WORLD TOURISM INDUSTRY AND

ECONOMY (reviewer)

HISTORY OF TOURISM 
• By the early 21st century, international tourism had become one of the world’s most important economic activities
and its impact was becoming increasingly apparent from the Arctic to Antartica.    
• By 10,000 B.C., people had lived as tribes from place to place for the proverbial “greener pastures” where they
developed settlements and trade resulting to the need for better transportation, thus by developing harnesses the
domesticated animals were also used to pulls sledges for trade.   
• By 5000 B.C. people began to develop water transportation.  They built canoes, dugouts and rafts and propelled
them by paddle or poles used in rivers, streams, and lakes. 
• The development of the wheel around 3000 B.C. in Mesopotamia gave a major push to the humankind when they
developed carts pulled by oxen and other mobile transport to carry people and goods.  Wheeled vehicles reached other
civilization later – to India by 2500 B.C., to Europe by 1400 B.C., and to China about 1300 B.C.  The first spoke-wheels were
developed mainly for Chariots of war, pulled by horses, around 2000 B.C. and 1500 B.C. 
• By 1000 B.C., the Chinese had constructed roadways between cities and the Persians had done the same around
500 B.C.  These paved ways for greater wheeled travel. 
• The Egyptians developed sailboats around 3200 B.C. leading to trade between civilizations.  The Phoenicians in
1000 B.C. were the first to have merchant fleet trading with Spain. 
• Another reason for early travel was the Olympic Games in 776 B.C. in Olympia, Greece.   Travel for sports cannot
be overlooked in those times, especially in the perspective of how dramatically it has grown in modern times and the mass
travel it entails. 
• Religious travel grew strongly after the crucifixion of Christ.  As AD, one of the important providers of lodging
places for the pilgrims was the church.  In the first century Roman Catholic Church maintained hospices, monasteries and
hostels for pilgrims during the middle ages.   
• Marco Polo became the first note business traveler as he pioneered trade routes from Europe to China, staying at
primitive inns called khans along the way from 1275 to 1292. 
• Travel for leisure purposes has evolved from an experience reserved for very few people into something enjoyed
by many. Historically, the ability to travel was reserved for royalty and the upper classes.  From ancient Roman times
through to the 17th century, young men of high standing were encouraged to travel through Europe on a “grand tour”.   
• The use of hospitality predates the use of the word tourism, and first appeared in the 14th century.  It is derived
from the Latin hospes, which encompasses the words guest, host and foreigners.  The word tourist appeared in print much
later, in 1772.  William Theobald suggests that the word tour comes from Greek and Latin words for circle and turn, and that
tourism and tourist away represent the activities of circling away from home, and then returning. 
• Cox & King, the first known travel agency, was founded in 1758 when Richard Cox became official travel agent of
the British Royal Armed Forces.  Almost 100 years later, in June 1841, Thomas Cook opened the first leisure travel agency,
designed to help Britons improve their lives by seeing the world and participating in the temperance movement.  He
organized a packaged tour for 570 people to a religious meeting in England.  In 1845, he ran his first commercial packaged
tour, complete with cost-effective railway tickets and a printed guide.   
• In the 1850s, Monaco (a principality in the south of France) decided to cure its economic woes by becoming a
winter haven for the rich as a health resort and a casino. 
• Cruising began in the 1840 with the Cunard Lines crossing the Atlantic between England and North America. 
• During the age of the grand tour from 1880 through the 1930s, wealthy Europeans toured Europe as a part of their
education. 
• The continued popularity of rail travel and the emergence of the automobile had presented additional milestones in
the development of tourism.  In fact, a long journey taken by Karl Benz’ wife in 1886 served to kick off interest in auto travel
and helped to publicize his budding car company, which would one day become Mercedes Benz.   
• Fast forward to 1952 with the first commercial air flights from London, England, to Johannesburg, South Africa and
Colombo, Sri Lanka and the dawn of the jet age, which many herald as the start of the modern tourism industry.  The 1950s
also saw the creation of Club Mediterannee and similar club holiday destinations, the precursor of today’s all-inclusive
resorts.  American Airlines’ first transcontinental flight between New York and Los Angeles was introduced in 1959.  In 1970,
the Boeing 747 began flying 450 passengers at a time across the Atlantic and Pacific Oceans.                                                 
• The decade that followed is considered to have been a significant period in tourism development, as more travel
companies came onto the scene, increasing competition for customers and moving towards “mass tourism, introducing new
destinations and modes of holidaying”.  In the 1970s, ecotourism and sustainable tourism became important topics.  In the
1980s, cruising became popular.  In 1986, the United States established the Visa Waiver Program (VWP) to eliminate
unnecessary barriers to travel to the United States. The Visa Waiver Program is a program of the US government that
allows citizens of specific countries to travel to the United States for tourism, business, or while in transit for up to 90 days
without having to obtain a visa.  Currently, 39 countries and territories are part of the program. 
• Industry growth has been interrupted at several key points in history, including World War 1, the Great Depression,
and World War II.  At the start of this century, global events thrust international travel into decline including the September
11, 2001, attack on the World Trade Centre in New York (also known as 9/11), the war in Iraq, perceived threat of future
terrorist attacks, and health scares including SARS, BSE (bovine spongiform encephalopathy, West Nile Virus, MERS, and
the present time CORONA virus (COVID19). 
• At the same time, the industry began a massive technological shift as increased internet use revolutionized travel
services.  Through the 2000s, online travel bookings grew exponentially, and by 2014 global leader Expedia had expanded
to include brands such as Hotels.com, the Hotwire Group, trivago, and Expedia CruiseShip Centers, earning revenues of
over $4.7 million. 
MAIN ELEMENTS OF TRAVEL AND TOURISM 
Tourism is the business of attracting visitors and catering to their needs and expectations.  The following is an overview of
the major components of the tourism and travel industry. 
1.  Tourist Destinations:  A tourist destination is a place of interest where tourists visit, typically for its inherent or an
exhibited natural or cultural value, historical significance, natural or built beauty, offering leisure and amusement.  
Promoters of Tourism 
• Pacific Area Travel Association (PATA) – founded in 1951, comprising 95 government state and city tourism
bodies, 25 international airlines and airports, 108 hospitality organizations, 72 educational institutions, and hundreds of
travel industry companies in Asia Pacific and beyond that have united behind common goals:  excellence in travel, and
tourism growth. 
• Ministry of Tourism – a government cabinet body that advocate tourism development, marketing, and
management through the National Tourism Organization (NTO). 
• City Level Offices of Tourism and Convention Centers – Many cities have established convention and
visitors bureau (CVBs), whose main function is to attract and retain visitors to the city.  They are staffed by representatives
of the city’s attractions, restaurants, hotels and motels, and transportation system.  These bureaus are largely funded by the
transient occupancy tax (TOT) that is charged to the guests. 
• Tour Operators – they are the one who promote tours and trips that they plan and organize.  A tour is a trip taken
by an individual or group of people who travel together with a professional tour manager / escort and follow perpetual
preplanned itinerary. 
• Travel Agencies – A travel agent is a middleperson who acts as a travel counselor and sells travel services on
behalf of airlines, cruise lines, rails and bus transportation companies, hotels, and auto rental companies.  The American
Society of Travel Agents (ASTA) is the world’s largest travel trade association, with more than 26,000 members in more than
165 countries.  Agents use computer reservation systems (CRS) to access service availability and make bookings.  The
main vendors of CRS are Sabre, Apollo, Worldspan, System One, and Galileo. 
• Tour Wholesalers and Consolidators – Tour suppliers provide the package components for tour operators via
the services of hotels, attractions, restaurants, airlines, cruise lines, railroads and sightseeing which are packaged into a tour
that is sold through a sales channel to the public. Tour wholesaling came into prominence years ago because airlines had
vacant seats, which, like hotel rooms, are perishable.  Airlines naturally wanted to sell as many seats as possible and found
that they could sell blocks of seats to wholesalers close to departure dates.   
These tickets are for specific destinations around which tour wholesalers build a tour.  Wholesalers then sell their tours
directly through retail agents.  Consolidators work closely with airlines to purchase discounted seats that they then sell to
consumers for a price that is generally about 20 percent lower than the price offered by airlines or an online service
company such as Travelocity. 
• National Offices of Tourism (NOT) – seek to improve the economy of the country they represent by increasing
the number of visitors and consequently their spending in the country.  Connected this function is the responsibility to
oversee and ensure that hotels, transport systems, tour operators, and tour guides maintain high standards in the care and
consideration of the tourist.   
• Destination Management Companies (DMC) – is a service organization in the visitor industry that offers a host of
programs and services to meet client’s needs.  Initially, a destination management sales manager concentrates on selling
the destination to meeting planners and performance improvement companies (incentive house). 
2. Transportation:  This sector is vital to move travelers around the world.  Transportation is a broad term which
includes roads, railways, airways, and waterways:   terminals (airports, railway stations, bus terminals, ferry crossings and
seaports) and vehicles (aircrafts, buses, trains, ships, ferries). In tourism all the components of the transportation play a
vital and impressive role.   
• Airlines – Major, National, Regional, Nonscheduled / charter 
• Ground Transporter – Rent-a car, Motor/coach, Railroad 
• Cruise lines – Cruise ship 
3. Accommodations:  This is an important part of tourism infrastructure because any traveler will need a bed to
sleep at the end of the day.  The hotel industry satisfies this need of the traveler.  Accommodation comes in many forms: 
• Hotels – they come in various categories and standards to meet every possible budget. 
• Motels – are motor hotels located on highways. 
• Lodges – are up-country accommodation mostly sponsored by the local state.  We would have forest lodges,
country lodges, ski lodges, etc. 
• Guest Houses – were originally meant for government officials on tour but they are now open to the public. 
• Furnished Apartments – are modern popular alternative hotels especially for travelers staying longer. 
• Camps – are ideal for trekkers on foot or caravans.  They provide outdoor accommodation ranging from tents,
porta-cabins to caravan sites. 
• Resorts – are for holidaymakers and located at attractive natural sites like hills, beaches, hot spring, waterfalls,
lakes, etc.  Man-made resorts are the latest craze like Disneyland, Universal Studios, Lego-land, Wild Wadi, etc. 
• Cruise line – a company that operates cruise ships that features accommodation while on board. 
4. Tourist Attractions are a core component of tourism.  They are often called “tourist attractions” because they tend
to attract tourists.  Attractions are the places, people, events, and things that make the objects of the tourist gaze and
attract tourists to destinations.  Common examples include natural and cultural sites, historical places, monuments, zoos
and game reserves, aquaria, museums and art galleries, gardens, architectural structures, theme parks, sports facilities,
festivals and events, wildlife, and people.   
5. Travel Brokers are also known as travel agents and assist clients in making the best travel arrangements
possible.   
• Travel agents sell transportation, lodging, and admission to entertainment activities to individuals and groups
planning trips.  They offer advice on destinations, plan trip itineraries, and make travel arrangements for clients. 
• Travel wholesalers supply to retail travel agents and they do not sell directly to consumers.  Wholesalers link
individual tourism operators with retailers.  They consider which type of tour program would appeal to a particular market
and promote that accordingly. 
• Tour and charter operator typically combines tour and travel components to create a package holiday.  The most
common example of a tour operator’s product would be a flight on a charter airline plus a transfer from the airport to a hotel
and the services of a local representative, all for one price. 
• Ground Tour Operator is a local agency that provides services such as transportation and guide services. 
Generally, ground operators work with tour operators, but at times will work directly with clients. 
• Travel incentive companies basically imply unforgettable and entertaining trips paid by employers, with the main
purpose of encouraging employees to reach challenging business goals of the company by achieving individual and/or
group goals.  The incentive travel is predominantly used with the basic aim increasing sales. 
6. Travel Related Services encompasses event and conference planning organizations, travel companies and
organizations, as well as associations, government agencies and companies that specialize in serving the needs of the
tourism sector as a whole. This includes both consumer-direct and business-to-business companies. 
• Financial (credit cards, travelers cheques, travel insurance) 
• Travel publications guide books 
FOUR DIFFERENT PERSPECTIVES OF TOURISM 

• The tourist (experiences and satisfactions)  

The tourist/visitor looks for diverse psychic and physical experiences and satisfaction from the tourism activity.  The nature
of these experiences will mostly find out the destinations chosen and the activities experienced and enjoyed or participated
in. 
• The businesses providing tourist goods and services (profits) 
Business people behold tourism as an opening to make profit by furnishing goods and services demanded by the tourist
market. 
• The government of the host community or area (wealth factor) 
The government looks on tourism as a capital and megabucks factor in the economy.  Its outlook / attitude bears upon the
income and employment generation capabilities of this business for its citizens apart from the foreign exchange earnings
from international tourism and the public / government revenue in the form of tax receipts from tourist expenditures, directly
and/or indirectly. 
• The host community (employment factor) 
Local residents most often consider tourism as a cultural and employment factor.  It is primarily the effect of interaction
between large numbers of international visitors as guest and the local residents as hosts which may be promising or
unpromising, both that is of significance and interest to this group. 
TOURISM VALUE CHAIN 

• The understanding and definition of tourism industry brings us to the tourism industry value chain.  As we
understood that the industry of tourism operates through a vast network of inter-connected and related industries as well as
other ancillary industries which aim to serve the tourists and people on travel for different purposes.   
• Tourism industry value chain is very large.  This value chain of tourism industry is or can be elastic and flexible and
can also be much larger and widespread.   
• The broad value chain of tourism comprises of travel and tour services like booking and reservation; transportation
industry (international and national travel and transportation; accommodation; hospitality industry; food and beverage;
tourism products and destinations and related products and services; local travel and transportation.
Tourism Industry Supply Chain Features and Characteristics: 
1. Flexible and expandable 
2. Widespread across industries and sectors 
3. Can go deep at many points within an industry or sector 
4. Covers tourism natured and similar types of industries 
5. Covers many different industries remotely related to tourism 
6. Covers many more industries not related to tourism 
7. Many points and parts of this value chain become a complete and expandable value chain in themselves
depending upon the type of tourism and its needs. 
TYPES OF TOURISM 
  In 1994, the United Nations classified tourism in three categories: 
1. Domestic Tourism involving residents of the given country travelling with that country only.  People are visiting or
taking holidays and travel in own country. 
2. Inbound Tourism involving foreigners (non-residents), traveling into a given country.  They are visitors from
outside the country.   
3. Outbound Tourism involving residents traveling to another country.  Visitors are travelling to a different country
for a visit or a holiday.   
  Outbound Tourism involves two additional conditions: 
(a)  Health conditions as many countries are wary of importing diseases by “foreign carriers”. (b)  Legal restrictions on travel
as some countries ban their residents to visit certain countries for political or safety reasons. 
 
TYPES OF TOURISM DESTINATION 
 A tourist destination is a city, town, or other area that is dependent to a significant extent on revenues from tourism, or “a
country, state, region, city, or town which is marketed or markets itself as a place for tourists to visit”.  The term “destination”
refers broadly to an area where tourism is a relatively important activity and where the economy may be significantly
influenced by tourism revenue. 
For example, Paris which for many is the most fabulous city in the world.  It is known as the City of Light.  It is also one of
the most romantic cities in the world.  Popular attractions in Paris include the Eiffel Tower, Cathedral of Notre Dame, the
Louvre and the Muse d’Orsay, the Ile de la Cite, or simply a stroll down the Champs- Elysees. The Cathedral of Notre-Dame
is the most famous Gothic cathedral in the world.  The Eiffel Tower was built more than 100 years ago for a World’s Fair and
has become one of the most recognizable buildings in the world and became the landmark or symbol of Paris.  The
Boulevard des Champs-Elysees is the main boulevard of Paris known for fashion.  The Arc de Triomphe, the world’s largest,
commemorates Napoleon’s victories.  The Louvre, the former residence of King Louis XIV, is the world’s largest palace and
largest museum.  It is here that priceless works of art are displayed for public view.  The Mona Lisa and Venue de Milo are
the star attractions of extensive collections of Chinese, Egyptian, Greek, Roman, French, and European art, sculpture, and
ceramics.   
  A tropical island resort is an island or archipelago that depends on tourism as its source of revenue.  
The Bahamas in the Caribbean, Bali in Indonesia, Phuket in Thailand, Hawaii in the United States, Fiji in the Pacific, and
Santorini and Ibiza in the Mediterranean are the examples of popular island resorts.  In the Philippines, Boracay is the most
popular island resort. 
There are various tourist destination types as given below: 
• Centered Destination – It is the most common type of tourist destination where tourists spend most of their time
on occasional excursions to nearby places of attraction.  For example, Andaman Island is a centered destination. 
• Base Destination – It refers to that type of destination where tourists need to travel and explore surrounding
region.   
• Multi-Centre Destination – Here the destination comprises two or more destinations of equal importance.  For
example, India is a multi-center destination where each Indian state or region offers different culture, nature, and culinary
experience. 
• Touring Destination – A touring destination refers to the place to visit as part of linear itinerary. 
• Transit Destination – It is a place of a brief halt en-route while the tourists are heading towards the final
destination.  For example, Abu Dhabi is a transit destination where tourists take a short break for going to Cape Town, South
Africa. 

The overall contribution of tourism industry comprising of travel, transportation, entertainment and accommodation among
other tourist attractions to the global economy crossed USD 8 Trillion during 2017.
•      France and United States are among the popular tourist destinations in the world.
•      Tourism contributes to approximately 9% of the worldwide employment.
Tourism industry has witnessed an astonishing growth over previous few years.  Sparked by increasing technological
advancements and transport networks all over the world, the industry has seen a steep growth.  In many countries industries
such as wildlife, entertainment, art, transportation, etc. have now started taking one step ahead to expand their reach to
international visitors / tourists.

WORLD TOURISM AND THE ECONOMY

•      The global travel and tourism industry was valued at USD 7,581 Billion in 2014 (10.0% of GDP) and was forecasted to
grow by 3.8% in 2015. 
•      The global tourism industry is further envisioned to witness a year-on-year (Y-O-Y) growth rate of
3.9% and reach USD 11,382 Billion (10.6% of GDP) by 2025.  
•      The revenue generated from visitor exports is also projected to upsurge from USD 2,141 Billion in 2025, exhibiting a
CAGR of 4.0%.  
•      Total investment on global travel and tourism sector is anticipated to swell from USD 814 Billion in 2014 at a year-on-
year (Y-O-Y) growth rate of 4.7% to reach USD 1,336 Billion in 2025. Europe tourism industry is the largest in the world
accounting for 51% of share in 2015.  
•      Europe tourism industry is spiked by increase in number of international tourists in France, Spain, Italy, Germany, and
the U.K.  The revenue generated from the tourist travel in the U.K. accounted for USD 142.0 Billion in 2015.  
•      North America and tourism industry accounted for USD 1,412 Billion in 2015.
•      With USD 1,218 Billion of revenues in 2015, the U.S. is the largest travel and tourism market in North America followed
by Canada with USD 98.2 Billion.  The U.S. Tourism is further anticipated to witness a robust CAGR during the forecast
period.  
•      Asia Pacific tourism industry accounts to witness the highest growth over the forecast period i.e. 2016-2025.  The
tourism market in Asia Pacific is likely to get propelled from strengthening economy, rise in disposable income and
increasing infrastructural developments in some of the major countries such as India, China, Japan and Singapore.  Backed
up by these factors, Asia-Pacific region is projected to attract over 502+ million visitors by 2025.
 

By TypeMarket Segmentation
Based on type, the global tourism industry can be segmented into international tourism and local/domestic tourism.

 By Purpose of Travel

On the basis of purpose of travel, the global tourism industry is divided as adventure tourism,
business tourism, medical tourism, religious tourism and others.

By Geography
Growth Drivers and Challenges
Key Players
WORLD TOURISM
First World
Second World
Third World
The Four Worlds
Geographically, the global tourism industry can be segmented into North America, Latin America, Western and Easter
Europe, Asia-Pacific, Middle East and North Africa (MENA) and rest of the world.
 
The study further analysis the Y-O-Y Growth, demand and supply and forecast future opportunity in North America (United
States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain,
Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC
(Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea,
Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC
(Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
 
 Increasing per capita income in most of the emerging nations is believed to be one of the key drivers of global tourism
industry.  In addition to that, promotion of tourism by certain government bodies such as UNWTO (United Nations World
Tourism Organization) is also expected to escalate the global tourism industry.
 However, natural calamities, terrorist activities, political unrest in many countries, outbreak of some fatal diseases such as
Ebola, Swine Flu, SARS, MERS, COVID19, etc. are projected to restrain the growth of tourism industry in some countries of
the world.
 
  The global tourism industry is very competitive and includes some of the top players such as:
•      TCS World Travel
•      DuVine
•      Gray & Co
•      Air BnB
•      Crown Ltd.
•      Accor Group
•      Balkan Holidays Ltd
•      G Adventures
•      Fred Harvey Company
 
 
  Growth in international tourist arrivals continues to outpace the economy.
•      International tourist arrivals (overnight visitors) worldwide grew 4% in 2019 to reach 1.5 billion, based on data reported
by destinations around the world.
•      2019 was another year of strong growth, although slower compared to the exceptional rates of 2017 (+6%) and 2018
(+6%).  Demand was slower mainly in advanced economies and particularly in Europe.
•      Uncertainty surrounding Brexit, geopolitical and trade tensions, and the global economic slowdown, weighed on growth.
2019 was also the year of major shifts in the sector with the collapse of Thomas Cook and of several low-cost airlines in
Europe.
•      All regions enjoyed an increase in arrivals.  The Middle East (+8%) led growth, followed by Asia and the Pacific (+5%). 
International arrivals in Europe and Africa (both (+4%) increased in line with the Americas saw growth of 2%.
•      As per the main source markets, France reported the strongest increase in international tourism expenditure among the
top ten markets, while the United States led growth in absolute terms.
•      Based on current trends, economic prospects and the UNWTO Confidence Index, UNWTO forecasts a growth of 3% to
4% in international tourist arrivals worldwide in 2020.
•      International tourism refers to tourism that crosses national borders.  
•      Globalization has made tourism a popular global leisure activity. 
•      The World Tourism Organization defines tourists as people “travelling to and staying in place outside their usual
environment for not more than one consecutive year for leisure, business and other purposes.  
•      The World Health Organization ((WHO) estimates that up to 500,000 people are in flight at any one time.

THE FIRST, THE SECOND, THE THIRD WORLD

 
The bloc of democratic – industrialized countries within the American sphere of influence, the “First World” also known as
the The West.  The term First World refers to the developed, capitalist, industrial countries, generally aligned with NATO and
the USA.  The block of countries aligned with the United States after World War II, which had more or less common political
and economic interests, this included the countries of North America and Western Europe, Japan, South Korea, and
Australia. 
Some African countries were assigned to the First World because of their links with Western countries.  Western Sahara
was part of Spain at that time.  The anticommunist Apartheid Regime of South Africa was until May 1961, a member of the
Commonwealth, and Namibia was then known as
South West Africa and was administered by South Africa.  Angola and Mozambique were run by the Portuguese like
companies. (Historical footnote: Both countries became communist countries for some years in 1975).
There were some “neutral” states in Europe, such as Switzerland, Sweden, Austria, Ireland, and Finland, but they can be
classified as First World in the context.
 
The Eastern Bloc of the communist-socialist states, where the political and economic power should come from the up to now
oppressed peasants and workers.  They are less industrialized states.  The countries in the sphere of influence of the Soviet
Union; it included the Soviet Socialist Republics, the countries of Eastern and Central Europe, e.g. Poland, East, Germany
(GDR), Czechoslavakia, and the Balkans.  And there were the Asian communist states in the sphere of influence of China, -
Mongolia, North Korea, Vietnam, Laos, and Cambodia.
 
The remaining three-quarters of the world population, countries that did not belong to either bloc, were considered “Third
World”.  The Third World was all the other countries.  The mainly underdeveloped agricultural sates and nations of Africa,
Asia, and Latin America, where the blessings of civilization benefited only a small ruling elite and the corporations and upper
classes of the former colonial powers.  In principle, the term Third World is outdated but still in use; today, the politically
correct designation would be less developed countries (UN) or Low-income Countries (World Bank).
Whatever the term is used, it serves to designate countries that suffer from high poverty, high child mortality, low economic
and educational development, and low self-consumption of their natural resources.  They are countries that are vulnerable to
exploitation by large corporations and industrialized nations.
These are the developing and technologically less advanced nations of Asia, Africa, Oceania, and Latin America.  Third
world nations tend to have economies dependent on the developed countries and are generally characterized as poor with
unstable government and having high fertility rates, high gender-related illiteracy and are prone to diseases.  One of the
critical factors is the lack of a middle class; there is a huge impoverished population and a small elite upper class that
controls the country’s wealth and resources.  Most Third World nations also have high foreign debt levels.
 
After the Second World War, the world split into two major geopolitical blocs and spheres of influence with conflicting
political views about government and the right society.  The term “Fourth World” was coined in the early 1970s by Shuswap
Chief George Manuel, it refers to widely unknown nations (cultural entities) of indigenous peoples, “First Nations” living
within or across national state boundaries.

INTERDEPENDENCE OF PHILIPPINE TOURISM INDUSTRY AND ECONOMY

Philippine Product Portfolio
Types of Tourism in the Philippines
Most Visited Churches, Festivals, Wellness in the Philippines
The Most Popular Festivals in the Philippines
The Best Wellness Retreats in the Philippines
8.  Aegle Wellness Center at Balesin Island, Quezon
Urban Attractions in the Philippines
 
•      The tourism industry has seen a significant spike in its contribution to the Philippines’ economic growth, so much so that
it provided 5.4 million jobs in 2018.  That’s 1.8% higher than jobs provided by the industry sector in 2017.  Tourism industry
accounted for 12.7% of the country’s Gross Domestic Product (GDP) in 2018.  That’s a 0.5% increase compared to the
numbers the local tourism industry raked in, in 2017.  
•      In a statement released by the Department of Tourism (DOT), DOT Secretary Bernadette Romulo – Puyat was quick to
credit the current government’s infrastructure projects and policies.  The Build Build Build program of the administration
has greatly improved infrastructure and transport connectivity, while the ease of doing business has boosted both visitor and
investor confidence in Philippine tourism.
•      In 2017, the government inaugurated the Paranaque Integrated Terminal Exchange (PITX), which has been deemed
the “first integrated and multi-modal terminal in the southwestern part of Metro Manila.  The year 2018 also saw the opening
of Mactan-Cebu International Airport’s new international terminal, Terminal 2, and the new Bohol-Panglao International
Airport.  Updated facilities of Clark International Airport also opened earlier.  On top of this, DOT has made public its bid to
host the United Nations World Tourism Organization (UNWTO) general assembly in 2021.  This confab gathers major
players in the global tourism scene, and hosting such an event will definitely put the Philippines on everyone’s radar.  We
can’t wait to see how that will propel Philippine tourism here and abroad.
From January to September 2019, a total of 6,161,503 people visited the country, compared to 5,387,458 in 2018.
•      Most of the country’s visitors came from Korea, China, USA, Japan and Taiwan.   Korea has consistently topped the list
for the first three quarters of the year with a total of 1,450,792 visitors, followed by China with 1,359,817.  Meanwhile,
792,619 people came from the USA, 518,211 from Japan, and 252,578 from Taiwan.
 

•      Nature Based Tourism is any type of tourism that relies on experiences directly related to natural attractions and
includes ecotourism, adventure tourism, extractive tourism, wildlife tourism, and nature retreats.
•      Cultural Heritage Tourism is a branch of tourism oriented towards cultural heritage of the location where tourism is
occurring. 
•      Sun and Beach Tourism occurs in coastal towns where beaches are located and most of the time the weather
conditions are of sunny weather and mild temperature (25 to 30 C).  
•      Cruise & Nautical Tourism is tourism that combines sailing and boating with vacation and holiday activities.   
•      Shopping, Leisure and Entertainment Tourism – Shopping Tourism includes duty free shopping in airports;
purchasing luxury goods; visiting shopping malls, department stores and outlets; discovering local brands; and supporting
local artisan business and locally sourced items.  Leisure travel is travel in which the primary motivation is to take a
vacation from everyday life, often characterized by staying in nice hotels or resorts, relaxing on beaches or in a room, or
going on guided tours and experiencing local tourist attractions.  Entertainment is a form of activities that take away
people’s stress and give them properly amusement to relax such as going to movie theaters, water park, carnival and so on.
•      MICE and Events Tourism – Meeting, Incentives, Conferences and Exhibitions (MICE) is a type of tourism in which
large groups, usually planned well in advance, are brought together.  
Health, Wellness and Retirement Tourism – refers to trips that are taken by tourists with the principal purpose being
improve their health and/or wellbeing.   Retirement Tourism or Senior Tourism is a type of tourism typical of people of
advanced age.  
•      Diving and Marine Sports Tourism – Scuba diving tourism is the industry based on servicing the requirements of
recreational divers at destinations other than where they live.  Marine Sports Tourism refers to marine and coastal-based
sports presented as tourist attractions around the waterfront.  It can be defined as the attractions providing tourists with
marine and coastal-based activities as their principal focus.  
•      Education Tourism can be defined as tourism that pursues educational learning as a pretext for a trip, either learning
knowledge (historical, cultural, social) or learning a language more and more practiced every day.   
 
             
•      Beach and diving tourism - Beach tourism is currently the major tourist draw of the Philippines. 
Among the most popular beaches and diving choices in the country include Boracay, El Nido, Coron, Cebu and Siargao. 
Other common beach places are in Samal, Cagayan, La Union, Pangasinan, Zambales, Batangas, Iloilo, Dumaguete,
Camarines Sur and Zamboanga.   
•      Hiking Tourism - Hiking is a rising form of tourism in the Philippines, especially among locals and Western foreigners. 
Among the most famous hiking areas in the country are Mount Apo, Mount Pinatubo, Mount Halcon, Mount Banahaw, Mount
Makiling, and Mount Pulag.   
•      Research and Education Tourism - Due to the diverse number of flora and fauna of the country, researchers from
around the world have flocked various biodiversity sites in Philippine environmental corridors.  Among the big draws for
environmental researchers include Mount Mantalingajan, Sibuyan Island, Dinagat Islands, Mount Hamiguitan, etc.  
•      Arts and Crafts Tourism - Arts and crafts tourism in the Philippines has recently expanded following several attempts
to establish a cultural renaissance.  The country was conferred its first UNESCO Creative City through Baguio in 2016. 
Other arts and crafts centers are in Manila, Quezon City, San Fernando, Iloilo City, etc.   
•      Pilgrimage Tourism - The Philippines is the Catholic pilgrimage capital of Asia, possessing hundreds of olden
churches, most of which were established between 15th to 19th centuries through the earthquake baroque architecture. 
Among the most popular pilgrimage sites in the Philippines are Paoay Church, Manila Cathedral, Maragondon Church, Cebu
Metropolitan Cathedral, Baclayon Church, Panay Church, etc.  
•      Fiesta Tourism - Various festivals in the country are flocked annually by both locals and foreigners.  The country has
been known as the traditional capital of the world’s festivities and the capital of fun due to the thousands of festivals which
happen in the country, most of which are annual spectacles.  Among the most famous of these events are the Sinulog
Festival of Cebu, the Kidayawan Festival of Davao, the Ati-Atihan Festival of Aklan, the Dinagyang Festival of Iloilo, the
Panagbenga Festival of Baguio, the Moriones Festival of Marinduque, the Pahiyas Festival of Quezon Province, etc.
Wellness Tourism - Wellness tourism has recently doubled its contribution to Philippine tourism due to the rise of hilot
(ancient Filipino art of healing) practices in spas, bath houses, and hotels.  Staycation, or staying in hotels for relaxation
purposes, has also become a trend, along with the increase of yoga, as rooted to the Indian roots of many indigenous
Filipino cultures.  Hilot havens include Camiguin, Siguijor, and Antique, while staycation destinations include the hotels of
Manila, Bataan, Batanes, Tagaytay, Baguio, and Bukidnon. 
•      Heritage Towns and Cities Tourism - The Philippines is home to numerous heritage towns and cities, many of which
have been internationally destroyed by the Japanese through fire tactics in World War II and the Americans through
bombing during the same war.  Only the heritage city of Vigan has a town law that guarantees its singular architecture (the
Vigan colonial style) shall always be used in construction and reconstruction.   
 
 

 
1.  San Agustin Church, Intramuros Manila – It was the only church building left standing in Intramuros after the war.   
2.  Iglesia de la Immaculada Concepcion (Baclayon Church), Bohol -  This limestone and bamboo church on the island
of Bohol has stood on the same site for 300 years.  
3.  Basilica del Santo Nino, Cebu -  The current building dates back to 1739; the old Cebu town grew around the church,
and Cebu’s other historical sites are just a short walk away from the church – Fort San Pedro, the old Cebu City Hall, and
Magellan’s Cross, among others.  
4.  Quiapo Church, Manila - Quiapo’s main landmark.  Formally known as the Minor Basilica of the Black Nazarene, the
church got its name from its being the home of the Black Nazarene, making it the focal point of the annual Procession of the
Black Nazarene that grips Manila every January.  The church has stood on this site since the 1850s.   
5.  Binondo Church, Manila - Officially known as “The Minor Basilica and National Shrine of San Lorenzo
Ruiz”, Binondo Church was built to cater to the growing Chinese Catholic community in the Philippines.  The Dominican
friars built the Binondo Church in 1596, on the other side of the Pasig River.  The present church is a reconstruction of a
structure that was almost completely destroyed during World War II.   
6.  Paoay Church, Ilocos Norte - St. August Church, colloquially known as Paoay Church.  This house of worship
embodies the architectural style known as “Earthquake Gothic”: due to its sturdy construction, the Paoay Church has
survived over 300 years of earthquakes.  The bell tower is also separated from the main church building, to prevent the
church from being damaged should the tower fall in an earthquake.  The tower
served as an observation post for Filipino freedom fighters in 1898 and 1945.  Along with a number of other Baroque-style
churches in the Philippines, the Paoay Church was designated a UNESCO World Heritage Site in 1993.
7.  Betis Church - Guagua, Pampanga - The Baroque-inspired church built in 1660.  It is tagged as the Sistine Chapel of
the Philippines due to its outstanding European-styled murals and carvings.  Because of its exquisiteness, it is declared as a
National Cultural Treasure by the National Museum and the NCCA.
8.  Caleruega Church - Brgy. Caylaway, Batulao, Nasugbu, Batangas - Caleruega’s name is inspired from a town in
Spain, which was the birthplace of St. Dominic de Guzman, father of the Order of Preachers. 
The Calaruega is known as a place for reflection and relaxation.  One of its features is a retreat house.
9.  Callao Cave Chapel – Penablanca, Cagayan - Callao Cave chapel is a limestone cave made of seven enormous
chambers:  Chapel, Column, Skeleton, Elephant’s Head, Praying Angel, Rocket, Lion’s Head and Dog’s Head Formation.  
10.         The Episcopal Church of Saint Mary the Virgin – Staunton Rd, Sagada, Mountain Province - The church of St.
Mary The Virgin in Sagada, also known as the “Angelican Church”, is said to be the oldest church in Cordillera.  It was
founded by Rev. John Staunton in 1990s and even survived World War II.   
11.         Miag-ao Church – Zulueta Ave, Miagao,Iloilo - Well-known for its artistic sculptural relief carved on its façade, the
church was completed in 1797.  The church served as a stronghold against Muslim raiders back in the old days.  
12.         Mt. Carmel Chapel – Basco, Batanes - The Mt. Carmel Chapel is truly a picturesque icon atop of the hill of Tukon
and against the northern winds that Batanes is famous for.  Architects Joven Ignacio and Tina Torralba together with the
local artisans constructed the chapel inspired by the traditional Ivatan stone houses.  Once can have a beautiful panoramic
view of the West Philippine Sea and the Pacific Ocean from the chapel.
13.         St. Andrew Kim Parish – Project Pangarap, Bocaue, Bulacan - Inspired by a Korean and European structural
design, the parish was built to pay tribute to the first Korean Catholic priest who studied and sought refuge in Bulacan.  
14.         Daraga Church – Sta. Maria Street, Daraga, Albay - Located in a serene hill in the town of Daraga, the church of
Nuestra Senora de la Porteria (Our Lady of the Gate) is a marvelous gift from the Fransciscan missionaries to Daraga.  
15.         Basilica of San Martin de Torres (Taal Basilica) – Taal, Batangas  - The largest church in the Philippines and in
Asia, standing 96 meters long and 45 meters wide, Taal Basilica is one astonishing landmark that sits on the crest of a hill
right at the center of the town.  
 
 

1.            Sinulog Festival, Third Sunday of January – Cebu - One of the biggest festivals in the country. It celebrates the
image of the Santo Nino (Holy Child) that was originally brought by Ferdinand Magellan from Spain in the 16th century.
2.            Masskara Festival, Third Week of October – Bacolod - The festival is marked by dancers donning elaborate
colorful masks parading all over town, backed up by Latin-inspired drumbeats.  
3.            Dinagyang Festival, Fourth Sunday of January – Iloilo - Another celebration in honor of Santo Nino, this award-
winning fete in Iloilo is marked by a street party celebrated with bountiful food and drinks, concerts, and a street dance
competition where different districts and local schools participate.  It also celebrates the traditions of Aklan Island’s
indigenous Aeta people.
4.            Panagbenga Festival, February – Baguio - Also called the “Season of Blooming”, Panagbenga is a grand event
in Baguio where giant floats adorned with flowers parade along the whole stretch of Session Road.  
5.            Pintados Festival, June 29 – Tacloban, Leyte - The Pintados Festival of Tacloban is yet another culturalreligious
festival dedicated to Santo Nino, which is filled with various activities locals and tourists would enjoy. 6.  Moriones Festival,
Holy Week – Marinduque - During the celebration, men and women who play the role of the “Moriones” are dressed in
biblical Roman warrior costumes and intricately carved masks to reenact the seven-day search for St. Longinus, a Roman
centurion who converted into Christianity.  
9.  Pahiyas Festival, May 15 – Lucban, Quezon - Probably one of the most colorful celebrations around, Pahiyas Festival
in Lucban, Quezon, is dedicated to San Isidro Labrador, the patron saint of farmers.  
8.  Kadayawan Festival, Third Week of August – Davao - The word “madayaw”, which means beautiful in Dabawenyo,
truly encapsulates the biggest and most colorful harvest festival in Mindanao.  Its main events are ethnic dance competition,
beauty pageants, fireworks display, and a food event called “Ka’n sa Da’n.” 9.  Ati-atihan Festival – Aklan -  One of the
oldest festivals in the country, Ati-atihan was originally a pagan festival that is now celebrated as a tribute to Santo Nino. 
The festival is characterized by soot-covered performers, dressed in indigenous costumes dancing tirelessly to the beat of
the drums.  Ati-atihan is notable for having been the inspiration by a number of other festivals in the Philippines.
10.  Bailes de Luces, January 5 – Negros Occidental - Bailes de Luces or Festival of Lights is a relatively young festival,
in the town of La Castellana, Negros Occidental.  It started a back in 1997 as a thanksgiving feast for the upcoming year,
where a lively parade of dancers moving to the Latin beat, floats, and children are all decked with beautiful lights, 
 

1.            Qi Palawan Resort, Hotel - Qi Palawan is located just an hour’s drive from stunning El Nido, in the worldrenowned
island of Palawan.  
2.            The Farm at San Benito Hotel - The Farm at San Benito in Batangas boasts of holistic wellness services for the
mind, body, and spirit.  Encompassing 50 hectares of lush acreage, the resort houses several deluxe villas, a massive spa,
a vegan restaurant, organic gardens which provide for the restaurant, a gym, swimming pools, and ample greenery.   
3.            Bahay Kalipay – Puerto Princesa City, Palawan - For a more rustic, back-to-basics wellness retreat, Bahay
Kalipay, which literally translated means “Happy House”, is a peaceful oasis in the otherwise busy capital of Palawan.  
4.            Atmosphere Resorts & Spa – Negros Oriental - Over on the island of Visayas, within an old coconut plantation
in the province of Negros Oriental, is Atmosphere Resort and Spa situated near the sea and amongst nature.   
5.            Lotus Shores – Siargao Island, Surigao del Norte - Also by the sea and at the heart of surfers’ paradise is Lotus
Shores located on the southeastern coast of Siargao (a beautiful island that’s a retreat in itself).    
6.            Nurture Wellness Village – Tagaytay - For Metro dwellers, another quick and easy getaway from the hectic urban
jungle is Nurture Wellness Village in Tagaytay.  
7.            Mandala Spa & Resort Villas – Boracay Island -  The Mandala Spa & Resort Villas in Boracay was tastefully
designed to blend in with its lush natural environment.  The resort houses 15 luxurious villas which, despite the world-
renowned beach waiting right outside, make it difficult to leave its comforts.
 Located at the Mykonos Village of Balesin Island, the Aegle Wellness Center is a premium wellness destination that
distinguishes itself through state-of-the-art medical facilities and world class Thalassotherapy pools.  
 

1.            Rizal Park - Sometimes referred to as Luneta Park, this is a peaceful and manicured outdoor garden located in
the heart of the city.  Throughout the park, of the note is the century-old Monument of Rizal, which houses the remains of
one of the Philippines’ most celebrated heroes, Dr. Jose Rizal.  
2.            Intramuros - It is the oldest section of the city and characterized by its walled fortress.  This section of Manila was
once a walled city during Spanish Colonial times in the 1500s to the 1800s.  
3.            Manila Ocean Park - The Manila Ocean park is one of the most unique adventures in the city.  Get interactive with
marine life with the Sharks and Rays Encounter, Trails to Antartica, or the fish spa where fish clean your feet in a small pool
of water
4.            National Museum of the Philippines - The museum has four main complexes and extensive collections and
artifacts relating to art, archaeology, anthropology, zoology, biology, and natural history.  The museum galleries help offer a
sense of place, telling the cultural story beyond what you will find on your own visiting the city’s many historical attractions.  
5.            Bambike Ecotours - Bambikes are locally hand-made bicycles custom-built from bamboo.  The company has a
social welfare initiative that employs villagers for the production of the bikes.  Depending on your interests, you can select a
tour that involves history, art, or city life.
6.            Fort Santiago - The 16th-century fortress was key in protecting the Intramuros, which is the oldest district in Manila,
known historically as the Walled City.
7.            Robinson Place Mall – It has a surprising number of unique stores where you can find local items. The mall’s
modern building is a stark contrast to the rustic and historic landmarks that surround it.
8.            Banko Sentral ng Pilipinas - The galleries showcase Philippine money over several decades.  There are artifacts,
old coins, and various currencies on display that illustrate the changes in money over time.  
9.            Divisoria Market - This is the best place to people-watch and takes in the local flavor.  The bustling atmosphere is
like a flea market, and bargaining is the name of the game. 
10.         Manila Super Mall - It is like one-stop shopping for something to do in the city because the huge complex has retail
stores, restaurants, and entertainment.
11.         Quezon Memorial Circle - A national park located in the heart of the metro.  It’s one of the best locations to visit if
you want to learn more about the city, thanks to the attractions found there: Museo ni Manuel L. Quezon, Quezon Heritage
House, Quezon City Experience (QCX) 
12.         La Mesa Ecopark - is a protected watershed that is said to hold the last rainforest in Metro Manila.  The manmade
lake is the primary water source for nearby residents and is surrounded by a 2,000-hectare forests and nature trails. It has a
public swimming pool for those who want to cool down.
SECTORS IN TOURISM
Accommodation Sector 
Cruises are classed as both a form of transportation and a form of accommodation.  Agri-tourism remains a fairly niche
concept, but one which is gaining increased traction, with tourists spending time on a farm, seeing the day-to-day work that
goes on first-hand and even joining in.  Farmhouse accommodation is simply accommodation that facilitates this kind of
experience and it often resembles as B&B.  Timeshare accommodation refers to accommodation where ownership is
shared between multiple different people, with usage rights being allocated to each owner at a different time of the year. 
This kind of accommodation tends to include condos and lodges, and owners are usually allocated usage rights for a week
or two weeks.
Attraction Sector
Events Sector
Food and Beverage Services Sector
Tourism Services
Transportation Sector
Travel Trade
Entertainment Sector
Travel Intermediaries
Tour Operator
Travel Agent
Benefits of Intermediation
Tourism distribution channel methods
TRADITIONAL TOURISM DISTRIBUTION SYSTEM
MODERN TOURISM DISTRIBUTION SYSTEM
Tourist Information
Shopping
Tourist Guides and Tours
Connected Industries
Financial Services
Educational
The latest Travel and Tourism Trends

Accommodation is one of the basic needs for any tourism activity.  The rise of platforms like Airbnb has increased the
popularity of shared accommodation, which typically consists of a space in a house, which may be shared with the
owners.  Hostels are a form of shared-room lodging, where guests pay for a bed in a dormitory-style set up.  Each room will
be provided with multiple beds, with guests sharing
kitchen and bathroom facilities.  A form of outdoor accommodation which makes use of temporary shelter is usually in the
form of a tent.  Tourists and travelers who camp may opt to stay at a commercial campsite, which will provide additional
facilities or amenities, or they might prefer to make their own campsite in a publicly accessible area, like a national park. 
Most bed and breakfast accommodation is situated in a converted private house or pub, and will provide guests with a
private room for the night and breakfast in the morning.  

Adventure/Outdoor Recreation
Outdoor recreation or outdoor activity is leisure pursuits engaged in the outdoors, often in natural or semi-natural settings
out of town.  It may also refer to a team sport game or practice held in an outdoor setting.  When the recreation involves
excitement, physical change, or risk, such as in rafting or climbing, it is sometimes referred to as adventure recreation.  
Changing trends in travel and tourism, where clients request active, recreational experiences or travel adventures where
they can learn about nature and culture are driving the growth.  
 Attractions include historic sites, heritage homes, museums, halls of fame, art galleries, botanical gardens, aquariums,
zoos, water parks, amusement parks, casinos and cultural attractions.  Many attractions are educational in nature while
others are solely for entertainment.
 
 Events are an important motivator of tourism, and figure prominently in the development that marketing plans of most
destinations.  Equally, “event management” is a fast growing professional field in which tourists constitute a potential market
for planned events and the tourism industry has become a vital stakeholder in their success and attractiveness.
An event happens when people are gathered in a place for a specific reason.  It may be for concerts, conference, or
festivals.  With events, local culture, tradition and customs are celebrated, entertainment and recreation complement each
other and cultural and social advancement is ensured.

 The food and beverage sector encompasses all types of establishments supplying food and beverages for consumption
from fine dining and ethnic restaurants to institutional food outlets and catering firms, from pubs and bars to nightclubs and
lounges.
 Restaurants are establishments which provide food and drink, which is primarily eaten on the premises.  Tthe term
catering is usually used to refer to food and drink services that are situated in locations where eating and drinking are not
the primary attraction.  Therefore, it would not include restaurants, but it would include food and drink sold on public
transport, in parks and at tourist sites. Bars and cafes provide a relaxed environment for travelers to eat and drink.  In the
case of bars, the focus tends to be on sales of alcoholic drinks and soft drinks, while in the case of cafes, the focus tends to
be on hot drinks and light snacks.  Some locations in the world attract a large number of tourists off the back of the night life
on offer, with nightclubs being the main example.  These clubs are establishments which stay open until late at night and
combine music with alcohol sales.  Most nightclubs also feature a stage for performers, and a dance floor for guests. 
A casino is an entertainment establishment, which provides people with opportunities to gamble – primarily through
luckbased card, dice and slots games.  In addition to these games, many casinos are connected to hotels or resorts, and
many also host other entertainment, such as musical or comedy performances.
The tourism services sector is made up of the organizations, associations, government agencies and companies that
specialize in serving the needs of the tourism industry as a whole rather than the needs of travelers specifically.
Those working in tourism services include people who research tourism trends, advertise and market tourism products,
educate or inform others about tourism, and those who distribute general tourism information, like statistics.  Retail
businesses that benefit from tourism and travel also fall into this sector.  Examples would include national tourism
information companies, local tourist boards, tourism agencies, tourism charities and inspection agencies.

 Tourism was earlier defined as an industry that provides for the movement, comfort and enjoyment of the people.  The
“movement” in this destination is addressed by the transportation sector.  This sector includes a wide variety of different
types of travel, including air, road, rail and water-based methods. 
Transportation is the means to carry people and goods from one place to another.  This has become very important in
each stage of human civilization.  With the development of transportation, mass production and distribution is possible.
 Air travel is one of the main ways that tourists and travelers reach their chosen destination, and the airline industry
provides various services, including scheduled and chartered flights.  Companies within this sub-category may offer flights to
domestic and international destinations, as well as both long haul and short haul flights.
Car rental services provide customers with temporary access to the car.  These services can enable tourists or travelers to
actually get their chosen destination in the first place, but many customers use them after they have arrived, as they provide
a greater amount of freedom for exploration than relying on public transport.
 As the name suggests, the water transport sub-category includes all forms of transport that carry passengers across
water.  This includes ocean liners and ferries, which tend to voyage from point A to point B, as well as cruise ships, where
transportation is not the only purpose and the voyage itself is a huge part of the travel experience.
 In many cases, coach services are one of the most cost-effective ways for tourist or travelers to reach their destination,
and they are especially popular for day trips, although coach travel does cater for international travel too.  Moreover, local
bus services also fall underneath this umbrella.
 Railways are another popular transportation method, helping passengers to easily get from one location to another.  Rail
services are especially popular with domestic travelers, due to their convenience and regularity.  Moreover, many major
cities make use of subway-style rail services, facilitating quick and easy movement.
 A more recent form of transportation, which is going to become increasingly influential in the year ahead, is the spacecraft. 
The most famous example of a company operating within this area is Virgin Galactic, which is hoping to be able to provide
commercial space tourism via passenger trips into space in the near future.
 
 The travel trade sector supports the bookings and sales in the other sectors.  The people that work in the travel trade make
reservations for accommodations, tours, transportation, food and beverage for attractions.  These booking can be in the
form of an all-encompassing tour package or a single booking for a single traveler.

 Entertainment sector is a form of activities that take away people’s stress basically come from work or school and give them
properly amusement to relax.  In tourism industry, entertainment is a very important sector.  Tourists would love to visit some
specific places such as movie theatres, water park, Carnival and so on.  These establishments will provide them relaxation
and enjoyment.  If the satisfaction of the tourist is attained, there will be a possibility that they will come back again.
 
 Intermediaries are firms or persons who act as mediators on a link between parties to a business deal, investment decision,
negotiation etc.  Intermediaries usually specialize in specific areas, and serve as a conduit for market and other types of
information.  They are also called the “middleman”. It also means to transform goods and services from a form that
consumers do not want into a product that they do not want.  Its principal role is to bring buyers and sellers together.  In
tourism for example, intermediaries are people or businesses that link the tour package with the tourists.
 
 A tour operator typically combines tour and travel components to provide a holiday.  The most common example of a tour
operator’s package would include a hotel, a transfer from the airport, a specific activity and possibly a flight.  Niche tour
operators may specialize in specific destinations, e.g. Italy, India, UK, activities and experiences, e.g. skiing, music trips,
special interest tours, or a combination of both.  For profit, tour operators usually negotiate net rates with suppliers and then
add their own margins on the package on a percentage or per passenger basis.
 A travel agent is a private retailer that provides travel related services to the public on behalf of suppliers such as hotels,
flights, car hire or package holidays (tour operator).
 A travel agency’s main function is to act as an agent selling travel products and services on behalf of a supplier. 
Consequently, unlike other retail businesses, they do not keep any stock in hand.  
A package holiday or a ticket is not purchased from a supplier unless a customer requests that purchase.  The holiday or
ticket is supplied to them at a discount and profits therefore the difference between the advertised price which the customer
pays and the discounted price at which it is supplied to the agent. 
This is known as commission.
 An online travel agency will typically perform a very similar role to a more traditional travel agency, albeit using the power of
the internet.  While the purpose is still to connect tourists with travel products on behalf of suppliers, there is more of an
emphasis on self-service methods. 
•      Producers - Able to sell products in bulk.  Reduce promotional costs.
•      Consumers – Avoid search and transaction costs.  Gain from knowledge of the specialists.  Gain from lower prices.
•      Destination – International marketing networking.
 
What is a tourism distribution Channel?
 The tourism channel of distribution is an operating structure, system, or linkage of various combinations of organizations
through which a producer of travel products describes, sells, or confirms travel arrangements to the buyer.
 
•      Direct – through advertising, brochure, distribution, website, social media, client referrals and so on.
•      Indirect – though a third party (indirectly) by using tourism distribution channels such as retail travel agents,
wholesalers and inbound tour operators.
 
 

 The tourist information sub-category is focused on providing travelers with important information about things to do in the
local area.  This includes offline methods, such as tourist information offices and leaflets, as well as online methods, such as
information websites and social media accounts.
 
 Shops play a varied role in the travel and tourism industries, catering to people’s basic needs, while also providing a form of
entertainment.  Indeed, many people travel to specific parts of the world to experience the shopping in that location with
examples including 5th Avenue in New York, Bond Street in London and Rodeo Drive in L.A.
 
 Tourist guides offer organized tours of a location, which will typically consist of them taking a group of people to some of the
important attractions or tourist sites nearby.  The role of the tourist guide is to factual information and context helping to
make the tour more interesting and educational.
 
            There are a number of other industries that are more broadly linked to either the tourism industry or the travel
industry, or both.  These include companies that promote the interests of the travel industry itself; businesses that help to
actually connect customers with travel and tourism products; and organizations that provide either practical support or
logistical assistance for tourists and travelers.
 
 A number of financial services are relevant to both the tourism industry and the travel industry.  The most obvious of these
include travel insurance and medical insurance products, while other examples include services linked to currency
conversion and the acquisition of travelers cheques.
 
 The educational sub-category includes business that delivers the kinds of education services that attract tourists and
travelers.  This is a growing aspect of the tourism industry and includes organizations that are linked to conferences,
exhibitions, and training activities, as well as certain academic institutions.
 
 The tourism industry is a big business in almost every country in the world. Yearly millions people travel on several
occasions, spending billions of dollars.  Change and evolution is more fast-paced than ever, with shifting demographics and
developing technology creating brand new travel trends.  
 The travel and tourism industry has been transformed by technology.  From online reservations to customer
communication, the introduction of technology trends to the tourism sector has changed travelers’ expectations and help
businesses provide their guest with a more immersive experience.  
•      Ecotourism, sustainable tourism, and heritage tourism will continue to grow in importance.
•      Globally, the number of tourist arrivals will continue to increase by about 4 percent per year.
•      Government will continue to increase in recognizing the importance of tourism not only as an economic force, but also
as a social-cultural force of growing significance.
•      More bilateral treaties are being signed, which will make it easier for tourists to obtain visas to visit other countries.
•      The promotion and development of tourism will move even more from the public sector (government) to the private
sector (involved industry segments).
•      Technology will continue to advance, allowing even more information to be available more quickly to more places
around the world.
•      Marketing partnership and corporate alliances will continue to increase.
•      Employment prospects will continue to improve.
•      Ticketless air travel will continue to increase.
•      Travel and tourism bookings via the Internet will continue to increase rapidly.
•      As an ever-increasing number of tourists visit destinations, managing these destinations will continue to be a challenge.
•      Low-cost, no-frills airlines will continue to gain an increased market share at the expense of major airline companies.
•      Airlines will try to entice travelers to book their trips via the airline’s website rather than through Expedia and similar
sites.
•      Automatic airport check-in will continue to become popular.
•      The cruise industry will continue to expand.
•      There would be more alternative cruises.
•      There would be extreme increased concern for the health and safety of travel and tourism.
•      Nature, culinary, and volunteer tourism will continue to increase.

The hospitality industry is an important component of the tourism industry. The hospitality industry is an inclusive term for
hotels and food establishments.  It is a part of a broader service industry where people create the service experience with
specific skills to generate revenue.  The service industry places the customer as the central focus as against the machines
in the Industrial Age.  People include both internal people who generate the service; and external people who are the
customers, suppliers, government officials, media people, etc.  Hospitality Industry refers to the business in which a guest is
served by a host.  The guests are welcomed and received some services like entertainment, food, safe stay, health care
services and more.  Hospitality industry broadly comprises of Tourism Industry and has many sectors. It is a bustling
industry with myriad categories, but customer service is the unifying factor shared by all segments of the industry.  Different
sectors of the industry ensure that traveler’s needs are catered to in a holistic manner.
DIFFERENT SECTORS OF HOSPITALITY INDUSTRY
1.  Lodging – Accommodation
2.  Food and Beverage
Sector of the foodservice industry
3.  Travel and Tourism
4.  Entertainment Industry
5.  Timeshare
 Have you ever stayed at a hotel, flown on a plane, or eaten at a restaurant? If so, you have experienced at the hospitality
industry.
The hospitality industry is a broad group of businesses that provide services to customers.  It’s focused on the satisfaction of
customers and providing specific experiences for them.  
The hospitality itself is a multi-billion-dollar industry that relies heavily on the availability of disposable income and leisure
time.
In the hospitality sector, the success of a business depends largely on how efficient the hospitality team is and how effective
the business model is.  So, in essence, one can make a foray into all categories of the hospitality industry.
Cost and challenges will certainly swing upwards but managing or owning different sectors of the hospitality can offer a
chance to rake in more rewards in the long haul.
The Five Main Sectors of Tourism and Hospitality Industry
 
This sector of the hospital industry features a gamut from luxurious hotels to lavish resorts and campgrounds.
 Accommodation is an absolutely broad sector of the hospitality industry, ranging from bed & breakfast enterprises and
hotels to other facilities that offer lodging services.
 Again, customer service is indispensable in providing accommodation services. And that isn’t all –
efficiency, integrate comfort and world-class amenities are also its foundation.
 An extravagant resort, for instance, should offer its customers privacy and exclusive services to cut it in the niche.
  As you might expect, accommodation can marry well with other segments of the hospitality industry.
 Of the three things which people need, when they travel, the most important one is accommodation.  Other two are food
and transportation.  It is due to the fact we have started with lodging in our list of 5 sectors of the hospitality industry. 
 If you have arranged for hotel and accommodation, you will automatically find the other two.  A lot of focus is being made
these days to improve the lodging experience of people traveling around the world.
  Below are the three main types of hotel and accommodation services:
•      Lodging – When people travel from one place to the other, they need a place to sleep.  A shelter which will keep them
safe from the atrocities of nature.  This results in people booking lodges and rooms for their stay.
 
•      Suites – Apart from general lodges to stay, hotel sector offers luxury suites for the stay as well.  Generally, suites are
suitable for formal sorts of staying and are much expensive compared to regular room services.
 
•      Resorts – The third type of accommodation which is popular among travelers are resorts.  These bring you close to
nature and give you a necessary break from your normal routines.
 
This is another crucial one of the 5 different sectors of the hospitality industry.  It’s another wide sector of the hospitality
industry.  Food and Beverage sector reign supreme in the industry and for good reasons.
It can range from something as simple as a bistro all the way to high-end restaurant and every catering establishment in
between.  As it’s expected, the food and beverage industry is further subcategorized into niches.
 
There can be a humongous list when we categorize the food service industry as a crucial sector of the hospitality industry
but we will list the key categories below.
 
•      Quick-service Establishments – These are commercial foodservice restaurants that compete for customers who look
to garner quick snacks, drinks, and meals. Typically, they have fewer employees.  Think of McDonald’s, KFC, Subway,
Pizza Hut, etc.
 
•      Catering Businesses – This category provides food and beverage catering services for any special occasion – from
weddings to birthday parties and everything in between.
 
•      Full-Service Restaurants – These are your typical restaurants or eateries which feature course meal, drinks, and a
plethora of other food services.  These establishments usually seat you at a table and use waiter to take food orders.  

From fine dining to casual dining to themed restaurants; there is a range of these full-service restaurants.
Themed restaurants have grown multiple folds like the wave of luxury underwater restaurants of the world.
Such is the popularity and growth of Foodservice establishments that industry pundits are considering Full-service
restaurants as a separate category of the hospitality industry.
People are always looking forward to food when they on the go.  When in a different country, people like to taste local
cuisines.
So, food and catering make essentials of the hospitality industry. It starts with food production and ends at food presentation
on the eating tables, with storage and cooking steps resting in between.
It is also important to discuss the processes and stages involved in the foodservice industry of hospitality.
 
•      Food Management - It starts with the production of food.  Many hotels and restaurants serve naturally organic food. 
Apart from production, food transportation and storage also make part of this division.
 
•      Food Presentation – People like to eat food which is well presented.  So, a lot of focus should be made on food
representation to improve hospitality experience.
 
•      Beverages – Apart from general food items, beverage storage, and representation also make it into the list of food and
catering services.
 
•      Restaurant Management – Restaurant management is a science which is being taught in colleges these days.  With
proper skills to manage a restaurant, you can manage food, beverage, and maintain a quality representation of food, so that
customers will come again to eat at your place.
 

A lot to consider, tourism is synonymous with hospitality and not as a different sector of the hospitality industry.
•      Travel and tourism industry is a vast sector of the hospitality industry with several key players across the globe.  Most of
them include trains, airlines, cruise ships, and several crew members in their service.
•      On the whole, players in the travel and tourism segments are in the business of moving people from one destination to
another.
•      It would not be an exaggeration if we make a statement that the most important segment of the hospitality industry is
travel and tourism as others depend on it.  Without profound levels of travelling and tourism in a region, the hospitality
industry of the region won’t grow.
•      Therefore, the travel and tourism domain makes the backbone of our hospitality industry.  It is a huge domain which
demands innovation, strategy, and novelty at each step.
•      When we talk about travel and tourism, it is not confined to leisure and travel for fun.  Both formal and informal travelling
are included in this division.  People travel across the globe for businesses, education, entertainment, holidays, and many
other things.
•      Like all other different sectors of the hospitality industry, this one also demands customer focus, leniency, relationship
management, and other integrated marketing skills for its smooth running and expansion.
 

 This again is a key category of the hospitality industry as it involves the most important thing of hospitality - us, the buyers
and recipients of all hospitality services.  Hence, this sector of hospitality thrives for us and to entertain us.  
 Entertainment is a significant part of our travel these days.  If travelling experience lacks fun and entertainment, then you
might not be able to enjoy your time up to the fullest.
 For the successful running of hospitality businesses, it is important to have in the kitty as many entertainment activities as
possible.
  Some of the activities which can elevate your experience when it comes to entertainment are:
•      Marinas – They are one of the most popular places to go when it comes to partying.  You can get along with your
friends on a private yacht where you can dance, play games, and enjoy the best of your life.
 
•      Sports and Gaming – Sports and gaming are basic things which people are looking for on their travel.  As a result,
casinos, swimming pools, and other similar activities are becoming an indispensable part of the hospitality sector.
 
•      Cruise – Apart from marinas, cruise services are also becoming an essential component of the hospitality industry. 
Now, people like to spend their days on luxury ships which sail across the blue oceans under the clear sky.
 
•      Nightclubs – Who doesn’t love to dance to their favorite song when on a break?  We all do.  This is why hotels have
nightclubs services in them.
 
•      Bars – Sitting around a table and having a couple of drinks with your friend is always a refreshing experience.  This is
why bars make an important part of the entertainment sector of the hospitality industry.
 

An emerging yet vastly important sector of the hospitality industry is vacation ownership of a place.  In this scheme, people
either individuals or parties own the rights to a place for a specific time period during the year.
 We have placed Timeshare on our list of 5 different sectors of the hospitality industry because of the raised interest of
hospitality enthusiasts for Timeshare.
 Timeshare gives us an option to own our choices and to
enjoy facilities by either buying a part of a facility or getting into a membership plan.  During this time, they can bring this
place under their use, the way they want to.
 There are many places which people can own for the time being, under the timeshare rule.  A couple of them are discussed
below:
 
•      Convention Centers – Convention centers make the base of the hospitality industry as they offer a place where people
can gather in bulks for seminars, conventions, expos, and other similar things.
 
•      Villas and Resorts – You can own villas and resorts under the timeshare rule, for some time of the year and can go
and enjoy with your friends or family.
 
With the developing technologies and improved management skills, the hospitality industry is poised to grow in future as
well. Hence, to elaborate on these sectors, it is imperative to take a holistic approach towards presenting the outlook for the
hospitality industry.