BSHM 1-C, GROUP II

Micro Perspective of Tourism and Hospitality

OVERVIEW OF THE TOURISM INDUSTRY

 NATURE OF TOURISM
What is TOURISM?
 Tourism is travel for recreational, leisure, or business purposes.
 The World Tourism Organization defines tourists as people “traveling to and
staying in places outside their usual environment for not more than one consecutive
year for leisure, business and other purposes.”
 It also creates opportunities for employment in the service sector of the economy
associated with the tourism. These services include:
> Transportation services
> Hospitality services
 Tourism in the pure sense is essentially a pleasure activity in which money earned
in one’s abode is spent in places visited.

 TOURISM AS A PRODUCT AND A SERVICE

 Tourism is both a product and a service. The final tourism product enjoyed and
experienced by travelers is a result of inputs from several suppliers.

Tangible
Refers to the physical dimensions of an object. These refers to what one can
see, hear, feel, touch, and smell.

Intangible
Refers to anything that has no physical substance. It cannot be perceived
using your senses, but affects your satisfaction with the tourism product. These
intangibles usually impact your overall assessment of your trip.

The tourism product may be defined as a bundle or package of tangible and intangible components
based on activity at a destination.

The major components of tourism destination are:

1. Attraction
Considered as the major reason for visiting destinations. They create a desire to travel,
motivate to travel. Attraction comprises natural attractions, man-made attractions, event
attractions, built-in attractions, cultural and social attractions, supplementary attractions, etc.
 2. Accommodation
Refer to various types of lodging that provide facilities for rest and relaxation such as
hotels, resorts, villas, pension houses and motels.

For the purpose of classification, all tourist accommodation has been divided into two groups:
a. Service accommodation
b. Supplementary accommodation

3. Accessibility
Access is a subject of transport infrastructure and transport technology. It is a means
by which a tourist can reach the area where attractions are located. It is related to the possibility
to visit, to feel, to see or to acquire the experience.

4. Amenities
Amenities are the facilities and services added with attraction, accommodation and
accessibility to create the tourism.

5. Activities
Outdoor and indoor recreation activities.

Direct Services
Include:
 Transportation to and from the chosen destination (air, land, sea)
 Transportation within and between destinations
 Accommodation at the destinations (hotels, motels, resorts, home and farm stays,
campgrounds, etc.)
 Catering (food and beverages)
 Sightseeing
 Shopping
 Entertainment
 Recreation
 Information
These services cater directly to the tourists needs.

Indirect Services
Include:
 Financial
 Medical
 Insurance
 Retailing
 Wholesaling (travel agent, tour operator)
 Cleaning
 Printing
 Telecommunication
 Good water
  Sewerage
 Electricity
These services support the provision of direct services. Without indirect services the provision of
direct services would be impossible.

 TOURISM AS AN EXPERIENCE ECONOMY

According to Pine and Gilmore (1999), the concept of the experience economy can
help organizations design a customer-focused company that manages the intangibles while
focusing on revenues and profits. This can be achieved using the 4E’s of consumer experience:
Education
This dimension highlights a person’s interest to learn something new. This is
referred to as “edutainment” which means that one learns through innovative ways.

Entertainment
Live performances – pop-rock concerts to orchestra performances, musical theatre,
dances, magic and illusions, and circus acts – are designed to delight audiences.

Esthetic
The interior decoration, furniture and fixtures, natural environment and even the
look of the personnel affect the customers’ expectation. In addition, the ambiance, impacts
your overall experiences.
The Random House Dictionary defines ambiance as the “mood, special quality, or
atmosphere of a place... or an environment.”

Escapist
The Visa Global Intentions Study reported that 26% of those surveyed said that they
travel “to escape.” The same study showed that other travel motivators includes rest, and
relaxation (36%); to indulge (33%); and as a gift for the self (26%).

 CULTURE OF SERVICE

The challenge for tourism suppliers and stakeholders is to ensure that its customers are
satisfied during the “service encounter.” The satisfaction rating is based on the level of
expectation vis-à-vis the actual services experienced.

 CULTURE OF TOURISM

The Department of Tourism defines the Culture of Tourism as “a sustainable tourism

development principle that binds national and local governments, local communities, private
sector and stakeholders to work together in creating pride of place in building a tourist friendly
destination.”
  TOURISM ORGANIZATION (National, Regional, & International)

National Tourism organization

 Primary Government bodies that are responsible for the development of the tourism
industry in a particular country.
 Institution that regulate, develop tourism and promote it within and outside
destination.

Regional Tourism Organization



International Tourism Organization

 refers to tourism that crosses national borders.

 TRAVEL MOTIVATORS

1. Personal
 Curiosity and desire to expand knowledge, enhance self-esteem
 Need to change routine; desire for recreation
 Desire to improve health
 Family research

2. Environmental
 Desire to experience different landscape, view wildlife, enjoy outdoor
recreation.

3. Cultural
 Desire to explore art, folklore, history, food, religion, language, drama, etc.
of different people.

4. Social
 Visit friends or relatives
 Desire to cultivate new relationships
 Social interaction

5. Adventure
 Desire to exhilaration, risk, challenge, exploration

6. Business/Professional
 Business conventions, workshops, etc.
 Scientific expeditions
 Educational trips
  SOCIOLOGY OF TOURISM

 BARRIERS TO TRAVEL
1. Cost
 Consumers have budgets. Travel competes with other financial
commitments.
2. Health
 Inadequate health may keep people from travelling.
3. Time
 People have jobs, business, family, and other commitments that limit the
time available for travel.
4. Family stage
 Parents with young children may limit travel because of cost and
inconvenience or may be restricted in their choice of their travel destination.
5. Lack of Interest
 People have values and other interests that may screen out travel.
6. Fear
 Knowledge of political conflict or high crime rates at destinations may deter
travelers.

THE TOURISM AND HOSPITALITY PROFESSIONAL

 TOURISM FORECAST

 EMPLOYABILITY SKILLS

People working in the travel, tourism and hospitality industry may either work
indoors or outdoors; on land; air or sea; based on standard hours or on a flexible schedule;
and may be contract-based or full time.

Generally, there are six groups of requisite skills. Often referred to as 21st century
skills. These are the following:

1. Communications
2. Technical
3. Human Relation
4. Conceptual
5. Analytical
6. Decision-making
7. Digital Capabilities
8. Critical Thinking
In addition, Tourism and Hospitality graduates are expected to manifest the following:

 Verbal and written communication skills (fluency in another language can be an edge)
 Ability to work independently and with a team
 Problem-solving skills
 Initiative
 Planning and organizing skills
 Interest and willingness to learn
 Technology-savvy
 Ability to think on your feet
 Maturity
 Ability to create rapport with different kinds of people
 Confidence
 Leadership skills
 Customer service ethic
 Strong attention to detail
 Strong ethics

 ETHICS IN THE WORKPLACE

The Oxford Dictionary defines Ethics “a set of moral principles, especially ones
relating to or affirming a specified group, field, or form of conduct.” The word traces its root
to the Greek word éthikos, meaning “of or for morals.”
Moral, on the other hand, come from the Latin word mos, which refers to the
“distinction between right and wrong.”

 CAREER PATHS

A career path helps you map out your rise to the top. There are four tracks, namely:

Front Line
Referred to as rank-and-file employees, their jobs involve direct contact with
customers.

Supervisory
Supervisors are tasks with responsibilities including monitoring and coaching
front-line employees. They enforce company policies and guidelines; and evaluate
performance to ensure an efficient and effective workplace.

Managerial
Managers are involved in an organization’s operations, either for a specific
function such as accounting, finance, housekeeping, communications, sales and
marketing.
They are also in-charge of a specific department. They plan, organize, review, and
recommend action plans to assist in decision-making.
 Managerial positions involve budgeting, analysis, planning and change
management in order to help employees and the organization to grow and prosper.

Executive
Heading the organization are executive. They may either be the owners; corporate
executives; or both. They are tasked to increase shareholder wealth.
Executives are often responsible for several departments or divisions and usually
work at a regional, national, or international level. They are responsible for strategic
planning and have significant budget responsibility.

 BUSINESS OWNER

Furthermore, you can become an entrepreneur managing your own tourism-related

business. Aside from the employability skills which are useful even as a business owner, you
need to uphold the triple bottom line concept of people, planet, and profit.

 CAREER OPPORTUNITIES IN THE ASEAN REGION