CHAPTER 1 – MEANING AND IMPORTANCE OF TOURISM AND HOSPITALITY

Relationship of Tourism and Hospitality

Tourism and hospitality are interdependent sectors that significantly influence each other.
The tourism industry encompasses activities where tourists travel to experience various activities, often utilizing products and services from the hospitality sector.

Definitions

Hospitality: Derived from the Latin word “hospes,” meaning guest. It refers to the friendly and generous reception and entertainment of guests, including the provision of food, beverages, lodging, and other accommodations.
Tourism:
- Described as a modern phenomenon driven by people's desire for change and relaxation, fostering connections between nations and communities through advancements in commerce, industry, and communication. (Guyer and Feuler, 1905)
- Defined as the temporary movement of people to destinations outside their usual living and working environments, encompassing various activities during their stay. (Tourism Society of England, 1976)
- According to UNWTO (1994), tourism involves traveling and staying outside one's usual residential area for leisure, business, or other purposes for no more than one consecutive year.
- UNWTO (2008) describes tourism as a social, cultural, and economic phenomenon involving the movement of people for personal or business reasons, with visitors categorized as tourists or excursionists.

Components of Tourism and Hospitality

Food and Beverage Services: Originated from the basic need for sustenance while traveling, with increased demand due to personal and social events.
Accommodation or Lodging Services: Refers to the provision of a place to sleep, either overnight or long-term, expanded in the Philippines due to an influx of international tourists.
Leisure and Recreation Services: Activities undertaken for rest, relaxation, and enjoyment.
Tourism Services: Involves a complex network of suppliers, tourism products, destination marketing organizations, tour operators, travel agents, and transportation services.
Transportation: Encompasses the movement of people from one location to another using various means.

Types of Travel

Business Travel: Travel undertaken for work purposes, where individuals spend money on hospitality and tourism products.
Leisure Travel: Travel for recreational and entertainment purposes.

Components of Tourism (5A’s)

Attraction: The most crucial component of tourism, representing anything or any place that draws visitors.
Accessibility: Refers to the ease of reaching a destination through various transportation means.
Accommodation: A primary service required by tourists, providing food and shelter.
Amenities: Additional facilities that enhance the attractiveness and comfort of a destination.
Activities: Refers to the various things tourists engage in during their stay at a destination.

Meaning of Tourist

The term ‘tourist’ originated in 1292 A.D., derived from the Latin word ‘tornus,’ which means a tool for describing a circle or a turner’s wheel, initially referring to a “round tour” or a “package tour.”
The term gained broader usage in 1643, marking its evolution in the context of travel.

Understanding Tourism and Hospitality

Key Components of Tourism

Food and Shelter: Essential for tourists to find places to eat and stay during their travels.
Amenities: Additional facilities that enhance the attractiveness and accessibility of accommodations.
Activities: Refers to what tourists engage in at a destination.

Definition and Classification of Tourists

Meaning of 'Tourist': Originates from the Latin word 'tornus,' first used in the context of travel in 1643, referring to excursions or journeys. UN definition: Visitors are individuals traveling for reasons other than earning money.
Two Classifications:
- Tourists: Temporary visitors staying for 24 hours or more.
  - Outbound Tourist: Travels from home country to another.
  - Inbound Tourist: Foreign visitor entering a country.
  - Domestic Tourist: Travels within their own country.
- Excursionists: Temporary visitors staying less than 24 hours, including cruise travelers.

Consumer Behavior in Tourism

Influenced by various factors:
- Geographical Factors
- Social Factors
- Place of Origin
- Tourism Destination
- Education of Tourist

Plog's Model of Tourist Behavior

Three Categories of Tourists:
- Allocentric: Seek adventure and new experiences.
- Psychocentric: Prefer familiar destinations.
- Midcentric: A combination of both allocentric and psychocentric traits.

Characteristics of Hospitality and Tourism

Dynamic: Constantly changing with trends and consumer preferences.
Seasonal: Fluctuates based on time of year and holidays.
Labor-Extensive: Requires a significant workforce.
People-Oriented: Focused on customer service and experience.
Multi-Dimensional Phenomenon: Involves various sectors and services.
Unlimited: Potential for growth and expansion.
Demand-Driven: Influenced by consumer needs and desires.

Importance of Tourism and Hospitality

Major socioeconomic industries globally, adapting to technological advancements and development.

History of Tourism and Hospitality

Ancient Civilizations (30,000 BC – 500 AD)

Early Travel: Began with migration for survival; evolved into travel for trade, religion, and festivals.
Mesopotamia: Travel for trade along the Tigris-Euphrates rivers.
Egypt: Travel for religious festivals along the Nile River.
Greece & Rome:
- Olympics attracted visitors from various city-states.
- Romans traveled for leisure to countryside and coastal villas.
- Infrastructure such as roads and inns developed by the Roman Empire.

Hospitality in Ancient Cultures

Xenia in Greece: Sacred guest-host relationship.
Biblical Stories: Emphasized the importance of offering food and shelter to strangers.

Medieval Period (500 – 1400 AD)

Dark Ages: Decline in leisure travel due to wars and poor infrastructure.
Religious Travel: Pilgrimages to sacred sites like Jerusalem and Mecca.
Hospitality: Provided by monasteries and religious houses for pilgrims.

Renaissance to Early Modern Period (1400 – 1750)

Revival of Travel: Driven by trade and exploration (e.g., Marco Polo, Magellan).
The Grand Tour (17th - 19th Century): Elite young men traveled for cultural education across Europe.

Industrial Revolution (1750 – 1900)

Travel Made Easier: Introduction of steam engines, railways, and steamboats.
Mass Tourism Begins:
- Thomas Cook organized group tours in 1841.
- Middle class gained access to leisure travel.

Origins of Tourism and Hospitality in the Philippines

Negritos reached the Philippines around 25,000 years ago, followed by Indonesians and Malays.
Colonization by Ferdinand Magellan marked a significant development in tourism and hospitality.

Galleon Trade

Historic maritime trade route connecting the Philippines and Mexico (1565-1815).
Manila became a key trading city, leading to exploitation of natural resources.
Introduction of steamship and airline services in the 1920s facilitated tourism growth.

20th Century: Modern Tourism Boom (1900 – 2000)

Key Milestones:
- Invention of the airplane and rise of automobiles.
- Growth of cruise travel.
Post-War Tourism Growth:
- Economic boom led to increased disposable income and paid vacations.
- Rebuilding of economies and infrastructure after WWII.
- Rapid growth of the middle class from the 1950s to 1980s.

Tourism as an Economic Sector

Countries began promoting tourism as a means to boost GDP.
Government investments in tourism infrastructure increased.

Pre-Martial Law Era in the Philippines

1952: Establishment of the Philippine Tourist and Travel Association (PTTA) to generate foreign currency and employment.
1956: Board of Travel and Tourist Industry (BTTI) was organized to regulate and promote tourism.

Martial Law Era (1972)

Tourism industry prospered under Marcos, aimed at improving the country's image.
Department of Tourism (DOT) established in 1973 to promote tourism.
Heavy investments in luxury and cultural tourism facilities in Metro Manila.

Post-Martial Law Era

Political instability led to reorganization of DOT as the primary tourism agency.
Sustainable tourism principles adopted in the 1987 Philippines Constitution.

21st Century Era (2001 - Present)

Rebuilding tourism confidence after the Asian Financial Crisis.
Launch of “WOW Philippines” branding effort (2002-2010).
Rise of budget airlines increased domestic and regional travel.
Digital Revolution:
- Online booking and review platforms transformed travel planning.
- Emergence of Airbnb and peer-to-peer lodging options.
- Smart tourism technologies like QR codes and VR tours.
Current Trends and Issues:
- Focus on sustainable and responsible tourism.
- Impact of global crises such as COVID-19 and climate change.
- Growth in wellness, medical, and ecotourism sectors.

Economics of Tourism and Hospitality

Understanding Economics

Economics: Study of how societies use limited resources to satisfy unlimited wants.

Key Economic Concepts

Supply and Demand:
- Supply: Number of available tourism products/services (e.g., hotels, flights).
- Demand: Willingness and ability of travelers to purchase these services.
Scarcity: Limited tourism resources can lead to degradation if overused.
Opportunity Cost: Allocating budget to tourism projects may divert funds from other essential services, like healthcare.

Impact of Tourism and Hospitality

Significant contributions to global economic activities, considered an “invisible export” due to its unique nature of not being a tangible product.
Brings both monetary and non-monetary benefits, including cultural preservation and environmental awareness.
Demand influenced by external factors such as currency fluctuations and political stability.

Economic Impacts of Tourism

Increases Gross Domestic Product (GDP), generates employment opportunities, provides foreign exchange earnings, and aids in poverty reduction.

Pathways of Economic Impact

Direct Effects: Wages and earnings from tourism sector participation.
Indirect Effects: Occur through the tourism value chain, including supply purchases.
Dynamic Effects: Influence on local livelihoods and small enterprise development.

Tourism Multiplier Effect

The way tourist spending circulates within a local economy, generating additional income and jobs.
Multiplier formula: Multiplier = \frac{Total Economic Impact}{Initial Tourist Spending - Leakage}
Leakage: Money leaving the local economy reduces the multiplier effect; supporting local businesses is crucial.

Benefit-Cost Ratio (BCR)

Shows the benefits gained for every peso spent in tourism and hospitality.
BCR above 1 indicates benefits exceed costs; below 1 indicates higher costs than benefits.
Formula: BCR = \frac{Benefits}{Costs}

Tourism and Hospitality: Concepts, History, and Economics

Tourism and Hospitality: Concepts, History, and Economics