Reviewer and Pointers To Review Macro Perspective

REVIEWER
MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

CHAPTER 1
The Meaning and Importance of Tourism and Hospitality Components of tourism
and hospitality
1.The food and beverage component -The public looks for food and beverage services
everywhere, in hotels, motels, airlines, airports, cruise ships, trains, and shopping malls.
2.The lodging component -Involves providing overnight or even long – term services to
guest
3.Recreation and entertainment components -Entertainment originated from the
traditional duties of a host to entertain his or her guest, whether the neighbors or travelers
from other places.
4.Travel and Tourism Components -Travel and tourism are used together as an umbrella
term to refer to those businesses that provide primary services and travelers.
5.Transportation -The main purpose of transportation is to make possible for people to go
from another place to another
3 mode of transportation
-Land
-Air
-Sea
Travel Agencies and Tour Operator
-Travel agent is the one who sells travel service in travel agency.
-Tour operators are wholesalers who make the necessary contacts
Hospitality
-Derived for the latin word hospitare meaning to receive guest
-An industry that offers services to us that go beyond our basic needs and generally
require extra income to purchase
Tourism
-Activities of a person traveling to and staying in places outside their usual environment
for not more than one consecutive year for leisure, business and other purpose.
2 classes of visitors
1.Tourist -temporary visitors staying at least 24 hours, whose purpose could be classified
as:
2.Excursionist –Temporary visitors staying less than 24 hrs in the destination visited and
not making an overnight stay including cruise travels, but excluding travelers in transit
Tourism and Hospitality Industry
Elements of Travel
A.Distance –A trip is defined as each time a person goes to a place at least 100 miles away
from home and returns
B.Length of stay in the destination
C.Residence of the travelers
D.Purpose of Travel
Purpose of Travel
1.Visiting friends and relatives
2.Conventions, Seminars and meetings
3.Business
4.Outdoor recreation
5.Entertainment
6.Personal
7.Others
The Nature of Tour

-Domestic Tourism -The travel taken exclusively with the nations boundaries at the
travelers country.
-International Tourism -Movement of people across international boundaries
2 Types of Tour
1.Inclusive tour -an arrangement in which transport and accommodation is bought by the
tourist at an all inclusive price and the price of the individual elements cannot be
determined by the tourist independent tour.
2.Independent tour –an arrangement in which the tourist buys facilities separately
2 Types of Package Tour

1.Independent Inclusive tour -tourist travels to his/her destination individually
2.Group inclusive tour –He/she travels in the company of the other tourist
Tourist Product -Consist of what tourist buys
Characteristics of Tourist Product
1.It is a service
2.It is largely psychological in its attraction
3. Trends to vary in standard and quality overtime
4.The supply of products is fixed
Tourist Destination
-A graphical unit where the tourist visits and stays
Characteristics of Tourism and Hospitality
1. In tourism and hospitality has special characteristics which make it different from other
industries,
2. The products of tourism and hospitality are not used up; thus, they do not exhaust the
country’s natural resources.
3. Tourism and hospitality is a labor-intensive industry.
4. Tourism and hospitality is people-oriented.
5. The tourism and hospitality industry is seasonal
6. The industry is dynamic.
Importance of Tourism and Hospitality (Please Memorize)
1.Contribution of the balance of payments
2.Dispersion of development
3.Effect on general economic environment
4.Employment opportunities
5.Social benefits
6.Cultural enrichment
7.Educational Significance
8.A vital force for peace.
Characteristics of Tourism and Hospitality
1.The product is not brought to the consumers
2.The products of tourism and hospitality are not used up
3.It is bor intensive industry
4.It is multi dimensional phenomenon
5.It is people oriented
6.It is seasonal
7.The industry is dynamic
CHAPTER 2
The History of Tourism and Hospitality Industry
Early Tourism -Man traveled since the earliest times although the term tourism was used
only in the 19thcentury
Tourisms in the medieval period -Tourism in the medieval period travel declined. Travel,
derived from the word travail became burdensome, dangerous, and demanding during this
time.
Tourism during renaissance and Elizabeth eras -With the renaissance, few renowned
universities developed so that travel for education was introduced largely by the British.
Tourism During the Industrial revolution -The industrial revolution brought about
major changes in the scale and type of tourism development. It brought about not only
technological changes, but also essential social changes that made travel desirable as a
recreational activity.
Modern Tourism -Two technological developments in the early part of the 19thcentury
had a great effect on the growth of tourism.
History of the Hospitality Industry

The Sumerians –The recorded history of the hospitality industry began with the
Sumerians, a group of people who lived in Mesopotamia near the Persian Gulf at about
4000 BC.
Early Traders –In 2000 BC, considerable mount of trade had developed among the people
of the middle east
Egyptian Empire –Developed slowly over several thousand years
Pioneers in the Tourism and Hospitality Industry

Cesar Ritz – general manager of Savoy Hotel
Ellsworth Milton Statler – Considered to be the premier hotel-man of all time
Conrad Hilton- Master of hotel finance
Thomas Cook – The first travel agent, founder of the worlds first travel agency
Howard Dearing Johnson- Pioneer of brand leveraging
J. Willard Mariott – founded the Marriott Corporation
Ray Croc – founded Mcdonalds Corporation
Isadore Sharp – founder of Four seasons hotel
Ruth Fertel – the founder of Christ steak house
Chapter 3
Economic Impact - Travelers outside the destination area spend on goods and services
within the destination, tourism and hospitality acts as an export industry by bringing in
revenues from outside sources.
-Tourist expenditures also increase the level of economic activity in the host area directly.
-Many countries have utilized tourism and hospitality as a means to increase foreign
exchange earnings to produce investment necessary to finance economic growth.
Direct and Secondary Effect

"Direct"-means that the income is received directly.
Indirect or secondary effects- the money paid by tourists to businesses are, in turn,
used to pay for supplies, wages of workers, and other items used in producing the
products or direct services bought by tourists.
Tourism Multiplier
The term "multiplier" is used to describe the total effect, both direct and secondary,of an
external source of income introduced into the economy.
Cost Benefits Ration
Those concerned with developing the tourism and hospitality industry, whether a
government or a private individual, would like to know the extent of potential benefits and
their costs. Benefits divided by costs equal the cost-benefit ratio.
Growth Theories
Economic growth theories have been proposed to maximize the economic effect of tourism
and hospitality within a destination are. These are the theory of balanced growth and the
theory of unbalanced growth.
Economic Strategies
The key to maximizing the economic effects of tourism and hospitality is to maximize the
amount of revenue and jobs developed within the region.
Import substitutions
It imposes quotas or tarrifs on the importation of goods which can be developed locally.
It also grants subsides, grants, or loans industries to encourage the use of local materials.
Incentives
The wise use of incentives can encourage the influx of capital, both local and foreign
necessary to develop tourism and hospitality supply.
Foreign Exchange
They have limited the amount of their own currency that tourists can bring in and take out
of the destination to ensure the foreign currency is used to pay bills in the host region.
Pointers to Review in Macro Perspective of Tourism and Hospitality
Chapter 1
 The Meaning and Importance of Tourism and Hospitality Components of
tourism and hospitality
 3 mode of transportation
 Travel Agencies and Tour Operator
 2 classes of visitors
 Definition of Hospitality
 Elements of Travel
 Definition of Hospitality
 The Nature of Tour
 Characteristics of Tourism and Hospitality
 Importance of Tourism and Hospitality
Chapter 2
 Early Tourism
 Medieval Period
 Tourism During the Industrial Revolution
 Modern Tourism
 Pioneers
Chapter 3
 Economic Impact
 Direct and Secondary Effect
 Tourism Multiplier
 Growth theories
TYPE OF EXAM
Multiple Choice (25 items)
True or False (10 items)
Enumeration (15 items)
SCHEDULE
DAY 3 - NOVEMBER 13,2024
GOODLUCK AND GODBLESS ON YOUR MIDTERM EXAM!

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REVIEWER

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

The Nature of Tour

2 Types of Package Tour

History of the Hospitality Industry

Pioneers in the Tourism and Hospitality Industry

Direct and Secondary Effect

GOODLUCK AND GODBLESS ON YOUR MIDTERM EXAM!

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