10/12/2020 Modules in THC 201 Micro Perspective of Tourism and Hospitality: Module 1 Overview of Tourism and Hospitality

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

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Modules in THC 201 Micro Perspective of Tourism and Hospitality

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1. Module 1 Overview of Tourism and Hospitality

Module 1

Overview of Tourism and Hospitality

I. Objectives

At the end of this module, you are expected to:

1.    Define the basic terms in tourism;

2.    Describe the industry groups that comprise the tourism sector;

3.    Define the hospitality industry;  and

4.    Explain the importance of tourism.

II. Discussion

A. Basic Terms in Tourism

The United Nations World Tourism Organization (UNWTO) published in year 2008 a glossary of terms for tourism. The following definition of terms
will give you basic knowledge on this subject.

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.

A visitor is a traveler taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business,
leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited (IRTS 2008, 2.9).

A tourist (or overnight visitor), is a classification of a visitor (domestic, inbound or outbound) whose trip includes an overnight stay, or as a same-
day visitor (or excursionist) otherwise (IRTS 2008, 2.13).

An excursionist (or same-day visitor), is a classification of a visitor whose trip does not include an overnight stay (IRTS 2008, 2.13).

According to EuroStat (2014), three types of tourism can be distinguished, according to the origin and destination of visitors:

1. domestic tourism means visits within a country by visitors who are residents of that country.
2. inbound tourism means visits to a country by visitors who are not residents of that country.
3. outbound tourism means visits by residents of a country outside that country.

B.  The Tourism Industry

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10/12/2020 Modules in THC 201 Micro Perspective of Tourism and Hospitality: Module 1 Overview of Tourism and Hospitality

            The North American Industry Classification System (NAICS, 2002) segmented the tourism industry into five industry groupings, namely:

1. Transportation
Air transportation
All other transportation (includes rail, water, bus, taxi and vehicle rental)
2. Accommodation
3. Food and beverage services
4. Recreation and entertainment
5. Travel services

TechTarget (2020) and NAICS -2012, provided comprehensive definitions for each of the above industry groupings, which are as follows.

Transportation Industry. This sector includes industries providing transportation of passengers and cargo, warehousing and storage for goods,
scenic and sightseeing transportation, and support activities related to modes of transportation (TechTarget, 2020).

Accommodations Industry. This is also called lodging sector or hotel industry, which is composed of companies that develop, own, manage
and/or operate lodging facilities, including motels and full-service hotels (TechTarget, 2020).

Food and Beverage Services Industry. This is also called food service industry, which is composed of foodservice outlets or facilities that serve
meals and snacks for immediate consumption on site (food away from home). This category includes full-service restaurants, fast food outlets,
caterers, some cafeterias, and other places that prepare, serve, and sell food to the general public for a profit (ERS-USDA, 2020).

Recreation and Entertainment Industry. The Arts, Entertainment, and Recreation sector includes a wide range of establishments that operate
facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises (1)
establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2)
establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities
or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure time interests (NAICS,
2012).

Travel Services. Properly called travel arrangement and reservation services, this industry group comprises establishments primarily engaged in
travel arrangement and reservation services. Examples of establishments in this industry group are tourist and travel agencies; travel tour operators
and wholesale operators; convention and visitors' bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and
airline, hotel and restaurant reservation offices (NAICS, 2012).

C. The Hospitality Industry

      Hospitality is the quality or disposition of receiving and treating guests and strangers in a warm, friendly, generous way (Dictionary.com, 2020).

      The hospitality industry is a broad category of fields within the service industry that includes lodging, restaurants, event planning, cruise line,
and additional fields within the tourism industry (Definitions.net, n.d). Based on the NAICS (2002) industry groupings, the hospitality industry is the
combination of accommodation and food and beverage services industry groupings (Wescott, 2015).

D. The Importance of Tourism and Hospitality Industry

            The tourism industry brings about benefits to any country engaged in this activity.          

1.            Revenue generation and balance of payments. Tourism brings the advantages of bringing in foreign currencies into a country’s
economy especially to weaker economies. International tourism has a favorable effect on the balance of payments of a country as it acts as an
invisible export entry (Celik et al. 2013). The balance of payments is the difference between total money values flowing into the country and the
total outflow of money from a country over a period of time (Oxford Languages, 2020).

2.         Employment. Tourism creates jobs for both local citizens and foreign expatriates. Examples of these jobs, to name a few,  are the tour
guides in the tourist destination, pilots and flight attendants in the airlines, hotel receptionists and room attendants in the hotel, and food
attendants and cashiers in the restaurants, all of which cater to tourists.
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