UNIT-1

INTRODUCTION TO TOURISM,
HOSPITALITY & THE HOTEL INDUSTRY

Tourism industry
 The word “TOUR” is derived from the Latin word tornus, meaning a ‘tool for making circle’.
 Tourism may be defined as the movement of people from their normal place of residence to
another place for minimum period of 24 hours to the maximum of 6 months for the sole purpose
of leisure and pleasure.

Tourism is made up of five elements:

1. Tourist
2. Geographical features:
--traveller generating region
--tourist destination region
--tourist transit region
3. Tourism industry
All the above are influenced by the external environment:

Impact of Tourism

1) Economic Impact
• Direct effect: The initial injection of tourist expenditure creates direct revenue for hotels,
shops, restaurants, travel agents, transport operations and other tourist services
• Indirect effect: The recipients of the direct expenditure generate additional revenues to
businesses or producers supplying them with necessary inputs , example fuel for various form of
transport, food for restaurants, equipment for hotels, construction of hotels etc.

2) Environmental Impact
• The most outstanding result of environmental influence of tourism is its impact as the
built environment. A large hotel built overlooking good scenic beauty, beach. Shops have opened
to service the visitors; the majority of outlets are geared towards the tourism market. Roads have
been indented and built to enable easier access for coaches and berries. Beyond the valley,
tunnels have been blasted out of mountains to ease access and an airport has been built in.
• Negative impact: Deforestation, water pollution, etc.

3) Social Impact
 Positive impact

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 With the development of tourism many facilities are created to motivate people to travel and get
relived from the stress and burden of modern materialistic life. By touring different countries
people get acquainted with different social customs and rituals, this creates a strong bond of
relationship with local community and creates a sense of affinity among different nationals of the
world, an essential prerequisite for universal peace.

 Negative impact

a) Changing the family system and life styles of people with the invention of modes of transport
and with increased urbanization many joint families are dissolute and nuclear family concept
starting.
b) Under the disguise of tourist anti-social elements are entering into various target countries to
spoil the peace and harmony in the society.
c) With the movement of people, many various types of diseases are also spreading and creating
health-related problems among the host country people.
d) Tourism development leads to increase in number of crimes in a locality. Problems like
gambling, eve teasing, molestation, prostitutions and other related crime in the tourist area causes
threat to the movement of people.
e) Tourists may engage in crime and illicit activities such as violent/ drunk behavior, drug
smuggling and sex tourism.

4) Cultural Impact

• Positive Impact: There are several positive effects of tourism on culture. It helps to
promote the culture of a country. There is an exchange of cultures as a tourist travel to different
place. He/she learns new culture at the same time imports one’s own culture into the local
community.
• Negative Impact:
(a) Threat is posed to traditional social values and weakens the cultural values.
b) Exchange of culture tourism is allowing exchange of culture but with this the original culture
is diluting day-by-day.
c) Cultural tourism contributes to universal brotherhood and promotes international place. At the
same time may transform the local craft, folk art and festivals to suit the demands of a tourist,
which shall affect the originality.

Tourism market can be categorized as:

 Leisure tourist: recreation activities or enjoyment
 Business tourist: main motive of travel is to make profit or expanding their business.

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 TOURISM CAN BE CATEGORIZED AS:-

1. International tourism- When people visit a foreign country, it is referred to as

international tourism. In order to travel a foreign country, one needs a valid passport, visa, health
documents, foreign exchange, etc.
International tourists may be:
 Inbound- This refers to tourists of outside origin entering a particular country.
 Outbound- This refers to tourists travelling from the country of their origin to another country.

2. Domestic tourism- The tourism activity of people within their own country is known as
domestic tourism.
FEW TERMS
 Visitor- Any person visiting a country other than his usual place of residence for any other
reason than following an occupation from within the country visited.
 Excursionist- A day visitor who stays for less than 24 hours at a place. Excursionists do not stay
overnight.
 Traveler- A person who travels from one place to another irrespective of the purpose of travel or
duration of stay.
 Transit visitor- A traveler who passes through a country without breaking journey other than
taking connecting transport.

IMPORTANCE OF TOURISM
1. Employment generation: It creates a large number of jobs among direct service
providers (such as hotels, restaurants, travel agencies, tour operators, guide and tour escorts, etc.)
and among indirect service providers (such as, suppliers to hotels, and restaurants,
supplementary accommodation etc.)
2. Infrastructure development: Tourism spurs infrastructure development. In order to
become an important commercial or pleasure destination, any location would require all the
necessary infrastructure, like good connectivity via rail, road, and air transport, adequate
accommodation, restaurants, a well developed telecommunication network, and medical
facilities, among others.

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3. Foreign Exchange: The people who travel to other countries spend a large amount of
money on accommodation, transportation, sightseeing, shopping, etc. Thus, an inbound tourist is
an important source of foreign exchange for any country.

HOSPITALITY
 Hospitality is also known as the act of generously providing care and kindness to someone in
need.
 Hospitality refers to the relationship between a guest and a host.

HOSPITALITY INDUSTRY
Hospitality industry is a broad
category of field within in the
service industry that includes
lodging, food and drink
service, event planning, theme
parks, transportation, cruise
lines, travelling and additional
fields within the tourism
industry.

Origin and growth

 The origin and growth/development of the hospitality industry is a direct outcome of travel and
tourism.
 There are many reasons for which a person may travel:-
-- Business
--Pleasure
-- Further studies
-- Medical treatment
-- Pilgrimage
 When a person travels for a few or more days, he/she may carry cloths, but it is not possible for
them to carry food and home.
 Before the wheel was invented, people undertook journey on animals such as horses, camels, and
elephants.
 In those days, they used to travel in a group is called caravans for safety.
 At midnight they avoided travel due to the fear of wild animals and bandits.

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 Thus for night halt, they looked for a place that could provide them with water, fuel to cook
food, and, above all, security from wild animals and bandits.
Primitive lodging
 The primitive lodging houses or inns originated essentially to cater to these needs of the
travelers.
 All over the world, they were known by different names, such as:-
1. Dharmashala and Sarai in India
2. Ryokans in Japan
3. Paradors in Spain
4. Pousadas in Portugal
5. Coffee house in America
6. Taverns and inns in Europe
7. Cabarets and Hostelries in france
8. Mansionis and Hospitia in Switzerland
9. Phatnal in Greece
10.Relay houses in china

EVOLUTION AND GROWTH OF HOTEL INDUSTRY IN THE WORLD

 The invention of the currency and the wheel sometime in the fifth century BC are regarded as the
two main factors that led to the emergence of inn-keeping and hospitality as a commercial
activity.
 The origin and growth of the hotel industry in
the world can be broadly studied under the
following periods:
1.Ancient Era
2.Grand Tour
3.Modern Era
o Ancient Era- Europe can be regarded as the
cradle of hotel business. From where it is
travelled to various parts of Asia.

o Grand Tour- The second half of eighteenth century, prior to the French revolution (1789-99), is
referred to as the “golden era of travel” as the popularity of the “Grand Tour” gave a big push to
the hotel industry. Prominent hotels during this period: Dolder Grand in Zurich, Imperial in
Vienna.
- In 1841, a simple cabinet maker, Thomas Cook organized a rail tour from Leicester to
Loughborough and immortalized itself as the world’s first tour operator.

o Modern Era- The two world wars, especially the second took their toll to hotel industry.
-The inauguration of The City Hotel in New York in 1794 marked the beginning of the
present-day hotel industry with 73 rooms.
-The opening of the Tremont house in Boston, 170 room hotel is another landmark was the first
to provide locks, indoor plumbing, running water, and bathing facilities. It was also the first to

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 provide front office services like bell boys and a reception. It was also the first hotel to serve
French cuisine in the US.
-The increase in automobile travel in the 1950s led to the rise of ‘motor hotels’ or motels, a
new category in the hotel industry.
EVOLUTION AND GROWTH OF HOTEL INDUSTRY IN INDIA
 The origin of the hotel industry in India cannot be traced to a
definitive point of time, there is evidence of its presence even
during the Indus Valley Civilization and Vedic Era. 
 In olden days, travel was predominantly undertaken for
pilgrimage and trade.
 The concept of Chardham among the Hindu community is an
important indicator of significance accorded to pilgrimage by
their ancestors.
 The origin and evolution of the hotel industry in the country
can be broadly categorized in the following three periods: 
1. Ancient and Medieval Era (from Indus Valley Civilization
to AD1600)
2. Colonial Era (AD1601-AD1947)

1.Ancient and Medieval Era (from Indus Valley Civilization to AD1600)

-The beginnings of the hospitality sector in India stand rooted in the Hindu philosophy of ‘atithi
devo bhava’, implying that an unannounced guest is to be accorded the status of God.
-The lodging houses during those times were known as dharmsalas.

2.Colonial Era(AD1601-AD1947)
-In 1841, Auckland hotel in Kolkata, which went on to become the Great Eastern Hotel in post-
independent India.
-In December 1903, Jamshetji Nusserwanji Tata, inaugurated the Taj Mahal Palace and Tower
hotel overlooking the Gateway of India in Mumbai.
-The first Indian style hotels were Sardar Griha, which opened in 1900, and Madhavashram in
1908.
-The Ritz, Ambassador, West End and Airlines, which opened during these years, are fondly
referred to as ‘war babies’ by industry historians.

3. Modern Era (1947onwards)

-Oberoi Goup of hotels founded by Rai Bahadur Mohan Singh Oberoi.
-The year 1949 saw the organization of four regional hotels & restaurants associations with head
offices in Delhi, Mumbai, Kolkata, and Chennai. These four associations were linked in a
federation, The Federation of Hotels & Restaurants in India (FHRAI), in 1955.
- The federation serves as a link between the hospitality industry, government, and other
stakeholders in the trade.
-The first luxury hotel built by the government is The Ashok Hotel in Delhi’s Diplomatic
Enclave founded in 1956 to host India’s first ever International Event, a United Nations
Industrial Development Organization (UNIDO) Conference.
-The ITDC (India Tourism Development Corporation) founded in 1966 opened many large and
small hotels across country and The Ashok Hotel in New Delhi is the face of ITDC.

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 HOTEL
 The term hotel was used for the first time by the
fifth Duke of Devonshire to name a lodging
property in London sometime in AD 1760.
 The word hotel is derived from the French hotel,
which refers to a French version of townhouse.
 A hotel or inn is defined by the British Law as a
“place where a bonafide traveller can receive
food and shelter, provided he is in a position to
pay for it and is in a fit condition to be
received.”

ROOM DIVISION DEPARTMENT

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 The housekeeping, Front office, and maintenance department come under rooms division. These
departments together are responsible for maintaining and selling the rooms in a hotel.
 Housekeeping: -The housekeeping department is the responsible for the cleanliness and upkeep
of the front of the house areas as well as back of the house areas. This is headed by Executive
housekeeper.
 Front office: - This department is the operational department responsible for welcoming and
registering guests, allotting rooms, and helping guest check out. The head of the department is
Front office manager.
 Maintenance department: - This department is also called engineering department. This
department is responsible for all kinds of maintenance, repair, and engineering work on
equipment, machines, fixtures and fittings. The head of the department is Chief engineer.

FOOD AND BEVERAGE DEPARTMENT: The food and beverage department includes
restaurants, bars, coffee shops, banquets, room service. This department is headed by F&B
Director. There is another department Food production includes—kitchen and bakery headed by
executive chef.

HUMAN RESOURCE DEPARTMENT/Personnel department includes Recruitments,

Orientation, training, employee welfare and compensation, labour laws, and safety norms for the
hotel come under the HR department.—are headed by Human resource manager. The training
department is an ancillary department of the HR department. This is headed by the training
manager, who takes the specific task of orientation and training of new as well as existing
employees.

SALES AND MARKETING DEPARTMENT: Headed by the Sales & Marketing manager
and the function of this department is 5 fold- sales, personal relations, advertising, getting MICE
(meeting, incentive, conference, and exhibition) business, and market research.

PURCHASE DEPARTMENT
The procurement of all departmental inventories is the responsibility of the purchase department.
In most Hotels the central stores are part of the purchase department

FINANCIAL CONTROL DEPARTMENT

 The financial control department, also called the control department, is headed by the financial
controller, who is responsible for rectifying all the inventories items of the operational
department.
 The hotels accounts are also maintained by the controls department.
 Accounting activities include making payments against invoices, billing, collecting payments,
generating statements, handling bank transactions, processing employee payroll data, and
preparing the hotels financial statements.

SECURITY DEPARTMENT
 The security department is responsible for safe guarding the assets, guests, and employees of the
hotel. Their functions include conducting fire drills, monitoring surveillance equipment, and
patrolling the property.

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