Professional Documents
Culture Documents
Now that you know the basic concepts in Travel Services, its relevance and the
Career Opportunities that it may offer to you, it would be the best to explore and discover the
composition of the tourism industry in our country. How does the tourism industry grow in the
country? How does it operate?
The Philippine Tourism Industry is a key factor for economic growth, it is composed
of industries and entities, both public and private involve in planning and development,
marketing, sales operation and evaluation of destinations, products and services that cater
to the needs of the travelers both foreign and domestic.
Government Sector
Department of Tourism
TPB
TIEZA
LGU
Other National Gov’t Units
Private Sector:
Lodging Industry
Food and Beverage Industry Financial Institutions
Transportation Sector Education and Training Institution
Attraction, Leisure and MICE Sector
Travel Trade
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THE GOVERNMENT SECTOR
DOT Mandate:
Secretary of Tourism
Office of Special
Office of Product Office of Tourism
Concerns
Development Standards & Regulation
Regional
Offices Administrative
Office of Tourism Office of Tourism Affairs Office
Development, Planning, Coordination
Research and Information
Management Foreign Offices
Office of Legal
Affairs
Office of Resources
Generation
Office of Industry
Manpower Financial and
Development DOT Organizational Structure Management Affairs
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TIEZA acts as Department of Tourism’s implementing arm in providing
support infrastructures and facilitating investments in tourism enterprise zones (TEZ)
nationwide. This is carried out through its main functions — infrastructure
development; designation, regulation and supervision of TEZs; management of its
existing assets or facilitation of their privatization; and administration of the collection
of the Philippine Travel Tax.
The TPB shall be responsible for marketing and promoting the Philippines
domestically and internationally as a major global tourism destination, highlighting the
uniqueness and assisting the development of its tourism products and services, with
the end in view of increasing tourist arrivals and tourism investment. Specifically, it
shall market the Philippines as a major convention destination in Asia. To this end, it
shall take charge of attracting, promoting, facilitating, and servicing large-scale
events, international fairs and conventions, congresses, sports competitions,
expositions and the like. It shall likewise ensure the regular advertisement abroad of
the country’s major tourism destinations and other tourism products, not limited to
TEZs. It may also provide incentives to travel agencies abroad which are able to
draw tourists and tourism investments to the country.
IA’s powers and functions are stated in Section 3 of PD 1616 (as amended), among them:
Initiate, plan, undertake and supervise the restoration, upkeep and maintenance of
the Intramuros walls, including the ravelins, moat, Sunken Garden and public places,
plazas, streets and other government-owned or managed properties within
Intramuros;
Enter into contracts with any private person or entity or any Government agency,
either domestic or foreign, whenever necessary for the effective discharge of its
functions and responsibilities under such terms and conditions as it may deem proper
and reasonable;
Prepare, adopt, revise and enforce rules and regulations, implementing guidelines
and standards as are necessary for the effective regulation of the land use and
development activities in Intramuros of both government and private entities and for
the implementation of the Intramuros Plan
Provide the general public with access to and enjoyment of an open park through
well managed and maintained facilities and structures, well-developed
environment through landscape design and plant ornaments, while ensuring the
orderliness of the Parks as well as the safety and security of the park-goers
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V. NAYONG PILIPINO FOUNDATION (NFPI)
On 12 May 2009, Republic Act No. 9593, otherwise known as Tourism Act of
2009, PRA became an attached agency of the Department of Tourism and placed
under the supervision of the Secretary.
Strengthened by the Republic Act 9593 – Tourism Policy Act, Section 31:
The exclusive franchise to operate duty and tax free shops was
originally granted to a private corporation called Tourist Duty Free
Shops, Inc. (TDFS) by virtue of Presidential Decree No. 1193 (P.D.
1193) and Letter of Instruction No. 595 (LOI 595) both dated
September 6, 1977. TDFS was authorized to establish, operate and
maintain duty and tax free stores at all international airports and
seaports, selected hotels, tourist resorts, and commercial or trading
centers throughout the country for a period of twenty-five (25) years.
This franchise was revoked by Executive Order No. 24 dated June
27, 1986.
Executive Order No. 46 (E.O. 46) dated September 4, 1986, authorized the Department
of Tourism (DOT), through the Philippine Tourism Authority (PTA), to establish and operate
a duty and tax free merchandising system in the Philippines for the purpose of augmenting
service facilities for tourists and generating foreign exchange and revenue for the
government. Under this system, PTA has the exclusive authority to operate shops and
stores that sell tax and duty free merchandise, goods, and articles in international airports
and sea ports throughout the country or to contract private parties through public bidding to
operate these stores.
PRIVATE SECTOR
Lodging Industry
Food and Beverage Industry
Transportation Sector
Attraction, Leisure and MICE Sector
Travel Trade
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as hotel rooms, food and beverage, land, air and sea transportation, the attraction,
leisure sector plus the different travel organizer.
LODGING INDUSTRY:
Tourism industry across the globe has seen unprecedented growth which in turn has
also resulted in tremendous growth in accommodation facilities.
It is very important for any tourist to have comfortable hotels and accommodation
facilities. Ideally, the number of accommodation facilities should be within the number of
tourist arrivals.
Classification of Hotels:
1. According to size
a. Small Scale (under 150 rooms)
b. Medium scale (150-299 rooms)
c. Large Scale (300 and above)
4. According to Location
a. Center City
b. Suburban
c. Resort
d. Airport
e. Highway
HOTEL CHARACTERISTICS
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o These properties cater to guests who stayed for an extended period. They
usually offer full kitchen facilities, shopping services, and limited
housekeeping services
Historic Conversion Hotels
o These properties have historic significance. They have been converted into
lodging establishments with retention of their historic character.
Food and Beverage Industry also known as the food service industry, consists of
businesses that prepare food for customers. The food service segment of the tourism
industry continues to grow.
TRANSPORTATION SECTOR
Transportation is the key element in the tourism industry. It is the cause and effect of
the growth of tourism. Accessibility is the main function of the basics of tourism transport.
Each destination should be easily accessible by the tourists. Modes of transportation may
vary from air, sea, land and rail.
Air Transportation
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The development of air transport mostly occurred after World War I and II.
Commercial airlines were created for travelers. Because of increasing air traffic, the
commercial sector grows rapidly. Before the World War II, Swissair already was carrying
around 14-16 passenger between Zurich to London.
The first commercial service was introduced by KLM, the Dutch Airlines, in 1920
between Amsterdam and London. Commercial air travel grew mostly after World War II.
More facilities were introduced and there was more comfort in travel.
The modern era, thus, is the era of mass air travel. After road transport, air travel is
the most popular mode of travel, particularly for international travel. For the business
travelers, air transport is more convenient as it saves their precious time and offers a
luxurious and hassle-free travel. Many airlines nowadays offer special facilities to the
business tourist such as Internet on board.
1. Scheduled
2. Chartered
The airfares are normally determined on the volume and the air travel demand in an area.
Airlines are classified into two broad categories namely small carrier and large
carrier. The small carrier also known as commuter airlines have less than 30 seats. The
larger carriers, also known as major airlines fly direct routes between the major cities and
seat and seat 100 to 800 passengers.
The recent boom in the aviation technology has certainly bought some new
development to airlines industry. There has been a major change in the size of the aircraft.
Every year there are a growing number of new airlines being introduced. Because of
the growing number of new private airlines, there is stiff competition among them. This has
resulted in a considerable reduction in air fares and has boosted the growth of air traffic. To
woo and attract customers, many airlines offer cheaper promotional fares such as excursion
fares, group fares, and apex fares.
Land Transportation
Humans travel place to place in search of food in the primitive era. They tamed
animals such as the dog, ox, horse, camel, reindeer, elephants, etc. for carrying the load and
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traveling. After the discovery of the wheel, humans developed the cart, the chariot, and the
carriage.
Until the seventeenth century, horses were used for traveling. Later on better roads
were constructed and some of these roads developed into trade routes, which linked many
countries. One of them is the Silk Route which was used for transporting silk from China to
Persia and the Blue Gem road from Iran to Afghanistan and India.
Today, the most popular and widely used mode of road travel is the automobile or
the car. Road transport is dominated by the automobile, which provides views of the
landscape and the freedom to travel. Tourist often travels with their entire family for holidays.
To promote tourism, the vehicle required are coaches and tourist cars. Tourist
coaches or buses are preferred for large tourist groups traveling together on a specified tour
itinerary. Many tourists prefer to travel in comfort and privacy and hire cars. Cars of various
makes and standards are available on a rental basis.
Tourist also uses their own motorcar when holidaying. Cars and coaches carried long
distance by train facility is also available in some countries.
The car rental segment of the tourism industry is in a very advanced stage in foreign
countries. The client can book a car, himself or through agents, and make it wait at the
desired place at the destination. The client can then drive the car himself /herself on
reaching the destination.
Rail Transportation
The railway is the most economical, convenient, and popular mode of travel
especially for long distance travel all over the world. The railroad was invented in the
seventeenth century in Germany with wooden tracks. The first steel rail was developed in
the USA during the early 1800s. The railways revolutionized transportation and mass
movement of people seen in the nineteenth and twentieth centuries.
The broad gauge lines account for more than 55 percent of the total network and
carry 85 percent of total traffic. The steam engines have been replaced by diesel and electric
engines which have helped in increasing the speed. Railways have promoted tourism by
introducing a special tourist train.
The increasing number of baby boomers and retiring population brought the rebirth of
the cruise line industry and the luxury of travel began. More retired citizens of the world are
now enjoying the luxury of time and relaxation after decades of hard work. Cruising is
undeniably one of the present times mode of transportation patronized not only by the retired
professional but by the working population. The fly-cruise (combination of airplane and ship)
programs allowed the younger, middle-aged-professionals to enjoy holidays at the same
time keep their jobs. Different cruise destinations are now emerging, and becoming the
choice of families and millennials as well.
Trends are dramatic in the cruise line industry with the growing size of cruise ships,
increasing number of cruise operations and destinations, to cater to the many passengers
joining the luxurious travel on board the various types of ocean-going luxury cruise ships.
CLIA (Cruise Line International Association) saw the volume passengers increase from 6.6
million from 2002, to 9.5 million on 2003, with the USA dominating the world cruising market
followed by the United Kingdom and Europe.
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ATTRACTION, LEISURE AND MICE SECTOR
The business and the organization that provide attractions, recreation, entertainment
shopping, and others comprise tourism. Theme parks such as Disneyland, and Universal
Studios also attract millions each year. Most of these are showing steady rise in patronage.
Zoos, jungles, and aquariums, usually locates in parks, attracts locals as well as millions of
tourists. Gaming or gambling is also a growing industry. It has never been legalized in states
other than Nevada and New Jersey, and attendance continue to rise.
TRAVEL TRADE
Travel trade is composed of travel managers and tour operators; they are also known
as intermediaries or middle man. Travel trade also includes the tour guide. Both travel
agency and tour operators perform the function of travel operations. They provide travel
services to their customers. Travel Operations will be discussed further later on the following
lessons.
Tour guide are part of the travel trade, due to the evolution of new travelers, they
require a service of the tour guide, who is an individual not only familiar with past history and
the older culture, at the same time acquired information with current social issues,
environmental concerns, trends and events in the host country.
LEARNING COMPETENCY:
Discuss the functions of the National Tourism Office, the agencies directly
related to it, and the concerned local government units (LGU) in the
tourism industry
Identify the nature of and services offered by the various sectors under
the private division
Explain the functions of the sectors that comprise the private agencies
connected with tourism industry
TLE_HETS9-12TIIP-Ia-e-1
DIRECTION:
Now that you have discovered the wider scope of the composition of the Philippine Tourism
Industry, let us do the following exercises. Make sure to read thoroughly and answer
honestly.
You can write your answer temporarily on a separate paper and rewrite it in this activity
sheet later to avoid too much erasures.
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EXERCISES AND ACTIVITIES:
I. Direction. Match Column A and Column B. Column A are the Government Sector
that comprises the Philippine Industry, while in the column B are the operations or
mandates of these agencies. Match them by writing the letter of the correct answer
on the spaces provided.
Column A Column B
TIEZA has the exclusive authority to operate shops and stores that sell
PRA tax and duty free merchandise, goods, and articles in airports
DOT and sea ports in the country
TPB was established primarily for the promotion of research
NPDC development project on social sciences, humanities and other
LGU related fields.
NFPI promulgate programs and projects geared to the development of
IA the country as a premier diving area in Asia.
PCSSD responsible for the regulation of the Philippine tourism industry
DFPC and the promotion of the Philippines as a tourist destination
tasked to develop, preserve, and manage Rizal and Paco Parks
in Manila and other national parks in the country
support tourism development of local areas
implementing arm in providing support infrastructures and
facilitating investments in TEZ nationwide
responsible for the orderly restoration and development of
Intramuros as a monument to the Hispanic period of our history
mandated to develop and promote the Philippines as retirement
haven
responsible for marketing and promoting the Philippines
domestically and internationally as a major global tourism
destination
1. SMTURIO ________________________
2. ATERD LEVART ________________________
3. GINSURCI ________________________
4. RIA OTRPANSTR ________________________
5. NALD ATRLEV ________________________
6. ASE DASBE POSTRNATR ________________________
7. MOMCODACIONTA ________________________
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8. USERILE ________________________
9. YCGINLC ________________________
10. ICEM ________________________
11. TOTNICARAT ________________________
12. LIAR ________________________
13. SMORUTI PARTEMNETED ________________________
14. SIPPENHILIP ________________________
15. EDOCS ________________________
1. TIEZA
_________________________________________________________
2. NPDC
_________________________________________________________
3. IA
_________________________________________________________
4. TPB
_________________________________________________________
5. PRA
_________________________________________________________
6. PSSDA
_________________________________________________________
7. DOT
_________________________________________________________
8. ICAO
_________________________________________________________
9. IATA
_________________________________________________________
10. DFPC
_________________________________________________________
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a. ______________________________________________________________
b. ______________________________________________________________
REFLECTION:
Online Resources:
https://www.devex.com/organizations/tourism-infrastructure-and-enterprise-zone-authority-tieza-
140571
https://www.tpb.gov.ph/about/mandate/
http://intramuros.gov.ph/about-the-ia/
https://www.gov.ph/web/national-parks-development-committee/about-us
https://en.wikipedia.org/wiki/Nayong_Pilipino_Foundation
https://pra.gov.ph/mandate-vision-and-mision/
http://www.divephilippines.com.ph/about-pcssd/
http://www.dutyfree.gov.ph/?q=content/history
https://tourismnotes.com/tourism-transportation/
ANSWER KEY
Exercise 1
1. G
2. I
3. D
4. J
5. E
6. F
7. B
8. H
9. C
10. A
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Exercise 2
1. TOURISM
2. TRAVEL TRADE
3. CRUISING
4. AIR TRANSPORTATION
5. LAND TRAVEL
6. SEA-BASED TRANSPORTATION
7. ACCOMMODATION
8. LEISURE
9. CYCLING
10. MICE
11. ATTRACTION
12. RAIL
13. TOURISM
14. DEPARTMENT
15. CODES
Exercise 3
Prepared by:
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