Module in C-THC 10 - Legal Aspects in Tourism and Hospitality

A. Module No – Title : Module 1 - Tourism Industry

B. Time Frame : week 1 – 3 hrs

Overview
The Tourism Industry is recognized by the government as an important contributor
to the generation of foreign exchange earnings, investments, revenue, and
employment, and to the growth of the country. The inclusion of tourism as a major
pillar in the Medium-Term Development Plan has given priority to the tourism
sector by promoting the Philippines as a premier tourist destination and
investment site. If developed in a sustainable manner, it can be a powerful
economic growth engine for the Philippines. Therefore, it deserves to be a top
priority for national development because it is a powerful and efficient industry.

Desired Learning Outcomes:

Upon the completion of this module, students should be able to:
• Explain the commonly understood definitions of tourism and tourist.
• Demonstrate knowledge and understanding on the definition of Hospitality.
• Describe the origins of the tourism industry; and
• Discuss the history of tourism development in the Philippines.

Main Topic of Discussion:

Introducing important words/jargons to help the students appreciate an
understanding on the pertinent laws governing the Tourism and hospitality
industry

What Is Tourism?

Before engaging in a study of tourism, let us have a closer look at what this term means.

Definition of Tourism

There are several ways tourism can be defined, and for this reason, the United Nations
World Tourism Organization (UNWTO) embarked on a 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 excursionists; residents or non-residents) and tourism has to do with their
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 activities, some of which imply tourism expenditure (United Nations World Tourism
Organization, 2008).

Using this definition, we can see that tourism is the movement of people for a number of
purposes (whether business or pleasure).

Definition of Tourist

Building on the definition of tourism, a commonly accepted description of a tourist is

“someone who travels at least 80 km from his or her home for at least 24 hours, for
business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World
Tourism Organization (1995) helps us break down this definition further by stating
tourists can be:

1. Domestic (residents of a given country travelling only within that country)

2. Inbound (non-residents travelling in a given country)
3. Outbound (residents of one country travelling in another country)

The scope of tourism, therefore, is broad and encompasses a number of activities.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible,
sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes
156 countries and over 400 affiliates such as private companies and non-governmental
organizations. It promotes tourism as a way of developing communities while encouraging
ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO
website: http://www2.unwto.org/.

Suggested Activity:
Read
This message of ZURAB POLOLIKASVILI-Secretary General UNWTO for
The effect of the pandemic COVID-19 to the tourism and hospitality industry.
Trust is the new currency of our ‘new normal’. And tourism is
ideally positioned to be the vehicle to channel trust.
CREATE
Based on this message, please create a hashtag for UNWTO.

Glossary of TERMS:
• Adventure Tourism- outdoor activities with an element of risk, somewhat
physically challenging and undertaken in natural, undeveloped areas.
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 • Agritourism – tourism experiences that highlight rural destinations and
prominently feature agricultural operations
• Appropriation: the action of taking something for one’s own use, typically
without the owner’s permission
• Art museums: museums that collect historical and modern works of art for
educational purposes and to preserve them for future generations
• Assets: items of value owned by a business to be used in the production and
service of the experience
• Capacity: the ability of a person to enter into a legal agreement; depends on the age
and mental state of the person (among other factors)
• Captured patrons: consumers with limited selection or choice of food or beverage
provider given their occupation or location
• Carbon offsetting: a market-based system that provides options for organizations
to invest in green initiatives to offset their own carbon emissions
• Career planning: a series of deliberate steps with outcomes to help individuals
achieve their short- and long-term career goals
• Carrying capacity: the maximum number of a given species that can be sustained
in a specific habitat or biosphere without negative impacts
• Causation: a strong link between the actions of the defendant and the injury to the
plaintiff
• Collaborative consumption: also known as the sharing economy, a blend of
economy, technology, and social movement where access to goods and skills is more
important than ownership (e.g., Airbnb)
• Community gaming centers (CGCs): small-scale gaming establishments,
typically in the form of bingo halls
• Competitive set: a marketing term used to identify a group of hotels that include
all competitors that a hotel’s guests are likely to go to consider an alternative to
the company (minimum of three)
• Conferences: business events that have specific themes and are held for smaller
groups than conventions
• Conflict management: the practice of being able to identify and handle conflicts
sensibly, fairly, and efficiently
• Conscious consumerism: refers to consumers using their purchasing power to
shape the world according to their values and beliefs
• Consideration: the value exchanged between parties in the contract (money,
services, or waiving legal rights)
• Conventions: business events that generally have very large attendance, are
held annually in different locations each year, and usually require a bidding
process
• Co-op education: a special program offered by a college/university in which
students alternate work and study, usually spending a number of weeks in
full-time study and a number in full-time employment away from the campus
• Cruise Lines International Association (CLIA): the world’s largest cruise
industry trade association with representation in North and South America,
Europe, Asia and Australasia

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 • Culinary tourism: tourism experiences where the key focus is local and
regional food and drink, often highlighting the heritage of products involved
and techniques associated with their production
• Cultural commodification: the drive toward putting a monetary value on
aspects of a culture
• Cultural/heritage tourism: when tourists travel to a specific destination in
order to participate in a cultural or heritage-related event
• Customer needs: gaps between what customers have and what they would like
to have
• Customer orientation: positioning a business or organization so that customer
interests and value are the highest priority
• Customer relationship management (CRM): a strategy used by businesses to
select customers and to maintain relationships with them to increase their
lifetime value to the business
• Customer wants needs of which customers are aware
• E-commerce: electronic commerce; performing business transactions online
while collecting rich data about consumers
• Ecological footprint: a model that calculates the amount of natural resources
needed to support society at its current standard of living
• Emerging markets: markets for BC that are monitored and explored by
Destination BC — China, India, and Mexico
• Employment Standards Act: defines legal requirements around employment
such as minimum wage, breaks, mealtimes, vacation pay, statutory holidays, age of
employment, and leave from work
• Entertainment: (as it relates to tourism) includes attending festivals, events, fairs,
spectator sports, zoos, botanical gardens, historic sites, cultural venues,
attractions, museums, and galleries
• Environmental accreditation or certification: a voluntary system that
establishes environmental standards and regulates adherence to reducing
environmental impacts
• Environmental management: policies and procedures designed to protect
natural values while providing a framework for use
• Environmental stewardship: the practice of ensuring natural resources are
conserved and used responsibly in a way that balances the needs of various groups
• Ethnic restaurant: a restaurant based on the cuisine of a particular region or
country, often reflecting the heritage of the head chef or owner
• Event: a happening at a given place and time, usually of some importance,
celebrating or commemorating a special occasion; can include mega-events,
special events, hallmark events, festivals, and local community events
• Experiential learning: learning that takes place when a student directly
participates in experiences designed for a learning purpose; takes place both
inside and outside of the classroom; and involves reflection as well as action
• Export-ready criteria: the highest level of market readiness, with sophisticated
travel distribution trade channels, to attract out-of-town visitors and highly reliable
service standards, particularly with groups

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 • Exposure avoidance: a risk control technique that avoids any exposure to that
particular risk
• In country: a term to describe using a local-ownership approach in order for the
wealth generated from tourism to stay in a destination
• Inbound tour operator: an operator who packages products together to bring
visitors from external markets to a destination
• Incentive travel: a global management tool that uses an exceptional travel
experience to motivate and/or recognize participants for increased levels of
performance in support of organizational goals
• Indian (or Native Indian): a legal term in Canada, once used to describe
Aboriginal people but now considered inappropriate
• Indigenous peoples: groups specially protected in international or national
legislation as having a set of specific rights based on their historical ties to a
particular territory, and their cultural or historical distinctiveness from other
populations
• Indigenous tourism: a synonym for Aboriginal tourism, the more commonly
used term in BC (see above)
• Indirect environmental change impacts: what will occur indirectly as a result
of climate change, including damages to infrastructure
• Informational interview: a short appointment where you learn about an
employer, or a specific role, from someone already established in the field
• Inherent risk: risk that is inherent to the activity and that cannot be removed
• Injury: proof the plaintiff did in fact receive an injury resulting in damage;
can be bodily injury or property damage
• Intangible: untouchable, a characteristic shared by all services
• Integrated marketing communications (IMC): planning and coordinating all
the promotional mix elements and internet marketing so they are as
consistent and as mutually supportive as possible
• Intentional torts: assault, battery, trespass, false imprisonment, nuisance, and
defamation
• Interactive media: online and mobile platforms
• International Air Transport Association (IATA): the trade association for the
world’s airlines
• International Civil Aviation Organization (ICAO): a specialized agency of
the United Nations that creates global air policy and helps to develop
industry capacity and safety
• International Festivals and Events Association (IFEA): organization that
supports professionals who produce and support celebrations for the benefit
of their respective communities
• Internship: short-term, supervised work experience in a student’s field of
interest for which the student may earn academic credit
• Interpersonal factors: the influence of cultures, social classes, family, and
opinion leaders on consumers

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 • Inuit: one of the three recognized groups of Canada’s Aboriginal peoples
(along with First Nation and Métis), from the Arctic region of Canada
• L
• Larrakia Declaration: a set of principles developed to guide appropriate
indigenous tourism development
• Liquor Control and Licensing Act: defines the ways in which alcohol can be
made, imported, purchased, and consumed in BC
• Liquor Control and Licensing Branch (LCLB): the BC government agency
responsible for legislation and control of alcohol sales, service, manufacture,
import, and distribution in the province
• Liquor primary licences: the type of licence needed in BC to operate a
business that is in the primary business of selling alcohol (most pubs,
nightclubs and cabarets fall into this category)
• Loss reduction: a risk control technique that reduces the severity of the
impact of the risk should it occur
• Low-cost carrier (LCC): an airline that competes on price, cutting amenities
and striving for volume to achieve a profit
• Loyalty programs: programs that identify and build databases of frequent
customers to promote directly to them, and to reward and provide special
services for those frequent customers
• M
• Marae: a communal or sacred centre that serves a religious and social
purpose in Polynesian societies
• Market-ready business: a business that goes beyond visitor
readiness to demonstrate strengths in customer service, marketing, pricing
and payments policies, response times and reservations systems, and so on
• Marketing: a continuous, sequential process through which management
plans, researches, implements, controls, and evaluates activities designed to
satisfy the customers’ needs and wants, and its own organization’s
objectives
• Marketing orientation: the understanding that a company needs to engage
with its markets in order to refine its products and services, and promotional
efforts
• Market segmentation: specific groups of people with a similar profile,
allowing marketers to target their messaging
• Mass media: the use of channels that reach very large markets
• Meetings, conventions, and incentive travel (MCIT): all special events with
programming aimed at a business audience
• Meeting Professionals International (MPI): a membership-based
professional development organization for meeting and event planners
• Métis: one of the three recognized groups of Canada’s Aboriginal peoples
(along with First Nation and Inuit), meaning “to mix”
• Ministry of Environment: the provincial ministry responsible for the
environment in BC

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 • MINTS: an acronym for the countries of Mexico, Indonesia, Nigeria,
Turkey, and South Korea
• Moment of truth: when a customer’s interaction with a front-line employee
makes a critical difference in their perception of that company or destination
• Monoculture: a farming practice that depletes the soil and encourages the
use of pesticides and fertilizers for increased production
• Motel: a term popular in the last century, combining the words “motor
hotel”; typically designed to provide ample parking and easy access to
rooms from the parking lot
• N
• National Airports Policy (NAP): the 1994 policy that saw transfer of 150
airports from federal control to communities and other local agencies,
essentially deregulating the industry
• Nature-based tourism: tourism activities where the motivator is immersion
in the natural environment; the focus is often on wildlife and wilderness area
• Nearby markets: markets for BC, identified by Destination BC as BC,
Alberta, and Washington State, characterized by high volume and strong
repeat visitation
• Negligence: failing to meet a reasonable standard of care toward others
despite being required to do so
• Net promoter score (NPS): a metric designed to monitor customer
engagement, reflecting the likelihood that travelers will recommend a
destination to friends, family, or colleagues
• Networking: creating relationships within a sector for the purpose of
enhancing and developing one’s professional identity
• Non-commercial foodservice: establishments where food is served, but
where the primary business is not food and beverage service
• North American Industry Classification System (NAICS): a way to group
tourism activities based on similarities in business practices, primarily used
for statistical analysis
• O
• Occupancy: percentage of all guest rooms in the hotel that are occupied at a
given time
• Occupiers Liability Act: specifies responsibilities for those that occupy a
premise such as a house, building, resort, or property to others on their
property
• Off-road recreational vehicle (ORV): any vehicle designed to travel off
paved roads and on to trails and gravel roads, such as an ATV (all-terrain
vehicle) or Jeep
• Online travel agent (OTA): a service that allows the traveler to research,
plan, and purchase travel without the assistance of a person, using the
internet on sites such as Expedia.ca or Hotels.com
• Open skies: a set of policies that enable commercial airlines to fly in and out
of other countries

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 • Operating supplies: generally, includes reusable items including cutlery,
glassware, china, and linen in full-service restaurants
• Organization for Economic Co-operation and Development (OECD): an
organization of 31 member countries who gather to discuss a range of policy
issues, with a special committee dedicated to tourism
• Organizational culture: ways of acting, values, and beliefs shared within an
organization
• Out-of-home (OOH): channels in four major categories: billboards, transit,
alternative outdoor, and street furniture
• Outbound tour operator: an operator who packages and sells travel products
to people within a destination who want to travel abroad
• Outdoor recreation: recreational activities occurring outside; generally, in
undeveloped area
• Outdoor Recreation Council of BC (ORC): a not-for-profit organization
that promotes the benefits of outdoor recreation, represents the community
to government and the general public, advocates and educates about
responsible land use, provides a forum for exchanging information, and
connects different outdoor recreation groups
• P
• Parks Canada: the federal agency responsible for management of national
parks, historic sites, and marine conservation areas
• Passenger load factor: a way of measuring how efficiently a transportation
company uses their vehicles on any given day, calculated for a single flight
by dividing the number of passengers by the number of seats
• Passive customer: a guest who is satisfied (won’t complain, but won’t
celebrate the business either)
• PEEST: an acronym for political, economic, environmental, social, and
technological forces
• Perceived risk: the perception of the risk level of the practice, activity, or
event; varies greatly from person to person
• Perishable: something that is only good for a short period of time, a
characteristic shared by all services
• Personal attributes: describe what you are like aa a person/employee, such
as your attitude, personality type, and so on
• Personal factors: the needs, wants, motivations, previous experiences, and
objectives of consumers that they bring into the decision-making process
• Pop-up restaurants: temporary restaurants with a known expiry date hosted
in an unusual location, which tend to be helmed by a well-known or
up-and-coming chef and use word-of-mouth in their promotions
• Practicum: practical experiences outside the classroom, supported by
professionals in a workplace environment
• PRICE concept: an acronym that helps marketers remember the need to
plan, research, implement, control, and evaluate the components of
their marketing plan

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 • Primary costs: food, beverage, and labour costs for an F&B operation
• Print media: newspapers, magazines, journals, and directories
• Private land: any land where private property rights apply in BC
• Profit: the amount left when expenses (including corporate income tax) are
subtracted from sales revenue
• Public galleries: art galleries that do not generally collect or conserve works
of art; rather, they focus on exhibitions of contemporary works as well as
programs of lectures, publications and other events
• Q
• Quick-service restaurant (QSR): an establishment where guests pay before
they eat; includes counter service, take-out, and delivery
• R
• Railway Safety Act: a 1985 Act to ensure the safe operation of railways in
Canada
• Real risk: the actual risk of the practice, activity, or event; generally
determined by statistical evidence
• Receptive tour operator (RTO): someone who represents the products of
tourism suppliers to tour operators in other markets in a business-to-business
(B2B) relationship
• Recreation: activities undertaken for leisure and enjoyment
• Regional destination marketing organization (RDMO): in BC, one of the
five DMOs that represent a specific tourism region
• Regional mountain resorts: small resorts where the focus is on outdoor
recreation for the local communities; may also draw tourists
• Resort Associations Act: developed to provide opportunities to fund a
variety of promotional services for a community; the act defines what it
means to be a resort community
• Restaurants Canada: representing over 30,000 food and beverage operations
including restaurants, bars, caterers, institutions, and suppliers
• Revenue: sales dollars collected from guests
• Revenue per available room (RevPAR): a calculation that combines both
occupancy and ADR in one metric
• Ridesharing apps: applications for mobile devices that allow users to share
rides with strangers, undercutting the taxi industry
• Risk: the possibility for loss or harm
• Risk management: practices, policies, and procedures designed to minimize
or eliminate unacceptable risks
• Risk retention: the level of risk that is retained by the company through a
conscious decision-making process
• Risk transfer: a risk mitigation strategy where the risk is transferred to a
third party through contract or insurance
• S

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 • Sea Kayak Guides Alliance of BC: representing more than 600 members in
the commercial sea kayaking industry, providing operating standards, guide
certification, advocacy, and government liaison services
• Self-assessment: informal and formal methods of gathering information
about yourself to make career decisions
• Self-insuring: the practice of an operation retaining the risk rather than
transferring through insurance; may be a conscious choice or a necessity
based on lack of available coverage
• Service learning: course-based, credit-bearing educational experience in
which students participate in organized service that meets community needs,
and reflect on the service
• Service recovery: what happens when a customer service professional takes
actions that result in the customer being satisfied after a service failure has
occurred
• Services marketing: marketing that specifically applies to services such as
those provided by the tourism and hospitality industries, differs from the
marketing of goods
• Services marketing triangle: a model for understanding the relationship
between the company, its employees, and the customer; differs from
traditional marketing where the business speaks directly to the consumer
• SERVQUAL: a technique developed to measure service quality
• Sharing economy: an internet-based economic system in which consumers
share their resources, typically with people they don’t know, and typically in
exchange for money
• SMERF: an acronym for the social, military, educational, religious, and
fraternal segment of the group travel market
• Social media: refers to web-based and mobile applications used for social
interaction and the exchange of content
• Societal marketing: marketing that recognizes a company’s place in society
and its responsibility to citizens (or at least the appearance thereof)
• Society for Incentive Travel Excellence (SITE): a global network
of professionals dedicated to the recognition and development of
motivational incentives and performance improvement
• Sport tourism: any activity in which people are attracted to a particular
location as a participant, spectator, or visitor to sport attractions, or as an
attendee of sport-related business meetings
• Sustainable development: planning and development that is mindful of
future generations while meeting society’s needs today
• T
• Tangible: goods the customer can see, feel, and/or taste ahead of payment
• Technical skills: skills and knowledge required to perform specific work
• Third space: a term used to describe F&B outlets enjoyed as “hang out”
spaces for customers where guests and service staff co-create the experience

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 • Tip-out: the practice of having front-of-house staff pool their gratuities, or
pay individually, to ensure back-of-house staff receive a percentage of the
tips
• Top priority markets: markets for BC identified as a top priority for
Destination BC — Ontario, California, Germany, Japan, United Kingdom,
South Korea, Australia — which are characterized by high revenue and high
spend per visitor
• Total Quality (TQ): integrating all employees, from management to
front-level, in a process of continuous learning towards increasing customer
satisfaction
• Total quality management (TQM): a process of setting service goals as a
team
• Tour operator: an operator who packages suppliers together (hotel +
activity) or specializes in one type of activity or product
• Tourism: the business of attracting and serving the needs of people
travelling and staying outside their home communities for business and
pleasure
• Tourism carrying capacity (TCC): the maximum number of people that can
visit a specific habitat in a set period of time without negative impacts, and
without compromising the visitor experience
• Tourism Industry Association of BC (TIABC): a membership-based
advocacy group formerly known as the Council of Tourism Associations of
BC (COTA)
• Tourism Industry Association of Canada (TIAC): the national industry
advocacy group
• Tourism marketing system: an approach that guides the planning, execution,
and evaluation of tourism marketing efforts (PRICE concept is an approach
to this)
• Tourism paradox: the concept that tourism operations destroy its very
requirements for success — a pristine natural environment
• Tourism services: other services that work to support the development of
tourism and the delivery of guest experiences
• Tourism world-making: the way in which a place or culture is marketed
and/or presented to tourists
• Tourist: someone who travels at least 80 kilometers from his or her home for
at least 24 hours, for business or pleasure or other reasons; can be further
classified as domestic, inbound, or outbound
• Tourist attractions: places of interest that pull visitors to a destination, open
to the public for entertainment or education
• Trade shows/trade fairs: can be stand-alone events, or adjoin a convention or
conference and allow a range of vendors to showcase their products and
services either to other businesses or to consumers
• Tragedy of the commons: the tendency of society to overconsume natural
resources for individual gain

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 • Transferable skills: skills required to perform a variety of tasks that can be
transferred from one type of job to another
• Transportation Safety Board (TSB): the national independent agency that
investigates an average of 3,200 transportation safety incidents across the
country every year
• Travel agency: a business that provides a physical location for travel
planning requirements
• Travel agent: an individual who helps the potential traveler with trip
planning and booking services, often specializing in specific types of travel
• Travel Industry Regulation: part of the BC Business Practices and Consumer
Protection Act that outlines the requirements for licensing, financial
reporting, and the provision of financial security for travel sales
• Travel services: under NAICS, businesses and functions that assist with
planning and reserving components of the visitor experience
• Trend: a phenomenon that influences things for a long period of time,
potentially shifting the focus or direction of industry and society in a
completely different direction
• U
• Unintentional torts: primarily consist of negligence
• United Nations World Tourism Organization (UNWTO): UN agency
responsible for promoting responsible, sustainable, and universally
accessible tourism worldwide
• Upscale casual restaurant: emerging in the 1970s, a style of restaurant that
typically only serves dinner, intended to bridge the gap between fine dining
and family/casual restaurants
• V
• Values: an individual’s ways of living and making decisions that is
congruent with his or her beliefs and principles
• VFR: an acronym for visiting friends and relatives; a tourism consumer
market
• Visitor centre: a building within a community usually placed at the gateway
to an area, providing information regarding the region, travel planning tools,
and other services including washrooms and Wi-Fi
• Visitor-ready business: often a start-up or small operation that might qualify
for a listing in a tourism directory but is not ready for more complex
promotions (like cooperative marketing); may not have a predictable
business cycle or offerings
• Volunteering: performing a service without pay in order to obtain work
experience, learn new skills, meet people, contribute to community, and
contribute to a cause
• W
• Waiver: a document used as risk management technique where the
responsibility for the risk is transferred to the participant through contract
and voluntary acceptance of risk

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 • Western Canada Mountain Bike Tourism Association (MBTA): a
not-for-profit organization working towards establishing BC, and Western
Canada, as the world’s foremost mountain bike tourism destination
• Wilderness Tourism Association (WTA): an organization that advocates for
over 850 nature-based tourism operators in BC, placing a priority on
protecting natural resources for continued enjoyment by visitors and
residents alike
• Wine tourism: tourism experiences where exploration, consumption, and
purchase of wine are key components
• Word of mouth: information about a service experience passed along orally
or through other social information sources from past customers to potential
customers
• WorkSafeBC: BC’s occupational health and safety organization
• 1-8
• 8 Ps of services marketing: refers to product, place, promotion, pricing,
people, programming, partnership, and physical evidence

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