Chapter-1.pptx

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY
What is Tourism?
• Tourism is defined as the “sum of the
phenomena and relationships arising from the
travel and stay of nonresidents, insofar as they
do not lead to permanent residence and are
not connected to any earning activity.”
-Prof. Hunziker & Krapf of Berne University, Switzerland

What is Tourism?
• “Tourism may be defined in terms of
particular activities selected by choice and
undertaken outside the home environment.”
- Tourism Society in Cardiff
• Tourism in the pure sense is essentially a
pleasure activity in which money earned in
one’s abode is spent in places visited.

What is Hospitality?
• This is derived from the Latin word hospitare,
which means “to receive as a guest.
• The principal meaning is a host who receives,
welcomes, and caters to the needs of people
who are temporarily away from their homes.

• League of Nations (1937) defined Tourist as a
“person who visits a country other than that in which
he or she usually resides for a period of at least 24
hours.”
• Classes of visitors:
- Tourists
- Excursionist

The relationship between Hospitality
and Tourism
• Tourism and hospitality help each other, the
hospitality industry offer services like
accommodation, transportation, food and
beverage, recreation and leisure. Tourism is the
activity by the tourists where they engage in
travelling to destinations where they want to
experience recreational and leisure activities and
most of the time avails of accommodation, food
and beverage. The hospitality industry is the
supplier of the services for tourism.

Components of the tourism and
hospitality industry;

1. Tourist Attraction - A tourist attraction is a place of
interest where tourists visit, typically for its inherent or
an exhibited natural or cultural value, historical
significance, natural or built beauty, offering leisure and
amusement.
2. Accommodation is a group of rooms, or building which
someone may live or stay and is important to any tourists
who want to travel to another destination or on a trip as
you are always going to need a place to stay such as
hotels, caravan parks, camp sites et.
Accommodation is split into two parts, serviced and non
serviced which are different from each other. They are all
in the private sector which means that they want to make
a profit and grow their businesses.

• Serviced accommodation:
When a service is provided along with an overnight stay,
e.g. hotels, guesthouses, youth hostels etc. This type of
serviced accommodation is where there is maid services
such as room cleaners which change your bed, towels and
also serve food and drink to you when it is needed.
• Non serviced accommodation:
When tourists cater for themselves. Examples of this is
when you stay in cottages, a camping
holiday, caravanning etc. and you have to cook, clean and
cater for yourselves.
• Catering is the business of providing food service at a
remote site or a site such as a hotel, hospital, pub, aircraft,
cruise ship, park, filming site or studio, entertainment site,
or event venue.

3. Transportation - Transportation is the main mean
to carry passengers, that is, the tourists to the
actual site where tourism services are performed.
The development of transportation, transportation
vehicles, infrastructure and using new technologies
in this sector speed up the development of tourism.
Types of Transportation;
• Roadways Transportation.
• Railways Transportation.
• Water Transportation.
• Air Transportation.
• Pipelines Transportation.

4. TOURIST INFORMATION AND GUIDING SERVICES
Tourism is about visiting to places you're not familiar
with, so tourists certainly need someone to guide them.
For that reason, tourism information and guiding services
are necessary in the tourism industry.
Tour guides are people who accompany tourists at a
destination, explaining them about the place, its culture
and suggest them with suitable activities that can be
done in the area. Moreover, there are TICS, tourist
information centres, in destinations that provide a wide
range of brochures, books and even maps to help inform
the visitors about the area.

5. Tour operator - is an organization, firm, or
company who buys individual travel
components, separately from their suppliers and
combines them into a package tour, which is
sold with their own price tag to the public
directly or through middlemen, is called a Tour
Operator.

6. Travel Agents - is a person whose job it is to
arrange travel for end clients (individuals,
groups, corporations) on behalf of suppliers
(hotels, airlines, car rentals, cruise lines,
railways, travel insurance, package tours). His
task is to simplify the travel planning process for
their customers in addition to providing
consultation services and entire travel packages.

Differentiate tourists from
excursionists
• A tourist goes to a specific location to see specific things.
Like a visit to Paris to see the Louvre. Also, a tourist will
usually stay overnight and sleep in the location he is
visiting.
• An excursion is a short trip, just for pleasure. Like a hike in
the woods or a walk in the park. Also, an excursionist will
usually go back to his/her town, hotel or residence that it is
different from the visited destination, when sleep/rest is
needed.
• A tourist is one that makes a tour for pleasure or culture.
• An excursionist is a person who goes on an excursion.
• An excursion is a usually short journey made for pleasure;
an outing.

Nature of a Tour
• traveling around from place to place. A long
journey including the visiting of a number of
places in sequence, especially with an
organized group led by a guide. A brief trip
through a place, as a building or a site, in
order to view or inspect it:

Characteristics of a tourist product and
a tourist destination
• TOURIST PRODUCTS
- A tourist product is a concept that is made up of
many components. These are made up of tourist
attractions; provision of means of transport, lodging
and its associated facilities and sources of
entertainment. These components may be provided
by one company or a group of companies in the
tourism industry. It also involves the tourist
enjoying these products from the time they step
out of their houses till the time they get back home.

Characteristics of Tourism Product
• Intangibility
One of the characteristics of tourism products is that it cannot be
touched. Tourism products are intangible so after using the product
there is no physical proof that one has used it. For example, a tourist
books a hotel and sleeps in his room for four days. When he checks
out, there is no physical or tangible proof that he was in that hotel.
There are no products to show proof of purchase.
• Inseparability
Another feature of tourism product is that it cannot be separated from
the provider, that is, it is inseparable. If a tourist enters a restaurant
and orders food or drink, the person who is bringing the food or drink
cannot separate him or herself from the food or drink being brought to
the customer. The service provider and the service itself are
conjoined.

• Tourism products are perishable
Also a tourism product is perishable when it is not consumed at the time and
point that it is provided. Let us say, for example, that a bus tour from Ibadan
to Lagos in Nigeria has been arranged and tickets have been sold out. If a
passenger is unable to be present on time to board the bus, the product
perishes. That particular product cannot be consumed again. It is lost.
Similarly, if a tourist books a hotel at Lekki in Lagos but for some strange
reason is not able to sleep in that room on the said date, that service is lost.
He has to pay again to get another room on another day.
• No ownership
The ownership of a tourism product is not transferable to the consumer. The
consumer only owns the right to use the product because he has paid for it
for a predetermined period of time or days. If a tourist pays for a hotel room,
he or she has the right to use the room for the days that he or she paid for.
After that he or she must vacate the room or pay for additional days if he or
she wants to prolong the stay. The hotel continues to belong to the owner
even if it is booked and paid for. Ownership does not transfer to the renter
because he or she has paid for the room.

• Customer participation
In the tourism industry, the customer by all means would
have to partake in the delivery of the service being
offered, otherwise, the service delivery would never be
complete. In the industry, a product is being sold and a
product is being consumed; there is no way this can
happen without the customer getting involved. A tourist
must be on a bus otherwise the service is not being
consumed. If one pays for a hotel or a hotel is booked on
a person’s behalf, the person must of necessity sleep in
the hotel room for the product to be consumed.

• Heterogeneous
Another characteristic of tourism product is that it is heterogeneous. In
tourism, tourists make use of several services, including transport, hotels,
restaurants, car rentals, and many types of indoor and outdoor recreational
activities. However, what a tourist experiences at one place is not similar to
the one experienced at another place. Even in the same restaurant, since
there are many servers, the way one customer is served may not be the same
as the way another is served. The element of the human factor creates a
difference between one product and the other. Two different bus companies
could transport tourists to the same destination but the tourists would have
different stories to tell just because the drivers are different.
• Immovability
Another feature of tourist product is immovability. A tourist attraction such as
a waterfall, mountain, beach, flora and fauna cannot be moved from where it
is originally located to another place. Heritage sites have to remain where
they are because that is how the tourist will enjoy and have value for his
money. It is practically impossible to move a hotel or restaurant from where it
is to another place without destroying the edifice.

Tourist destination
• A tourist destination is basically a travel
destination that attracts large numbers of
travelers, or tourists. Travelers may visit these
destinations to see historical sites, natural
wonders, or buildings. Some tourist
attractions also have activities, such as rides
or games, or unusual novelties. Souvenirs are
often sold at these destinations, and many of
these areas rely on the income generated by
the travelers that visit.

Tourist Destination
• A tourist destination is a geographical unit
where the tourist visits and stays.
• The success of a tourist destination depends
upon the interrelationship of three basic
factors: attractions, amenities or facilities, and
accessibility.

• Importance of Tourism
The tourism industry is important for the
benefits it brings and due to its role as a
commercial activity that creates demand and
growth for many more industries. Tourism not
only contributes towards more economic
activities but also generates more employment,
revenues and play a significant role in
development.

FOUR BASIC ELEMENTS OF TRAVEL
1. Distance. The difference between local travel or
traveling within a person’s home community and
nonlocal travel or traveling away from home.
2. Length of Stay at a destination. Tourists are temporary
visitors who make at least one overnight stay, while
excursionists are temporary visitors who do not stay
overnight in the country that they visit.
3. Residence or origin of the traveler. For business and
research purposes, it is important to know where
people live.
4. Purposes of travel. What is the goal of that person why
he travels?

Tourist Services
• The principal tourist services are supplied by
passenger transport, which provides the means
to reach the destination, as well as the
movement at the destination.
• Distinctions in transport are between public and
private, domestic and international, and among
the various modes—land, sea, and air.
• Accommodation, food and beverage, and
entertainment constitute the second group of
tourist services.

Tourist Services
• The third group of tourist services consists of
those provided by the travel agent and by the
tour operator.
• Other tourist services include currency,
documentation, information, sightseeing, and
shopping.

Characteristics of Tourism and
Hospitality
• Product is not brought to the consumer;
• The consumer has to travel and go to the product
to purchase;
• Products are not used up;
• Both are labor-intensive industries;
• People-oriented;
• Multidimensional phenomenon;
• Both industries are seasonal;
• Both industries are dynamic.

Importance of Tourism and
Hospitality
• Contribution to the balance of payments
• Dispersion of development
• Effect on general economic development
• Employment opportunities
• Social benefits
• Cultural enrichment
• Educational significance
• A vital force for peace

LESSON SUMMARY
• Tourism and hospitality is one of the world’s largest
and fastest-growing industries.
• Tourism is the temporary, short-term movement of
people to destinations outside the places where they
normally live and work and their activities during their
stay at these destinations.
• Network means a complicated interconnection of parts
or components.
• Travel and tourism are used together as an umbrella
term to refer to those businesses that provide primary
services to travelers.
• The main purpose of transportation is to make it
possible for people to go from one place to another.

• A travel agent is one who sells travel services in a travel
agency.
• Tour operators are wholesalers who make the necessary
contacts with hotels, airlines, and other providers of travel
services and devise packages which will appeal to retail
buyer.
• Tourist product is a combination of what the tourist does at
the destination and the services he or she uses during his
or her stay.
• Tourism and hospitality has special characteristics which
make it different from other industries.
• Tourism and hospitality has special characteristics which
make it different from other industries.
• Tourism and hospitality is an important human activity with
economic, social, cultural, educational significance, and an
important vehicle for attaining global peace.
LESSON SUMMARY

APPLICATION AND ASSESSMENT
1. Research on tourist arrivals and expenditures for the past
five years (2013–2017).
2. Select a local tourist attraction. It could be a historic site,
museum, park, beach area, or shopping center that caters to
tourists. Write a one-page report describing the features of
this attraction that actually draw tourists.
3. Select a local tourist destination. Make a research on the
following:
What type of visitor does the destination draw?
What does the destination’s management do to bring in visitors?
What features has its management added to lengthen the visitors’ stay?

CHAPTER QUIZ. Identify the following:
TOURISM_ ___ 1. The temporary, short-term movement of people to destinations outside
the places where they normally live and work and their activities during their stay at those destinations
INTERNATIONAL TOURISM 2. Movement of people across international boundaries
TOURIST DESTINATION_ 3. A geographical unit where the tourist visits and stays
_EXCURSIONIST___________ 4. Temporary visitors staying at least 24 hours in the destination
visited and not making an overnight stay
_TOURIST PRODUCT________ 5. It consists of what the tourist buys.
INDIVIDUAL INCLUSIVE TOUR (IIT) 6. A tour in which the tourist travels to his or her destination
individually
_INCLUSIVE TOUR__________ 7. Another term for package tour
_SITE ATTRACTIONS________ 8. An attraction in which the destination itself has appeal
SECOND GROUP OF TOURIST SERVICES _ 9. Facilities such as accommodation, food, transportation,
communication, and entertainment at the destination
_TOUR OPERATOR________ 10. The manufacturer of the tourist product

CHAPTER QUIZ. Enumerate the following:
11–14. The elements of travel
• DISTANCE
• LENGTH OF STAY AT THE DESTINATION
• RESIDENCE OR ORIGIN OF THE TRAVELER
• PURPOSES OF TRAVEL
15–18. The basic components of the tourism and hospitality industry
• TOURIST ATTRACTION
• ACCOMODATION AND CATERING
• TRANSPORTATION
• TOURIST INFORMATION AND GUIDING SERVICES
• TOUR OPERATORS
• TRAVEL AGENTS
19–20. Kinds of visitors
• TOURIST
• EXCURSIONIST

MACRO PERSPECTIVE
OF TOURISM AND
HOSPITALITY
Zenaida Lansangan-Cruz PhD
-Author-

THE HISTORY OF TOURISM AND
HOSPITALITY
Chapter 2:

Lesson Contents
History of the Tourism Industry. History of the
Hospitality Industry. Pioneers in the Tourism and
Hospitality Industry. Origins of Tourism and
Hospitality in the Philippines. International
Travel Patterns. Factors That Favor the Growth
of Tourism and Hospitality.

History of Tourism
• People have always had a need to travel, be it to
explore and discover new lands or for our own
enjoyment. Tourism covers precisely the latter.
• We can trace the origin of the modern concept
of tourism back to the 17th century, when young
nobles from western and northern European countries
made what was called the Grand Tour: a trip around
Europe (usually covering France, Germany, Italy and
Greece) with the main purpose of soaking up history,
art and cultural heritage. It was considered a perfect
way to be educated.

Early Tourism
• Man has traveled since the earliest times although
the term tourism was used only in the 19th century.
• Tourism is derived from the Hebrew word torah
which means ‘studying, learning, or searching’.
• Tourism can trace its ancestry in the Old Testament.
Noah with his Ark must have been the first large-
scale operator even though his passengers were
mostly animals.
• Chapters 26 and 27 of the Book of Ezekiel describe
trade and commerce in ancient Tyre and recount the
travels abroad made by merchants.

Two Forms of Early Tourism
1. Trading. The invention of money, writing, and
wheel by the Sumerians facilitated travel and
exchange of goods.
2. Travel for religious reasons. This took the form of
pilgrimages to places of worship such as Chaucer’s
tale of pilgrimage to Canterbury.
Beginning in 1388, English pilgrims were required to obtain and
carry permits, the forerunner for the modern passport.

Tourism in the Medieval Period
• Travel, derived from the word travail, became
burdensome, dangerous, and demanding during this
time.
• After the decline of the Roman Empire in the 5th
century, roads were not maintained and they
became unsafe.
• Crusaders and pilgrims were the only ones who
traveled.

Tourism During the Renaissance and
Elizabethan Eras
• Under Elizabeth I, young men seeking positions in
court were encouraged to travel to the continent to
widen their education.
• This practice was gradually adopted by others in the
lower social scale.
• In time, it became recognized that the education of a
gentleman should be completed by a “Grand Tour”
of the cultural centers of the continent which lasted
for three years.

Grand Tour
• The Grand Tour was the 17th- and 18th-century custom of a
traditional trip through Europe undertaken by upper-class
young European men of sufficient means and rank
(typically accompanied by a chaperone, such as a family
member) when they had come of age (about 21 years old).
• The custom — which flourished from about 1660 until the
advent of large-scale rail transport in the 1840s and was
associated with a standard itinerary — served as an
educational rite of passage. Though the Grand Tour was
primarily associated with the British nobility and wealthy
landed gentry, similar trips were made by wealthy young
men of other Protestant Northern European nations, and,
from the second half of the 18th century, by some South
and North Americans.

Tourism During the Renaissance and
Elizabethan Eras
• By the end of the 18th century, the practice had
become institutionalized for the upper class of
society.
• As young men sought intellectual improvement in
the continent, the sick sought a remedy for their
illnesses in “spas” or medicinal baths.
• The term “spa” is derived from the Walloon word
espa meaning “fountain.”
• Turnbridge Wells in Kent (near London) became
famous as a spa in the 1660s.

• A spa is a location where mineral-rich spring
water (and sometimes seawater) is used to
give medicinal baths. Spa towns or spa resorts
(including hot springs resorts) typically offer
various health treatments, which are also
known as balneotherapy.

In what way do 'spas' contribute to the
growth of the tourism
• Spas are now an integral component of market
expectations for resort areas. Having a robust, well
regulated, aptly trained and up to date labor force, builds
upon the offering of tourism destinations and thus,
contributes to its growth. To put it another way, a resort
destination with no spas, would most probably have a
lower capture than areas that do offer them.
• Spa tourism is part of wellness tourism in which the
experience is associated with activities that involve health
improvement through hydrotherapy or balneotherapy. The
International SPA Association defines spa as a place
devoted to overall well being through a variety of
professional services that encourage the renewal of mind,
body, and spirit.

Tourism During the Industrial Revolution
• The Industrial Revolution brought about major
changes in the scale and type of tourism
development.
• Social changes made travel desirable as a
recreational activity.
• Increase in productivity, regular employment, and
growing urbanization gave more people the
motivation and opportunity to go on a holiday.
• The middle class combined higher incomes and
growing education into annual holidays.

Modern Tourism
• Tourism in the 19th Century
– The railway provided reliable and cheap transportation and
competition since various private companies invested heavily in
hotels, resorts, and entertainment facilities.
– Steam power provided increased mobility and reliable and inexpensive
transportation that led to the popular day-trip cruises and the growth
of coastal resorts near large industrial towns.
• Tourism in the 20th Century
– Early post-war prosperity, and large-scale migration, boosted the
demand for international travel.
– New forms of mass communication stimulated curiosity about
other countries, with the influence of posters and the press, the
cinema, radio, and television widened knowledge and interest in
travel.

Origins of Tourism and Hospitality in the
Philippines
• Tourism and hospitality in the Philippines began when the
original inhabitants of the country roamed around in search
of food.
• Steamships and airlines began to service the Philippines
from other countries; thus, giving impetus to tourism and
hospitality in 1947.
• The Philippines had undergone economic, social, and
political crises starting in the 1960s up to the ‘70s, which
hindered the development and promotion of tourism and
hospitality.
• Tourism and hospitality in the Philippines at present is the
result of the continuous development and promotion of
tourism and hospitality from 1950 to the present.

History of the Hospitality Industry
• Ancient Period (The Sumerians)
• Produced such abundant harvests by selling surplus grain to people in
other parts of the region;
• Invented money and writing as a means to record and settle their
business transactions;
• Converted grains to alcoholic beverages or beers which became the most
common consumed beverages in Sumerian society.
• The Greek Empire
• Their land and sea travels made them dominant in the Mediterranean
region; forms of overnight accommodation became a necessity;
• Many inns and taverns, restaurants in ancient Greece were often
respected and served foods;
• In 146 BC, after many years of conflict, Greece became a Roman
protectorate and the Roman efforts at territorial expansion continued.
• Caravans stopped at Khans, a combination of stables, sleeping
accommodations, and fortresses which provided shelter from sandstorms
and enemies who attacked caravans.

History of the Hospitality Industry
• Medieval Period (Dark Ages)
• After the fall of the Roman Empire in 476 AD, innkeeping
disappeared;
• Monasteries of the Church were self-sufficient enterprises;
• Providing hospitality services to travelers became a burden to
the religious houses.
• The Church found it difficult to accommodate many travelers in
a limited space.
• The Church continued to provide hospitality to the poor since
Christian charity was an important element in the Church’s
mission
• Gradually, some taverns, inns, and wine shops began to give
accommodations to middle-class travelers.
• Thus, the number of inns increased although the standards of
comfort and cleanliness differed greatly in different countries
and regions.

Early Modern Period: 1600 AD to 1800 AD
• In the 16th century, taverns called an ordinary served a fixed
price, fixed menu meal in England.
• The advent of stagecoach travel revolutionized hospitality
on the road followed by stagecoach or coaching inns.
• At coaching inns, tired horses were exchanged with fresh
horses and stagecoach passengers were fed and given the
opportunity to rest overnight. Travel was difficult because
the roads were full of potholes and normally soaked in
mud.
• There was an increase in the quality of inns, the application
of English common law to the hospitality industry;
• In France, the reintroduction of restaurants for public
dining was seen.

• In the late 18th century, there were no public restaurants.
• In England, coffee houses and taverns served a daily
“ordinary” which is a main meal with a fixed price.
• Most people took their meals at home; the rich had their
own cooks and entertained in their own homes.
• Inns were established for travelers and did not normally
serve meals to local residents.
• The food service element of the hospitality industry
changed dramatically in France in 1765.
• In that year, a man named Boulanger operated a small
business which sold soups and broths in Paris.
• These were known as restaurants, a French word which
means “restoratives”.

Pioneers in the Tourism and Hospitality Industry
• There are several outstanding individuals who have made a
significant contribution to the growth and development of the
tourism and hospitality industry.
Cesar Ritz
• Cesar Ritz became the general manager of the Savoy Hotel in
London, one of the most famous and luxurious hotels in the
world. He made the hotel a cultural center for high society.
The Ritz name is synonymous with refined, elegant hotels and
service. At present, the Ritz-Carlton hotels bear his name.

International Travel Patterns
• Major travel flows occur between the United States and
Western 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.
• The heaviest flow of air traffic into Europe is between New
York and London;
• Europe generates about one-half of overseas travelers to the
US. Travel between European countries—intracontinental
travel—has been very popular. This is one of the reasons for
Europe’s large share of the worldwide travel market.

Factors That Favor the Growth of Tourism and Hospitality
• Rising disposable income for large sections of the population
• Growth in the number of retired persons with the desire and the energy to travel
• Increase in discretionary time – shorter workweeks and longer vacations
• Greater mobility of the population
• Growth in the number of “singles.”
• Greater credit availability through credit cards and bank loans
• Higher educational levels
Factors That Favor the Growth of Tourism and Hospitality
• The growth of cities
• Simplification of travel through the package tour.
• Growth of multinational business
• Modern transportation technology
• Shift in values
• Advances in communication
• Smaller families and changing roles

LESSON SUMMARY
• Tourism and hospitality dates back to the earliest of
civilizations with early beginnings that date back in the
Old Testament.
• Early tourism and hospitality is characterized by travel
for business and religion.
• Hospitality industry began with the Sumerians who lived
in Mesopotamia near the Persian Gulf. The Sumerians
established taverns which provided food, drinks, and
shelter to Sumerian traders and travelers.
• The ancient Egyptians provided food and lodging to
travelers who wanted to see the pyramids and attend
festivals. The ancient Greeks established inns and
taverns to provide food and accommodation to weary
travelers.

LESSON SUMMARY
• After the collapse of the Roman Empire, no one traveled
for pleasure due to: political instability, lack of extensive
trade and commerce, poor roads, inefficient
transportation, and the proliferation of highway robbers
who preyed on travelers.
• The monasteries of the Roman Catholic Church provided
food and shelter to travelers after the fall of the Roman
Empire.
• During the Middle Ages, the hospitality industry became
more organized with the establishment of restaurant
guilds.
• French cuisine was brought to America and the first
restaurant was established in the United States.

LESSON SUMMARY
• Tourism and hospitality in the Renaissance period is
characterized by the Grand Tour in which scholars from
both the middle and upper classes went on a three-year
exploration of the capitals, politics, culture, and society of
Western Europe to enhance their education.
• There was also an increase in the popularity of “spas” in
which the sick sought to be cured of their ailments by
bathing in the mineral springs.
• The Industrial Revolution stimulated pleasure travel due
to increase of wealth, the creation of a large and
prosperous middle class, improvements in
transportation, the need of the working class to find relief
from their work routine, and the desire of the city
dwellers for relaxation and adventure.

• The nineteenth century established concepts such as à la carte dining, mass feeding,
better preservation of food, ice cream parlors, and the custom of eating out.
• In the 19th and 20th century, pleasure travel continued to progress due to economic
prosperity, the introduction of the jet aircraft and the private car, and social changes
and changing values brought about by mass education. Other factors such as paid
holidays, shorter workweek, and annual holidays increased the demand for travel.
• Cesar Ritz is one of several individuals who have made outstanding contributions to the
growth and development of the tourism and hospitality industry.
• After the declaration of martial law in 1972, the tourism and hospitality industry in the
Philippines grew. The Department of Tourism, which is the NTO of the Philippines has
launched several programs for the development of the tourism and hospitality industry.
• A substantial proportion of international travel occurs within and between Europe and
the United States.
• A large number of factors have consistently influenced the growth of tourism and
hospitality including economic prosperity, availability of leisure time, higher levels of
education, increase in the number of retirees, credit availability, growth of cities, and
improvement in transportation.

THE TOURISM AND HOSPITALITY
NETWORK AND SUPPLY COMPONENTS
Chapter 4

Lesson Contents
Tourism and Hospitality Components. Tourism and
Hospitality Supply Components. Natural Resources.
Infrastructure. Hospitality Resources. Hospitality
Training. Transportation. Superstructure.

Tourism and Hospitality Components
• The travel industry is a tourism and hospitality
network, which includes both the public and private
sectors.
• Gee, Choy, & Makens (1997) define the travel industry
as “the composite of organizations, both private and
public, that are involved in the development,
production, and marketing of products and services to
serve the needs of the travelers.”
• Businesses and corporations are regarded as
components of the travel industry classified as direct
providers, support services, and developmental
organizations.

1. The first category, direct providers, include businesses that are
associated with travel, such as airlines, hotels, restaurants, ground
transportation, travel agencies, and retail shops. These businesses
provide services, activities, and products that are consumed
and/or purchased directly by travelers. They represent the sectors
of the industry that are visible to the travelers.
2. The second category, support services, lend support to direct
providers. It includes specialized services such as tour organizers,
travel and trade publications, hotel management firms, and travel
research firms. It also includes basic supplies and services, such as
contract laundry and contract food services. Support services
provide goods and services for both the traveler and for
organizations that sell goods and services directly but not
exclusively to tourists.
3. The third category, tourism developmental organizations, is
different from the first two, since it includes planners, government
agencies, financial institutions, real estate developers, and
educational and vocational training institutions.

Tourism and Hospitality Supply
1. Natural resources – include elements in an area for the
use and enjoyment of visitors such as climate,
landforms, terrain, flora, fauna, bodies of water,
beaches, natural beauty, and water supply for drinking,
sanitation, and similar uses.
2. Infrastructure – consists of all underground and surface
developmental construction such as water supply
systems, sewage disposal systems, gas lines, electrical
and communications systems, drainage systems, and
other constructed facilities such as highways, airports,
railroads, roads, drives, parking lots, parks, night
lighting, marinas and dock facilities, bus and train
station facilities, and similar tourist service installations.

3. Superstructure – is the above ground facility services such as
airport buildings, passenger traffic terminals, hotels, motels,
resorts, restaurants, shopping centers, places of
entertainment, museums, stores, and similar structures.
4. Transportation and transportation equipment – include
items such as ships, airplanes, trains, buses, limousines,
taxis, automobiles, cog railways, aerial tramway, and similar
passenger transportation facilities.
5. Hospitality resources – include the cultural wealth of an
area which makes possible the successful hosting of tourists.
Examples are the welcoming spirit of tourist business
employees, attitudes of the residents toward visitors,
courtesy, friendliness, sincere interest, willingness to serve
and to get better acquainted with visitors, and other
manifestations of warmth and friendliness. Also included are
the cultural resources of an area such as fine arts, literature,
history, music, dramatic art, dancing, and shopping.

DIRECT COMPONENTS OF TOURISM
AND HOSPITALITY NETWORK
• Direct elements of the Tourism Industry are
those areas of the tourism industry which
come into direct contact with tourists Sales,
Accommodation, Transport, Activities,
Attractions, and Ancillary Services.

INDIRECT COMPONENTS OF TOURISM
AND HOSPITALITY NETWORK
• Indirect elements of the Tourism Industry are
often called support sectors. Those parts of
the tourism industry which may not come into
direct contact with tourists, but without the
rest of the industry could not function. They
include infrastructure, Roads, Airports,
Communications, Public Toilets, Signs,
Manufacturing, Building Industry, Electricity,
Water supply and Sewerage and waste
disposal.

Hospitality Resources
• Hospitality resources refer to the general feeling of being
welcomed that the visitors receive while visiting a destination
area. It is the way that tourist services are delivered by service
providers, as well as the general feeling of warmth from the
local population.
• Tourists will have a more enjoyable vacation if they feel
welcomed by the host population and will certainly feel
awkward and unhappy if they feel rejected.
• Hospitality resources can be improved by training tourism and
hospitality personnel to be hospitable to encourage positive
feelings toward tourism and hospitality and tourists by the
general public.

Hospitality Resources
• Hospitality Resources is a total supply
company for hospitality products and
equipment for all food and beverage service
industry-hotels, resorts, restaurants, catering
industry and entertainment outlets.

5 best ways to improve efficiency in
your hospitality resources:
1. Cloud-based POS systems. Cloud-based point of
sale (POS) systems are becoming more and more
sophisticated, allowing hospitality businesses to
operate more efficiently – leaving you more time to
provide better customer service
2. Online booking
3. Boosting customer loyalty
4. Offer free wifi
5. Online accounting software

Different Types of Tourist Accommodations
• Sleeping accommodations range from hotels of international
standards and condominiums to campgrounds and the homes of
relatives and friends.
• A sufficient quantity of accommodations of the right quality should
be provided for the needs of the tourists.
• The type of accommodations provided is also partly determined by
what competitors are providing.
• Appropriate accommodations should be available for all segments
of the market.
• Expensive hotel accommodations may be demanded by those who
want the best and are willing and able to pay accordingly. On the
other hand, tourists who are unable or unwilling to pay for
expensive accommodations should have cheap facilities available.

Types of Accommodations
1. Hotels – provide accommodation, meals, and refreshments for those who may
reserve their accommodations in advance but need not do so. In broad terms,
they provide facilities that meet the needs of the modern travelers. They portray
an image of efficiency and service;
2. Condominium – is an apartment or individual dwelling unit owned by an
individual but the management and services, such as maintenance and security,
are handled by an independent company. The company often contracts to rent
the condominium when it is not being used by the owner. Each owner can sell
his or her unit independently of the other owners;
3. Motels or motor hotels – provide bedrooms, bath, and parking to motorists;
rooms are usually accessible from the parking lot. They are usually near the
highways;
4. Inns – are lodging establishments catering to transients which do not meet the
minimum requirement of an economy hotel;
5. Apartments – are hotels (Apartelles), buildings, or edifices containing several
independent and furnished or semi-furnished apartments that are regularly
leased to tourists and travelers for dwelling, on a more or less long-term basis
and offering basic services to its tenants similar to hotels;

6. Paradores – are old convents, monasteries, castles, or fortresses
converted into hotels by the government and operated by a
national tourism office. First- class paradores are found in Spain
and Ireland. They are generally priced reasonably with full-meal
plans. They appeal to tourists who would like to experience the
romances and ambiances of the past in a fifteenth-century
Augustinian monastery or a nineteenth-century mansion;
7. Pensions – are private or family-operated tourist accommodations
similar to boarding houses or guesthouses. They offer food and
lodging to tourists and are well-known for their informal family
atmosphere;
8. Bed-and-breakfast accommodations – provide a room, bath, and a
hearty breakfast to tourists and/or travelers. They are known as
B&Bs and are popular in Britain, Ireland, and the United States;

9. Hostels – provide minimal amenities such as a bunk
bed and a commonly shared toilet and bathroom. The
traveler provides his or her own bedding. They appeal
mostly to young travelers;
10. Campgrounds – appeal mostly to families who travel
in recreational vehicles (RVs);
11. Health spas – are hostels and resorts which cater to
individuals who go to spas or mineral springs for
weight reduction or medical treatment; and
12. Private homes – provide lodging to tourists when
accommodations are not available during peak
periods.

Hotel Classifications
• There are different ways of classifying hotels.
• One way is by location, such as city center, suburban, airport,
highway, and resorts.
• Another way is by type of guest, such as commercial, convention,
and resort.
• A more meaningful classification is one based on price such as
economy or budget, standard or midscale, first-class, or deluxe.
• A star rating system is often used to classify hotels in Europe and
other parts of the world outside the United States. Stars are
assigned according to the quality of restaurants, rooms, amenities,
and service.
• The highest is the five-star hotel and the lowest is the one-star
hotel.
• Other classifications are deluxe, first-class, standard, and economy.

Hotel Types by Star Rating
• One Star − A guest can expect a small hotel operated and managed
by the owner and family. The ambience as more personal and the
guest rooms with basic amenities. The restaurant would be at a
walking distance. There would be a small commercial area and a
nearby public transportation hub.
• Two-Star − These hotels are mostly part of a chain of hotels that
offer consistent quality but limited amenities. They are either small
or medium size hotels with a phone and TV. They lack the
convenience of room service, but provide a small on-site restaurant
at a walking distance within the hotel premises.
• Three-Star − These hotels are usually located near a major business
center, express way, and/or shopping area. The rooms are clean and
spacious rooms, and decorative lobbies. An on-site restaurant offers
all meals such as breakfast, lunch, and dinner. The facilities such as
valet and room service, fitness center, and a swimming pool are
also available.

• Four-Star − This hotel would be large, often standing as a
part of a cluster of similar hotels with a formal appearance
and very good services. The hotel would be located in the
prime area of the city around shopping, dining, and
entertainment joints. The guest can expect furnished and
clean rooms, restaurants, room service, valet parking, and a
fitness center within the hotel premises.
• Five-Star − This hotel would be large and luxurious, which
offers the highest degree of room and personal service. It is
built with beautiful architecture, and is managed keeping
elegance and style in mind. The guest rooms are equipped
with high quality linens, TV, bathtubs, and special outside
view from the room. The hotel provides multiple eating
joints in its premises such as coffee shops, restaurants,
poolside snack joint, and bar. They also provide 24X7 room
service, valet service, and personal protection service.

What gives a hotel a 7-star rating?
• Officially, there is no such thing as a 7-star rating. The
term 7-star was created by a journalist who attended
the opening of the Burj Al Arab in Dubai and felt the
standard five stars didn’t do its decadence justice.
• Even a 5-star rating can vary country to country as
there is no global standard for star ratings. But what we
can gather from hotels who market themselves as
having seven (and very few claim to have six) is that
they are a really, really luxury property with the
glitziest and flashiest extras you can imagine.
• Let’s take a look at what you can experience at the
world’s most outrageously opulent hotels, along with
just how much it will cost to get a room there.

Our list of the best seven-star hotels
around the world includes:
• Burj Al Arab (United Arab Emirates)
• Taj Falaknuma Palace (India)
• Emirates Palace Hotel (United Arab Emirates)
• Signiel Seoul (South Korea)
• Pangu Hotel (China)
• Seven Stars Galleria (Italy)
• Laucala Private Island (Fiji)

1. Hotel Burj Al Arab, Dubai

• Hotel Burj Al Arab is where the idea of a seven-star hotel
came to life. It’s hard to say what it was about the sail-
shaped Burj Al Arab that inspired the phrase but the all-
suite property’s fleet of Rolls-Royce Phantoms (available to
pick you up after your flight to Dubai lands) and 24-hour
butler service might have had something to do with it.
• The décor at Dubai’s most famous hotel is as upmarket as
its clientele, with more than 21,000 square feet of 24K-gold
leaf gracing the property. Helicopter transfers, gold-plated
iPads and caviar facials are standard here, as are multiple
attendants for every suite.
• Price: A one-bedroom suite at Burj Al Arab starts from
$2,500 AUD. The Royal Suite will set you back an average of
$8,900 USD ($11,000 AUD) per night – down from $24,000
USD when it first opened!
Address: Burj Al Arab, Jumeirah Road, Umm Suqeim 3,
Dubai, United Arab Emirates

2. Taj Falaknuma Palace, Hyderabad
• Labelled as the only 7-star hotel in India, the Taj Falaknuma Palace was
built in 1884 and was once owned by the Nizam (ruler) of Hyderabad, who
was the world’s richest man at the time.
• An architectural splendour, the palace was built in the shape of a scorpion
with two stings spread out as wings and includes a walnut-clad replica of
the library at Windsor Castle. Inside this phenomenal palace are a number
of priceless artworks, manuscripts and furnishings including Belgian Osler
Chandeliers and an extensive jade collection. Clumsy guests should head
somewhere else!
• Now managed by Taj Hotels, the Indian palace has been restored to its
19th-century glory. It also offers guests the option of an arrival in a classic
horse-drawn carriage and a welcome of scattered rose petals. Quite a
difference from backpacking and train travelling in India, don’t you think?
• Price: A Historical Suite with city view starts from 40,000 INR (approx.
$770 AUD) per night.
Address: Taj Falaknuma Palace, Engine Bowli, Fatima Nagar, Falaknuma,
Hyderabad, India

3. Emirates Palace Hotel, Abu Dhabi
• Anyhing Dubai does, Abu Dhabi has to go one better. The Emirates Palace
Hotel wins the award for being one of the world’s most expensive hotels.
• Costing a whopping three billion US dollars to build, the Emirates Palace is
mind-boggling. This hotel features 1.3km of private beach, 128 kitchens,
114 domes and marble imported from 13 different countries (we assume
the first 12 ran out!). The opulence extends from the grounds to the
ceilings with 12 outdoor fountains, more than 1000 Swarovski crystal
chandeliers and a gold vending machine – for when you’re caught short
without enough precious metal. Gold is not just worn at the Emirates
Palace but eaten too. Everything from camel burgers to the in-house
cappuccino get a dusting.
• Price: Calling themselves ‘the people’s palace’, rooms at Emirates Palace
start at $800 AUD a night. Go on, treat yourself!
Address: Emirates Palace Hotel, West Corniche Road, Abu Dhabi, United
Arab Emirates

4. Signiel, Seoul
• 4. Signiel, Seoul
• Signiel Seoul, in Lotte World Tower, has quickly
established itself as the most luxurious (and one of the
most expensive) hotel in South Korea.
• A stay at Signiel Seoul comes with helicopter transfers,
Michelin-starred chefs, the largest champagne bar in
Asia and a bill for thousands of dollars.
• Price: Suites at Signiel Seoul have dropped in recent
months, and will set you back around $500 AUD per
night.
Address: Signiel Seoul, Sincheon-dong, South Korea,
Seoul

5. Pangu 7 Star Hotel, Beijing
• Built by world-renowned Taiwanese architect CY Lee,
whose portfolio includes the 508-metre Taipei 101 Tower,
Pangu boasts 234 rooms that fuse Chinese classical
tradition with contemporary European glamour while
following the principles of feng shui.
• Standard rooms are a fairly pocket-friendly $320 AUD per
night, but for the ultimate luxury experience, you need to
book the Sky Courtyard, a two-storey private residence
with a rooftop garden, wading pool, electronically
retractable glass roof and artwork by Sir David Tang.
• Price: The price tag for the Sky Courtyard is a cool one
million CNY (approx $193,000 AUD) a night.
Address: Pangu 7 Star Hotel, 27 N 4th Ring Rd Middle,
Chaoyang Qu, Beijing Shi, China

6. Seven Stars Galleria, Milan
• The Seven Stars Galleria in Milan is the only official 7-star hotel on
this list. That’s because the owner hired a company to create a
European ranking so they could officially take the title.
• With only 20 rooms available, it’s the most exclusive hotel on this
list and you’ll be pretty lucky to get a room. If you can nab one, they
tailor everything including the bed, meals and ambient music to
each guest’s individual preference, making it the perfect way to get
over jetlag after your long flight to Milan.
• This hotel is ‘seventh heaven’ for shopaholics as the property’s
private lift drops you directly in Galleria Vittorio Emanuele II, Italy’s
oldest and grandest shopping arcade.
• Price: Room rates start at EUR 1000 ($1,500 AUD) per night.
Address: Seven Stars Galleria, Via Silvio Pellico, 8, 20121 Milano,
Italy

7. Laucala Private Island, Fiji
• The closest 7-star hotel experience for Australian travellers also happens
to be the world’s most expensive! Owned by Red Bull co-founder, Dietrich
Mateschitz, Laucala is where the likes of Oprah go on holiday away from
the prying eyes of the public.
• Laucala Private Island in Fiji is the largest private island in the Southern
Hemisphere, and its hefty price tag makes it one of the world’s most
exclusive holiday destinations too.
• The island has 25 private villas for rent, including the owner’s hilltop
residence, if you have $45,000 USD to spare! Activities you can partake in
on the island include a paddle in a clear-bottom kayak, a ride on the
resort’s submarine (yes, really) or a round of golf with a resident pro.
• Laucala Private Island is under renovation until 2021. Who knows what
new amenities they’ll emerge with?
• Price: 1 night in a 1 bed villa starts from $4,200 USD (approx. $5,300 AUD).
Address: Laucala Private Island, Fiji

Basic Standard Requirements for Restaurants
1. The facades and architectural features of the
building shall be appropriately designed. It shall be
provided with a proper entrance and exit. There
shall be an adequate and secured parking space
provided free to customers. A receptionist shall be
available to usher in the guests. A waiting lounge
with a telephone shall also be provided;
2. The dining room shall be adequate in size, with
sufficient and well-maintained furniture;

3. There shall be cuisine of good quality and presentation and served
with distinction. There shall be a menu book or card which shall
be presentable, clean, and easy to read with the menu items listed
in logical sequence. All tables shall have clean table cloth and
cloth napkins of good quality. No piece of crockery, cutlery, and
tableware in use shall be chipped, cracked, or glazed. The
silverware shall be kept polished and clean at all times; and
4. Adequate number of well-trained, experienced, efficient, and
courteous staff shall be employed. The bar shall be well-stocked at
all times. The kitchen, pantry, and cold storage shall be in good
operating condition at all times and shall be of good quality
fixtures and fitting and provided with running water. Tissue paper,
soap, paper towels, and/or hand drier shall be provided. All main
dining or function rooms shall be fully air-conditioned and/or well-
ventilated.

What are the 5 most popular types of
restaurants?
1. Fast food
• Fast food, or quick service restaurant (QSR)
establishments offer food served on-the-go, whether
from a drive-through window or counter. Customers
can also dine in, although it’s less common. These
types of restaurants are well-known chains or
franchises with a nationwide or even global presence.
The menus are made up of standardized fare — think
greasy double-patty burgers, crispy fries, and creamy
milkshakes in America, street tacos in Mexico, and hot
noodles in Japan — and typically feature lower price
points (Dollar Menu, anyone?) making them accessible
for a breadth of customers.

2. Fast casual
• Fast casual restaurants offer a more upscale and
diverse (though still limited) menu selection with
slightly higher price points than fast food
establishments. But similar to fast food, these
types of restaurants have a counter service model
where customers place their orders at the cashier
and bring them back to their own table. Think:
customized chopped salads, signature paninis,
superfood-filled smoothie bowls, or higher-quality
burgers and shakes, for instance. As a bonus, this
category has demonstrated consistent
growth over time.

3. Casual dining
• Casual dining encompasses a large segment of
the restaurant industry. These types of
restaurants cover everything from local
independent spots to big franchises, but defining
characteristics include table service and a sit-
down meal. There’s generally a theme, specific
decor, and ambiance that make the dining
experience stand out. Depending on the cuisine,
a customer dining at a casual establishment could
find nearly anything: a salad bar, spaghetti and
meatballs, pad thai, or even all-day breakfast
offerings like pancakes and waffles.

4. Contemporary casual
• Contemporary casual, a relatively new type of
restaurant, is a sit-down dining experience
marked by an emphasis on the atmosphere
and experience. These types of restaurants
often balance a relaxed eating environment
with modern culinary trends like sustainability,
farm-to-table, fusion cuisine, and craft
beverages.

5. Cafés
• A café is — at its simplest — a beverage-focused
establishment. Offerings usually include coffee, tea,
and a smaller menu of food or snacks. These types of
restaurants typically offer counter service and prices
are low to moderate. Every country has different
traditions for enjoying their caffeinated brews — in
America, for instance, coffee is often consumed on the
go in infamously large cups. But around the world,
many cultures sit and sip for hours. Australian café-
goers love a flat white (similar to a latte); Italians love
pure espresso; and the French might reach for a café
au lait or a cappuccino — and use it as a vessel for
dipping croissants.

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