ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE MODULE 1 INTRODUCTION TO TOURISM AND HOSPITALITY INTENDED LEARNING OBJECTIVES At the end of the module, students will be able to: Explain the different definitions of basic terms as well as the importance of the tourism and hospitality industry Recall how the tourism industry developed from the earlier times to the present Evaluate the distinct nature and characteristics of tourism service products and destination LESSON PROPER Tourism and Hospitality has been one of the largest and fastest growing industries in the world. It contributes greatly to global economic development, particularly in countries that are leading in tourism and hospitality revenues. Governments of many nations are encouraging the growth of tourism and hospitality as a means of job creation, economic diversification, and source of foreign exchange. (Cruz, 2018) As entrepreneurship students, it is highly significant for you to be introduced and be familiar with the tourism and hospitality industry since it gives opportunities when it comes to careers as well as for your future entrepreneurial endeavors. This module shall give you an overview about the industry, the basic terms used, its unique characteristics and its historical development through the years. DEFINITION OF TERMS Along your journey to learning about the tourism and hospitality industry, it is essential first for you to know basic terms that you will often encounter in this course. TOURISM According to Professors Hunziker and Krapf of Berne University, Switzerland, tourism is defined as the “sum of the phenomena and relationships arising from the travel and stay of no-residents, in so far as they do not lead to permanent residence and are not connected to any earning activity.” We must note key ideas that comes from this definition: 1. Sum of phenomena and relationships - Tourism involves several activities that are usually interdependent and interconnected with each other Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE 2. Travel and stay of non-residents - Temporary visits to places other than the place of residence of the person traveling 3. Do not lead to permanent residence - Since travel is temporary, the person should not have the main purpose of visiting a place for permanent residency 4. Not connected to any earning activity - Additionally, the travel should not also to build a business or to work long term on the destination This definition distinguishes tourism from migration, which involves taking up permanent residence. Since it necessarily includes both travel and stat, it excludes day tours. HOSPITALITY The word “hospitality” is derived from the Latin word “hospitare” which means “to receive as a guest.” This phrase implies that a host is prepared to meet a guest’s basic requirements while the guest is away from home. The requirements of a guest in these circumstances are food and beverages, lodging or shelter. TOURIST In 1937, the League of Nations 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. This was held to include persons traveling for pleasure, domestic reasons or health, persons traveling to meetings or on business, and persons visiting a country on a cruise vessel even if for less than 24 hours. In 1963, a United Nations Conference on International Travel and Tourism recommended a new definition of a “visitor” as any person visiting a country other than that of earning money. This definition covers two classes of visitors: 1. Tourists – temporary visitors staying at least 24 hours whose purpose could be classified as leisure, business, family, mission and meeting. 2. Excursionists – temporary visitors staying less than 24 hours in a destination visited and not making an overnight stay, including cruise travellers, but excluding travellers in transit. ELEMENTS OF TRAVEL Four basic elements have been used as a criteria for defining travelers and/or tourists. These are the following: Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE 1. Distance – a measure that has been used to distinguish travel away from home. A trip is defined as each time a person goes to a place at least 100 miles away from home and returns. 2. Length of Stay – the definition of tourists and excursionists as proposed by World Tourism Organization is largely based on length of stay. 3. Residence of the Traveler – considered as the origin of the traveler. 4. Purpose of Travel – it includes visiting friends or relatives; conventions, seminars and meetings; business; outdoor recreation (hunting, fishing, boating and camping); entertainment (sightseeing, theatre and sports); personal (family, medical, funeral and wedding) and others. NATURE OF A TOUR To analyze the nature of a tour systematically, it will be helpful to understand the difference between domestic and international tourism as well as independent and package tour. Domestic vs International Tourism Domestic Tourism – travel taken exclusively within the national boundaries of the traveller’s country. International Tourism – movement of people across international boundaries. Inbound vs Outbound Tour Inbound Tour - visits to a country by visitors who are not residents of that country Outbound Tour - visits by residents of a country outside that country Independent vs Packaged Tour Independent Tour – an arrangement in which the tourist buys these facilities separately, either making reservations in advance through travel agent or en route during his or her tour. Packaged Tour – sometimes called inclusive tour, an arrangement in which transport and accommodation is bought by the tourist at an allinclusive price and the price of the individual elements cannot be determined by the tourist. Tourists purchasing package tours may do so on the basis of either individual or group travel. An independent inclusive tour is one in which the tourist travels to his other destination individually while group inclusive tour, he or she travels in the company of other tourists. Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE THE TOURIST PRODUCT Consist of what the tourist buys. It is a combination of what the tourist does at the destination and the services he or she uses during his or her stay. Characteristics of Tourist Product a. It is a service - an intangible item such as package tours b. It is largely psychological in its attraction. - culture, heritage of the region, atmosphere and hospitality c. Tends to vary in standard and quality over time - a bumpy flight can change an enjoyable experience into a nightmare, a good room in a hotel may be spoiled by poor food, holiday in a seaside can be destroyed by a prolonged rainy spell. d. Supply of the product is fixed. - number of hotel rooms available at a particular resort cannot be changed to meet the changing demands of tourists during a particular season) THE TOURIST DESTINATION A geographical unit where the tourist visits and stays. It may be a village, a town, a city, a region, an island, a country or a continent. 6As of Tourist Destination a. Attractions - may be site and event attractions. A site attraction is one in which the destination itself has appeal (Boracay Island, El Nido, Palawan and Chocolate Hills) while event attraction is one in which tourists are drawn to the destination solely because of what is taking place there (Congresses, Exhibitions, Festivals such as the Panagbenga Festival and Sports Events such as the Sea Games).It may also be natural or man-made. Natural attractions include mountains, beaches and climatic features. Manmade attractions include buildings of historical or architectural interest such as Fort Santiago, holiday camps and theme parks such as Disneyland and Enchanted Kingdom. b. Amenities or facilities - include accommodation, food, local transport, communications and entertainment at the site. c. Accessibility - means having regular or convenience of transport in terms of time/distance to the destination from the originating country at a reasonable price. (adequate roads, Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE gasoline stations, railways, coach services, airports and seaports are designed to facilitate accessibility). d. Activities - Some famous activities are camping, hiking, surfing, spelunking, kayaking, sightseeing etc. e. Accommodation - These are facilities that provides lodging for tourists such as hotels, motels, inns, apartelle, campsites, hostels etc. f. Ancillary Services - Support services such as shopping malls, convenience stores, banks, pharmacies etc. 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. (land, sea and air travel) Accommodation, food and beverage and entertainment constitute the second group of tourist services (hotels, restaurants, amusement parks and recreation) The third group of tourist services consists of those provided by the travel agent and by the tour operators. Tour Operator – Manufacturer of the product Travel Agent – Distributor of the product Other tourist services include currency, documentation, information, sightseeing and shopping. CHARACTERISTICS OF TOURISM AND HOSPITALITY Tourism and hospitality is a unique industry as compared to other industries. The following are some of its key characteristics: 1. The product is not brought to the consumer, rather, the consumer has to travel and go to the product to purchase it. - In other industries, an item manufactured in a factory is brought to the wholesaler and retailer and ultimately to the consumer 2. The products of tourism and hospitality are not used up. - They do not exhaust the country’s natural resources 3. Tourism and hospitality is a labor intensive industry. Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE - It requires more manpower than any other industries 4. Tourism and hospitality is people oriented. - Is primarily concerned with people 5. Tourism and hospitality is multidimensional phenomena. - It is dependent on varied activities which are separate and independent 6. Tourism and hospitality industry is seasonal - During vacation seasons, millions of tourists travel and there is increased revenue; however, during lean seasons, businesses experience a decline 7. The industry is dynamic. - Highly changing ideas and attitudes of its customers IMPORTANCE OF TOURISM AND HOSPITALITY Tourism and hospitality has become one of the world’s major industries. Both developing and highly developed countries are now taking a closer look at the following potential benefits from the tourism and hospitality: 1. Contribution to the balance of payments - The industry can help correct the balance of payments and deficits in many countries by earning the much-needed foreign currency 2. Dispersion of development - It is the best means to spread wealth among countries thus bridging the gap between rich and poor nations. 3. Effect on general economic development - Expenditures by tourist can have beneficial effects on all economic sectors 4. Employment opportunities - Generates large percentage of employment 5. Social benefits 6. Cultural enrichment - Promotes a country’s culture 7. Educational significance 8. A vital force for peace THE RELATIONSHIP OF TOURISM AND HOSPITALITY The tourism and hospitality industries strongly affect one another. Several associations and industry leaders consider the combined industries of tourism and hospitality as one large industry. – the tourism and hospitality industry. It includes (1) food and beverage services, (2) lodging services, (3) recreation services and (4) travel related services. These components Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE constitute the tourism and hospitality network. Network means a complicated interconnection of parts or components. a. The Food and Beverage Component – It includes restaurants, bars, kiosks, vending machines, supermarket, food stalls, food carts, food trucks, room service. Food service establishments are found in theme parks, schools, colleges, hospitals, prisons. b. Lodging Component – hotels, resort, inns, lodges, motels, condominium, apartments, paradores, pensions, hostels, campgrounds, private homes. c. Recreation and Entertainment Component – Concerts, casino/gambling, hiking, boating, swimming, golf and tennis d. Travel and Tourism Component – includes transportation services and the services of travel agents and tour operators. HISTORICAL DEVELOPMENT OF TOURISM Early Tourism Travel and exploration are basic to human nature. Man has travelled 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. It 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. Early tourism has two forms; travel for business such as trading and religious travel. Medieval Period During the medieval period, travel declined. Travel derived from the word travail, became burdensome, dangerous and demanding during this time. Renaissance and Elizabeth Eras Travel for education became popular. 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. Introduction of spas or medicinal baths. The term spa is derived from the Walloon word “espa” meaning fountain. Industrial Revolution It brought about not only technological changes, but also essential social changes that made travel desirable as a recreational activity. This led to the creation of working class resorts near major industrial centers. 19th Century Introduction of the railway and the development of steam power. Photography and guide books became popular. Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE 20th Century After World War I, forms of travel began to change radically. The railways as a means of travel declined with the introduction of the motor car. Motorized public road transport and improved road conditions led to the popularity of seaside tours. Another outcome of the war was the progress in aircraft technology. Air travel become more comfortable, safer, faster and cheaper in comparison with other forms of transport. There was an increase in private car ownership. History of the Hospitality Industry Ancient Period The Sumerians – group of people who lived in Mesopotamia near Persian Gulf about 4000 BC. The Sumerians were the first to develop trade in the modern sense of the world. Converted trading grains into alcoholic beverages or beers. Established taverns making it the first hospitality business. Taverns served beers to local residents. Code of Hammurabi – required tavern owners to report customers who planned crimes. Early Traders – In 2000 BC, some enterprising individuals set up caravanserai which provided food and shelter to travelers. These were the early examples of inns. Empires: 3200 BC to 476 AD Egyptian Empire – the famous pyramids or tombs for the pharaoh became tourist attractions that many people travelled long distances to see. Egyptians were the first to begin the activity we now call tourism and hospitality. Greek Empire – restaurants in ancient Greece were often respected and served fine food. Roman Empire – Romans constructed elaborate inns along main roads for officials and couriers of the Roman government. Khans, a combination of stables, sleeping accommodations and fortresses which provided shelter from sandstorms and enemies who attacked caravans. Medieval Period Dark Ages – In Europe, Charlemagne established rest houses for pilgrims. Accommodations in medieval guilds were similar to those of the monasteries. Gradually, some taverns, inns and wine shops began to give accommodations to middle class travelers. Renaissance 1350 AD to 1600 AD – there were no restaurants or dining establishments. Concern about table manners increased during this period and rules to be observed at the dinner table developed. Early Modern Period: 1600 AD to 1800 AD A type of eating place for commoners called an “ordinary” appeared in England. Coffee and tea began to influence the culinary habits of Western Europe. In 1765, a man named Boulanger operated a small business which sold soups and broth in Paris. Boulanger is recognized as the first to create the first restaurant. Another type Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE of food service establishment which developed in France was the café. Café is the French word for coffee. The Industrial Era: 1800 The development of railroad stations became excellent locations for new hospitality businesses. 19th Century By this time, the term restaurant reoffered to the dining room of a hotel. More luxurious hotels began to appear. Better methods of preserving food through canning and vacuum packing, mass feeding for school children and the establishment of ice cream parlors. 20th Century Introduction of hamburger chains. There was a rapid development of hotels and coffee shops. Emergence of fast food restaurants and increase of hospitality corporations such as the Four Seasons, Canadian Pacific, Marriott Hyatt, Sheraton, Hilton, Ramada and Radisson. 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 – the general manager of the Savoy Hotel in London, one of the famous and luxurious hotels in the world. Ellsworth Milton Statler – the premier hotel man of all times. The first who put telephone and radios in every guest room together with full length mirrors, built in closets and special faucet for ice water. Conrad Hilton – the biggest hotel man in the world. He formed the first major chain of American hotels. Thomas Cook – the first professional travel agent. The founder of the world’s first travel agency. Howard Dearing Johnson – the pioneer of brand leveraging. The one who introduce franchising. J. Willard Marriott – the founder of Marriott Corporation. Ray Kroc – the founder of McDonalds Corporation. Isadore Sharp – the founder of Four Seasons Regent Hotels, the world’s largest hotel chain and multimillion dollar global hotel empire. Ruth Fertel – the founder of Chris Steak House, the largest upscale restaurant chain in the United States. Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE Tony Tan Caktiong – the founder of Jollibee Foods Corporation. (Jollibee, Greenwich, Chowking, Mang Inasal, Red Ribbon). FACTORS THAT FAVOR THE GROWTH OF TOURISM AND HOSPITALITY 1. Rising disposable income for large sections of the population 2. Growth in the number of retired persons who have the desire and the energy to travel. 3. Increase in discretionary time 4. Greater mobility of the population 5. Growth in the number of “singles” 6. Greater credit availability through credit cards and bank loans 7. Higher educational levels 8. The growth of cities 9. Simplification of travel through the package tour 10. Growth of multinational business 11. Modern transportation technology 12. Shift in values 13. Advances in communication 14. Smaller families and changing roles References Cruz, Zenaida L. Macro Perspective of Tourism and Hospitality. Rex Bookstore Inc. 2018 Cruz, Zenaida L. Principles of Tourism 1. Rex Bookstore Inc. 2018 Lim Romeo D. A Macro Perspective on Tourism and Hospitality. Mindshapers Co. Inc. 2019 Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM ILOCOS SUR POLYTECHNIC STATE COLLEGE Candon Campus MODULE INTENDED LEARNING ACTIVITY INSTRUCTIONS: Based on what you have learned, answer the following questions: 1.Why is it important to learn about the tourism and hospitality industry as a part of your course? (20 points) 2.Which among the identified historical developments of the tourism industry do you think has the most significant contribution to the modern day tourism? Why do you think so? (30 points) 3.What is the impact of the pandemic to the tourism and hospitality industry? Cite examples of situations to support your answers. (30 points) ASSIGNMENT INSTRUCTIONS: Recall your most memorable travelling experience and create a one page essay on why you chose that particular travel experience. Relate the content of your essay to the discussions for Module 1. (50 points) Course Code: MAJ 3 Descriptive Title: Tourism and Hospitality Instructor: JAMIE JOYCE O. DANGLE, MSHRM