The Characteristics of Hospitality and Tourism

Product and
Importance of Tourism

Lesson Objectives:

At the end of this module, I should be able to:

1. Identify the characteristics of the tourism and hospitality

product.

2. Understand the importance of tourism.

Materials:

SAS

References:

Lansangan-Cruz,Zenaida (2018)

MACRO PERSPECTIVE OF

TOURISM AND HOSPITALITY

Carino C.E., Beltran M.P.N. (2013)

The Hospitality Industry; An

Introduction Manila, Philippines:

Mindshapers Co. Inc.

Productivity Tip: Remove items from your desk or study area that may distract you such as your phone
or

work away from the television.

A. LESSON PREVIEW/REVIEW
1) In the previous lesson, we have learned about the meaning of tourism and hospitality. We learned
that

Tourism and Hospitality are made up of different components which may be independent and

competitive businesses but they are interrelated and interdependent. And focusing on Tourism, we

identified its different characteristics as well as the elements of travel.

Can you identify at least 3 characteristics or tourism and 2 elements of travel?

Characteristics of Tourism

1.

2.

3.

Elements of Travel

1.

2.

In this module, we will focus more on how tourist products are different from regular consumer

products. We’ll also learn about the importance of the tourism and hospitality industry.

2) Activity 1: What I Know Chart, part 1 (3 mins)

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________
This document is the property of PHINMA EDUCATION

Do you know of the importance of tourism? Are you able to differentiate the tourist product from a

regular consumer product? Try answering the questions below by writing your ideas under the first

column What I Know. It’s okay if you write key words or phrases that you think are related to the

questions.

What I Know Questions: What I Learned (Activity 4)

What are the benefits of tourism

and hospitality to our country?

What is the difference between

a tourist product and a regular

consumer product (example:

mobile phone)?

B.MAIN LESSON

1) Activity 2: Content Notes

The Tourist Product

A tourist product is a service.

A tourist product is largely psychological in its attraction.

A tourist product tends to vary in standard and quality over time unlike the

production of merchandise.

The Characteristics of a Tourist Product

1. The product is not brought to the consumer, rather, the consumer

has to travel and go to the product to purchase it. Unlike a

tangible product, say a mobile phone, there is no transfer of

ownership of goods in tourism. The product cannot be inspected

before its purchase and the consumer needs to go to the product

to purchase it.

2. The product of tourism is not used up, thus they do not exhaust
he country’s natural resources. Regular consumer products have

limited life and in the end are either thrown away or replace with

new ones.

3. Tourism is a labor intensive industry. It requires more manpower than other industries since it is a

service-oriented industry.

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

4. Tourism is people oriented. It’s main concern is people. One of the most important reason why
people

travel is to meet other people who are residents of the area or tourists as well. Also, they would like to

see how other people live in their respective communities.

5. Tourism is a multi-dimensional phenomenon. It is

dependent on a variation of activities which are separate but

are interdependent.

6. The tourism industry is seasonal. Tourism demand is

influenced by seasons, economic, political and other factors.

There are certain times of the year which see greater demand

than others. At these times, there is a greater strain on services

like hotel bookings, employment, transportation, etc.

7. The industry is dynamic. Tourism is not a homogenous product since it tends to vary in standard and

quality over time, unlike a laptop or any other manufactured product. A package tour or even a flight

on an aircraft is not consistent at all times. This is because tourism product is a service and is people

based. Due to this, there is variability in this product.

Importance of Tourism

1. Contribution to the balance of payments

Tourism and hospitality can help in the contribution of balance of payments and

deficits of many countries by earning the needed foreign currency in international

trade. When a tourist pays in foreign currency (example US dollars), the amount

of foreign currency revenues for the Philippines increases and this helps to meet

or exceed the amount of foreign currency expenditures.

2. Dispersion of development

International tourism and hospitality helps spread the wealth among countries.

This will assist in bridging the economic gap between poor countries and

wealthy countries. Example: A tourist from the United Kingdom will travel to the

Philippines and will stay for one week. The money spent by the tourist will be

distributed in the Philippines.

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________
Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

3. Effect on general economic development

All spending by tourists can have positive effects on all economic sectors that will

lead to the development of different industries and other economic benefits. When

a hotel is built to cater to tourists, it will get its supplies from the local market. These

sellers will then earn money and they will spend it to pay rent, buy clothes, etc.

which eventually helps the economy.

4. Employment opportunities

Tourism and hospitality is a major source of

employment. Since it is a service oriented industry, it

helps the countries with surplus labor to find

employment. In the Philippines, there is a high rate of

unemployment. The tourism and hospitality industry

provides jobs to a lot of Filipinos as waiters, housekeepers, drivers, boatmen, etc.

5. Social benefits

When tourists and residents meet because of tourism, there is social exchange.

These interactions affect the social structure and way of life of the local

residents. However, they also affect the tourists by providing them with a new

outlook and new habits that they can bring back to their respective homes.
6. Cultural enrichment

Tourism and hospitality brings about sharing and appreciation of cultures. It helps people

appreciate the rich human and cultural diversity of the world. It also builds mutual trust and respect

for one another. Another is Tourism and hospitality contributes to the preservation and

development of the world’s cultural heritage. It encourages governments to come up with programs

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

that will preserve historical sites and monuments. The indigenous

groups are also motivated to preserve their heritage such dance,

music and artifacts.

7. Educational significance

Tourism and hospitality enriches one’s education through international

conferences, seminars and educational trips. They help provide updated

information for the enhancement of knowledge and skills required in the

development of the tourism and hospitality.

8. A vital force for peace

A well-developed tourism and hospitality can help bridge the psychological and

cultural distances that separate people of different races, colors, religions and

stages of social and economic development. It fosters genuine social

relationships among individuals by overcoming prejudices. It facilitates

international brotherhood and world understanding that would eventually become a real force for

world peace.

2) Activity 3: Skill-building Activities

Let’s practice! After completing each exercise, you may refer to the Key to Corrections for feedback.

Try to complete each exercise before looking at the feedback.

Exercise 1: Given the following tourism and hospitality statements, identify if the statement is True or

False.

1. Tourism is a labor-intensive industry that requires more manpower than other

industries.

2. Tourism and hospitality helps in the distribution of wealth all over the world.

3. Tourism and hospitality does not help in the appreciation of cultural diversity.

4. Tourist product is brought to the consumer like other products manufactured in a

factory that are brought to wholesalers and retailers.

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

5. A tourist product is not used up while others have limited resources.

Exercise 2: Write short responses for the questions:

a. How does tourism and hospitality helps in cultural enrichment?

b. How does tourism and hospitality helps in world peace?

c. How does tourism and hospitality helps in the dispersion of development?

d. How does tourism and hospitality helps in the contribution of payment?

e. How does tourism and hospitality helps in general economic development?

3) Activity 4: What I Know Chart, part 2

It’s time to answer the questions in the What I Learned chart in Activity 1. Log in your answers in the

table.

4) Activity 5: Check for Understanding

Select a local tourist destination in your province and identify what benefits does this tourist destination

gives to the province. Explain each benefit that you identified.

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

C. LESSON WRAP-UP

1) Activity 6: Thinking about Learning

Congratulations for finishing this module! Shade the number of the module that you finished.

Did you have challenges learning the concepts in this module? If none, which parts of the module

helped you learn the concepts?

_______________________________________________________________________________

_______________________________________________________________________________

____________________

Some question/s I want to ask my teacher about this module is/are:

_______________________________________________________________________________

_______________________________________________________________________________

____________________

FAQs

1. What does deficit mean?

Deficit is an excess of expenditure or liabilities over income or assets in a given period of time.

2. What is surplus labor?

Surplus labor refers to excess labor due to high unemployment and lack of job opportunity for young

people.
KEY TO CORRECTIONS

Answers to Skill-Building Exercises

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

Exercise 1: True or False

True

1. Tourism is a labor-intensive industry that requires more manpower than other

industries.

True 2. Tourism and hospitality helps in the distribution of wealth all over the world.

False 3. Tourism and hospitality does not help in the appreciation of cultural diversity.

False

4. Tourist product is brought to the consumer like other products manufactured in a

factory that are brought to wholesalers and retailers.

True 5. A tourist product is not used up while other products have limited resources.
Exercise 2: Possible answers only since answers will vary.

a. How does tourism and hospitality helps in cultural enrichment?

Tourism and hospitality helps in cultural enrichment by allowing the exchange of culture by the

tourist and the residents. It motivates the government to preserve historical sites and encourages

indigenous people to conserve their heritage like dance, music and artifacts.

b. How does tourism and hospitality helps in world peace?

Tourism and hospitality helps in world peace by helping bridge the gap among the people of the

world coming from different races, colors, religions and stages of social and economic

backgrounds.

c. How does tourism and hospitality helps in the dispersion of development?

Tourism and hospitality helps in spreading the wealth from rich countries to poor countries.

d. How does tourism and hospitality helps in the contribution of payment?

Tourism and hospitality helps in the contribution of payment by allowing the government to earn

in foreign currency that can be used by the country for international trade and payment of debts.

e. How does tourism and hospitality helps in general economic development?

Tourism and hospitality helps in general economic development by having providing economic

activities from the spending of tourists.

Answers to Checking for Understanding:

SDH ADHTM

TOU 040: Macro Perspective of Hospitality and Tourism

Student Activity Sheets Module #2

Name: ________________________________

Section:______________ Schedule: _________

Class number: _______

Date: __________________

This document is the property of PHINMA EDUCATION

Answers may vary depending on the tourist destination selected but answers would include:
contribution

to the balance of payments, dispersion of development, effect on general economic development,

employment opportunities, social benefits, cultural enrichment, educational significance and a vital
force

for peace.