Week 1

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

COURSE DESCRIPTION:

This course is designed to give a clear and whole overview of Tourism and Hospitality
as an ecosystem and goes beyond the usual-concept of tourism. It introduces the concepts
and terms that are common throughout the different sectors. It also intends to develop, update
and maintain local knowledge as well as tourism industry knowledge. It shows the structure
and scope of tourism as well as the impact of tourism as an industry in relation to the world
economy and society. It also illustrates the effects of the convergence of tourism with the
other local industries and let the students appreciate its multiplier effect in various fronts. It
discusses the major factors that influence the history and future of tourism in the world and in
the Philippines. It also introduces the sustainable goals of tourism and discusses among others
how to develop protective environment for children in tourism destinations; to observe and
perform risk mitigation activities. The students will also learn to appreciate the key global
organizations and the roles they play in influencing and monitoring tourism trends.

INTRODUCTION OF TOURISM

There are a number of ways tourism can be defined, and for this reason, the
United Nation World Tourism Organization (UNWTO) embarked on project from 2005 to
2007 to create a common glossary of terms for tourism. It defines tourism as follows:
 Tourism is a social, cultural and economic phenomenon which entails the
movement of people to countries or places outside their usual environment for personal
or business/professional purposes. These people are called visitors (which may be
either tourists or excursionist; residents or non-residents) and tourism has to do with
their activities, some of which imply tourism expenditure (United Nations World Tourism
Organization,2008).
Using this definition, we can see that tourism is not just the movement of people
for a number of purposes (whether business or pleasure), but the overall agglomeration
of activities, services, and involved sectors that make up the unique tourist experience.

Origins of Tourism

Travel for leisure purposes has evolved from an experience reserved for very few
people into something enjoyed by many. Historically, the ability to travel was reserved
for royalty and the upper classes. From ancient Roman times through to the 17th
century, young men of high standing were encouraged to travel through Europe on a
“grand tour” (Chaney, 2000). Through the Middle Ages, many societies encouraged the
practice of religious pilgrimage, as reflected in Chaucer’s Canterbury Tales and other
literature.

The word hospitality predates the use of the word tourism, and first appeared in

the 14th century. It is derived from the Latin hospes, which encompasses the
words guest, host, and foreigner (Latdict, 2014). The word tourist appeared in print
much later, in 1772 (Griffiths and Griffiths, 1772). William Theobald suggests that the
word tour comes from Greek and Latin words for circle and turn, and
that tourism and tourist represent the activities of circling away from home, and then
returning (Theobald, 1998).
 Tourism Impacts

Tourism impacts can be grouped into three main categories: economic, social,

and environmental. These impacts are analyzed using data gathered by businesses,
governments, and industry organizations.

Economic Impacts

According to a UNWTO report, in 2011, “international tourism receipts exceeded

US$1 trillion for the first time” (UNWTO, 2012). UNWTO Secretary-General Taleb Rifai
stated this excess of $1 trillion was especially important news given the global economic
crisis of 2008, as tourism could help rebuild still-struggling economies, because it is a
key export and labour intensive (UNWTO, 2012). 

Tourism around the world is now worth over $1 trillion annually, and it’s a
growing industry almost everywhere. Regions with the highest growth in terms of
tourism dollars earned are the Americas, Europe, Asia and the Pacific, and Africa. Only
the Middle East posted negative growth at the time of the report (UNWTO, 2012).

While North and South America are growing the fastest, Europe continues to
lead the way in terms of overall percentage of dollars earned (UNWTO, 2012):

 Europe (45%)
 Asia and the Pacific (28%)
 North and South America (19%)
 Middle East (4%)

Global industry growth and high receipts are expected to continue. In its August
2014 expenditure barometer, the UNWTO found worldwide visitation had increased by
22 million people in the first half of the year over the previous year, to reach 517 million
visits (UNWTO, 2014a). As well, the UNWTO’s Tourism 2020 Vision predicts
that international arrivals will reach nearly 1.6 billion by 2020.

Social Impacts

In addition to the economic benefits of tourism development, positive social

impacts include an increase in amenities (e.g., parks, recreation facilities), investment in
arts and culture, celebration of First Nations people, and community pride. When
developed conscientiously, tourism can, and does, contribute to a positive quality of life
for residents.
 However, as identified by the United Nations Environment Programme (UNEP,
2003), negative social impacts of tourism can include:

 Change or loss of indigenous identity and values

 Culture clashes
 Physical causes of social stress (increased demand for resources)
 Ethical issues (such as an increase in sex tourism or the exploitation of child
workers)

Environmental Impacts

Tourism relies on, and greatly impacts, the natural environment in which it operates.
Even though many areas of the world are conserved in the form of parks and protected
areas, tourism development can have severe negative impacts. According to UNEP
(2003), these can include:

 Depletion of natural resources (water, forests, etc.)

 Pollution (air pollution, noise, sewage, waste and littering)
 Physical impacts (construction activities, marina development, trampling, loss of
biodiversity)

The environmental impacts of tourism can reach outside local areas and have an effect
on the global ecosystem. One example is increased air travel, which is a major
contributor to climate change. Chapter 10 looks at the environmental impacts of tourism
in more detail.
TOURISM, TRAVEL AND HOSPITALITY: WHAT ARE THE DIFFERENCES?

TOURISM, the act and process of spending time away from home in pursuit of
recreation, relaxation, and pleasure, while making use of the commercial provision of
services. 

TRAVEL, to go from one place to another, as by car, train, plane, or ship; take a trip;
journey: to travel for pleasure.

HOSPITALITY, the relationship between a guest and a host, wherein the host receives
the guest with some amount of goodwill, including the reception and entertainment of
guests, visitors, or strangers.
 THE TOURISM LIFE CYCLE
Butler proposed that most tourist resorts go through a six stage model and he
called this the tourism life cycle model. It states that most tourist resorts start on a very
small scale and get bigger and bigger until stagnation occurs.  Within the 6 stages the
following happens;

EXPLORATION

TOURISM LIFE
DEVELOPMENT
CYCLE MODEL

TOURISM LIFE
CYCLE MODEL

TOURISM LIFE
CYCLE MODEL INVOLVEMENT

TOURISM LIFE
CYCLE MODEL
1) EXPLORATION - a few hardy and adventurous people looking for something
different in a holiday find a place that is special in terms of its culture, natural beauty,
history or landscape.  There may be no tourist services available and local people will
not be involved in  tourist money making activities.

2) INVOLVEMENT - local people start to notice that there are increasing numbers of
people coming to their local area.  They start businesses to provide accommodation,
food, guides, and transport.

3)  DEVELOPMENT - Big companies start to see the emerging potential of the area as
a tourist resort and therefore start to invest money in the region.  They build large hotel
complexes and sell package holidays (a package might include travel, accommodation,
food and excursions).  This makes the numbers of tourists swell dramatically and
massively expands the number of job opportunities for people in the local region, in both
tourist related jobs and in construction and services.

4) CONSOLIDATION - The local economy is probably dominated by tourism at this

stage, and many local people will make their money from this type of industry. 
However, this can remove people from other industries such as farming and fishing and
these industries can suffer as a result.  There will be continued building and expansion
of the resort BUT some of the older buildings will start to become unattractive and a
lower quality client base might result.

5) STAGNATION - competition from other resorts, rowdiness and a loss of the original
features (e.g. if it had a great beach but that is now crowded and full of rubbish) can
cause the resort to stop growing.  The number of people going levels off then starts to
decline, threatening local businesses and services.

6) DECLINE OR REJUVENATION?  From the stagnation point onwards there are 2

basic possibilities:  Decline in various forms or rejuvenation (regrowth of the
resort) Decline can be slow or rapid, and regular visitors are replaced by people seeking
a cheap break or day trippers.  Rejuvenation involves a cash injection from either a
private company or the government, to create a new attraction within the original resort
to boost its popularity - such as the Pleasure Beach at Blackpool.

Learning Task: Read the given statement carefully and answer it with true or false.

1. Tourism is a social, cultural and economic phenomenon which entails the

movement of people to countries or places outside their usual environment for
personal or business/professional purposes.
2. Historically, the ability to travel was reserved for poor and the lower classes.
3. Tourism around the world is now worth over $1 trillion annually, and it’s a
growing industry almost everywhere.
4. Even though many areas of the world are conserved in the form of parks and
protected areas, tourism development can have severe negative impacts.
5. Hospitality, the relationship between a guest and a host, wherein the host
receives the guest with some amount of bad experience, including the reception
and entertainment of guests, visitors, or strangers.
6. In exploration a few hardy and not adventurous people looking for something
different in a holiday find a place that is special in terms of its culture, natural
beauty, history or landscape. 
7. Local people start to notice that there are increasing numbers of people coming
to their local area.  They didn’t start businesses to provide accommodation, food,
guides, and transport.
8. Big companies start to see the emerging potential of the area as a tourist resort
and therefore start to invest money in the region.
9. Tourism is to go place to another, as by car, train, plane, or ship.
10. Travel the act and process of spending time away from home in pursuit of
recreation, relaxation, and pleasure, while making use of the commercial
provision of services. 
Answers:
1. True
2. False, travel was reserved for royalty and upper class
3. True
4. True
5. False, the host receives the guest with some amount of goodwill
6. False, a few hardy and adventurous people looking for something different in a
holiday find a place that is special in terms of its culture, natural beauty, history or
landscape.
7. False, They start businesses to provide accommodation, food, guides and
transport.
8. True
9. False, Travel is to go place to another as by car, train plane or ship.
10. False, Tourism is the act process of spending time away from home in pursuit of
recreation, relaxation, and pleasure, while making use of the commercial
provision of services.