TOUR II – PRINCIPLES OF

TOURISM 2
MODULES

| PREPARED BY: FRANCE MARIE ANN A. RAGUINI, MSHM |

| QSU MAIN - COLLEGE OF HOSPITALITY MANAGEMENT |
| S.Y. 2015 – 2016 |
COURSE DESCRIPTION

This course presents a comprehensive survey of the major players that

compromise the tourism industry and how they relate each other. The
nature and distinctive aspects of tourism are discussed and linked to
specific business strategies. The major sectors (business, government and
voluntary organizations, etc.) are defined and classified. The commercial
sectors are examined in terms of typical organizational structures and
major functions of divisions within the structure are described. Impacts of
macro-environmental trends and events on each sector are examined. The
course also identifies the employment opportunities available in each
sector and the corresponding qualifications for the job.

GENERAL OBJECTIVES

BY THE END OF THIS COURSE, STUDENTS SHOULD ABLE TO:

1. Describe the nature of the industry and tourism product.

2. Identify the various sectors that comprise the tourism industry
and the role played by each sector in the production,
distribution and delivery of tourism goods and services.
3. Distinguish the various classifications of each sector and
corresponding standards.
4. Understand the typical organizational structure of main
tourism business entities and the function of relevant divisions
within the structure
5. Explain and scrutinize the impact of macro-environment
trends on the operations of tourism businesses.

REQUIREMENTS

i. EXAMINATIONS
ii. QUIZZES
iii. PROJECTS
GRADING SYSTEM

Midterm/Semi Final Grade:

Major exams 40%

Attendance 10%
Assignment 5%
Class Recitation 5%
Projects 10%
Quizzes 30%
Total: 100%
Final Grade= Midterm Grade + Semi Final Grade/2

TOPIC OUTLINE

I. The Tourism supply and components

i. Tourism components
ii. Tourism supply components

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 iii. Natural Resources
iv. Infrastructure
v. Superstructure

II. Tourism Organizations

i. Tourism Organizations
ii. Reasons for the involvement of Government in Tourism
iii. Classification of Tourism Organizations
iv. International Organizations and its role
v. Regional Organizations and its role
vi. Tourism Organization in the Philippines

III. Tourism distribution channel

i. Definition of tourism distribution channel
ii. Types of travel intermediaries
iii. Types of Distribution Channel

IV. The Travel Agency Industry

i. Kinds of travel agencies
ii. Kinds of tours
iii. Who owns Tour Companies
iv. How tours are priced and sold

V. Employment Opportunities in Tourism

i. Airlines
ii. Travel agencies
iii. Hotels and motels
iv. Cruise lines
v. Motor coaches
vi. Car rental companies

VI. Future Tourism and Hospitality Trends

i. Future Tourism Trends
ii. Future Trends in Hospitality
iii. Future Travel Trends
iv. Future Guests

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MODULE 1 - The Tourism Supply and Components
Topics:

1. Tourism components
2. Tourism supply components
3. Natural Resources
4. Infrastructure
5. Superstructure
 Tourism Network – is a form of partnership involving different interacting
elements, which include tourist, enterprises, institutions and the host
community.
 Networking – The action or process of interacting with others to exchange
information and develop professional or social contacts/connections.
 System – a set of things working together as parts of a mechanism or an
interconnecting network.

A. Tourism Components

* Components- Parts

1. Direct Providers
 Provides services, activities and products that are
consumed and purchased by travelers.
 They represent the sectors of the industry that are
visible to the tourist.
 Examples: Airlines, Hotels, Restaurants, travel
agencies and retail shops.

2. Support Services
 Lends support to direct providers.
 Provides goods and services for both the traveler and
for organizations that sell goods and services directly
but not exclusively to tourist.
 Examples: Tour Organizers, publications, contract
laundry or food services

3. Developmental Organization
 These organizations deal with tourism development.
 Examples: Planners, Government Agencies, Financial
Institutions, Training Institutions etc

*Diagram of Tourism Components

Directly affects

DIRECT PROVIDERS TRAVELERS

Directly Affects
SUPPORT SERVICES DIRECT PROVIDERS

Indirectly Affects
TRAVELERS

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 Directly Affects
DEVELOPMENTAL ORGANIZATION DIRECT PROVIDERS

SUPPORT SERVICES

Indirectly Affects
TRAVELLERS
B. Tourism Supply Components

1. Natural Resources

 The Natural Resources of a destination area provide an

excellent asset to sell to tourist.
 Physical Characteristics of an area are generalized as follows:
o Natural Scenery
 It is the combination of the general
topography, flora and fauna, proximity to lakes,
rivers, seas, islands and islets, hot and mineral
water springs, caverns, waterfalls and the like.
 The greater the variety and uniqueness of the
scenery, the more appealing it is.
o Climate
 A comfortable climate adds appeal to a certain
area
 A comfortable warm climate is determined by
the combination of humidity, temperature and
wind.
 A comfortable cold climate is determined by the
wind-chill factor – a term used to express how
temperature feels to the exposed skin.
o Environment
o Flora and Fauna

2. Infrastructure

 Infrastructure consist of all the underground and surface

developmental construction of a region which is made up of
the following:
o Water
o Power
o Communication
o Sewage/Drainage
o Health Care
o Street Highways
o Transportation Terminals

3. Transportation

 Is of paramount importance in developing tourism.

 It is important to have convenient access and quality service.

o Land Travel
 Taxi and Limousine Service
 Bus Service
 Rail Service
o Air Travel
o Sea Travel

4. Superstructure

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o Accommodation – appropriate accommodations should be
available for all segments of the market.

o Types of Accommodation – Tourist accommodation are

categorized into the following:
 Hotels – provides accommodation, meals and
refreshments. They provide facilities that meet
the needs of modern traveler.
 Condominium – is an apartment or individual
dwelling unit, owned by an individual but the
management and services such as
maintenance and security are handled by an
independent company.
 Motels or Motorist Hotel – Provide bedroom,
bath and parking to motorist; rooms are
usually accessible from the parking lot. They
are usually near highways.
 Inns – are lodging establishments catering to
transients which do not meet the requirements
of an economy hotel.
 Apartments – are hotel buildings containing
several independent and furnished apartments
regularly leased to tourist and dwelling on a
more or less long-term basis and offering basic
services to its tenants similar to hotels.
 Paradores – are old convents, monasteries,
castles, fortresses converted into hotels by the
government and operated by the national
Tourism Office.
 Pensions – are private or family operated
tourist accommodations similar to boarding
houses or guest houses.
 Bed and Breakfast – provide a room, bath and
a hearty breakfast to tourist.
 Hostels – provide minimal amenities such as a
bunk bed and a commonly shared toilet and
bathroom. The traveler provides his or her own
bedding.
 Camp Grounds – appeal mostly to families who
travel in recreational vehicles (RVs).
 Health Spas – are hotels and resorts which
cater to individuals who go to spas or mineral
springs for medical treatments.
 Private Homes – provide lodging to tourist
when accommodations are not available during
peak periods.
o Hotel Classifications – hotels were classified according to the
following:
 By location
 By type of guest
 By price
- A star rating system is often used to
classify hotels. Stars are assigned
according to quality of restaurants,
rooms, amenities and services.
- The highest is five star hotel and the
lowest is the one star hotel.

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 o Restaurants – Restaurants are establishments offering
refreshments or meals to public.

5. Hospitality Resources

 Hospitality Resources refers to the general feeling of welcome

that the visitors receive while visiting a destination area.
 Hospitality Training aims to motivate service providers to be
hospitable in dealing with tourist.
 Aspects of Attitude:
o Attitude Toward Self – People who have high regards
of themselves have the ability to satisfy guest with the
utmost service.
o Attitude Toward Others – Service providers should be
assisted in developing positive feelings toward fellow
employees and tourist that will result in positive
behavior toward the tourists.
o Attitude Toward the Tourism Industry – A positive
attitude of service providers toward tourists can be
brought about only when employees are made aware
of how important tourism is to their community.
o Community Awareness Program – Community
awareness program can help develop a more positive
attitude toward the tourist. The aims of this program
are to build acceptance of tourism and to build an
understanding of tourist.

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MODULE 2 - The Tourism Organizations
Topics:

1. Tourism Organizations
2. Reasons for the involvement of Government in Tourism
3. Classification of Tourism Organizations
4. International Organizations and its role
5. Regional Organizations and its role
6. Tourism Organization in the Philippines
________________________________________________________________________

A. Tourism Organizations

The tourism organizations consists of international, national, and

non-governmental organizations that help develop and manage tourism.
They may be into education and training, marketing, regulations,
investment, environmental management, or socio-cultural programs.

Figure 1: Tourism Organizations

B. Reasons for the involvement of Government in Tourism

1. Political reasons
 Travel across national boundary--entry and exit--
overseas destination approved by CNTA.
 Enhance the national and international image.

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 2. Environmental reasons
 Carrying capacity-sustainable development
3. Economic reasons
 Japan trade surplus in 1980s-encourage outbound trips-
balance of payment.

4. Coordination
 Among many government bodies concerned with different
aspects of tourism.
 Among government agencies at different levels.
 Among the government, the private sectors and nonprofit
organizations.
5. Tourism policy-setting
6. Tourism planning
7. Tourism legislation and regulation
 The number of paid vacation days
 Policies on passports and visas
8. Tourism infrastructure development
9. Tourism operations
 National and state park system, historic sites, state-
owned airlines
10. Tourism development stimulation and control
11. Tourism marketing and research
12. Tourism training and education

C. Classification of Tourism Organizations

Tourism organizations can be viewed in the following ways:

1. Geographically
 Global organizations
 Multi-country regional organizations
 National tourism organizations
 State, provincial organizations
 Regional tourism organizations
 Local tourism organizations

2. By ownership
 Government
 Quasi-government
 Private

3. By function
 Suppliers
 Marketers
 Development
 Consultants
 Educators
 Publishers
 Professional associations

4. By industry
 Transportation
 Travel agencies

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  Tour wholesalers
 Lodging
 Attractions
 Recreation

5. By motive
 Profit
 Nonprofit

D. International Organization and its role

1. World Tourism Organization (WTO)

 It is the chief organization in tourism.

 It is an inter-governmental technical body, which deals with
all the aspects tourism.
 It legally began on January 2, 1975.
 It was first known as the International Union of Official
Travel Organization (IUOTO) at Hague, Netherlands in 1925.
 It was reestablish in London after WWII and it’s headquarter
was transferred to Madrid.
 The Primary aim of WTO is to promote and develop tourism,
to contribute to the economic development, international
understanding, peace, prosperity and universal respect for
human rights and fundamental freedoms for all without
distinction as to race, sex, language or religion.

 Activities of WTO
o Monitor and identifies trends in world tourism
o Studies travel demand , marketing trends, tourist
motivation, and alternative approaches to marketing
o Surveys the environmental effects of travel growth and
makes recommendation for the protection of natural
and cultural resources
o Provides services for developing and organizing
tourism for countries
o Serves as a clearing house for tourist information
o Informs members about tourism development
o Conducts vocational training program
o Works for elimination or reduction of governmental
measures for international travel and the
standardization of requirements
o Assists and develops technical cooperation projects
o Works to standardize equipment, terms,
phraseologies and signs as an aid to easier travel and
understanding for foreign visitors

 Membership:
o Full Member
 Are the sovereign states

o Associate Member
 Are territories or group of territories
 Not responsible for the external
relations, but whose membership is
approved by the state which assumes
responsibility for their external
relations.

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 o Affiliate Member
 Are international bodies, both
governmental and nongovernmental
 Concerned with specialized interest in
tourism, commercial and
noncommercial bodies and associations
whose activities are related to the aims
of WTO.

 3 Functioning Bodies:
o General Assembly
 It is composed of representatives from all
member states.
 The Supreme Organ of the WTO
 Meets once every two years
 Each Member has the right to vote in the
decision-making process. However the
Assembly resolutions are not binding on
the member states, they are simply
recommendations.

o Executive Council
 It is composed of members elected by the
Assembly for a four year term based on
a fair and equitable geographical
distribution.
 The Function of this council is to
implement the decisions of the Assembly
and prepare for future sessions.

o Secretariat
 Headed by the Secretary-General,
elected every four years by the General
Assembly on the recommendation of the
executive council.
 Carries out the decisions of the General
Assembly and the Executive Council.

 Official Publications of WTO:

o International Travel Statistics
o Travel Abroad – Frontier Formalities
o Economics Review of World Tourism
o Technical Bulletins
o Manuals

2. International Civil Aviation Organization (ICAO)

 Established in Chicago conference of 1944.

 It is an organization of around 134 governments.
 It is established to promote civil aviation on a world-wide
scale.
 Objectives of ICAO:
o Adopt international standards and to recommend
practices for regulating air navigation
o Recommend installation of navigation facilities by
member countries
o Set forth proposals for the reduction of customs and
immigration formalities

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 o Plan for the safe and orderly growth of international
civil aviation throughout the world
o Encourage the improvement of the art of aircraft
design and operation for peaceful purposes
o Seek the development of airways, airports and air
navigation facilities for international civil aviation
o Provide for safe, regular, efficient and economical air
transport
o Discourage unreasonable competition
o Insure that the rights of contracting countries are fully
respected and that every member has a fair
opportunity to operate international airlines
o Discourage discrimination between contracting
countries
o Promote the development of all aspects of air
transportation

3. International Air Transport Association (IATA)

 IATA was established in 1945 in Havana.

 It is composed of airline operators attached to the national
delegations of the ICAO.
 At present, it has 112 scheduled airline members.
 The objective of IATA is to promote safe, regular and
economical air transport, faster air commerce and study
problems connected with the industry.
 IATA serves as the agency through which airlines seek
jointly to solve problems that cannot be solved individually.
 It is involved in standardizing tickets, prices, weight bills,
baggage checks and other documents.
 This help make travel uniform throughout the world.

E. Regional Organization and its role

1. Organization for Economic Cooperation and Development (OECD)

 It was set up in a convention signed in Paris on December

14, 1960.
 It provides that the OECD shall promote policies designed to
achieve the highest sustainable economic growth and
employment and a rising standard of living in member
countries, while maintaining financial stability and
contributing to the development of the World Economy
 Activities of OECD:
o Responsible for coordinating studies
o Organizing meetings of member countries to improve
statistical methods of monetary exchange and
accounting
o Assessing the policies of member countries and their
impact on tourism
The members of OECD:
a. Australia h. Germany
b. Austria i. Greece
c. Belgium j. Iceland
d. Canada k. Ireland
e. Denmark l. Italy
f. Finland m. Japan
g. France n. Luxembourg

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 o. Netherlands t. Sweden
p. New Zealand u. Switzerland
q. Norway v. Turkey
r. Portugal w. United Kingdom
s. Spain x. United States

2. Pacific Asia Travel Association (PATA)

 It was organized in Hawaii in 1951

 It is composed of organizations, government or
nongovernment organizations with major interest in the
Pacific areas.
 Its hallmark has been innovation and conversation.
 PATA was an early leader in recognizing the need for an
environmental ethic among those involved in the tourism
industry.
 It organizes a wide range of conferences, reports, advertising,
training programs and seminars. It initiated the “PATA Code
for Environmental Tourism” which states that:
 Environmentally responsible tourism means tourism which
recognizes the necessity of ensuring a sustainable future.

3. Caribbean Tourism Association (CTA)

 It was founded in 1951.

 It encourage and assist in the development of tourism
throughout the Caribbean Area.

4. Asia-Pacific Economic Cooperation (APEC)

 It is an international governmental organization.

 Its purpose is to establish coordination of national economies
for the benefit of countries in the Asia- Pacific region as a
whole.
 10 working groups of APEC:
o Tourism
o Telecommunications
o Transportation
o Human Resource Development
o Marine Resources
o Energy
o Trade Promotion
o Trade and Investment Data
o Investment and Technology Transfer
o Fisheries
 The goals of APEC were as follows:
o To sustain the growth and development of capital and
technology
o To develop and strengthen the open multi-lateral
trading system in the interest of Asia-Pacific an all
economies
 It represents 15 countries namely:
o Australia o Indonesia
o Brunei o Japan
o Canada o Korea
o Hong Kong o Malaysia

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 o New Zealand o Taiwan
o China o Thailand
o Philippines o United States
o Singapore

4. Organization of American States (OAS)

 The main objective of OAS is to strengthen relations between

American states by providing advisory services and training
programs in many fields including tourism.
 It conducts a number of travel studies and tourism
development programs.

• Other Regional Organizations:

1. South American Tourism Organization (SATO)

2. European Travel Commission (ETC)
3. Common Market Travel Association (CMTA)

 These organizations has been established to coordinate

tourist activities among and within member countries.

F. Tourism Organization in the Philippines

1. The Department Of Tourism (DOT)

 Mission:
 The primary government aency charged with the
responsibility to encourage, promote, and develop
tourism as a major socio-economic activity to generate
foreign currency and employment and to spread the
benefits of tourism to both the private and public
sector.
 The Structure of the Department Of Tourism:
 Office of the Secretary
 Tourism Promotion Sector
 Tourism Services and Regional Offices Sector
 Planning, Product Development and Coordinaton
 Internal Services Sector

2. Philippine Tourism Authority (PTA)

 The Philippine Tourism Authority is an autonomous

corporate entity attached to the Department of Tourism
(DOT). The PTA was created on May 11, 1973 by virtue of
Presidential Decree No. 189 (P.D. 189) synchronously
with the DOT as the latter’s development arm
 Functions of the Philippines Tourism Authority:
 To develop identified priority areas
 To operate, maintain and promotes facilities in
pioneering capacity

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  To provide technical & financial assistance to
qualified tourism projects
 To generate revenues to fund national & corporate
development undertakings

3. Philippines Travel and Tourism Council (PTTC)

 PTTC supports its goals by conducting tourism-related

research and publishing travel magazine and travel
videos.
 PTTC regional chapter’s offices are to help the travel
industry sell travel to Philippines to their clients.
 PTTC regional chapters will explore potential tourism
destination in thei area and develop tour packages which
will sold by all PTTC members particulary travel agencies
and tour operators.
 PTTC will provide up-to-date information on travel to and
in the Philippines.
 PTTC also promotes the importance of tourism to the
island.
 PTTC organizes various events to inform and help
businesses on practical aspects of their trade.

4. Philippine Travel Agencies Association (PTAA)

 The Philippine Travel Agencies Association (PTAA) is a

fairly young organization born out of a union of the
national associations of the outbound travel agencies and
inbound tour operators in 1979. Founded to foster unity
in the travel industry and to promote the welfare of its
members and the travelling public as well, the PTAA has
evolved into one that now plays a vital role both in the
national and international tourism levels.
 PTAA represents the travel/tour agency sector in:
 Air Safety Foundation (ASF)
 Philippine Chamber of Commerce and Industry
(PCCI)
 Hotel & Tourism Institute of the Philippines (HTIP)
 Tourism Industry Board Foundation Inc. (TIBFI)
 Federation of Philippine Industries Inc. (FPII)
 Pacific Asia Travel Association (PATA) - Phil.
Chapter
 National Tourism Council Board (NTCB)
 Federation of Tourism Industries in the
Philippines

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