Republic of the Philippines

OCCIDENTAL MINDORO STATE COLLEGE

Labangan, San Jose, Occidental Mindoro
website: www.omsc.edu.ph email address: [email protected]
Tele/Fax: (043) 457-0231 CERTIFIED TO ISO 9001:2015
CERT. NO.: 50500643 QM15

Module
in
Macro Perspective of Tourism and
Hospitality Management

Compiled by:
CELINE JAYNE V. MACABURAS

Utilized by:
SHIRLEY D. ULAN

The compiler does not own any of the contents of this learning module. Due credits and
acknowledgment are given to the authors, internet sources, and researchers listed on
the reference page. Such sources are reserved to further explain concepts and cannot
be credited to the compiler and the school. All diagrams, charts, and images are used for
educational purposes only. The sole objective of this instructional material is to facilitate
independent learning and not for monetary gains because this is NOT FOR SALE.

2020 Revision

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 Lesson 1
INTRODUCTION TO TOURISM AND HOSPITALITY

TOPICS
1. Tourism and Hospitality
Definition of Tourism and Hospitality
Characteristics of Tourism and Hospitality
The Importance of Tourism and Hospitality
The Relationship of Tourism and Hospitality
2. The Components of Tourism and Hospitality Industry
The Food and Beverage Component
The Lodging Component
Recreation and Entertainment Component
Travel and Tourism Component
The Nature of Tour

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. Define tourism and hospitality;
2. Discuss the components of the tourism and hospitality
industry;
3. Explain the relationship of tourism and hospitality;
4. Describe the characteristics of a tourist product and a
tourist destination;
5. Compare tourism and hospitality with other industries; and
6. Appreciate the importance of tourism and hospitality.

TOPIC 1: TOURISM AND HOSPITALITY

INTRODUCTION

Tourism and Hospitality has been one of

the largest and fastest-growing industries
in the world. It contributes greatly to the
global economic development. It is one
industry which affects many other
businesses, industries, and communities
through the multiplier effect this is due to
the fact that the industry’s products is a
composite of services, facilities, and
amenities. The services offered in the
tourism and hospitality industries have
peculiar characteristics namely perishability, intangibility, heterogeneity, and
inseparability.
What is TOURISM?
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 Tourism is defined by Professor Huziker and Krapf of Berne University as
“sum of the phenomena and relationships arising from the travel and stay of non-
residents, insofar as they do not lead to permanent residence and are not
connected to any earning activity” which distinguishes tourism from migration.
The Tourism Society in Britain defines tourism as “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.”

5 Main Characteristics of Tourism based on Burkart and Medlik:

1. Because of its complexity, tourism is a combination of phenomena and
relationships;
2. It has two essential elements; the dynamic (the journey) and the static
element (the stay);
3. The journey and stay are to-and-from destinations outside the place of
residence and work;
4. The movement to destinations is temporary and short-term;
5. Destinations are visited for purposes not connected with paid work and not
for business or vocational reasons.
Tourism is essentially a pleasure activity in which money earned is spent
in places visited. It represents a particular form of leisure, a particular form of
recreation, and much travel but does not include all uses of leisure and all forms
of recreation. It includes much travel, but not all forms of travel.

What is Hospitality?
Hospitality derived from the
Latin word “hospitare” which means to
receive as a guest”. It is an aspect of
human activity which has important
social dimension, as well as meeting
the physiological requirements of
shelter and body comforts. In a more
detailed example, the host is prepared
to meet a guest’s basic requirements
like food, beverages, lodging, or
shelter while the guest is away from
home.

Characteristics of Tourism and Hospitality which makes it different from

other industries
1. The product is not brought to the consumer; rather the consumer has to
travel and go to the product to purchase it.
2. The products are not used up; thus, they do not exhaust the country’s
natural resources.
3. Tourism and hospitality is a labour-intensive industry which requires more
manpower.
4. Tourism and hospitality is people-oriented. People working in the tourism
and hospitality industry must be able to get along with their co-workers,
and of course with the guests or tourists for them to build a good
relationship towards them.
5. Tourism and hospitality is a multidimensional phenomenon.
6. The tourism and hospitality industry is seasonal.
7. The industry is dynamic.
Importance of Tourism and Hospitality

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 Tourism and hospitality has become one of the world’s major industries.
Developing and highly developed nations are taking closer at the following
potential benefits from tourism and hospitality:
1. Contribution to the balance of payments. Tourism and hospitality can
help correct the balance of payments and deficits by earning the much-
needed foreign currency in international trade.

2. Dispersion of development. International tourism and hospitality is the

best means to spread wealth among countries bridging the economic gap
between the rich and the poor nations.

3. Effect of general economic development. Expenditures by tourist can

have beneficial effects on all economic sectors and can lead to the
development of different industries.

4. Employment opportunities. It is a source of employment.

5. Social benefits. Social exchange takes place when tourist come in

contact with the locals.

6. Cultural enrichment. Tourism and hospitality emphasizes the sharing

and appreciation of cultures.

7. Educational significance. Tourism and hospitality enhances one’s

education.

8. A vital force for peace. Developed tourism and hospitality can help
bridge the psychological and cultural distances.

What is the relationship of Tourism and Hospitality?

Both industries firmly affect one another. Tourism and hospitality is
considered as one large industry which has different components including:
a. Food and Beverage Services is defined as the process of preparing,
presenting and serving food and beverages to the customers.
b. Lodging Services
c. Recreation Services means all services relating to athletic or
entertainment participation events and/or activities including but not limited
to pool, golf, billiards, skating, tennis, bowling, health/athletic club
memberships, coin operated amusement devices, video games and video
club memberships.
d. Travel-Related Services includes services provided by hotels and
restaurants (including catering), travel agencies and tour operator
services, tourist guide services and other related services.

These components constitute the tourism and hospitality network, a

complicated interconnection of parts and components.

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 Figure 1. The Relationship between Tourism, Hospitality and Travel
Industries

https://www.slideshare.net/ksukhuman/thm-201-2-tourism-in-perspectives-chapter-1

The figure one shows the relationship of each components from the
hospitality industry, to tourism industry and travel industry. The tourism and
hospitality industries are connected in terms of the services offered such as
lodging, the food services, events, and time share which are consumed by the
tourists. While travel industry and tourism industry are also connected because of
the mode of transportation used by the tourists before, during and after going to a
destination. Overall, tourism industry is composed of both hospitality such as
accommodation, food and beverage services, functions; and travel industry such
as transportations.

ASSIGNMENT!!!
Watch the documentary video titled “Documentary on Travel, Tourism &
Hospitality Industry” by Arijit Ray. Make a reaction paper about the video you
have watched.
Link: https://www.youtube.com/watch?v=nnLl9kO5uu0

ACTIVITY
I. Answer the following:
1. In your own understanding kindly explain the relationship of tourism and
hospitality. (5 pts.)
2. How do tourism and hospitality contribute to the cultural enrichment of a
specific place or country? (5 pts.)
3. How do a specific country benefits from tourism and hospitality industry?
Give an example for your answer. (10 pts.)

II. Make a short video showing all the components of tourism and
hospitality industry (starting from the food service sector up to travel
service sector).
Criteria:
Creativity 50%
Content 40%
Originality 10%

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 100%
I.QUIZ
FindNO.
Me!1
Direction: Provided below is the “TABLE OF KNOWLEDGE”. Find the following
words inside the box and highlight it using different light-coloured
crayons/highlighters/pencils.
.
1. Cultural Enrichment 11. Multidimensional
2. Hospitare phenomenon
3. Customer-Oriented 12. Labor-intensive
4. Multiplier Effect 13. Lodging
5. Dynamic Element 14. Customer
6. Leisure 15. Travellers
7. Hospitality
8. Network
9. Static Element
10. Tourism

THE TABLE OF KNOWLEDGE

C U R A C A O P A R A D O R E S M E A T
U U I L L N E S P Y O L K O B U A L C R
L B L Y C O M E P O B O L T L S E E C A
T E E T L I I N E K I L P T T I M C O V
U R I I U S N O A A B O I L E R U T M E
R D S L A R R R L N E P N E N S L O M L
E R U A L S A E S O L I D S T A T O O L
S I R T P T T L E I D U M O E G I N D E
H V E I I A C P E D I G M K N O D U A R
O E C P E R L R B N Y E I M T O I M T S
C R S S S I E O E V R B S N L O M B I E
K O B O A F A T M O P I Y O G T E E O R
H N E H F S V I R Y R L C B O N N V N V
C O S E R V E I Y U L A O H S E S I L E
U I C L F E E E O M L S M O M M I S A R
S T I E J N I T E S R E P U R E O N N S
T A T S T E B S B O T R E S E L N E D S
O C E E U W W L O R I A T E T E A T O E
M I D B F I T M A O S F I S T C L N W L
E N U M B F S V I B E R T W A I P I N L
R U M O R E E N U A O U O R L T H R E E
C M U M R L E C B R O R R O P A E O R R
A M O V E R B L I N K S S N M T N B S E
R O I R S E R I U M T C U G O S O A H M
E C O R O N A P Y L O I M E P E M L F O
E N V I R O N S L I N N V E O B E L A T
F R O N T O F F I C E O O T P U N U R S
C E N T S U R A Y B D T B C C N O U T U
D E S T I N A T I O N S F R E T N U O C

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II. Using the terms TOURISM and HOSPITALITY, kindly give words or
phrases that describe what do tourism and hospitality all about.

T- ___________________________________________________________
O- ___________________________________________________________
U- ___________________________________________________________
R- ___________________________________________________________
I- ____________________________________________________________
S- ___________________________________________________________
M- ___________________________________________________________

and

H- ___________________________________________________________
O- ___________________________________________________________
S- ___________________________________________________________
P- ___________________________________________________________
I- ____________________________________________________________
T- ___________________________________________________________
A- ___________________________________________________________
L- ___________________________________________________________
I- ___________________________________________________________
T- ___________________________________________________________
Y- ___________________________________________________________

Kindly send it to our GOOGLE CLASSROOM

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 TOPIC 2: COMPONENTS OF TOURISM AND HOSPITALITY
The components of the tourism and hospitality network may be
independent and competitive businesses, yet, they are interrelated and
interdependent. Tourism and hospitality is composed of food and beverage
component, lodging component, recreation and entertainment component and
travel and tourism component. It will be discussed one by one below.

The Food and Beverage Component

The public looks for food and beverage services everywhere that’s why
there must be food and beverage services available to them all the time. There
are commercial restaurants that provide food and beverage service such as fast
service restaurants, ethnic restaurants, and specialty restaurants. There are also
taverns, bars, kiosks, vending machines, supermarkets, food stalls, etc. which
offer food and beverage services. There are also food and beverage services
offered in a hotel during the stay of a guest.

The Lodging Component

Lodging involves providing overnight or even long-term services to guests.
It is a place to sleep and also a place for entertainment and recreational facilities.
Hence, the lodging component has begun to accommodate several customer
preferences-from budget motels to luxurious hotel and expensive resorts.
There are lodging establishments that use different names such as inns,
motor hotels, etc. and use different terms such as bed and breakfast (BNB),
resort hotel, conference center, and time-sharing. There are lodging
establishments that offer special facilities such as ski lodges, casino hotels.
Not just hotels or motels provide lodging but also campgrounds, school
and college dormitories, summer camps and health spas also attend to the
lodging needs of those who are away from their homes.
In other countries, there are lodging establishments such as:

Parador- an old Spanish monastery or

castle that was converted into a hotel.

Pension or pensione- a French or Italian home which guests are

provided with a room and board.

Chateau- a French castle or elegant

country home used as a hotel.

Ryokan- a Japanese inn in which

8
traditional customs are observed.
 Hostel- a lodging facility in which
inexpensive accommodations are
provided to students or guests on a
non-profit basis.

Recreation and Entertainment Component

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 Entertainment originated from the traditional duties of a host to entertain
his guests, whether they are neighbors or travellers from other place. It always
felt an obligation to attend the needs of the guests not just the food, beverage
and lodging but also for entertainment. Different destinations provide different
activities for the tourists to have fun and spend time with family, relatives or even
friends. Recreation and entertainment is also a form of relaxation to other tourists
which they find interesting to escape from the stress given by their work,
environment and others.

10
 Many centuries ago, hosts attend to their guests need for their
entertainment through talking to them, telling stories and some provided games
such as darts, backgammon, and chess.

11
 Nowadays, the concept of entertaining guests is broader. Guests are
offered different entertainments and recreational activities such as golf, tennis,
hiking, swimming, boating, casino gambling and even concerts.

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Travel and Tourism Component
Travel and tourism are used together as an umbrella term to refer to those
businesses that provide primary services to travellers. These include not only
food and beverage services, lodging services, recreation and entertainment
services, but also transportation services, and the services of travel agencies and
tour operators. One important thing in the tourism and hospitality is the way of
reaching one place or other without inconvenience. Tourists prefer travelling with
convenience that’s why there is a continuous development of transportation that
will make the travel shorter and less hassle.

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 The main purpose of transportation is to make it possible for the tourists to
go from one place to another. The common means of transportation are
automobiles, buses, trains, ships and airplanes.

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What is the difference between Travel Agent and Tour Operator?
There are a large number of travel agents and tour operator worldwide.
Tourists tend to purchase services offered by the travel agents and tour
operators for the reason of convenience. It is easy for a tourist to book a flight, or
even hotel and other services he needs through a travel agency or tour
operators.

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 TOUR OPERATOR vs TRAVEL AGENT

Source: https://experiencekerala.in/kerala-tourism-blog/why-prefer-a-local-tour-operator-over-a-travel-agent/

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 Travel agent has become an important and integral part of the travel and
tourism industry worldwide. Majority of people are using the services of travel
agents for organizing their travel both international and domestic. Travel agent is
the one who sells travel services in a travel agency that are assembled by others
into what we called packages (a bundle of related travel services offered to a
buyer at a single price).
Tour operators are wholesaler who make necessary contact with hotel,
airlines, and other providers of travel services and devise packages which will
appeal to retail buyers. The role of the tour operator is to create convenient
packages into a single package to meet the demand. Tour operators work closely
with the hotels, transportation providers, and attractions in order to purchase
volumes of each component and package these at a better rate than purchasing
it individually (Wescott, 2019).

TOUR and TRAVEL

The Nature of a Tour

For us to analyse the nature of tour, we should be able to understand first
the difference between domestic tourism and international tourism, as well as
independent and package tour. Let’s define first what domestic and international
tourism are:

Domestic Tourism refers to the travel away from home for recreational or
business purpose within the frontiers of the traveller’s country. It is said that
domestic tourism is much easier to do so because there are no language,
currency and culture barriers.
International Tourism involves the movement of people across international
boundaries and is known to be more difficult because the country to be visited
has different language, culture, currency, and documentation requirements such
as passports, visa and other standards need to be met by the tourists.

Now let’s define what independent and package tour are:

Independent Tour is an arrangement where the tourist buys the facilities
separately, either making reservations in advance through a travel agent or en
route during his tour.
Package Tour or Inclusive Tour is an arrangement in which both transport and
accommodation is bought by the tourist at an all-inclusive price in which the price
of the individual facilities cannot be determined by the purchaser himself.
The traveller or the tourist who purchased package tour may consider
individual or group travel: independent inclusive tour and the other one is group
inclusive tour. When we say independent inclusive tour, the tourist travels to his
destination individually or not with a group while in the group inclusive tour, the
tourist travels with the company of many other tourists or he belongs in a group
of tourists.
There are various types of visitors namely:
1. Tourist
A visitor travelling to a place other than his usual environment or activities
for less than 12 consecutive months without the purpose of receiving
remuneration for the activities taken at the destination visited.

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 2. International Tourist
A visitor travelling to another country other than the country he resides for
more than 24 hours but less than 12 consecutive months with the purpose of
receiving remuneration for the activities taken at the places visited.

3. Domestic Tourist
Any person residing in a country who travels to the places in the country
he resides and stays for more than 24 hours with the purpose of receiving
remuneration for the activities taken in the destination.

4. Excursionist (Same-day visitor)

Excursionists are temporary visitors staying less than 24 hours in the
destination without staying overnight example of this are the travellers in a cruise.

Travel is related to an individual's movement from one place to another

due to work, to meet family/friends for a short while or healthcare (Tanner).
Elements of Travel
The four basic elements of travel are:
1. Distance
The first element refers to the difference between local travel or traveling
within a person’s home community and nonlocal travel or traveling away from
home. A measure used to distinguish travel away from home is the distance
travelled on a trip (defined as “each time a person goes to a place at least 100
miles away from home and returns”).
2. Length of Stay at the Destination
The second basic element of travel refers to the length of stay of a tourist
or excursionist.
3. Residence of the Traveller
The third basic element of travel is the residence or origin of the traveller.
It is said that it is important to know where a traveller lives when it comes
specifically with business or research purposes.
4. Purpose of Travel
The last basic element is the purpose of travel which is divided into the
following:
1. Visiting friends and relatives;
2. Conventions, seminars, and meetings;
3. Business;
4. Outdoor recreation;
5. Entertainment;
6. Personal
7. Others
The Tourist Product
Tourist product consists what tourist pay for which is a combination of
what the tourist does and the services he used during his stay. A tourist products’
characteristics are the following:
 Tourist product is a service. It is an intangible item which cannot be
inspected by the purchasers before they buy it.
 Tourist product is largely psychological in its attraction. It is more than a
collection of services and is a temporary use of strange environment,
culture and heritage, and other intangible benefits.
 The product tends to vary in a standard and quality over time. There are
some factors which can affect the consistency of a tourist product: eg. A
getaway at a sandbox can be ruined by a typhoon.

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  Lastly, the supply of the product is fixed. One example of this is the
number of rooms in a luxurious hotel which cannot be changed just to
meet the tourist demand during peak season. Thus, great effort are made
to fill all the rooms of a hotel by discounting the prices of the product at the
last minute.
The Tourist Destination
The tourist destination is a geographical unit where the tourist visits and
stays. It could be a country, village, region, province, and island or even a
continent. Many tourist destinations are of success because of the interrelations
of the three factors: attractions, amenities or facilities, and accessibility.
 Attractions maybe site and event attractions. A site attraction refers to
which the destination itself has appeal such as resorts, beaches,
landmarks while the event attractions refers to which tourist are attracted
to the destination because of what is taking place there either of a festival,
exhibitions, congresses. It may also be natural or man-made. Natural
attractions include beaches, mountains, and falls while the man-made
attractions include historical buildings and architectural interest, or
amusement or theme parks.
 Amenities or facilities are consist of accommodation, food, local
transport, communication and entertainment. Amenities offered will differ
according to the attraction of the site. The potential for tourism in a
destination will be limited unless the basic amenities will be offered
 Accessibility means having regular and convenient transportation in
terms of time or distance from the originating place to the tourist
destination or from one place to another at a reasonable price.
Hundred Islands Natural Park in Pangasinan, Philippines La Sagrada Familia in Barcelona, Spain

Accommodation, food, local transport, entertainment,

communication
Tourist Services
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 The travels of the tourist give rise to a wide range of services in the
tourism and hospitality industry. One of the major services offered to a tourist is
the passenger transport which provides the means to reach the destination
whether it is public or private, or domestic or international.
The second group of tourist services is composed of accommodation, food
and beverage, and entertainment. It is said that hotels are of vital concern to a
large proportion of tourist however there are tourists who chose to stay with their
relatives, and some are in other private accommodations. There are also tourists
who provide their own tents and caravans maybe for the cheapest choice they
have. Food and beverage operations can be found in all sectors of travel industry
since eating is one of the necessities of a human. Lastly, entertainment is said to
be the main reason and influence why do people travel.
The third group of tourist services consists of what travel agent and tour
operator provide to a tourist. Travel agent provides intermediary function
between the tourist and the transport and accommodation provider while the tour
operator combines all the individual components into a product which is directly
sold to the people through travel agents. The other services include
documentation, sightseeing, information, currency and even shopping.

I.ACTIVITY
Explore the World!
Instructions:
1. Make a research about your dream destination.
2. Tell something about it describing the three factors of tourist destination.

General
QUIZDirection:
NO. 2 Strictly NO ERASURES!

I. Match Column A with Column B and write the letter of the correct
answer on the blank before each number.
A B
____1. Temporary visitors staying less than a. Tourist Product
24 hours without staying overnight. b. Tour operator
____2. Important information of a traveller c. Ryokan
with business or research purposes. d. F&B Component
____3. A place to sleep and also a place for e. Parador
entertainment and recreational facilities. f. Hostel
____4. Consist of what tourist pay for. g. Residence or origin
____5. Travel away from home within the h. Purpose of travel
frontiers of the traveller’s country. i. Lodging

____6. Visiting friends and relatives. j. Excursionist

____7. Old Spanish castle/monastery used k. Travel Agent
as a hotel. l. Hostel
____8. Japanese inn in which traditional m. Chateau
customs are observed. n. Domestic Tourism
____9. Combines all the individual components o. Recreation &
into a product and directly sold to public Entertainment Component
through travel agents.
____10. A French castle used as a hotel.

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II. A. Determine whether the following are site attraction or event
attraction. Write your answer on the blank (10 pts.).
1. Chocolate Hills in Bohol-______________________________________
2. Diving & Resort Travel Expo-__________________________________
3. Bangui Windmills in Ilocos-____________________________________
4. Asia Food Expo (AFEX)-______________________________________
5. Girasoles Farm in Quezon-____________________________________
6. Panagbenga in Baguio City-___________________________________
7. Cagsawa Ruins in Daraga-____________________________________
8. Loboc River Cruise in Bohol-___________________________________
9. Coachella Valley Music and Arts Festival-_________________________
10. Whale Shark Watching in Oslob-________________________________

B. Determine whether the following are natural attraction or man-

made attraction. Write your answer on the blank (10 pts.).
1. Manila Ocean Park-___________________________________________
2. Banaue Rice Terraces in Ifugao-_________________________________
3. Niagara Falls in Canada-_______________________________________
4. CamSur Watersports Complex in Pili-_____________________________
5. Tubbataha Reefs Marine Park in Palawan-_________________________
6. Hanging Coffins in Sagada-_____________________________________
7. Philippine Tarsier and Wildlife Sanctuary in Bohol-___________________
8. Puerto Princesa Subterranean River in Palawan-____________________
9. 10,000 Roses in Cebu-________________________________________
10. Kapurpurawan Rock Formation in Ilocos Norte-_____________________

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