Reviewer-for-Macro.pdf

LESSON 1 TOURISM Tourism is the business of hospitality and travel Multi-faceted industry composed of many and varied components. SERVICES AND TOURISM Services and tourism go hand in hand Tourism - a truly worldwide activity - an important part of the economic fabric of many commun...

LESSON 1 TOURISM Tourism is the business of hospitality and travel Multi-faceted industry composed of many and varied components. SERVICES AND TOURISM Services and tourism go hand in hand Tourism - a truly worldwide activity - an important part of the economic fabric of many communities, regions, and countries What is Tourism? Tourism is "the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs." - Another suggested term for tourism: "visitor-service industry" TOURISM DEFINED United Nations World Tourism Organization defines TOURISM as the - “…social, cultural and economic phenomenon that entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.” Tourism has something to do with their activities, some of which will involve tourism expenditure. - Activity - should take place within 24 hours and should not last for more than a year.  Excursionist: activities done within 24 hours; the area is not very far from the usual residence. Resident: more than one year stay, not a tourist. Tourism has something to do with their activities, some of which will involve tourism expenditure. Tourism expenditure - money coming from origin to provide income to area visited. TOURISM ACTIVITIES Active Activities: direct participation in activities offered by the destination. Passive Activities: Tourists will not take part. The visitor should NOT be compensated while in the area visited. How about business meetings, conferences or seminars TRAVEL V.S TOURISM All tourism activities require travel, but not all travel is for tourism. Travel is only one component of tourism FORMS OF TOURISM Domestic Tourism: Resident visitor within the country of reference either as part of a domestic trip or part of an outbound trip. Outbound Tourism: Activities of a resident visitor outside the country of reference. Inbound Tourism: Encompasses the activities of a non-resident visitor within a country on an inward trip. PURPOSE OF TRAVEL - Leisure - Business (MICE) - Education - Special Interests (Dark, Volunteer Tourism) - Religious - Cultural/Heritage  - Adventure - Nature-Based - Ecotourism - Shopping - Sports - Gaming A TOURISM MODEL The traveling public (tourists) is the focal point (heart) of the model Tourism promoters link the traveling public with the suppliers of services Tourism suppliers provide the services that tourists need when they travel External forces affect all participants in tourism: tourists, promoters and suppliers THE HISTORY OF TRAVEL AND TOURISM The Empire Era The Middle Ages and the Renaissance Era The Grand Tour Era The Mobility Era The Modern Era LESSON 2 Geography Describes the Traveler's World Maps – Mercator projection - Robinson projection Goode’s Homolosine Projection Physical geography - Study of natural features of region Human (Cultural) geography - Study of a region's cultures and peoples Regional geography - Combination of physical and human geography Studying Tourism from Business Perspectives Marketing Management Finance Marketing - Marketing concept - Organizational philosophy centered around understanding and meeting the needs of customers. - Marketing mix (the 4 Ps) - Product, Price, Place, and Promotion Market segmentation  - allows an organization to develop the most appropriate marketing mix to meet the needs of specifically targeted visitor segments effectively and efficiently. Management - The planning, organizing, directing, and controlling of present and future actions to accomplish organizational goals. - The common thread that holds an organization together and moves all its members in the same direction. Finance - How organizations manage revenues and expenses. - Business is an organization operated with the objective of making profits. - Profits are revenues in excess of expenses and used as a measure of performance. - Not-for-profit organizations also need to track their evenues and expenses - Accounting is the common language of business - Two categories of financial reports: internal and external Three Primary Building Blocks to Measure Financial Success Margin - Amount of a sales dollar remaining after operating expenses. Turnover - Number of times a dollar of assets has been used to produce a dollar of sales Leverage - Extent to which borrowed funds are used Other Measurements of Financial Success Return on Investment (ROI) - A measure of the profitability of an organization Tourism organizations typically face low margins,high turnovers, and need to use leverage (other people's money) Need to balance financial performance with hospitality to guests Tourism's Challenges and Opportunities Tourism is often an attractive form of economic development Tourism creates wide variety of jobs Tourism brings money into a community or country Tourism can create greater cultural understanding Tourism can also change social structures and strain natural and man-made resources Ethics and industry codes of ethics help guide individuals when making decisions Where Do You Fit In? Wealth of career opportunities in tourism Tourism will remain the world's largest "industry" with highest job growth rate  TRAVEL AND TOURISM HISTORY INTRODUCTION - Long before the invention of the wheel, travel occurred for a variety of reasons. In the beginning, it was simple and as seasons changed and animals migrated, people traveled to survive. Because these early travelers moved on foot, they were confined to fairly small geographic areas. - Travel may have remained a localized experience, but people by nature are curious. A river to satisfy their own sense of adventure and curiosity as they sought a glimpse of the unknown. THE EMPIRE ERA - Stretched from the time of the Egyptians to the Greeks and finally came to an end with the fall of the Roman Empire. - People began traveling in large numbers for governmental, commercial, educational, and religious purposes out of both necessity and pleasure. - The Egyptian kingdoms (4850 - 715 B.C) were the first known civilizations to have consolidated government functions at constrained locations. - Travel to these locations by boat was particularly early because travelers could use the Nile River. THE MIDDLE AGES AND THE RENAISSANCE ERA - Travel almost disappered during the period as the dominance of the Roman Empire crumbled, and travel became dangerous and sporadic. - The Feudal system that eventually replaced Roman rule resulted in many different autonomous domains. (Because of the feudal system, dami nagbago that result breakdown). - This breakdown in a previously organized and controlled society resulted in the fragmentation of transportation systems, currencies, and languages, making travel emerged slowly during the Renaissance (14th - 16th centuries). - The idea of traveling for the sake of experiences and learning can probably be attributed to the first recorded “tourist”, Cyriacus of Ancona. - His journey took him around the Mediterranean sea in a quest to learn more about experiencing Greek and Roman History. - Nagintroduce na ng mga ibang transportation like Kalesa). THE GRAND TOUR ERA - Marking the height of luxurious travel and tourism activities originated with the wealthy English and soon spread and became fashionable among other individuals who had time and money. - Gland tour participants travel throughout Europe, seeking to experience cultures of the “civilized world” and acquire knowledge through the arts and science of the countries they visited. (civilized means sosyal). THE MOBILITY ERA - Marked the increase of travel to new and familiar locations, both near and far. - Tourism industry activities began to increase as new roads, stagecoaches, passenger trains, and sailing ships became common sights in the early 1800s. - The growth and development of roads and railroads helped to increase the availability of transportation alternatives and reduced their costs, attracting more and more people to the idea of travel. - Thomas Cook (1808 - 1892) can be created with finally bringing travel to the general public by introducing the tour package. (111 person to introd. Tour package). - In 1841, he organized the first tour for a group of 570 people to attend a temperance rally in Leicester, England. For the price of a shilling (12 pence), his customers boarded a enorrered train for the trip from Loughborough, complete with a picnic lunch and brass band. - The immediate success of his first venture and the demand for more assistance in making travel arrangements led Cook into the full time business of providing travel services. THE MODERN ERA - The seeds of mass tourism were planned during the first half of the 20th century when industrialist such as George Westinghouse created paid vacation, believing that annual breaks from work for employees would increase productivity. (mass tourism, aito nagstart, it means maraming tao na ang nagvvisit. Nagexceed/excess na tourist. Hindi na ma-control since there’s a huge number of travelers/tourists). - Mass tourism received an additional boost after World War 2 (which ended in 1945). During this war, millions of people throughout the world, including over 17 million Canadian and U.S citizens, were exposed to many new, different, and even exotic locations as they served a variety of military assignments. 1950s - Credit card was born (The Diner’s Club specimen) - The first American Hotels, rapid expansion of hotel and motel chains in the United States via franchise agreement. (In the 18th century, if people in British North America had to travel, they stayed at public houses that were often just repurposed private homes. 1960 - The introduction of Jet Travel 1978 - The Airline Deregulation Act of 1978 by Dewey Melton - In 1978, Congress passed a law allowing airlines to set their own fans and routes, an event that transformed the commercial airline industry and the passenger experience. (They set standards). 2000 - TripAdvisor, is an online platform where users can find reviews, opinions, and recommendations for hotels, restaurants, attractions, and other travel - related services. 2002 - The euro currency is introduced signaling liberations of travel among member nations of the European Union. 2007 - Airbnb (Air Bed and Breakfast) launched, signaling a wave of new services such as uber and an expanding sharing economy in tourism services. 2011 - Google provides an online flight - booking service, Google Flights, to public. LESSON 3 Tourism and Hospitality Network and Supply Components Tourism and Hospitality Supply Components Natural Resources Infrastructure Superstructure Transportation and Transportation Equipment Hospitality Resources Natural Resources Natural scenery Climate Environment Infrastructure Water Power Communication Sewage/Drainage Healthcare Streets/Highways Transportation Terminals Security Hospitality Resources Hospitality training Transportation Land Travel – automobiles, buses, rail Air Travel Sea Travel Superstructure Accommodation Food and Beverage Shopping Centers Stakeholders in Tourism Travel Intermediaries - Companies that connect tourists to the vacation they want but don’t actually provide anything but access. The most common type of travel intermediary is a travel agent. Example: Travel Agency Consortia: Many travel intermediaries (like independent travel agents) band together to increase their buying power from travel wholesalers by creating consortisas…consortias also help travel agents bargain for better commissions (how travel agents get paid), and negotiate better amenities for customers. Some of the largest include Virtuoso, Signature Travel Network, Ensemble Travel Group, and Vacation.com. Note: Being part of a consortia means that the agent must meet a certain volume of sales but gets member benefits like help with marketing, training and education, and FAM (familiarization) trips to ‘try out’ travel products (yay!). Investors - Venture capitalist with money to start up tourism-related ventures…maybe for their own profit only, and maybe to have a positive social impact as well. This includes private companies and organizations such as The World Bank Group (see mini presentation on the WBG) Ex. World Bank Group: Conglomeration of international organizations that loan money to developing countries. Food & Beverage Service Sector - The Food & Beverage sector relies on tourism when the patrons who eat at these establishments are predominantly tourists (more than one day) and excursionists (day trippers). State Depts./Offices of Tourism - These government agencies have a state-elected official at the helm. These agencies are tasked with maximizing tourism in a state, but are dependent on the party and leaders at the helm in terms of what they think tourism should look like in the state. Often these departments are ‘cleaned out’ when parties change from left to right and vice versa. Ex. Arizona Office of Tourism National Tourism Government Agencies- Subdivision of a Federal Government that oversee tourism for an entire country. Ex. Kenya Ministry of Tourism Environmental & Social Groups - These often politically and socially controversial resist tourism or want to partner with vendors to find solutions to tourism-related issues that impact human rights or environmental health of the area. Ex. Global AntiGolf—This organization feels that the proliferation of golf courses hurts communities and the environment (monoculture, pesticide use, water depletion) Tourism Employees - A diverse group, with many ethnicities, ages, skills levels, and experiences who work in the hospitality and tourism industry. The industry relies on them to deliver an intangible product through service. They can be underpaid, overworked, and exploited if care is not taken. The industry needs them, but struggles to find them when applicant pools cannot be accessed. Tourists - The driving force of demand in the tourism industry. Tourist practitioners must figure out what they want and need, and provide a way for them to access it. What they want keeps changing! Tourists may be part of a group of travelers, or they may be a ‘FIT’ (free independent traveler) Vendors (Hospitality-related)- Businesses that provide the ‘stuff’ that hotels, restaurants, and tourism-related companies need to service their guests/customers. They do well when the tourism industry is doing well. Lawmakers/Representatives - Elected leaders may (or may not) care about tourism because they understand that it contributes favorably to the balance of payments, brings money into an economy, and impacts the types of laws and ordinances they must make to balance the needs of locals and tourists. Unions- Unions fight for the rights of workers in the hospitality and tourism industry. They know that wages can be low and working conditions can be tough. Ex. Unite HERE (Hotel Employees and Restaurant Employees Union) formed in 1891 and includes employees from Vegas hotels and casinos to hotel companies like Hyatt and Hilton, and Disney. World Tourism Agencies - There’s THE major one, the UNWTO (United Nations World Tourism Organization). It has 158 member countries and fosters socially and environmentally responsible tourism globally. Others would include the Global Sustainable Tourism Council (GSTC). Note that there are many region-specific tourism associations such as the ETOA (European Tourism Association and The Asia Pacific Tourism Association. Convention & Visitors Bureau - A non-profit agency funded by bed tax (paid by hotel guests every night they rent a room) and membership (of local tourism businesses) that market a specific area to tourists, provide information to potential meeting planners coming to an area, and tourism information to visitors. Here’s a list of many CVB’s you can explore throughout the USA. Tourist Attractions - These are small or larger players in driving tourism by giving people man-made, historical, and natural places for people to experience. Host Communities - These places receive tourists and have a love-hate relationship with tourism. Why? Tourist brings jobs and revenue but can change culture and the local way of life. Tourists can drive members crazy and crowd things up. Taxpayers - The citizens of a country who may (or may not) care about tourism because the dollars generated from it could potentially improve a community’s infrastructure, schools, etc. Transportation Companies- An integral part of tourism because they move people by air, water, and land. Without them, the tourists cannot get to any other tourism-related activities, accommodations, etc. Ex. All Aboard America was started in 1936 charters motor coach transportation all over the United States. Tourism Lobbyists - Hired private people who serve as a bug in the ear of the legislature, trying to get them to be pro-tourism in their decision-making. Often paid by industry people to ensure legislators are engaging in pro-tourism legislation. Did you know the term ‘lobbyist’ comes from the powerful men who used to sit in the lobby of the parliament and hotels so they could approach elected officials to sway their votes? Retailers - Shopping is the number one tourism activity, so all forms of retail establishments want lots of tourists to visit the area where their establishments exist. This can be far more lucrative than relying on locals only. Tourism Researchers & Educators - Researchers and/or teachers who are charged with preparing future managers and leaders in the industry, and studying it and generating data to understand it better. An example, outside of universities, is The Travel & Tourism Research Association. Destination Management Organizations (DMO’s)/Receptive Service Agencies - These large and small companies work with the travel wholesalers and handle the traveler when they arrive on location. Wholesalers bring them, receptive service agencies show them around. This could include organizations such as CVB’s (Convention and Visitor’s Bureaus), DMC (Destination Management Companies), and sightseeing companies. Ex. Destination Management Company [DMC]: A private company hired by a group or company coming to a destination with extensive destination knowledge that helps to arrange logistics including Meet and Greet, Transfers/Transportation, and pulling together accommodations, food and beverage, excursions conference venues, and assistance with overcoming language barriers and insider information to best access a destination— functions like an agent of the group or company. Ex. Convention & Visitor’s Bureau [CVB]: An organization that promotes a town, city, region, or country in order to increase overall number of visitor’s to the area. This is generally run as a non-profit organization that is supported by FIT hotel room/bed tax, government budget allocations, transportation, meal, and attraction taxes. It DOES NOT organize meetings and conventions, but DOES help meeting planners and FIT travelers about the facilities, infrastructure, and attractions available. Private Tourism/Hospitality Associations - Associations and professional clubs created to help professionals and organizations in the industry to grow. They educate, providing networking opportunities, and are funded by memberships. They interact with lobbyists, legislators, and the press too. Ex. Arizona Hotel & Tourism Association: Represents 440+ members in Arizona related to hotels, resorts, and bed and breakfasts. Lodging Establishments - Any type of ‘head in bed’ business (hotel, bed & breakfast, campground, hostel, etc.) that provides accommodations that have a stake in tourism they need a steady stream of tourists to stay occupied. Travel Wholesalers - Companies that create the ‘products’ that intermediaries sell, or sometimes they sell their products directly to the public at a discount. They can save the customer money because they deal in high volume. Ex. Travel Impressions: Owned by American Express, the tour operator works exclusively selling tour packages to over 200 destinations to travel agents so that they can sell them in the retail market. It does not sell products directly to the customer. MICE/Meeting & Event Industry- (Meetings, Incentives, Conventions, and Exhibitions). MICE are festivals, sports games, and any reason for people to gather in mass. They create tourism with their happenings and represent the largest and most lucrative segment of the meetings market. This market will stop traveling if the economy goes south or disasters happen. Often Forgotten Stakeholders Flora & Fauna - It’s very easy for us to forget the stakeholders in tourism that literally have NO VOICE in the matter…and that would include the plants and animals in the environment that are impacted by tourism. First Responders - Those who are responsible for responding to crisis (police, medics, terrorism task forces, private security companies) must do so without deference between local community members and those who are visiting. Infrastructure Management - The influx of tourists puts massive pressure on the infrastructure of an area. These include managers of transportation terminals, immigration offices, beach nourishment/maintenance, etc. These stakeholders may not be directly involved in ‘tourism as an industry’ and yet their domain is essential to tourism efficiency and is impacted by the influx of tourists. LESSON 4 : THE PHILIPPINE TOURISM MABUHAY GESTURE "Mabuhay" greetings accompanied by a gesture of putting the right palm on the chest is a Filipino Brand of Service which aims to perpetuate Filipino hospitality excellence. This highlights the 7Ms of Filipino values: Maka-Diyos, Makatao, Maka-Kalikasan, Makabansa, Masayahin, May Bayanihan, and May Pag-asa. LANDSCAPE OF TOURISM INDUSTRY PHILIPPINE TOURISM AND ECONOMY Tourism makes an important part to the economy of the Philippines The tourism industry employed millions of Filipinos, contributing to the nation's GDP. The Philippines' rich biodiversity, historical and cultural heritage are the main tourist attractions of the country. TOURISM ACT OF 2009 REPUBLIC ACT NO. 9593 (Tourism Act of 2009) - An act declaring a national policy for Tourism as an engine of investment, employment, growth and national development, and strengthening the department of Tourism and its attached agencies to effectively and efficently implement that policy, and appropriating funds therefore. THE TOURISM CONGRESS The Tourism Congress of the Philippines is the leading voice of the Philippine Tourism Industry. Created under RA 9593 or the New Tourism Law, TCP aims to grow further the tourism industry of the Philippines. FIGURE 2: VISITOR RECEIPTS JANUARY TO DECEMBER 2023/2022 (in Billion PHP) Total number of international tourist arrivals to the Philippines from 2012 to 2023 (in millions) TOP SPENDING MARKETS, 2023 (IN BILLION PHP) TOP TEN VISITOR MARKETS, JANUARY TO DECEMBER 2023 PROFILE OF VISITORS, 2023 Age Group Inbound travelers aged 25-34 and 35-44 years both contributed a share of 19.71% to the total, followed closely by 45-54 years at 18.59%. PURPOSE OF VISIT, JANUARY TO DECEMBER 2023 PROFILE OF VISITORS, 2019 THINGS LIKED MOST ABOUT THE PHILIPPINES WARM HOSPITALITY – 46.35% BEAUTIFUL SCENERIES – 30.04% GOOD FOOD – 8.45% EVERYTHING – 6.33% ABLE TO SEE LOVED ONES – 5.73% ARRIVALS BY AIRPORT OF ENTRY RESOURCES Natural Resources Mineral Resources Fishery Resources TYPES OF TOURISM IN THE PHILIPPINES Beach and Diving Tourism Hiking Tourism Research and Education Tourism Arts and Craft Tourism Pilgrimage Tourism Fiesta Tourism Wellness Tourism LESSON 5 ORGANIZATIONS 1. United Nations World Tourism Organization (UNWTO) 2. International Civil Aviation Organization (ICAO) 3. International Air Transport Association (IATA) 4. World Travel and Tourism Council (WTTC) 5. Development Organizations such as The World Bank, OPEC Fund for International Development, Asian Development Bank, and Islamic Development Bank 6. The Organization for Economic Cooperation and Development (OECD) 7. Pacific Asia Travel Association (PATA) 8. Caribbean Tourism Association (CTA) 9. Asia Pacific Economic Association (APEC) 10. Organization of American States (OAS) 11. ASEAN Tourism Association (ASEANTA) 12. National Restaurant Association (NRA) 13. Department of Tourism - Philippines (DOT) 14. Tourism Infrastructure and Enterprise Zone Authority (TIEZA) 15. Tourism Promotions Board (TPB) 16. Intramuros Administration (IA) 17. National Parks Development Committee (NPDC) 18. Nayong Pilipino Foundation (NPF) 19. Duty-Free Philippines Corporation (DFPC) 20. Philippine Retirement Authority (PRA) 21. Philippine Commission on Sports Scuba Diving (PCSSD) 22. United States Travel Data Center (USTDC) 23. Travel Industry Association of America (TIAA) 24. Travel and Tourism Research Association (TTRA) 25. American Society of Travel Agents (ASTA) 26. Universal Federation of Travel Agents Association (UFTAA) 27. World Association for Professional Training in Tourism (WAPTT) 28. Council on Hotel, Restaurant, and Institutional Education (CHRIE) 29. Association of Travel Marketing Executives (ATME) 30. The Society of Travel and Tourism Educators (SOTTE) 31. Philippine Travel Agencies Association (PTAA) 32. Hotel and Restaurant Association of the Philippines (HRAP) 33. Union of Filipino Tourism Educators (UFTE) 34. Council off Hotel and Restaurant Educators of the Philippines (COHREP) 35. Association of Administrators in Hospitality, Hotel and Restaurant Management Educational Institutions Incorporated (AAHRMEI) 36. The Women in Travel, Philippine Chapter 37. Philippine Association of Conventions/Exhibitions, Organizations and Suppliers, Inc. (PACEOS) 38. Network of Independent Travel Agencies (NAITAS) 39. Movement of Incentive Travel Executives (MITE) 40. Philippine Association of Accredited Tourist Guide Lecturers Inc. (PAATGLI) 41. The Philippine Tour Operators Association (PHILTOA) 42. Tourism Educators and Movers Philippines, Inc. (TEAM PHILIPPINES)