JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY-MOLO, INC.

COLLEGE OF BUSINESS

LEARNING MODULE
Macro Perspective of Tourism and Hospitality
(MAPTH)

Name: ______________________________________
Year & Section: ______________________________________
Contact Number: ______________________________________
Email: ______________________________________
Instructor: ______________________________________

Authored by:

WEEZIE KAY O. MANUCAN, MHM

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HOW TO USE THIS MODULE
Welcome!

Macro Perspective of Tourism and Hospitality (MAPTH) is one of the major courses of
the Bachelor of Science in Tourism Management Program. This course is designed to
give you a clear and whole overview of the Tourism and Hospitality as an ecosystem
and goes beyond the usual closed- concept of tourism. It introduces the concepts and
terms that are common throughout the different sectors. It also intends to develop,
update and maintain local knowledge as well as tourism industry knowledge.

Furthermore, Macro Perspective of Tourism and Hospitality (MAPTH) shows the

structure and scope of tourism as well as the impact of Tourism as an industry in
relation to the world economy and society. It also illustrates the effects of the
convergence of tourism with the other local industries and let the students appreciate
its multiplier effects in various fronts. It discusses the major factors that influence the
history and future of tourism in the world and in the Philippines.

This module is a complete instructional material for you to attain an understanding of

the whole concept and a structured path in support to the course objectives of each
unit. Topics discussion are clearly outlined and stated. This module allows you to think
outside-the-box and provides you an interactive learning experience.

Assessment tasks are provided at the end of each unit and this determines how the
students will approach the learning task. This assessment task is to be answered
persistently by the learners to measure the progress of the student learning.

Learners output will be serving as the proof of grading. It will be submitted to the class
instructor/facilitator for evaluation and recording. The learners must be diligent in
reviewing the information sheet and be well - prepared for quizzes, virtual practical
examination and unit written test.

Should you need further assistance, do not hesitate to communicate your concerns to
the class instructor.

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COURSE CODE & TITLE: MAPTH

Macro Perspective in Tourism and Hospitality

Course Intended Learning Outcomes

At the end of the course, the students shall be able to:

1. discuss the concepts and terms that are common throughout the different
sectors;
2. discuss the structure and scope of tourism
3. analyze the impact of tourism as an industry in relation to the world economy
and society;
4. illustrate the effects of the convergence of tourism with other local industries
and analyze multiplier effect;
5. discuss major factors that influence the history and future of tourism in the
world and in the Philippines;
6. describe the sustainable goals of tourism
7. observe and formulate risk mitigation activities to promote protective
environment for the children in tourism destinations; and
8. describe the key global organizations and the roles they play in tourism trends.

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Introduction

Tourism and Hospitality is a dynamic group of industries that have a significant

impact in our social, economic and cultural phenomena from its history until this
modern age. The growing economic activity of tourism and hospitality became a
catalyst for generating income, employment and development of business.

The aim of this learning module is to offer a wide range introduction of tourism
and hospitality industry. It is designed to offer a broad understanding of tourism and
hospitality multidimensional character and its role in the society. You will explore the
varied segment of this wide range industry and begin thinking the challenges and
better opportunity it will bring.

The organization of topics will help you to have a better view of the tourism and
hospitality industry. Tourism and hospitality economic, social, physical and cultural
dimensions are being discussed as you traverse the pages of this module. Unit
exercises and activities are will encourage and motivates you to have a depth level of
perspective of the concepts and theories of this global phenomenon.

This module is written to offer a necessarily selective guide to academic learners

who aspire to be a part of the tourism and hospitality industry.

Experience, travel - these are education in themselves.

- Euripides

Hi everyone!!! Welcome to our virtual class

and I will be your teacher!

I will direct you through the pages and help

you understand this multidimensional tourism
and hospitality industry.

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COURSE OUTLINE FOR MIDTERM TERM

Unit 7 Hospitality and Tourism Policy and Organization

Topic 1 Tourism Organizations

Topic 2 The Tourism Risk Management Process

Unit 8 The Business Cycle

Topic 1 What is Business Cycle?

Topic 2 The Four Phases of Business Cycle

Unit 9 Impact of Tourism Sector in the National Economy

Topic 1 Philippines Tourism Economic Contribution (Year 2019)

Topic 2 Impact of COVID-19 on Philippine Tourism Economy

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Unit 7 Hospitality and Tourism Policy and

Organization

LEARNING OUTCOMES:

At the end of the topic, the

students should be able to:
1. discuss the key global
organizations and the roles
they play in influencing and
monitoring tourism trends;
and

2. identify and apply risk

mitigation activities.

Hi!!! Pleasant Day!

Today is our first lesson in our Finals
term. Hang on; we will make this lesson
as fun and exciting as we learn more
about tourism policy and its affiliated
organizations. One of JBLFMU’s cultures
is AGILITY, in this moment we will use
our mental quickness and sharpness in
this lesson. Here we go!

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The Role of Government in Tourism Policy and Administration

In order to better understand how government involvement affects the tourism

industry, we can classify public sector actions into four general categories: policy,
planning, development, and regulation. In each of these areas governments play a
unique and vital role in either facilitating or discouraging tourism.

1. Policy

 Policy generally refers to an overall, high-level plan that includes goalsand

procedures. Public policy, therefore, takes into account the desired end results
of a government and the methods for attaining those results.
 For example, a government might pursue a policy of greater economic growth
through tourism development by creating generous tax incentives for resort
developers.
 Policy is meant to provide guidance by addressing the issues that are central to
any effort to develop and sustain a tourism industry. Policies embody goals and
strategies that a government has adopted with respect to tourism, economic
development, employment, political relations, or, more likely, a combination of
these and other areas.
 Because policy provides direction, of the four roles or functions of public sector
involvement in tourism listed above that of policy formulation is probably the
most important.

2. Planning

 Tourism constitutes a means of economic development. On this point, all

countries would agree, and, in fact, it is the primary reason that they seek to
develop the industry.
 Tourism is a certain kind of industry that has its own unique requirements,
impacts, and rewards. Fulfilling those requirements, minimizing the negative
impacts, and reaping the rewards, are the primary goals of tourism planning.

3. Development

 Although development is often thought of as a private sector activity, there

are circumstances in which the government can play a useful, and sometimes
necessary, role.

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 For example, in many cases the existing private sector may lack sufficient size
and capital to undertake the development of a destination on its own. In
these cases, government may get involved by taking the role of developer, or
by taking on a partnership role as the provider or guarantor of capital, or in
any of a number of other ways. Sometimes, in cases where certain areas have
been designated and planned for tourism development, the government may
wish to control the overall development by assuming the role of lead
developer. In this way, the government can coordinate the construction of
the actual visitor facilities with necessary improvements in infrastructure or
other activities such as education and training.

4. Regulation
The regulatory role of government is very important for the tourism
industry, because so much of it is intended to protect the consumer.
Government regulation plays a critically important role in protecting tourists
and enhancing their travel experiences in many ways, including:

 Consumer protection laws and rules that require travel agencies to

deposit their customers’ advance booking deposits in a trust account, to
ensure that the moneys will be used for the purpose of securing their
reservations.
 Fire safety laws that mandate a minimum number of exits and emergency
lights on each floor of a hotel, in case of a fire.
 Health and food safety regulations that require food service
establishments to maintain minimum standards of safety and sanitation.
 Competency standards that require bus and boat operators to possess
requisite skills and knowledge.

Levels of Government Involvement

Government involvement or intervention in the economy occurs at different

levels of government. Although the exact structure and relationship of these levels will
vary from one country to another, there are four basic levels that generally encompass
all of the governmental jurisdiction and activity relevant to any given destination.

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I. International Involvement

United Nations (UN)

- which serves as a forum for the international community. The UN is unique in
that its decisions can be supported with police powers, in the form of armed
troops. Within the UN, there are organizations such as the United Nations
Development Program (UNDP) and the United Nations Environment
Program (UNEP), and the International Civil Aviation Organization (ICAO),
which serve a variety of functions for the member nations.

World Tourism Organization (WTO)

- the world’s largest and most influential government tourism organization and
an executing agency for the UNDP with over 130 government members.
Other examples of governmental organizations include the Association of
Southeast Asian Nations (ASEAN) and the European Union (EU).

II. National Involvement

Governmental involvement at the national level can be extensive, and is
often critical to the success of the nation’s tourism industry. The primary areas of
involvement include the following:

 Entry and exit. It is the national government that bears the responsibility for
controlling the most basic aspect of international travel, that is, access across its
borders. In itself, this responsibility involves a wide range of issues and problems
that need constant attention. Key responsibilities in this area would include
regulating the issuance of visas, monitoring borders and airports, and enforcing
customs regulations.
 Policy and planning. Tourism policies can exist at various governmental levels,
but it is at the national level that policy exerts its greatest influence. This is due
to the fact that, at the national level, policy priorities are generally reflected in
the nation’s political structure.
 Infrastructure development. A national government’s involvement in tourism is
also significant because of the resources that can be marshalled at the national
level. Some aspects of tourism development, particularly the construction of the
infrastructure and national parks necessary to accommodate both citizens and
tourists, require tremendous amounts of capital, amounts that often necessitate
the use of government financing capabilities such as taxes, bonds and loan
guarantees.

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III. Local Involvement
At the local level, government involvement can also be quite visible and
significant. It is at this level that the government’s regulatory function becomes
prominent. Key areas of local governmental involvement are the following:

 Control of the land development process, including zoning laws and

building design.
 Enforcement of laws and regulations relating to health, safety, and
employment, such as standards of cleanliness and safe handling for food
establishments, service of alcoholic beverages and occupational safety
and work conditions.
 Licensing of persons and businesses, such as tour operators, travel
agencies, hotels, restaurants, and others.

International Tourism Organization

World Tourism Organization (UNWTO)

- is the United Nations agency responsible for the promotion of responsible,
sustainable and universally accessible tourism.
- As the leading international organization in the field of tourism, UNWTO
promotes tourism as a driver of economic growth, inclusive development and
environmental sustainability and offers leadership and support to the sector
in advancing knowledge and tourism policies worldwide.

World Travel & Tourism Council (WTTC)

- represents the global private sector of Travel & Tourism, with a mission to
ensure the sector is seamless, secure, safe, inclusive and sustainable. We
raise awareness of Travel & Tourism’s value, not just as one of the world’s
largest economic sectors, but also to the many communities and travellers
enriched through their experiences.

International Air Transport Association (IATA)

- is the trade association for the world’s airlines, representing some 290
airlines or 82% of total air traffic. We support many areas of aviation activity
and help formulate industry policy on critical aviation issues.

International Civil Aviation Organization (ICAO)

- is a UN specialized agency, established by States in 1944 to manage the
administration and governance of the Convention on International Civil
Aviation (Chicago Convention).

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- ICAO works with the Convention’s 193 Member States and industry groups to
reach consensus on international civil aviation Standards and Recommended
Practices (SARPs) and policies in support of a safe, efficient, secure,
economically sustainable and environmentally responsible civil aviation
sector. These SARPs and policies are used by ICAO Member States to ensure
that their local civil aviation operations and regulations conform to global
norms, which in turn permits more than 100,000 daily flights in aviation’s
global network to operate safely and reliably in every region of the world.

National Tourism Organizations (Philippines)

Department of Tourism (DOT)

- the primary government agency charged with the responsibility to
encourage, promote, and develop tourism as a major socio-economic activity
to generate foreign currency and employment and to spread the benefits of
tourism to both the private and public sector.
- the primary planning, programming, coordinating, implementing and
regulatory government agency in the development and promotion of the
tourism industry, both domestic and international, in coordination with
attached agencies and other government instrumentalities. It shall instill in
the Filipino the industry’s fundamental importance in the generation of
employment, investment and foreign exchange.

Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

- formerly the Philippine Tourism Authority is an agency of the Philippine
national government under the Department of Tourism responsible for
implementing policies and programs of the department pertaining to the
development, promotion, and supervision of tourism projects in
the Philippines.

Philippines Travel and Tourism Council (PTTC)

- PTTC supports its goals by conducting tourism-related research and
publishing travel magazine and travel videos.
- PTTC regional chapter's offices are to help the travel industry sell travel to
Philippines to their clients.
- PTTC regional chapters will explore potential tourism destination in the area
and develop tour packages which will sold by all PTTC members particularly
travel agencies and tour operators.

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Philippine Travel Agencies Association (PTAA)

- is an organization born out of a union of the national associations of
outbound travel agencies and inbound tour operators in 1979. It was founded
to foster unity in the travel industry and to promote the welfare of its
members and the traveling public. PTAA is a strong force that plays a vital
role both in the national and international scenes.

Tourism Risks Management

Crisis
- Any situation that has the potential to affect long-term confidence in an
organisation or a product, or which may interfere with its ability to continue
operating normally.

Disaster
- A serious disruption to community life which threatens or causes death or
injury in that community and/or damage to property which is beyond the
day-to-day capacity of the prescribed statutory authorities and which
requires special mobilization and organisation of resources other than those
normally available to those authorities.
- Have a significant impact upon PEOPLE & infrastructure & thus upon tourism
facilities, operations and visitors.
- They produce LONG-TERM problems of restoration & rehabilitation and will
affect the return to normal of tourism activities. Businesses reliant upon
tourism will also be impacted.

What is needed: An integrated disaster management system with an active

partnership between all agencies, government and the community. The tourism
industries participate where possible in the integrated system at local, regional
and national levels.

The Risk Management Process

- Provides a generic framework for organisations to identify, analyse, assess,
treat and monitor risks to their organisations.

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The Tourism Risk Management Process
- A proactive process which enables tourism destinations and
businesses/organisations to minimise losses and take advantage of
opportunities.
- Provides a generic framework for organisations to identify, analyse, assess,
treat and monitor risks to their organisations.

Risk Management – an organisational process

Disaster Risk Management – a community based, multi-agency process.

Tourism destinations and operators should be involved in both processes.

The Tourism Risks Management Process

1. Establish the context.
2. Identify hazards, vulnerable elements
& risks.
3. Analyze & evaluate risks.
4. Treat risks.
5. Monitor & review.
6. Communicate & Consult.

1. Establish the context.

- Establishes the stakeholders, policies, systems, procedures and relationships
which are relevant to risk management for tourism organisations.

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2. Identify hazards, vulnerable elements & risks.

Ways to Identify Risks to a Tourism Destination or Business/Organisation

 Brainstorming
 Checking historical records
 Consulting experts
 ‘What if it happened here?’

Which elements could be affected by a crisis impacting upon a tourist

destination or business/organization?
 Visitors
 Employees
 Services
 Facilities
 Reputation
 Economic viability

3. Analyze & evaluate risks.

 Once you’ve identified the sources of risk to your tourism destination or

business/organisation, you have to analyse their likelihood and consequences.
 You need to know which will have the most negative effects in order to prioritise
your actions.

4. Treat risks.
- Always monitor & review those you decide not to treat.
- Priorities and circumstances may change.

Evaluate Existing Treatments

 Is the risk being managed by existing measures?

 What will happen if it’s not treated?
 Will it affect other destinations/businesses?
 Is it someone else’s responsibility?
 What else do we need to know?
 What are the values & expectations of visitors?

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5. Treat Risks

Steps to Treat Risk

 Consider risk treatment options
 Assessment criteria
 Select most appropriate options
 Prepare risk treatment plan

Standard Risk
Treatment Options
 Avoid the risk
 Reduce (likelihood & consequences)
 Transfer the risk (share responsibility)
 Retain the risk and plan to manage the consequences.

Risk Treatment Options

Prevention/mitigation examples:
 Compliance programs
 Inspection & process controls
 Security devices, alarms and processes
 Preventive maintenance
 Training & education

Can the costs be shared between tourism destinations and operators, the
community or government?

Who will benefit if the risk is managed?

Selecting Risk Treatment Options

 Will it be acceptable to stakeholders (visitors)?
 Is it too complicated/difficult?
 Long-term benefits?
 How long will it take?
 Will it adversely affect tourism?
 Should others share the costs?
 Will it create new risks to tourism?

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Risk Treatment Plans
 Allocate responsibilities
 Identify timelines
 Decide methods of implementation
 Establish expected outcomes
 Allocate budget
 Identify performance indicators & milestones

Residual Risk
Crises will still occur, so you need to plan to respond to and recover from crises.

6. Monitor & review.

Essential to ensure continual improvement and the currency and

relevance of the tourism risk management process.

 Repeat the tourism risk management cycle regularly (annual basis)

 Measure the progress of risk treatments
 Learn from your organisation's crises and those of other

Regular Monitoring

 Decisions and processes

 Visitors’ expectations & attitudes
 New sources of risk
 Risk ratings/priorities
 Elements at risk
 Efficacy of existing risk treatment measures
 New/additional risk treatment measures &
Review of:

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UNIT ASSESSMENT TASKS:

1. Explain the functions of UNWTO, DOT- Philippines, TIEZA and PTAA.
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2. Describe the Tourism Risk Management Process.
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REFERENCES:
Websites:

https://bit.ly/3fBG8hU
https://bit.ly/3dh4fRw
https://bit.ly/2N9Nmxg
https://bit.ly/2Ndlk4g

http://2040.neda.gov.ph
/about-ambisyon-natin-
2040/

Reading Textbook:
 Chuck Y. Gee & Eduardo Fayos Solá, International
Tourism: A Global Perspective, 1st Edition: October
1997, ISBN: 92-844-0231-X, Copyright © 1997 World
Tourism Organization, Published by the World Tourism
Organization, Madrid, Spain

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