. These were the early most famous and luxurious hotels in examples of inn. the world. He made the hotel a Sample A: Abbasi Caravanserai is located in the historic city of cultural center for high society. The Kouhpayeh, 60 km away from the Isfahan-Naeen road. Ritz name is synonymous with Sample B: The Kalmard Caravanserai is located in a quiet refined, elegant hotels and service. setting in the heart of the desert, under a clear, starry sky and next At present the Ritz-Carlton hotels to the Halvan Desert sand dunes in Tabas. bear his name. Sample C: The Moshir Caravanserai This amazing caravanserai Ellsworth Milton Statler - Premier is located in Yazd and dates back to the Qajar era. The building hotelman of all time. He brought a high has more than 150 years and today is a 2-star hotel in the historic standard of comfort and convenience city of Yazd. It has preserved its amazing traditional style, so that to the middle-class travelers at an guests can feel the ancient atmosphere of the affordable price. He was the first to put caravanserai in a comfortable setting. telephones and radios in every guest room together with full-length mirrors, EMPIRES: 3200 BC TO 476 AD built-in closets, and a special faucet From 3200 BC to 476 AD, this Period is known to historians as the for ice water. Empire Era. Each of these empires developed hospitality services Conrad Hilton - ‘’the biggest man in for increasing numbers of travelers. the world’’. He was described by the Egyptian Empire New York Times as the ‘’master of By 3200 BC, various groups had been united under one hotel finance’’. He was careful not to government ruled by a ‘’pharaoh,’’ the Egyptian term for king. The over-finance and had a flawless sense famous pyramids or tombs for the pharaohs became tourist of timing. In 1954, he formed the first attractions that many people traveled long distances to see. In major chain of American hotels – a addition to traveling to see the pyramids, people traveled to group of hotels which followed attend religious festivals. The ancient Egyptians were the first to standard operating procedures. see that food service and lodging should be provided to travelers. Thomas Cook - recognized as the Greek Empire first professional travel agent. He In 1100 BC, the Greeks were dedicated travelers. Their land and was the founder of the world’s first sea travels made them dominant in the Mediterranean region. travel agency. He is credited for Because of increased travel, some form of overnight making world travel possible for the accommodation became a necessity. Hence, inns and taverns middle class. The phrase ‘’Cook’s became common in ancient Greece. As in the Middle East, they tour’’ is still used at present to refer had a bad reputation. The owners adulterated drinks with water a tour that goes to many places and and engaged in criminal activities. They were looked down upon stops briefly at each place. by rich and powerful citizens. In contrast to inns and taverns, Howard Dearing Johnson - pioneer restaurants in ancient Greece were often respected and served of brand leveraging. He was one of fine food. the first to introduce franchising in Roman Empire the 1930s. At present, Howard In 146 BC, after many years of conflict, Greece became a Roman Johnson is one of the famous protectorate. Roman efforts at territorial expansions continued. names in the restaurant and hotel By the time Rome had conquered most of Western Europe and business. the Middle East, inns and taverns were established throughout J. Willard Mariott - founded the the empire. The Roman public restaurants served ordinary food Marriott Corporation which has to the people. In the ruins of Pompeii, there are many small continued to be an important asset to restaurants that are similar to the fast-foods restaurant at the hospitality industry. Through his present. They have a single design, and prepare and sell the same strong faith and determination, J. limited menu. They may have been operated by one person, or by Willard Marriott began with a root- a small group just like a modern small company. It is believed beer stand which was founded by that the Romans were the first to establish the first restaurant necessity and built it into a chain. multibillion-dollar industry. TMC111  Ray Kroc - most financially successful of Later, the government organized the Board of Travel and Tourist all hospitality entrepreneurs. He Industry (BTTI) to regulate, supervise, and control the tourist founded the McDonald’s Corporation, a industry and to subsidize the PTTA as its promotional arm. In the multi billion dollar industry, through his late 1950’s, more hotels and restaurants and entertainment strong dedication, organizational skills, facilities were established. perseverance, and incredible aptitude 1972: after declaration of martial law, tourism and hospitality in for marketing. Kroc developed several the Philippines prospered; due to favorable conditions, such as operational guidelines such as Quality safety of tourism and hospitality, better services and sanitation Service Cleanliness and Value or facilities, more financial support from the government, and the QSC&V. Kroc’s motto, ‘’never be idle a moment’’ was also vigorous cooperation of the private sector. incorporated into the business. Tourism and hospitality in the Philippines at present are the result of the Isadore Sharp - A first-generation continues development and promotion of tourism and hospitality from Canadian, was the founder of Four 1950 to present. However, the growth in the tourism and hospitality industry is not that great compared to our neighboring countries in terms Seasons Regent Hotels, the world’s of tourist arrivals. largest hotel chain and multimillion- National Tourism Organization (NTO) of the Philippines or the dollar global hotel empire. The success Department of Tourism has embarked on several plans and of the Four Seasons Regent Hotels is programs to ensure the pleasant and the hospitable entry, stay, largely due to the drive, determination, and departure of tourists, as well as to assure a harmonious and persona; taste and style of Isadore positive, and constructive development of the tourism and Sharp. hospitality industry: Ruth Fertel - founder of Chris Steak I. increase visitor arrivals especially from nearby markets like House, the largest upscale restaurant Japan, Korea, Hong Kong, and Taiwan and high-spending markets chain in the United States. It has 59 like Germany; operations – 54 in the US and Puerto Rico ii. Increase tourism and hospitality receipts through longer stays and five internationally. It sells more than (now set at 11 days) and higher spending per day (estimated at 11,000 steaks daily with gross income of 110 dollars per day), which can be accomplished by more two hundred million dollars a year. attractive destinations and tours, more dining shopping and Because of this volume, Ruth Fertel is the dining, and getting not just the budget traveler, but also the most successful woman restaurateur at present. upscale markets; III. Expand domestic tourism and hospitality through more ORIGINS OF TOURISM AND HOSPITALITY IN THE PHILIPPINES promotions, cheaper tour packages, and new facilities, Tourism and hospitality in the Philippines began when the original especially for the lower income segment. inhabitants of the country roamed around in search of food. Inter- IV. Expand the capacity for tourism and hospitality by promoting tribe travel occurred, although the mode of travel was crude. more private sector investments; Recognizable form of tourism and hospitality was discovered by V. Improve the standards of service through the expansion of Ferdinand Magellan and when galleons or wooden boats sailed training programs for the professionalization of the tourism and between Mexico and the Philippines during the galleon trade. hospitality management and labor force; During the American occupation of the Philippines, Americans VI. Program major tourism and hospitality infrastructure were able to reach Manila after two weeks on board the Pan- projects; American Airways air-clippers. In the 1920s, the steamship and VII. Engage in major tourism and hospitality estate and resort the airline pioneers, the ‘’China Clipper’’ and the ‘’Manila development. Clipper,’’ brought some passenger to Manila via Hong Kong. VIII. Classify facilities in tourist sites according to international There were only few tourist attractions: Manila, Pagsanjan Falls, standards; Laguna Lake Tour, Tagaytay and Taal Volcano, Mt Mayon tour, IX. Strictly enforce the tour facility standards; Legazpi tour, Baguio City, and Banaue tour. Other popular tours X. Promote self-regulation within the different sectors of the in the South in the 1920s were Cebu City and Zamboanga City. tourism and hospitality industry; Tourism in the Philippines was difficult to track before World War XI. Complete the national tourism plan and destination tourism II due to the lack of statistical records. However, in 1947, tourism plan; began to flourish with the introduction of steamship and airline XII. Encourage consumer advertising in selected markets; services from other countries, thus, giving impetus to tourism XIII. Work closely with the private sector in product development; and hospitality. XIV. Develop and strengthen linkages with the local governments, In 1952, the first tourism and hospitality association in the the private sector, and the general public through tourism and Philippines was organized: Philippine Tourist and Travel hospitality councils. Association (PTTA), to put together all existing travel establishment serving both domestic and international travelers. INTERNATIONAL TRAVEL PATTERNS The PTTA was funded by the government to promote the country’s Major travel flows occur between the United States, and Western tourism and hospitality industry. Europe. Secondary regional patterns exist between South America, the Caribbean, Africa, the Near East, and the Far East. Travel to Africa is usually one way, originating in Europe. TMC111 The heaviest flow of air traffic into Europe is between New York Sexual equality and shifts in household roles encourage and London. The top ten generating international travel in rank more travel. order are: United States, Germany, United Kingdom, Canada, Japan, France, Netherlands, Mexico, Switzerland, and Australia. SUMMARY Europe generates about one-half of overseas travelers to the ✓ Tourism and hospitality dates back to the earliest of US. Travel between European countries – intracontinental travel civilizations. It can trace its beginnings in the Biblical – has been very popular. This is one of the reasons for Europe’s references (Old Testament). Early tourism and large share of the worldwide travel market. hospitality is characterized by travel for business and religion. Travel for business was mainly trading with FACTORS THAT FAVOR GROWTH OF TOURISM AND other countries or tribes. Religious travel took the form HOSPITALITY of pilgrimages to places of worship. Travel received Rising disposable income for large sections of the great impetus during the Roman Empire due to the population. In general, more money means more travel. construction of good roads and accommodations. Growth in the number of retired persons who have the ✓ The recorded history of the hospitality industry began desire and the energy to travel. with the Sumerians who lived in Mesopotamia near the Increase in discretionary time – shorter workweeks and Persian Gulf. The Sumerians were the first to establish longer vacations. The workweek has decreased taverns which provided food, drinks, and shelter to considerably from 50 to 60 hours to less than 40 hours. Sumerian traders and travelers. Flextime programs allow a three- or four-day workweek. ✓ In the Middle East, the caravanserai was set up to Some European countries grant paid holidays to their provide food and shelter to traders and travelers. They workers; were the forerunners of the inns. Greater mobility of the population. People became ✓ The ancient Egyptians provided food and lodging to more accustomed to travel because of the increase in travelers who wanted to see the pyramids and attend travel opportunities and desire to escape from the festivals. The ancient Greeks established inns and stress and pressures of modern life; taverns to provide food and accommodation to weary Growth in the number of ‘’singles’’. People living alone travelers. The Romans built elaborate inns for officials have more free time than couples; hence , they want to and couriers of the Roman government. The ancient socialize through travel; Persians constructed Khans, a combination of stables Greater credit availability through credit cards and bank and sleeping accommodations which served traveling loans. ‘’Travel now, pay later’’ stimulates travel; caravans. Higher educational levels. Since millions of students ✓ Travels was limited during the Middle Ages. After the attend colleges and universities, they tend to become collapse of the Roman Empire, no one traveled for more interested in foreign cultures; pleasure due to: political instability, lack of extensive, trade and commerce, poor roads, inefficient The growth of cities. The industrial Revolution brought transportation, and the proliferation of highway robbers about the migration of people from the rural areas to the who preyed on travelers. urban centers resulting in the growth of urbanization. ✓ The monasteries of the Roman Catholic Church City residents travel more than people living in rural provided food and shelter to travelers after the fall of the area to escape from the congested urban environment. Roman Empire. During the Middle Ages, the hospitality Simplification of travel through the package tour. Tour industry became more organized with the packages – everything planned, arranged, and included establishment of restaurant guilds. In England, the in one piece are more important to the older traveler, stagecoach became the favorite means of the new traveler. transportation. Coaching inns were established to And the less sophisticated traveler; provide food and overnight accommodation to Growth of multinational business. Worldwide business travelers. interests increase both the need and habit of travel; ✓ During the Renaissance, concern about the table Modern transportation technology. manners increased and rules to be observed at the Shift in values. At present, several people place more dinner table were developed. In the sixteenth century, a value on experience rather than material possession. tavern called the ordinary which served a fixed menu for They prefer to travel rather than own expensive houses, a fixed price to the common people appeared in cars, clothes, and jewelry; England. The sixteenth century introduced two exotic Advances in communication. Television and movies imports – coffee and tea to Europe. Coffee houses enlarge the travel perspective. The world is brought into became social gathering places and helped to sober up the living room through television. A documentary film to the entire European continent. can create interest in places not considered as travel ✓ After the French Revolution, French cuisine was destinations in the past; and brought to America and the first restaurant was Smaller families and changing roles. American and established in the United States. European birthrates have declined, giving the adults ✓ Tourism and hospitality in the Renaissance period is freer time to get away from family responsibilities. characterized by the Grand Tour in which scholars from TMC111  both the middle and upper classes went on a three-year Chapter 3: The Economics of Tourism and Hospitality exploration of the capitals, politics, culture, and society of Western Europe to enhance their education. There THE ROLE OF TOURISM AND HOSPITALITY IN ECONOMIC was also an increase in the popularity of ‘’Spas’’ in DEVELOPMENT which the sick sought to be cured of their ailments by First, there is a continuous demand for international travel in bathing in the mineral’s springs. developed countries; Second, as income in developed countries ✓ The Industrial Revolution stimulated pleasure travel increases, the demand for tourism and hospitality also increases due to increase of wealth, the creation of a large and at a faster rate; and Third, developing countries need foreign prosperous middle class, improvements in exchange to aid their economic development. transportation, the need of the working class to find The organization for Economic Cooperation and Development relief from their work routine, and the desire of the city (OECD) has concluded that tourism and hospitality provide a dwellers for relaxation and adventure. major opportunity for growth to countries that are at the ✓ The nineteenth century established concepts such as a intermediate stage of economic development and require foreign la carte dining, mass feeding, better preservation of exchange earnings. food, ice cream parlors, and the custom of eating out. 1. In tourism and hospitality, the consumer collects the product ✓ The twentieth century has made the world accessible from the exporting country, thereby eliminating the freight costs to the average citizen with the advanced technology for the exporter, except in cases in which the airline used are and transportation. People expect excellence in those of the tourist-receiving country. service, food, accommodation, and entertainment. The 2. International tourism and hospitality is both price elastic and twentieth century also created the fast-food industry. income elastic. This means that changes in price and income will ✓ In the nineteenth and twentieth century, pleasure travel also change the demand for pleasure travel. continues to progress due to economic prosperity, the 3. By using specific fiscal measure, the exporting or tourist- introduction of the jet aircraft and the private car, and receiving country can manipulate exchange rates so that those social changes and changing values brought about by for tourist are higher or lower (normally the latter is implemented mass education. Other factors such as paid holidays, in order to attract large numbers of tourist) than those in other shorter workweek, and annual holidays increased the foreign trade markets. Also, tourist is allowed to buy in domestic demand for travel. markets at the same prices as the local residents. ✓ There are several individuals who have made 4. Tourism and hospitality is a multifaceted industry that directly outstanding contributions to the growth and affects several sectors in the economy, such as hotels, shops, development of the tourism and hospitality industry. restaurants, local transport firms, entertainment They are Cesar Ritz, Ellsworth Milton Statler, Conrad establishments, handicraft producers, and indirectly affects Hilton, Thomas Cook, Howard Dearing Johnson, J. many others, such as equipment manufacturers and utilities. Willard Marriott, Ray Kroc, Isadore Shar, and Ruth 5. Tourism and hospitality brings many more non-monetary Fertel. benefits and costs than other export industries, such as social, ✓ The tourism and hospitality industry in the Philippines cultural, and environmental benefits and costs. are a very young industry. Before World War II, there were no statistical data available; hence, it was difficult DIRECT AND SECONDARY EFFECTS - measure the economic to determine tourist activities. It was only after the impact of tourism and hospitality on the destination area. declaration of martial law in 1972 that the tourism and EXPENDITURES -amount of money that is spent on travel hospitality in the Philippines grew. The Department of received as income by businesses such as hotels and restaurants Tourism, which is the NTO of the Philippines has Direct - income is received directly. Serving tourists have a direct launched several programs for the development of the effect on the economy of the host area. tourism and hospitality industry. Among these are: a Indirect or secondary effects - The money paid by tourists to more effective multisectoral partnership with the local businesses are, in turn, used to pay for supplies, wages of government, the private sector and the tourism and workers, and other items used in producing the products or direct hospitality councils, strict enforcement of tour facility services bought by tourists. standards, and expansion of training programs to EXAMPLE: Nagstay ako sa isang hotel. (Direct) After ko mag stay, i-change improve the standards of service. nila ang sheets ng room ko. To change them, need ng laundry essentials like detergent na i-buy sa mga supermakets, So, nagka income din ang ✓ A substantial proportion of international travel occurs supermarket. (Secondary) within and between Europe and the United States. Europe receives the lion’s share of tourist arrivals and GROWTH THEORIES - theory of balanced growth and the theory receipts. of unbalanced growth. ✓ A large number of factors have consistently influenced BALANCED GROWTH - suggest that tourism and hospitality the growth of tourism and hospitality including should be viewed as an important part of a broad-based economic prosperity, availability of leisure time, higher economy. This theory states that tourism and hospitality need the levels of education, increase in the number of retirees, support of other industries. Its objective is to integrate tourism credit availability, growth of cities, and improvement in and hospitality with other economic activities. To obtain transportation. maximum economic benefit, tourism and hospitality goods and services should be locally produced. TMC111