INTRODUCTION

Mabuhay and Congratulations for joining the world’s largest and most dynamic industry!

“Tourism is growing and will continue to grow” says United Nations World Tourism Organization. Tourism has
become one of the largest and fastest – growing economic sectors in the world, with an annual growth rate
that is outpacing the world economy. It will create billions of opportunities: from jobs to enterprise to
experiences. The National Tourism Development Plan (NTDP) 2010-2016 of the Philippines targets 10 million
inbound tourist arrivals by the end of 2016. In 2011, the country received 3.9 million international arrivals,
up by 11% from 3.5 million in 2010 (DOT, 2011). The Ilocos Norte Tourism Office’s data between 2012 and
2013 shows a remarkable increase of tourist arrivals on accommodation establishment and tourist
destinations by 8.37% and 186.79% respectively.

With these figures, it is safe to say that you are taking the right track.

This material is compiled to be used as instructional module for Tourism and Hospitality Management
students taking the subject Macro Perspective of Tourism and Hospitality. Its topics are patterned after the
suggested lessons based from the Commission on Higher Education Memorandum Order 62 series of 2017.
Various references were utilized to present different theories and concepts in understanding the tourism as
an industry, a system and a phenomenon.

How to use this Module

This material shall be utilized by the students taking up Bachelor of Science in Tourism Management and
Bachelor of Science in Hospitality Management who are enrolled in the subject Macro Perspective of Tourism
and Hospitality. Learners are first year students with no prior or lesser knowledge on tourism and hospitality
management.

This material is scheduled as patterned with the curriculum syllabus. Self-assessment tests are provided in
each lesson to measure the students’ knowledge growth and skills learning.

Learning Outcomes

This material aims to educate the learners on the theories, principles and practices of tourism, where tourism
is examined from the perspectives of a phenomenon, an industry and as a field of study or research.

Specifically, the students should be able to:

1. define tourism and related terms
2. explain in detail fundamental concepts relating to the determinants of tourism development
3. explain people’s motivations for traveling
4. identify the components of the tourism system
5. understand how tourism may affect destinations
6. develop deeper awareness of the benefits of tourism, as it grows to be the world’s largest industry.

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 GLOSSARY
Accommodation: Facilities for the lodging of
visitor to a destination. The most common forms
are hotels, motels, campgrounds, bed-and
breakfast (B&B), dormitories, hostels and the
homes of friends and relatives.
Attractions: Facilities developed specially to
provide residents and visitors with entertainment,
activity, learning, socializing and other forms of
stimulation that make a region or destination a
desirable and enjoyable place
Built Environment: The components of activities
within a tourism destination that have been
created by humans. These include the
infrastructure and superstructure of the
destination, as well as the culture of its people, the
information and technology they use, the culture
they have developed and the system of
governance that regulates their behaviors
Carrier: A public transportation company such as
air or steamship line, railroad, truck, bus, monorail
and so on
Carrying Capacity: The amount of tourism a
destination can handle
Culture: The totality of socially transmitted
behavior patterns, arts, beliefs, institutions and all
other products of human work and thought that
are characteristic of the destination population.
Destination: The ultimate stopping place
according to the contact of carriage. Can also be
defined as
a place offering at least 1,500 rooms to tourists.
Destination Management Organization:
Organization responsible for coordination,
leadership and promotion of a destination and its
stakeholders, thus enabling it to provide tourists
with an enjoyable and memorable visitation
experience.
Entertainment: Performances, shows or activities
that attract and hold the attention of visitors. A
successful destination will seek to integrate the
travel, hospitality, and entertainment dimensions
of tourism.
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Events: Includes a broad range of “occurrences”,
“happenings” and “activities” that are designed
around various themes, with a view to creating or
enhancing interest in the destination. Local
festivals and mega events have proven to be most
effective.
Excursionist: A traveler who spends less than
twenty-four hours at a destination.
Familiarization Tour: A tour with free or
reduced-rate arrangements for travel agents or
public carrier employees that is intended to
stimulate them to sell travel or tours as
experienced on the “famtour”
Food services: Facilities that provide food and
meals to visitors to a destination. The most
common forms are restaurants, fast-food outlets,
snack bars, cafeterias, food fairs, and the homes of
friends and relatives.
Foreign Independent Travel: An individually
designed tour by an individual or family rather
than a predesigned package tour
Frequent-flyer plan: Program where bonuses are
offered by the airlines to passengers who
accumulate travel mileage
Governance: The system that defines the
organizations, the processes, and the complex of
political institutions, laws, and customs through
which power and authority within a destination is
exercised.
Ground Arrangement: All those services
provided by a tour operator after reaching the first
destination. Also referred to as land
arrangements.
Group Inclusive Tour: A tour that includes group
air and ground arrangements for a minimum of
fifteen persons. They may or may not stay
together as a group for both the land and air
portions of the trip.
Incentive Tour: A travel plan for which
prearranged transportation, wholly by air or partly
by air and partly by surface, together with ground
facilities (such as meals, hostels, and so on) are
sold for a total price
Infrastructure: The facilities, equipment and
installations and needed for the basic functioning
and daily lives of the residents of a region. These
include communication systems, water and
sewage facilities, public protection, health,
transportation and education systems.
Transportation: The act or process of carrying or
moving people or goods or both from one location
to another
Travel Trade: Includes those organizations, firms
and individuals that provide various elements of
the total travel experience

Package: A prepaid tour that includes

transportation, lodging and other ingredients,
usually meals, transfers, sightseeing or car rentals.
May be varied, but typically includes at least three
ingredients sold at a fixed price.
Superstructure: The equipment and facilities
needed to meet the particular needs of the visitors
to a region. These include accommodation and
food services, visitor information and services,
tourism attractions, special events,
supplementary transportation, and special
education and training programs for front line
staff and industry managers.

Supplier: An industry term meaning any form of

transportation, accommodations and other travel
services used by a travel agency or tour operator
to fulfill the needs of travelers.

Tour: A trip taken by a group of people who travel

together and follow a preplanned itinerary

Tourism: The activities of persons traveling to and

staying in places outside their usual environment
for not more than one consecutive year for leisure,
business and other purposes. (WTO)

Tourist: Someone who stays for more than one

night and less than a year. Business and
convention travel are included. This thinking is
dominated by balance-of-trade concepts.
Tour Operator: A company that specialized in the
planning and operation of prepaid, preplanned
vacations and makes these available to the public,
usually through travel agents.

Tour Package: A travel plan that includes several

elements of a vacation, such as transportation,
accommodations and sightseeing

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 Unit 1:
INTRODUCTION TO TOURISM

Tourism is one of the largest as well as the broadest industries in the world because of its unique properties.
The term is most of the time misunderstood and interchanged with other terms because of its extensiveness.
It is therefore important to understand the basics of tourism to further appreciate the industry as a whole.

This chapter discusses the basic principles of tourism. Specifically, it provides the definition of tourism,
explains its concept that distinguishes tourism from other industries.

Outcomes:

After completing the first chapter of this module, you should be able to:
1. understand the basic concepts of tourism;
2. appreciate the characteristics of tourism; and
3. comprehend the component of tourism

Suggested Teaching Strategies and Pedagogical Activities

Activity 1: Inter-active Discussion

The teacher leads a discussion on the meaning of tourism, its importance and characteristics. After which,
the students may give their feedback and queries on the lecture.

Materials Needed
• Laptop
• LCD

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Lesson 1: Basic Concepts of Tourism

At the end of the lesson, the student should be able to

1. Define tourism
2. Identify the different forms of tourism
3. Differentiate tourists from other travelers and international visitors from domestic visitors
4. Explain the similarity between the WTO definition and Philippine definition of visitor
5. Discuss the basic approaches in the study of tourism

DEFINITION OF TOURISM

Historically speaking, there was really no universal definition of tourism. It was only in 1993 that the World
Tourism Organization (WTO) gave this definition - The activities of persons traveling to and staying in places
outside their usual environment for not more than one consecutive year for leisure, business and other
purposes (WTO,1993). This means that tourism invites visits to places other than one’s abode for pleasure
and from where one does not receive a salary.

Travel and exploration are basic to human nature. Man has traveled since the earliest times although the
term tourism was used only in the early 19th century. Tourism is derived from the Hebrew word torah which
means studying, learning, searching. (Cruz, Z.L.,2013)

3 BASIC FORMS OF TOURISM (Cruz,R.G.,2000)

In the WTO, there are three basic forms of tourism:

Domestic tourism: involves residents of a country traveling only within that country
Inbound tourism: involves non-residents traveling in a country
Outbound tourism: involves residents of a country traveling to other countries.

These forms may be combined in various ways to produce the following categories:

Internal tourism: combination of domestic tourism and inbound tourism

National tourism: combination of domestic tourism and outbound tourism
International tourism: combination of inbound and outbound tourism

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 Self-Check (Practice Task)

Encircle the letter of the correct answer.

1. Which among the following best describes internal tourism?
a. Filipinos & Foreigners travel to Korea
b. Filipinos & Foreigners travel to Palawan
c. Filipino travels to Korea and Palawan
2. Which among the following travels best describes domestic tourism?
a. Residents of China goes to HongKong
b. Residents of the Philippines goes to Guam
c. Residents of New York goes to Canada
3. Which of the following travels best describes national tourism?
a. Filipinos & Foreigners travel to Korea
b. Filipinos & Foreigners travel to Palawan
c. Filipino travels to Korea and Palawan
4. Which of the following travels best describes outbound tourism?
a. Filipinos travel to Siargao
b. Americans travel to Alaska
c. Vietnamese travels to Cambodia
5. Which of the following is not international tourism?
a. Canadian travels to the Philippines
b. Filipinos travel to Malaysia
c. Chinese nationals go to Hongkong

If you got…
5 CONGRATULATIONS! THAT WAS AN AWESOME JOB!
4 Very Satisfactory
3 Satisfactory
2 and below Please read the module again

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VISITORS VS TRAVELERS (Cruz,R.G.,2000)
Travel and tourism are used interchangeably. But we need to understand that not all travels are tourism. So,
a need to differentiate travelers from visitors is vital.

Travelers – are people on a trip between two or more places

Visitors – are people who engage in tourism.

Visitors are different from other travelers because of the following criteria:
1. The trip should be to place other than that of the usual environment.
2. The stay in the place visited should not last more than 12 consecutive months.
3. The main purpose of the trip should be other than the exercise of activity remunerated from
within the place visited.

It should be noted that all travelers who engage in tourism are called visitors. The term visitor is regarded by
the WTO as the basic unit for the whole system of tourism statistics.

Classification of Visitors/Tourists (Cruz,R.G.,2000)

Tourists may be classified according to the length of stay, purpose, origin of the traveler and distance
traveled.

Length of Stay
The WTO classifies visitors into:
1. Tourist or overnight visitor – a visitor who stays at least one night in a collective or private
accommodation in the country or place visited. They include non-nationals or foreigners, non-
resident crewmembers who use the accommodation establishments of the place visited, and
nationals residing abroad who are on a visit.

2. Same-day visitor - a visitor who does not spend the night in a collective or private accommodation in
the country or place visited. These include cruise ship passengers who spend the night aboard ship
even if they disembark for one or more day visits; crews who are not residents of the place visited
and who stay only for the day, and visitors who arrive and leave on the same day, including transit
day visitors en route to and from their destination.

Origin of the Traveler

Visitors are furthered classified into:
1. International visitors - are persons who travel to a country other than one in which they have their
usual residence but outside their usual environment for a period not exceeding 12 months and whose
main purpose of visit is other than the exercise of an activity which is compensated from within the
country visited.

2. Domestic visitors – are persons residing in a country, who travel to a place within that country
outside their usual home environment for a period not exceeding 12 months and whose main
purpose of visit is other than the exercise of an activity remunerated from within the place visited.

Purpose of visit
1. Leisure, recreation and holiday
2. Visiting friends and relative – VFR
3. Business and professional
4. Health treatment
5. Religion/pilgrimages
6. Others

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 Travelers seldom go to a destination with a single purpose in mind.

Example:
Business travelers do engage in leisurely activities in the destination once in a while, such as
sightseeing, shopping
Filipino travelers buy lots of goods in Hong Kong or Bangkok for resale back in the Philippines.

Distance traveled
Due to difference in size and geographic circumstances among countries, it is not easy to classify
travelers according to distance traveled.
A traveler’s destination is usually assessed in relation to his usual environment. Regular
commutes to and from work are not considered as visits, no matter what the distance involved
is.
Travel has been categorized into the following:

1. Local travel – travel within one’s home community.

2. Domestic travel is travel within one’s country of residence, including travel by resident aliens or
foreigners working in the host country.
3. Regional travel is travel within the region where one’s province belongs. It also means traveling
to a country belonging to the same geographic region,
4. International travel is travel to a destination outside one’s country of residence.

Residence of the traveler

It is the residence and not the nationality of the traveler that determines whether he/she will be
included in visitor arrival statistics.
Ex: A crewmember of a ship or airline is not considered a visitor in a country if she/he is a resident
of that country

THE OTHER TRAVELERS (Cruz,R.G.,2000)

Other forms of travel that do not agree with the aforementioned definition are not considered as visits. These
forms of travel normally involve:

1. The search for temporary or permanent settlement

2. Engaging in some form of occupation whose incomes are derived from the place visited.
3. Length of stay exceeding one year.
4. Travel to places within the familiar environment
5. Travel that is against the will of the person.

The people who engage in these forms of travel, termed non-visitors are not included in visitor arrival
statistics. They include:
1. Border workers
2. Temporary and permanent immigrants
3. Nomads
4. Transit passengers (who do not leave the transit area of the airport or the port)
5. Refugees
6. Members of the armed forces when they travel from their country of origin to the duty station
and vice-versa, including household servants and dependents accompanying them.
7. Representatives of consulates, and diplomats when they travel from their country of origin to
the duty station and vice-versa, including household servants and dependents accompanying
them.

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PHILIPPINE DEFINITIONS(Cruz,R.G.,2000)
The Philippine definition of visitor is in agreement with the WTO definition: The Department of Tourism
includes the following as part of visitor arrival statistics:

1. Aliens entering the country for a temporary stay not exceeding one year and for purposes other
than immigration, permanent residence or employment for remuneration in the country.
2. Balikbayan or a Filipino national residing permanently abroad on temporary stay in the
Philippines not exceeding one year.

Visitor arrivals - refers to the number of arrivals and not to actual number of people traveling.
This classification of visitors excludes:
1. Transit visitors and change-plane passengers who remain in the premises of the port of entry
terminal.
2. Aliens of pre-arranged employment or any form of employment for remuneration in the Philippines,
even if length of stay is less than 59 days.
3. Filipinos living abroad, regardless of length of stay overseas
4. Immigrant or aliens with permanent residence in the Philippines
5. Filipino overseas contract workers on home visits
6. Returning residents of the Philippines.

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Figure 11. Classification of Travellers. (Source: Goeldner & Ritchie (2009). Tourism Principles, Practices,
Philosophies. 11th ed.)

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BASIC APPROACHES TO THE STUDY OF TOURISM

Tourism commonly is approached through a variety of methods. However, there is little or no agreement on
how the study of tourism should be undertaken. The following are several methods that have been in used.

Institutional Approach Considers the various intermediaries and institutions

that perform tourism activities

Product Approach Involves the study of various tourism products and how
they are produced, marketed, and consumed

Historical Approach It involves analysis of tourism activities and institutions from an

evolutionary angle. It searches for the cause of innovations, their
growth or decline, and shifts in interest

Managerial Approach Is firm-oriented (microeconomic), focusing on the management

activities necessary to operate a tourist enterprise

Economic Approach Is useful in providing a framework for analyzing tourism and its
contributions to a country’s economy and economic development

Sociological Approach This approach examines social classes, habits, and customs of both
hosts and guests.

Geographical Approach The geographer specializes in the study of location, environment,

climate, landscape, and economic aspects

Interdisciplinary Approach
Systems Approach
Tourism embraces virtually all aspects of our society. We have
cultural and heritage tourism, which calls for an anthropological
approach. Because people behave in different ways, and travel for
different reasons, it is necessary to use a psychological approach to
determine the best way to promote and market tourism products.
Because tourists cross borders and require passports and visas from
government offices, and because most countries have government
operated tourism development departments, we find that political
institutions are involved. Attention of legislative bodies which create
the laws, regulations, and legal environment in which the tourist
industry must operate, so we have a legal approach.
A system is a set of interrelated groups coordinated to form a unified
whole and organized to accomplish a set of goals. It integrates the
other approaches into a comprehensive method dealing with both
micro and macro issues.

Other approaches for tourism planning are the following: (Cruz, R.G., 2014)
No Planning Planning may not be seen as necessary when the place has
underdeveloped supply and demand, or where visitation rates are so
small as to not perceive any impact from it.

Ad-hoc Planning Planning only as the need arises, such as planning in preparation for
a town fiesta or when an important visitor is coming

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Boosterist Approach
Demand-led Approach
Environmental Approach
Government-led Approach
Spatial Planning Approach
Ecotourism Approach
Pro-poor Approach
Community-based Tourism
Integrated Tourism Planning
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Sees tourism as a positive force for economic development. Its
primary goal is to maximize revenues through mass tourism
“Know the customers and satisfy them.”
Works best when the place being considered for tourism
development is endowed with natural attractions of outstanding
beauty, remote; beyond the reach of commercial electric and water
services or protected by laws, such as protected areas and ancestral
domains of indigenous people.
Puts the government at the center of planning and development, it is
the primary and multi-tasking actor.
A type of product-led tourism planning, but on a wider scale. It is
focused on “destination layout and design” and breaks down tourism
into spatial units such as gateways (main access point, such as
airport).
Emphasizes the environmental and cultural dimensions of
sustainability
defined as “tourism that generates net benefits for the poor.”
(Ashley, Roe & Goodwin, 2001)
“tourism that is owned and/or managed by communities and
intended to deliver wider community benefit”
when tourism is developed and planned as an integrated system
within itself and as part of an overall tourism plan and total
development patterns in an area (Chaisawat n.d.).
 Self-Check (Practice Task)

I. Tell whether the following individuals are visitors or non-visitors.

_________1. A Balikbayan from Hawaii whose relatives are from Bacarra, Ilocos
Norte and he’s attending the town fiesta.
_________2. A Chinese consul with his wife and two children staying in the Consular
Office in San Nicolas, Ilocos Norte.
_________3. A group of relatives visiting Marcos Mausoleum and Fort Ilocandia.
_________4. Indian nationals who are operating business in the Philippines.
_________5. A CEO attending a convention in Bangkok, Thailand for 5 days.

II. Write TRUE if the statement is correct and FALSE if otherwise.

_________6. All travelers who engage in tourism are visitors

_________7. All travels are tourism
_________8. Visitors who spend at least one night in the country visited are called
tourist.
_________9. Regular commutes to and from work are not considered visits, no matter
what the distance involved is.
_________10. Tourists and same day visitors are the same.
_________11. Temporary and permanent immigrants are non-visitors.
_________12. Transit visitors and change plane passengers who remain in the
premises of the port of entry terminal are considered visitors.
_________13. Internal tourism is a combination of domestic and outbound tourism.
_________14. Domestic tourism involves residents of a country traveling only within
that country.
_________15. Balikbayan and OFW are non-visitors

Answer to Self-Assessment Questions: (please proceed to appendix A)

If you got…
15 CONGRATULATIONS! THAT WAS AN AWESOME JOB!
14-12 Very Satisfactory
11-9 Satisfactory
8 and below Please read the module again

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 Practice Task

Note: The review questions will serve as guide questions for recitation and assignments.

1. After reading this chapter, how do you describe tourism as an activity?

2. Differentiate international visitors from domestic visitors citing specific examples.

3. What is a visitor? Differentiate a tourist from same-day visitor.

4. Give five examples of travelers who are not classified as visitors.

5. What is the similarity between the WTO definition and Philippine definition of visitor?

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