Chapter 6:

The Impacts of Tourism and Hospitality

The rapid growth of tourism and hospitality in the twentieth century has produced
both problems and benefits for destination countries, It has had visible impacts on the
sociocultural and socioeconomic environment. Although tourism and hospitality can bring
economic advantages to a destination country, it also brings with it serious long- term
problems which, without careful control and planning, can threaten the society.

The Positive Economic Effects of Tourism and Hospitality

Like any other industry, tourism and hospitality affects the economy of those areas in
which it takes place. The area affected may be a resort, a region, or the entire nation.
Notwithstanding the size of the affected area, the economic effects of tourism and hospitality
may be classified into four groups, namely: effects on income; on employment; on the area's
balance of payments with the outside world; and on investment and development.

Income
The tourism and hospitality industry obviously generates income within a destination
country. Nations wanting to increase their income have used tourism and hospitality as a
means for reasonably quick development. Experience has shown us that it takes less time to
increase income from tourism and hospitality than from manufactured goods or other
available options.

Tourism income, in general, comes from wages and salaries, interest, rent, and
profits. Since tourism and hospitality is a labor-intensive industry, the greatest proportion of
its income is derived from wages and salaries. Income is also generated from interest, rent,
and profits on tourism and hospitality businesses such as interests paid on loans to an airline
in order to buy aircraft, or rent paid to a landowner for a car park. Income is also obtained
from direct taxation or indirect taxation. Imposing value-added tax (VAT) on hotel bills is an
example of indirect taxation.

Tourism and hospitality is both an income generator and an income redistributor.

Most of the tourist receipts go to the developing nations of the world such as in East
Africa and the Pacific. Because of the flow of capital from one country to another, many
countries limit the amount of currency the nationals may take abroad for foreign travel.

Much of the income at the international and national level is business income which
is generated by organizations buying and selling goods and services to tourists. One
advantage that tourism and hospitality offers developing countries is the range of businesses
needed to provide to tourists. It includes local food, drinks, and flowers for the resort areas;
local crafts for the tourists to buy; local cafés and restaurants; tour guides and interpreters;
local travel services; local cultural events; shops for tourists' needs; and specialized local
housing such as pensions and small inns.

The sum of all income in a country is called the national income. The importance of
tourism and hospitality to a country's economy can be measured through the national
estimating income created by tourism and hospitality. The most common method for the
income generated from tourism and hospitality is by determining the multiplier for a
destination. Multipliers are means of estimating how much extra income is produced in an
economy as a result of the initial spending or injection of cash.

Employment
Employment, from local to national, benefits as well from tourism and In general, the
tourist industry offers more employment opportunities than other economic sectors.
Generating employment is perhaps the greatest advantage of tourism and hospitality on a
developing economy. Tourism and hospitality generates employment faster for developing
nations than for the developed ones. In general, tourism and hospitality employees in
developed nations are usually paid less. In developing countries the opposite is true.

There are three types of employment generated by tourism and hospitality. These are
the direct, indirect, and induced employment. Direct employment is generated as a result of
providing goods and services directly to tourist in hotels, restaurants, bars, nightclub, and
the like. Indirect employment consists of those positions that are associated with other
tourism-related activities but are used by both the local resident and the tourist. Shops and
food wholesalers are considered to be sources of indirect employment. Induced employment
refers to people working in positions only peripherally related to tourism and hospitality, but
generated because of it. Examples are construction workers, merchants, and professionals
such as doctors and accountants who service the employees working directly in
tourism-related positions.

Balance of Payments
Tourism and hospitality has a major influence on the country's balance of payments.
Balance of payments is an accounting of flow of goods, services, and funds in and out of the
country during a given period. If a country pays or agrees to pay more money than it
receives, it has a deficit in its balance of payments. If it receives more money than it sends or
exports, it has a surplus in its balance of payments.

Most countries, particularly those with good tourism and hospitality facilities but
little industrial or agricultural export potential, appreciate the contribution that incoming
tourists can make to their balance of payments account. They therefore take steps to
maximize their tourist receipts through the development of new attractions promotions,
subsidized exchange rates, and other measures. They also try to keep their own residents
within the country by taxation on outgoing tourists, limitations or foreign exchange
availability, or refusal to grant exit permits (as in many communist countries)

Investment and Development

Once an area has become economically successful, businessmen and government
agencies may be influenced to invest in tourism and hospitality and other industries in
that area. This is known by economists as an accelerator concept.

Negative Economic Aspects of Tourism and Hospitality

While most countries encourage tourism and hospitality for its economic benefits,
there are some negative economic aspects of tourism and hospitality that have to be
identified and discussed. These are high inflation and land speculation destination, high
leakages from the economies of developing countries, low returns on investments because of
seasonal fluctuations in demand, and overdependence on tourism and hospitality.
Inflation and Land Values
The inflationary effects of tourism and hospitality can arise in different ways. Rich
tourists can afford to buy items at high prices. Retailers, realizing that their profits can
be greatly increased by catering to tourists, increase their prices on certain products and
provide more expensive goods and services. Such stores can compete more
successfully with those catering to local residents. They can afford to pay higher rents and
taxes which are passed on to the customers through higher prices. Thus, local residents have
to pay more for their goods.

Inflation within destination areas is also caused by increasing land values. Growth in
the tourist trade creates additional demand for land, and competition from potential buyers
increases the price of land. The demand for more hotels, vacation homes, and tourist
facilities may bring more income to builders, real estate agents, and landowners, but local
residents are forced to pay more for their homes because of the increased value of land.

High Leakages
Leakage occurs from a variety of sources. It occurs from the cost of goods and
services that must be imported to satisfy the needs of tourists. Examples of these are
developing countries which have to import cars, buses, manufactured materials, and
technology from developed nations to meet the demands of tourists. Another source of
leakage is the remittance of profits and wages to outside sources. If foreign capital is invested
in the country's tourism and hospitality industry, plant interest payments, rents, or profits
may have to be paid to the foreign country; thereby reducing profits in the destination
country, A third source of leakage is the expenditure for promotion and publicity to
encourage tourists to visit a certain destination. The cost of advertisement is a large expense
that reduces the earnings of a destination area.

Seasonality
Many tourist regions experience low returns on investment because of seasonal
fluctuations in demand. The seasonality of demand is reflected in hotel occupancy rates.
Many hotels experience greatly reduced revenues during the off season Nevertheless, most
hotels prefer to remain open all year round to secure as much revenue as possible.
Accommodation investments are not the only ones with a low rate of return; tour operators
also face similar problems.

Overdependence on Tourism and Hospitality

Some destinations have made themselves vulnerable to changes in tourist demand by
becoming overdependent on tourism and hospitality for their livelihood. Tourism
is highly susceptible to changes from within and outside the industry. Examples of changes
from within are price and fashions; while global economic trends, political situations, and
energy availability are examples of outside changes. Many tourists avoid destinations which
are politically unstable but they usually select an alternative. The decrease in demand for a
destination results in underutilization of services, unemployment, and loss of income.

Impact Control Measures

 There are a number of ways to maximize the benefits of tourism and hospitality to the
destination area. Edward Inskeep (1991), a consultant for the United Nations World Tourism
Organization (UNWTO), has suggested the following:

1. Develop tourism and hospitality gradually so that local residents can have sufficient time
to adapt to it and understand it. It would also allow the government to properly plan,
organize, and monitor tourism and hospitality;

2. Maintain a scale of tourism and hospitality development that is appropriate for the local as
well as national environment. If possible, develop other economic sectors so that there is a
balanced economy and employment structure, In. some areas, small-scale and dispersed
forms of tourism are more suitable than concentrated mass tourism development;

3. Involve residents and their spokesmen in planning and decision-making so that they can
participate in determining the future of this sector;

4. Apply the concepts of tourism development zones;

5. Make certain that residents have easy access to tourist attractions, facilities, and services
including reduced admission fee if necessary, and that important amenity features have
public access and are not preempted by tourism;

6 . Provide incentives to local ownership, management, and operations of hotels and other
tourist facilities and services so that residents can receive direct economic benefits;

7. Develop strong linkages between tourism and hospitality and other economic activities
such as agriculture fisheries handicrafts, and manufacturing to help develop these sectors,
reduce leakage of foreign exchange through import substitution, and spread the economic
benefits of tourism and
hospitality;

8. Plan, develop, and organize tourism and hospitality so that no area becomes too congested
with tourists, and residents can easily use community facilities and services; and

9. Train local people to work effectively in all levels of tourism and hospitality, including
managerial and technical positions,in order to reduce the number of imported employees
and to lessen possible misunderstanding between tourists and local employees.

Social Impacts Of Tourism and Hospitality

The social impacts of tourism and hospitality should not be confused with the
popular term "social tourism." The social impacts of tourism and hospitality refer to the
changes in the quality of life of residents of tourist destinations. The objective of social
tourism is to ensure that tourism is accessible to all people.

Host-Visitor Interactions
 Tourism and hospitality causes more interaction between peoples particularly
between the tourists or visitors and the local residents or hosts. To understand the social
impact tourists have on an area, the characteristics of various types of visitors and the level
of interaction with the hosts should be clarified. Smith (1997), categorized tourists into
several types and outlined her views on the intensity of interaction between the tourists
(visitors) and the local residents (hosts). Her classifications are as follows:

1. Explorer - This type of visitor is interested in being an active participant- observer among
the population. The explorer easily adapts to local lifestyles and does not need special tourist
accommodations;
2. Elite - This type of tourist is few in number. He can afford to pay well for unusual
vacations. He is well-travelled and usually known as "the jet-setter." He differs from the
explorer in his attitude. His arrangements are either made by a travel agent or may be
pre-planned. Although he is willing to sample the local lifestyle, he requires some degree of
comfort;
3. Offbeat - This tourist adapts well to simple accommodations and services provided for the
occasional guest;
4. Unusual Tourist - This tourist loves sub-exotic cultural sites, and the unusual or primitive
sites as long as he can quickly and safely return to more familiar surroundings and group;
5. Incipient Mass Tourist - this is a visitor who looks for the amenities of Western societies in
hotels and other travel-related facilities. He is a mixture of both pleasure seeker and business
traveler;
6. Mass Tourist - He comes from the middle class. He arrives in a destination with other
tourists. There is a diversity of tastes among them and their attitude is "you get what you pay
for"; and
7. Charter Tourist - The charter tourist comes "en masse" with others of his kind creating an
extremely high amount of business and receiving a high degree of standardization in services
and products. The interaction between the visitors and the hosts is limited and impersonal.

Table 1. Frequency and Types of Tourists and Their Adaptation to Local Norms

Types of Tourists Number of Tourist Adaptation to Local

Norms

Explorer Very limited Adapts fully

Elite Rarely seen Adapts fully

Offbeat Uncommon but seen Adapts well

Unusual Occasional Adapts slightly

Incipient Mass Steady flow Seeks Western amenities

Mass Continuous Influx Expects Western amenities

Charter Massive arrivals Demand Western amenities

The level of interaction between the hosts and guests is illustrated in Table 1 for each type of
tourist.

The impact increases with each level of tourist. The explorers and elite tourists
usually have little impact on the local culture because of their limited number. The offbeat
and unusual tourists generally use the same hotels and services as the local travelers. With
the increase in number, and greater expectations and demand for special facilities and
services, a corresponding change in the local area occurs.

Against this background, it is possible to discuss the positive and negative social
impacts of tourism and hospitality on a tourist destination.

Positive Social Effects of Tourism and Hospitality

Some of the positive effects of tourism and hospitality are the following:
1. It creates a new medium for social change and multicultural understanding.
2. It encourages adaptation to the realities of modern life and works toward improving the
host country's environment and lifestyle options;
3. it promotes knowledge and use of foreign languages; and;
4, It improves health conditions and disease control.

Social Change and Multicultural Understanding

One of the most important benefits of tourism and hospitality is the bringing together
of diverse people help them understand one another. Pope PiusXII touched to on this aspect
of tourism and hospitality when he spoke of "subjecting oneself joyfully or sorrowfully, to the
in conveniences, great or small, which can with difficulty be avoided." The United Nations
World Tourism Organization (UNWTO) considers tourism as an encounter between a person
and a destination in its natural setting. Above all he UNWTO believes it is an exchange or
encounter between individual groups of people as well as between social groups. Thus, it
becomes an encounter between nations and an exchange of values. The impact of this
exchange is significantly different between industrialized nations and developing agricultural
nations. The more isolated the country visited, the more significant the social changes are
likely to be.

Adaptation to the Realities of Modern Life and Improvement of the Host

Country's Lifestyle
This positive social benefit is the result of the following:
1. The quality of life improves in places where tourism and hospitality is being developed,by
bringing both the urban infrastructure (water, housing, sewerage) and population benefits
(medical care, social assistance, schools) together;
2. The changes that occur in occupation and income patterns create a middle class with its
different attitudes, values, and social concerns;
3. Increased social mobility results in new employment opportunities in tourism and
hospitality; and
4. Changes in family relations occur through the employment of women outside the home.
This increases the family income and gives the worker's children more opportunity for higher
education.
 Thus, tourism and hospitality promotes progress and modernization through
exposure to other attitudes and values. It brings about improvements in facilities and
services as well as improvements in the lifestyles and quality of life of the residents of the
host country.

Use of Foreign Language

Use of a foreign language brings people in contact with those of other language
groups. The need and the desire to communicate increase interest in both the host
and visitors to learn another language.

Visitors to other destinations often want to learn a language to improve the quality of
future experiences. They may rent tapes or buy books to assist them in learning a language.
Many popular tourist destinations have developed short-term language courses to assist
visitors.

Improved Health Conditions and Disease Control

The desire of tourists for high quality public health facilities can contribute to the
maintenance and improvement of those facilities in destination areas and provide additional
sources of revenue which, in turn, can be invested in upgrading water and sewage disposal
facilities.

Through tourism and hospitality, local residents can become aware of both health
problems and good hygiene. This awareness can lead to a change in the health infrastructure
of a destination. Improvement in one community then paves the way for improvement of the
whole region.

Negative Social Effects of Tourism and Hospitality

While tourism and hospitality has enabled different people to strengthen the social
structure, mass tourism has brought with it expenses and problems. Among these are: social
saturation; changes in the social structure, behavior, and roles; community problems; and
negative demonstrative effects.

Social Saturation
The presence of large numbers of tourists in particular places at specific times results
in saturation or congestion of facilities and services and competition for limited
resources. The local residents frequently resent having to share their facilities and services
with visitors.

In destinations that attract a large number of tourists, public transportation is so

crowded with tourists that there is hardly any room for local residents. Shops are full of
travelers, forcing the locals to change their shopping patterns. Streets are full
of visitors resulting to traffic jams. Thus, saturation or congestion brought about by tourism
and hospitality is often cited as a social cost.

Changes in the Social Structure, Behavior, and Roles

Tourism and hospitality changes the traditional forms of employment which results
in the lowering of the status of agricultural workers, migration of the population and the
breaking up of families. Many young people demand freedom from their families. They
also-disregard social norms such as respect for elders and close family ties. Young women
who enter the workforce have changed their traditional dress to tourist clothes.

Tourism and hospitality in some areas leads to other social problems in the family. Some
wives who work in tourism and hospitality establishments have higher salaries than their
husbands. This often leads to the loss of self confidence among their husbands. In addition,
their improved way of dressing and grooming causes their husbands to be jealous and
suspicious. This has led to a higher divorce rate.

This disruption in the kinship system reduces cohesiveness in the whole community, thus
changing the population characteristics.

Community Problems
Prostitution, often called the "oldest profession," certainly existed before the growth of mass
tourism. It is difficult to say how responsible tourism and hospitality has been for the rise of
prostitution in tourist destinations.
The following are some of the reasons for the increase of prostitution in tourist resorts:

1. The processes of tourism and hospitality have created locations and environments which
attract prostitutes and their clients;
2. By its very nature, tourism and hospitality means that people are away from the
puritanical bonds of normal living, anonymity is assured away from home, and money is
available to spend hedonistically. These circumstances
are conducive to the survival and expansion of prostitution.
3. As tourism and hospitality affords employment for women, it may upgrade their economic
status. This, in turn, may lead to their liberalization and eventually to their involvement in
prostitution to maintain or acquire new economic levels; and
4. Tourism and hospitality may be used as a scapegoat for the general loosening of morals.

The use of erotic pictures and suggestive slogans in an advertisement leads some
tourists to anticipate sun, sea, sand, and sex as part of their vacation experience.

An increase in visitors Increases criminal activity. Wealthy tourists present tempting

targets. Lin and Loeb (1977) identified the following three factors in the relationship between
crime and tourism and hospitality:

1. Population density during the tourist season increases, creating the availability of a large
number of targets and congestion;
2. The differences in income between hosts and tourists encourage robbery, and
3. The proximity of resorts to an international border may attract undesirable migrants,
resulting in increased expenditures for law enforcement and monetary losses for businesses
that become targets.

Negative Demonstrative Effects

Negative demonstrative effects consist of tourist behaviors which can be considered
socially and economically inappropriate. One of the major results of negative demonstrative
effects is the polarization of the hosts from the tourists, which happens in a number of ways.
First, tourists often demand commodities and facilities beyond the economic capacity of local
residents. Rich tourists frequently eat in fine restaurants and live in luxurious hotels in areas
characterized by hunger, unemployment, and limited economic opportunity. This disparity
has led, in some cases, to militant revolutionary action by the local residents.

Second, the social norms of the tourists that are very different from the local customs
give rise to social problems. Also, the values and materialism of young travelers are copied by
the young local people. Examples are nude bathing, inappropriate manner of dressing, and
irresponsible behavior.

A third factor which initiates polarization is the importation of foreign workers from
more developed countries. These workers who are more skilled than the local people
generally get better-paying jobs and are usually supervisors of the less-skilled local people.
These foreign workers also compete more favorably for goods and services than the locals.
Thus, the locals begin to resent the foreigners. The opposite is true in the case of some of the
developed countries where less-skilled immigrants take lower-paying jobs, thus, forming a
lower social and economic group. This association sometimes 'creates social problems since
the immigrants are not aware of the norms and standards of the host country

There are changes in the consumption patterns in some tourist areas. In some places,
the importation of foreign foods has little impact on their life, while others, a considerable
change has occurred. The people almost abandon their local foods in favor of imported foods
such as fast food from Kentucky Fried Chicken, McDonald's, Burger King, Wendy's, and the
like.

Impact Control Measures

A number of control measures can be adapted to decrease the negative change
in an area. Some of these are:

1. Reducing the contact between hosts and guests by limiting the carrying capacity of the
destination and by regulating the tourist flow;
2. Separating the hosts and the tourists within tourist enclaves;
3. Designing community education and citizen involvement programs centered on tourism
and hospitality development, policy, and regulatory issues; and
4. Expanding human resource development and training programs in all components of the
tourism and hospitality system to include social skills (interpersonal relations and
networking referral tactics).

Impact of Tourism and Hospitality on Culture

Tourism and hospitality increases the acculturation process as well as the cultural
convergence of people. Acculturation is defined as those changes that occur in a culture
through borrowing from other cultures. These changes may include technology, language,
and values. Cultural convergence is the tendency of world cultures to become more alike. A
very good example of this is the adoption of many European ways by people of
less-developed countries because of their exposure to European culture and technology.

The urban areas of the world are becoming more and more alike. Modernization and
change from an agricultural society to an industrialized one bring about changes in people's
attitudes, beliefs, and way of life. Part of this change occurs through contact with tourists.
Tourism and hospitality is a vital force in acculturation since it causes more interaction
between peoples. People who change the least are the isolated ones- those who live in regions
of extreme environmental conditions such as deserts, jungles, and polar regions.

Positive Effects of Tourism and Hospitality on Culture

The two most important positive effects of tourism and hospitality on culture are the
promotion of intercultural communication and the renaissance of native culture.

Intercultural Communication
Mobility, which is a prerequisite of tourism and hospitality, is necessary for different
social groups, nationalities, and cultures to meet and interact. Such interaction may
contribute to the removal of social or national prejudices and the promotion of better
understanding and positive social change. Cross-cultural communications between tourists
and their hosts may promote changes in local culture while preserving or revitalizing local
ethnic and cultural identity. The quality of cross-cultural communication is of prime
importance if it contributes to the promotion of understanding between tourists and their
hosts.

Renaissance of Native Culture

Tourism and hospitality may be important to the host country to remind its people of
its history and culture. In Eastern and Western Europe, many traditional folk customs and
costumes are preserved for the benefits of tourists. Folk culture festivals are organized to
attract visitors. Model cultural centers in both developed and developing countries have been
highly profitable and have helped maintain interest in their cultures.

Traditional art forms have been revived in several countries. Tourism and hospitality
has stimulated the preservation of traditional art including traditional songs and dances.

The establishment of the model culture villages (living museums) has contributed
largely to the renaissance of native traditions and crafts. Model culture villages create
historical and ethnic environments designed to perpetuate tradition and stimulate awareness
of the local area. There are two main purposes for cultural model villages. The first is to
provide a location where visitors may observe and participate in a particular culture without
disrupting the everyday life of the people who live in the area. The second is to portray the
past history of the area. An example of a cultural model village is the Polynesian Cultural
Center in Hawaii which was designed to keep the traditional art forms and practices alive,
giving the visitors a chance to view some limited historical aspects of lifestyle as it once was.
As a cultural living or museum, the center concentrates on certain dynamic and tangible
aspects of culture. In order to make the visit meaningful, each of the villages developed a
specific activity such as husking a coconut, learning to play a percussion instrument,
involvement in a game of skil, or performing a dance that encourages tourist participation.
Some museums that are designed to display culture are Bangkok's Rose Garden, Tiijan
Orchid lsland, and Alaska's Nana Museum of the Arctic.

Negative Cultural Impact of Tourism and Hospitality

While tourism and hospitality has enabled different people to restore and maintain
interest in their own cultures, it has also led to the destruction of a country's work of art. The
local residents resent tourists who think they have the right to the country's art whether
bought or stolen. Several tourists persuade the natives to sell traditional objects which have
been used for generations. The greed for money which induces people to part with family
heirlooms explains the destruction of the archeologicalsites or the desecration of monuments
in Egypt, Bali, India, or Central America.

Moreover, the increasing demand for artifacts has led to changes in its form and
functions as art objects, The artifacts may no longer be represented as traditional arts due to
the following reasons:
1. Mass production due to increase in demand result to losing the careful and precise product
workmanship;
2. The impersonal nature of the tourist market has decreased the spiritual relevance of the
artist's work;
3. At is produced according to the taste of tourists which, in Africa, means carving animals,
grotesqueness, and gigantism; and
4. The increased demand has led to the misrepresentation of the age or authenticity of
objects resulting in a large number of imitations

Even model cultural villages may be encouraging the loss of culture. Tourists who
want to keep up with their schedules, as well as entertainment, require shorter and therefore
less authentic activities. Thus, the entertainment loses its cultural value. Cultural villages and
large hotels giving floor shows may manipulate authentic host traditions and events to
conform to the time schedules and taste of tourists. This effort to turn folklore, religious or
secular ceremonies, and artistic productions to material advantage leads to commercialism,
thus, prostituting the values of the local residents.

The architectural designs of most international hotels are of Western styles and often
exhibit little knowledge and appreciation of the social traditions of the local
inhabitants.

Impact Control Measures

The following control measures may be adapted to reduce the negative impact of
tourism and hospitality on culture:

1. Develop programs which enhance tourism and hospitality's contribution to Intercultural

communication and interaction such as matching tourist types with qdestination
characteristics and designing programs for the interaction of local residents and guests
promoting goodwill "ambassador" tourist education; and
2. Incorporate local indigenous features within Western-style structures such as decorating
hotel interiors with local paintings, murals, and sculpture, and encouraging porters, maids,
and waiters to dress in native costumes.

Environmental Impact of Tourism and Hospitality

The history of tourism and hospitality closely shows that the environment has
contributed to the birth and progress of tourism and hospitality. The term "environment"
connotes both human and physical characteristics. Speakers and writers often refer to it as
human environment, physical environment, or a combination of both. A term that describes
the human and physical characteristics of an area is pre-existing forms.
 It is expected that some change in pre- existing forms will be necessary to
accommodate mass tourism. However, tourism and hospitality can either be carefully
controlled by the government to maximize economic and employment opportunities while
reducing its social, cultural, and physical impact; or it can be changed as to enhance the
physical environment and make it more attractive to both the guests and the local residents.

An analysis of the positive and negative aspects of tourism and hospitality indicates a
need to encourage wise resources management, particularly of water and energy, and the
problems of noise and pollution, as well as the problem of garbage and fire hazards which
may arise from tourist activities. The environmental benefits and negative impacts of
tourism and hospitality need to be recognized.

Positive Environmental Impact of Tourism and Hospitality

Tourism and hospitality has created environmental awareness in two ways:

1. Contact with scenic areas has raised man's awareness of the earth's beauty and made it
easier for him to see and enjoy it with minimum damage; and
2. Environmental awareness has been heightened by mass tourism which caused direct and
indirect destruction.

In developed countries, several national parks and monuments have been created to
preserve the natural, cultural, and recreational resources of the land for the development
enjoyment, of parks appreciation, was intended and to education open up of areas present
for and viewing future as well as generations. to control The the flow of traffic within the
park.

Tourism and hospitality has provided reasons for the preservation of historical
buildings and the creation of museums. At present, many developing nations are realizing
that their monuments mean tourists and income. Thus, desire to preserve their national
monuments have increased. In developed countries, unspoiled natural attractions are
becoming more and more rare. Hence, people travel to developing nations where nature is
still unspoiled or where the remains of ancient civilizations are located. Developing nations
realize that their historical sites or traditional towns and neighborhoods untouched by
progress are economic assets. Lighthouses, harbors, and fishing piers are ideal tourist
attractions.

Tourism and hospitality has created appreciation of the environment by bringing

scenic attractions to the attention of the public. In Switzerland for example, mountain sports
and vacations, both in winter and summer, have mushroomed oomed as as a a result of
rapid tourist growth.

Conservation
Conservation and preservation of the environment not only benefit the local area but
they also determine the future of tourism and hospitality. First, the local residents benefit
from the preservation. Second, tourism and hospitality, for as long as it draws tourists, will
continue to be a socioeconomic and cultural asset. The aim of the National Park Service, with
the inclusion of conservation,is much broader now than it was in the past. The national parks
in East Africa, Kenya, and Tanzania were founded to protect wildlife.
 In some places, bird sanctuary is one of the major attractions for tourists who want to
seek a change from their sun, sea, and sand experiences. Natural trails and bird-watching
areas have been established to help the visitors enjoy the area and tc maintain the quality of
the environment.

Gunn (cited by Valene, 1995) gave the following factors which led to the conservation
movement:

1. There was a social concern to which the park movement owes its beginnings. The growth
of industry and commerce and their associated ills stimulated a demand for the parks and
open space. The provision for public lands was seen as an antidote to the immoral values of
urban society and as an escape from the routine work and urban living;
2. There was an emphasis on the efficiency of resources being used, particularly on
nonrenewable resources. Early expectations stressed maximum utilization but with a
minimum of environmental degradation;
3. Conservation also incorporated aesthetic enhancement. This is particularly significant as
one major tourist activity is sightseeing which depends heavily on the qualities of the natural
environment; and
4. Protecting the natural environment from irresponsible human manipulation.

Mathieson and Wall (cited by Landberg, 1995) identified four ways in which tourism and
hospitality has been important to conservation. These are:

1. Stimulating the rehabilitation of existing historic sites, buildings, and monuments;

2. Stimulating the transformation of old buildings and locations into new tourist facilities;
3. Creating the impetus for the conservation of natural resources; and
4. Bringing about the introduction of administrative and planning controls necessary to
maintain the quality of the environment to ensure a satisfying and rewarding experience for
the tourists.

It can be concluded that tourism and hospitality provides incentives and the
economic means and incentives for the conservation and preservation of natural and historic
sites. Many monuments, historic houses, villages, and old churches cannot be maintained
without the tourist income.

Development of Attractions
Several countries around the world are identifying areas which have the potential to
attract tourists. In the Caribbean island of St. Croix, the US National Park Service has
established and developed an underwater national park. This unique site attracts snorkelers
and those interested in corals. It helps preserve the area and creates an awareness of the
character of the coral reefs and the sea floor.

High mountain areas have been developed. A very good example is Jungfran in
Switzerland which boasts of having the highest railway in Europe. Other examples are the
Banaue Rice Terraces and Baguio City in the Philippines
A. Historic Preservation
Many historical sites in both urban and rural areas have been preserved to attract
tourists. Examples are Intramuros or Walled City in the Philippines, Jamestown and
Colonial Williamsburg in Virginia, USA., Mont. St. Michel in France, and the Plymouth
Plantation in Massachusetts, USA. This restoration and rejuvenation process is occurring
throughout the world and serves as major characteristics of an area intended to impress
tourists.

B. Resident Benefits
Tourism and hospitality benefits the local residents in a number of ways. The first
benefit is that the results of conversation and preservation can be enjoyed by the local
community as well as by the tourists. The creation of national parks and monuments
provides quick access to a variety of nature's wonders and outdoor activities to both local
residents and visitors.

Another benefit which results from tourism and hospitality development can be seen
in coastal areas. The development of a coastal resort allows free access to tourists and local
residents.

Negative Environmental Impact of Tourism and Hospitality

Exceeding the carrying capacity and saturation levels of an area will negatively affect
that area. The term "carrying capacity" is the degree of development a certain area can take
without having detrimental effects on the environment. If the tourist development becomes
saturated, the very attractions which draw visitors to a place may be destroyed, causing the
decline in quality and popularity of a certain tourist destination.

The saturation levels and the types of environment between developed and
developing countries are different.

Some environments with significant differences in their saturation levels are

wilderness, rural, coastal, mountain, urban, and the developed versus the developing
areas. The difference between developed and developing areas lies in the cultural
dissimilarities and the measure of control used to handle the development. In
developing countries, there is a lack of control measures because of cultural differences
lack of technical skills, and lack of financial resources needed to implement plans.

Environmental Conflicts
Some of the problems affecting the quality of the environment are destruction
of the vegetation, pollution (air, water, and noise), and the destruction of wildlife. The
destruction of the vegetation occurs because of the large number of tourists who trample on
the vegetation, In many parks, campers have cut branches of trees and completely cut down
small trees. In areas such as ocean fronts and islands, many visitors going to and from the
area destroy the vegetation cover, thus changing the natural habitats for birds and animals
and, in some cases, even changing the temperature of the area. Sometimes, the loss of
vegetation leads to soil erosion and the further debasement of the environment.
 Air pollution results from the gas fumes emitted by automobiles, taxis, buses
aircrafts, and factories. Areas with large numbers of vehicles usually suffer from air
pollution.

Water pollution is the result of the discharge of untreated waste from resorts or boats
into seas, rivers, lakes, and springs. The lack of an effective sewerage system in some areas
has led to the widespread pollution of the inshore waters making fish consumption
inadvisable and swimming unhealthy. Moreover, such diseases as cholera, typhoid, viral
hepatitis, and dysentery are caused by seafood from polluted water.

Noise pollution is associated with traffic congestion on land and on air. Many
recreational vehicles such as motorcycles, motorboats, and aircrafts cause a lot of noise.

Problems associated with wildlife result from killing of animals such as birds and the
disruption of the normal habits of feeding and breeding. A very good example is the killing of
elephants for tusks, zebras for hides, antelopes for their heads, lion claws for necklaces,
monkeys for skin throw-rugs, gazelles for hoof key-rings, and the like. The prevalence of
many tourists in an area changes the breeding habits and living patterns of much of the
wildlife. The animals are forced to move to a less traditional habitat.

Geological Conflicts
Tourism and hospitality affects geological formations. Some tourists collect minerals,
rocks, fossils, and corals from tourist attractions; others destroy natural formations by
vandalizing

Resident Conflicts
A number of conflicts frequently occur between residents and tourists or tourism
developers. In cities, hotels are built at the expense of residential accommodations. The
increasing value of land often forces residents to move away from the area. Hotel
development also brings traffic congestion and air pollution. In fishing and hunting areas,
the increasing demand creates problems for local fishermen and hunters who now compete
with the tourists as well as with each other.

Conflict between tourists and the local residents may also arise because of damage to
the area brought about by littering, vandalism, and traffic congestion. In rural areas, the
damage to crops, farm buildings, and livestock are common complaints of farmers, together
with the increasing value of lands, competition for labor, and land erosion.

Impact Control Measures

Two measures which will reduce the negative impact of tourism and hospitality have
been identified, thus creating a quality environment for both residents and tourists. First, the
general protective measures and second, regulation and control of tourist development. The
protective measures are designed to safeguard the various aspects of the
environment-endangered animals and plants, beaches, and forests through the creation of
national parks and wilderness areas.

The man-made environment is included in the conservation and restoration of

historical or archaeological monuments, valuable buildings, and neighborhoods. These
measures have two objectives- to protect the environment and to maintain its attractiveness
as a tourist destination.

Regulation and control refers to zoning and land use, and planning specifications on
the facilities being built as to height, appearance, open space, and overall design, among
other things. These are rapidly done in some countries like Switzerland where builders must
follow certain architectural styles before permission is given for development. These are
done to prevent unattractive tourist development.

SUMMARY
With the growth of tourism and hospitality, the economic, social, cultural, and
environmental impact of tourism and hospitality on the host community may be both
positive and negative.

Tourism and hospitality positively affects the economy which is reflected in the
income, employment, the area's balance of payments with the outside world, and investment
and development. Its negative effects can be seen in high leakages, low returns on
investment because of seasonal fluctuations in demand, and overdependence on tourism and
hospitality.

The positive social effects of tourism and hospitality are classified into four groups,
namely: social change and multicultural understanding, adaptation to the realities of
modern life and improvement of the host country's lifestyle, use of foreign language, and
improved health conditions and disease control. The negative social effects, on the
other hand, are evident in social saturation, changes in the social structure, behavior and
roles, community problems, and negative demonstrative effects.

The two positive effects of tourism and hospitality on culture are the promotion of
intercultural communication and the renaissance of native culture. The most important
negative cultural impact of tourism and hospitality is the loss or deterioration of traditional
art and culture.

The positive environmental impact of tourism and hospitality consists of

conservation of the environment, development of attractions, historic preservation and
resident benefits, while the negative environmental impact of tourism and hospitality shows
in environmental conflicts, geological conflicts, and resident conflicts.

With proper planning, controlled development, and the implementation of

appropriate guidelines, the negative impacts of tourism and hospitality can be greatly
reduced. It is imperative that policymakers and planners understand the advantages and
disadvantages of tourism and hospitality and seek better tools to evaluate them. A
comprehensive cost and benefit information is very much needed. The host community must
be able to look at tourism and hospitality from a balanced perspective, and in planning for
the future, weigh objectively the expected benefits against expected risks.
 CHAPTER ACTIVITY

1. The sum of all income in a country.

2. An accounting of the flow of goods, services, and out of the country in a given period.

3. Changes in the quality of life of the residents of tourist destinations,

4. Changes that occur in a culture through borrowing from other cultures

5. The tendency of world cultures to become more alike.

6. A tourist who arrives in a destination with other tourists.

7. A tourist who is well-traveled and can afford to pay for unusual vacations.

8. An excess of payments over receipts on the balance of payments.

9. A tourist who adapts easily to local lifestyles.

10. A type of employment which is the result of providing goods and services directly to
tourists.

11-14. List down the positive social effects of tourism and hospitality.

15-16. What are the positive effects of tourism and hospitality on culture?

17-20. Enumerate the negative social effects of tourism and hospitality.

Chapter 7:

The Bright Future of Tourism and Hospitality

In recent years, a number of significant social and economic changes have occurred
that suggest a bright future for the tourism and hospitality industry. These are:

1. Early retirement. At present, many workers retire at an earlier age than the case in
previous years. The US social security system provides benefits
to workers as young as 62 years of age and many employee retirement programs are based
on years of service rather than on age. In some retirement programs, specifically government
programs, it is possible to work 25 or 30 years and receive benefits at the age of 55 or
younger. The increasing number of people who retire early is beneficial for the tourism and
hospitality industry because these people use their time to travel and see the world;

2. Longer life span. The average individual can now expect to live beyond the age of
70 and many will live longer. This is in contrast to earlier generations when the average life
span was much less. The increasing population of older, retired citizens who are richer due to
pension programs and are healthier provides a larger base of potential customers. for
tourism and hospitality operations;

3. Shorter workweek. In the past, the six-day workweek was the standard for most
working people. At present, the five-day workweek is standard and the four-day workweek is
becoming common-leaving several days for other activities, The resulting increase in leisure
time, combined with faster and easier transportation, makes possible for many individuals to
take weekend vacations and travel to a degree they could not have made a few years ago. The
tourism and hospitality industry will surely benefit from this increase in travel;

4. Greater disposable income. The average family has more money to spend than
before. This is due to higher wages and two-earner households. A large portion of the
additional disposable income is spent on consumer goods and services. The tourism and
hospitality operations receive an important share of it;

5. Greater mobility. Improved roads and better transportation make it easier to travel
every year. The modern highway System has reduced the time required for automobile travel
between any two points. New planes use new technologies which enable them to carry more
passengers while using less fuel. These increases in travel have a positive impact on tourism
and hospitality industry sales; and

6. Smaller families. The average family size has decreased. Thus, it is easier for
the family to travel and travel costs less if few family members travel.

Issues in Tourism and Hospitality

Although the future of the tourism and hospitality industry is bright, it is not without
problems. Those pursuing careers in tourism and hospitality will find it necessary to obtain
knowledge with regard to a number of issues that the industry must face in the future. Some
have been issues for many years, but no final solutions have been found. Others are emerging
issues brought about by social, economic, and technological change. These issues can be
categorized under the following headings: ,
1. marketing;
2. legal;
3. human resources;
4. Operations; and
5. consumer affairs;

Marketing Issues
The marketing issues are changing demographics, changing vacation patterns,
market segmentation, frequent guests programs, maturation in segments of the fast-food
industry, and consolidation.

Changing Demographics
The population of developed countries is aging. The median is now 33 years and is
projected to increase in the coming years. This is an issue that is significant to the tourism
and hospitality industry. An older population has preferences that differ from those of a
younger population. Thus, service providers will find it necessary to adjust their service
products to the changing preferences of the market.

Another changing demographic characteristic is the increase in the number of

single-parent households. Single-parent households generally have lower levels of
discretionary income. To reach this market, service providers will have to develop new
service products that will appeal to this demographic segment at affordable prices.

A third demographic change is the continuing growth in the number of people

traveling for personal rather than for business purposes. Approximately 74% of domestic
travelers travel primarily for a nonbusiness purpose. This group is responsible for the
increased percentage of the travel market in the past 45 years and the growth is sure to
continue.

The fourth demographic change is the growth in the number of international

travelers. One of the primary reasons is the decreased cost of transportation relative to
income, making travel more affordable to everyone. Another is increased vacation time and a
greater number of holidays in many countries.

Changing Vacation Patterns

Citizens of industrialized countries are changing their vacation patterns. The
traditional once-a-year vacation of two weeks is declining in popularity. For a growing
number of people, vacations are becoming shorter and more frequent At present, more
people usually plan mini-vacations, adding two of their annual vacation days to a three-day
holiday weekend. In this way, they manage to get away for a mini-vacation of five days while
using only two actual vacation days.

Market Segmentation
Since 1980, the principal term in tourism marketing has been marketing
segmentation. Until the late 1970s, lodging establishments attempted to appeal to broad
general markets. Their aim was to appeal to a broad group of potential visitors. In recent
years, the success of the limited service properties has led to the development of other
properties intended to appeal to selected market segments. Some of the types of lodge
properties to become apparent include all-suite properties, residence properties, sub-budget
properties, and a variety of budget properties, which differ by their varying services and
amenities.

Examples of market segmentation have been evident in food service in the past 10
years. A number of restaurants that additionally offered extensive something-for-everyone
menus has began to see reductions in business, as customers have chosen to patronize
restaurants offering specialized service products.

As new market segments are identified, properties designed to appeal to those

segments are likely to be developed.

Frequent Guest Programs

Because of the proliferation of properties and the increasing competition among
them, some lodging operators have begun to develop programs to gain repeat business.
Modeled on the frequent-flyer programs which were successfully used by many airline
companies, these plans give credits to regular guests. They can be redeemed in the form of
reduced rates, upgrades, free accommodations, free meals, or any variety of amenities. As
competition becomes keener, the number of these kinds of programs will certainly grow.
Many believe that these programs will gain in the lodging business the same favor they have
achieved among airline customers.

Maturation in Segments of the Fast-Food Industry

Segments of the fast-food industry are no longer expanding to the extent that was
formerly possible. The demand for hamburger is not growing as fast as it once did, so
operators find it necessary to develop new products to maintain the desired sales level. At
present establishments that previously offered few products other than hamburgers now
offer pizza, salads, poultry, or other meat products. As public tastes continue to change, food
service operators will to develop specialty products to retain an adequate share of the
market.

Consolidation in the Commercial Lodging Industry

Some experts are now predicting that the number of large nationwide lodging
companies will decrease in the coming years; that a small number of firms will dominate the
lodging in dustry by acquiring smaller chains of regional or national properties. This will
enable successful companies to obtain the funds required to expand their operations
internationally.

The trend toward consolidation will have a tremendous impact on all commercial
lodging operations. Both independent operation and owners of smaller chains will find it
difficult to compete with heavily advertised national
and international brands.

Legal Issues
 The legal issues are liquor liability and ethics in the tourism and hospitality industry.
Liquor Liability
In the past, there was a growing public concern over the increasing numberof
alcohol-related automobile accidents. At present, alcohol and the use of drugs is a factor in
more than half of all automobile accidents. This led the public to pressure state legislatures
to act. Legislators have responded by lowering the levels of blood alcohol in which an
individual is considered intoxicated and by increasing penalties on offenders. In addition,
several states in the US have imposed new regulations on the serving of alcoholic beverages.
In one US state, new regulations have made the discounting of drinks-the so-called happy
hour-illegal. In several states, establishments and their owners can be held financially
accountable if they serve alcoholic beverages to an intoxicated individual who causes damage
or injury after leaving the establishment. In some places, this has caused tremendous
increase in the cost of liability insurance. his prompted some bar owners to go out of
business. It has also caused some restaurant owners to stop serving alcoholic beverages.
Some restaurant and bar owners have changed their market strategies. They now feature and
promote non-alcoholic drinks. As societal attitudes toward alcoholic drinks continue to
change, it will be necessary for food service and lodging operators to adjust.

Ethics in the Tourism and Hospitality Industry

Ethics is an academic discipline that deals with the study of codes of moral conduct
practiced by individuals or groups. Business ethics refers to the application of a particular
moral code to relationships, activities, and discussions made by individuals in business or
industry. It is the code that enables the individual in business to distinguish right from
wrong; to differentiate between ethical and unethical behavior.

Ethics in the tourism and hospitality. industry has been the issue for thousands of
years. The business practices of some operators of tourism and hospitality establishments
are questionable. For example, a manager of a new restaurant may hire 20 waiters but
intends to keep only the 12 most able after the second week of operation. An owner may fail
to report all sales on his income tax returns. A tour guide may cheat on his income tax by
failing to report all his tips. Another owner may cheat on his taxes by charging personal
expenses to the business. An employee in the purchasing department may accept gifts from
vendors in return for buying inferior products. Business ethics is likely to remain
forever in the list of tourism and hospitality issues.

Human Resource lssues

Some of the human resource issues are sexual harassment, employee turnover,
employee assistance plans, and employee empowerment.

Sexual Harassment
Sexual harassment may be defined as unwelcome sexual advances, requests for
sexual favors, and other verbal or physical conduct of sexual nature that take place under any
of the following conditions:

1. Submission is made a condition of the person's employment;

2. Submission to or rejection of such conduct is used as a basis for employment discussions
affecting the person; and
3. It unreasonably interferes with the person's work performance or creates an intimidating,
hostile, or offensive work environment.

Most cases of sexual harassment involve complaints by females about co- workers or
superiors. In the last 10 years, the number of cases has grown because an increasing number
of women have become willing to speak out.

Because employers are liable for the actions of their employees at work, it is very important
for employers to take the following steps:

1. institute a strict policy banning all forms of sexual harassment in the workplace;
2. develop appropriate training programs for managers and employees so that all will
understand and become sensitive to the nature of sexual harassment; and
3. establish procedures for handling all complaints promptly, fairly, and in a sensitive
manner.

Employee Turnover
Employee turnover is one of the major issues confronting managers of tourism and
hospitality enterprises. With turnover rates averaging approximately 100% per year,
managers are always faced with the problem of losing experienced employees and hiring
less-experienced employees as replacements. Faced with inexperienced replacements,
several managers believe they have only two choices-to shoulder the high training costs
associated with developing new employees into efficient workers or to incur the equally high
costs associated with working with untrained employees. Very few realize that there is a third
alternative-to retain valuable employees and reduce turnovers.

Many managers in the tourism and hospitality industry understand the requirements
to reduce turnovers. These include adequate wages and benefits, reasonable working
conditions, reasonable work schedules, and reasonable treatment of employees by managers.
However, only a few managers put these requirements into practice.

Several managers and employers still treat their employees as in they were parts of a
big wheel rather than people. They hire workers at the lowest possible wages, fail to provide
proper training, then admonish them for not doing their work correctly. They assign workers'
schedules without taking into account the workers' personal preferences, change the
schedules of the workers without previous notice, and order them to report for work on their
day-off. Then, managers complain about employees who resign to accept equal jobs with
other employers.

Employee Assistance Plans

Employee assistance plans (EAPs) are included in the discussion of major issues in
the tourism and hospitality industry because they are one of the secular steps to pay
attention regarding the problems of their employees. The problems of those employed in the
tourism and hospitality industry include psychological problems, family issues, financial
problems, legal issues, health, as well as educational issues.

The tourism and hospitality manager who establishes EAPs to benefit employees will
eventually develop a more loyal workforce, one that is willing to make a great effort to attain
the operational goals of the enterprise. In addition, the manager who helps the employees
will reduce employee turnover.

Employee Empowerment
In some tourism and hospitality establishments, managers have developed rules and
procedures that employees are directed to follow. These include directives such as inflexible
rules for checkout time, rules prohibiting free refills on coffee, strict limits on the number of
hand towels per guest, or directives prohibiting substitutions on special dinner menus. These
may affect the overall impression of a guest regarding a particular food service or lodging
enterprise. For some guests, these rules may be enough to make them decide never to return.

Many owners and managers have realized the ineffectiveness of setting strict rules
governing every detail of guest service. Thus, they now set policies that are guest-oriented.
They empower their employees to make decisions that will improve the quality of service to
guests without having a negative impact on operations.

Operations Issues
The operations issues include automation, smoking/ non smoking areas, sanitation
and public health, and recycling solid waste.

Automation
Automation is the process of using electronic and mechanical equipment and
machinery to complete some or all of the tasks associated with a given enterprise. The two
primary reasons for automating an enterprise are:

1. to increase the speed of work; and

2. to reduce the cost of work.

Automation in the travel industry is here to stay. Computerization will affect the industry
principally in three areas, namely:

1. Communications. Business travelers frequently change their itineraries to suit their

changing requirements. Much time at present is lost in making alternative arrangements
through vendors or distributors from payphones, hotel rooms, or secretaries' phones,
Portable communication data units (PCDUs), a portable telephone or computer, allows a
business traveler to communicate with any travel entity from any place including airplanes
and rearrange or reconfirm his travel plane;
2. Interactive CRTs. Interactive television is now being used in some cities. Within a
few more years, more cities will be using it. It is possible that much of the order placement
process will be shifted to interactive television. Specific order forms can be programmed into
a database that can be accessed by any number of users. If calls are reduced to one- third by
interactive CRTS, travel counselors will be reaching productivity levels of $2.5 million to $5
million per annum each. Hence, the cost of getting a traveler on an airplane, into a hotel, ora
car is highly reduced and the profitability of the distribution system as well as the cost to the
traveler is maximized; and
3. Elimination of Tickets. There is no longer a need for the traveler to carry an actual
document for an airplane seat or a hotel reservation. A traveler may place the order about his
impending trip on his interactive television, and insert his travel card into the appropriate
slot on the side of the console. After all arrangements and confirmations have been made, the
computer magnetically codes his card. The traveler arrives at the airport, goes to the
appropriate gate, and as he enters the airplane right before he hangs up his carry-on bag,
there is a slot into which he simply sticks his card. If the response is positive, he presses a
button and a receipt pops out of the wall.

One of the biggest problems of agents nowadays is how to find the most efficient way
to deliver the traveler's documents. The elimination of tickets has the biggest impact on the
distribution system because the role of the agent as a trustee is eliminated. Consequently, the
order-taker-only agent will also be eliminated.

At present, some food service and lodging establishments have automated to the
extent that guests and customers no longer have direct contact with any staff member. There
are lodging operations in which a guest inserts a credit card in an electronic device, enabling
him to check in without speaking to the room clerk at the desk. Check out can be done
through a touch-sensitive screen on the television set in the guest's room. Food and
beverages can be taken from vending machines.

It is interesting to note that food service and lodging establishments have tended to
maintain the appearance of service even though automated devices have been installed. For
example, some hotels with automatic elevators have continued to hire personnel to run the
elevators. Guests are still given a high level of service using more modern and efficient
equipment than the older manual elevators. The technological capacity to automate grows
daily and the tourism and hospitality industry will have to determine the extent to which it
should use the technology.

Smoking/Nonsmoking Areas
As more and more customers of tourism and hospitality entities demand smoke-free
areas for dining and smoke-free sleeping accommodations, the industry will continue to
exert efforts to meet these demands. This is specifically true in places in which legislation
orders that appropriate facilities be made available. Hence, restaurants apportion sections of
their dining facilities to accommodate the requests of nonsmokers. Some even install or
improve ventilation equipment.

Many lodging establishments have set aside accommodations for nonsmokers. In

some hotels, smoking is prohibited in the lobbies, corridors, elevators, and other areas.
Airlines have also established nonsmoking areas.

The prohibition of smoking in tourism and hospitality enterprises is an issue that is of

increasing importance to owners and managers in the coming years.

Sanitation and Public Health

A very important issue in food service is sanitation. Everybody agrees that all steps
should be taken to prevent illnesses that are caused by the manner in which food is handled
or to the food itself.

Proper food handling has always been an issue in the industry. Managers must
always be sure that food is bought from responsible vendors. Food must be kept at suitable
temperatures to prevent the growth of bacteria. It should be placed under proper conditions
to prevent infestation by insects or rodents. The surfaces of equipment must be cleaned very
well to ensure that food is not contaminated during preparation. Washing is a necessity in
food service such as the washing of the hands of the employees, the washing of the fresh food
to remove chemical residue, as well as the thorough washing of china, glassware, flatware,
pots, and pans that are used in the preparation and service of food and beverages.

National and local governments apply strict sanitary standards to food and beverage
operations. Some conduct regular inspections and apply sanctions on those found violating
the regulations. The sanctions range from imposing fines, publishing lists of violators in
newspapers, and closing the establishment of consistent violators.

To ensure compliance with local sanitary codes, many food and beverage operators
hire consultants to conduct regular inspections and to help in the immediate correction of
any violation. As consumers become more aware of the potential harm brought about by
improperly handled food, preventing possible violations of local codes will be a significant
issue to food and beverage operators.

Recycling Solid Waste

In previous years, there has been a gradual closing of the landfills that were used for
disposing solid wastes and a growing awareness of the harmful effects of either burning solid
waste or dumping it into the sea. This has resulted in major waste disposal problems in some
places.

In some cities, the cost of removing solid wastes is increasing to the extent that the
government and citizens are unable to pay. In many of these areas, separating recyclable
plastic, glass, and other items from other solid wastes greatly decreases the quantities that
require disposal.

The trend toward recycling is likely to increase, Many in the tourism and hospitality
industry who have not been previously affected by this issue will eventually find it necessary
to adopt a recycling program.

Consumer Affairs Issues

The consumer affairs issues are fire, safety, truth in menus, and
diet/nutrition/health.

Fire Safety
Fire safety has always been an important issue in the tourism and hospitality
industry. In earlier centuries, taverns, inns, and hotels which were usually constructed of
wood were regularly destroyed by fire. Many were burned to the ground and a large number
of people were killed or crippled.

During the twentieth century, hotels, motels, and other lodging establishments have
instituted many changes, among which are improvements in design and construction as well
as improvements in the fire control systems installed in buildings. Examples are electronic
smoke detectors, automatic systems to summon fire departments, better sprinkler systems,
and so on. Because of these systems, people became safer.
 However, a number of dangers associated with fire remains to be considered. In case
of fire, guests in hotels and other lodging operations may face danger from the toxic smoke
resulting from the burning of furniture, fixtures, and fibers produced from man-made
materials. In a fire, many of the artificial fibers used in wall coverings, carpets, draperies, and
upholstery produce toxic fumes that can be more dangerous than the fire itself.

Another problem is related to construction. In recent years, new buildings were

well-insulated to decrease heating and cooling expenses. In some buildings, windows were
not designed to be opened. Temperature and air were controlled by very complicated central
systems. In case of fire in such buildings, there is a danger that smoke may spread quickly
throughout the building. At present, individual room ventilation is installed to preempt the
danger.

Truth in Menus
For food service operators, preparing truthful menus is an ethical practice that should
never be violated. However, a small minority have produced menus that are not accurate
indicators of the food served in their establishments. Some serve US Choice beef when their
menu states US Prime beef. Others serve portions with fewer ounces than the number listed
in the menu. Still, others have not used the actual ingredients suggested by their menus and
have substituted one product for another such as turkey for chicken, margarine for butter,
generic products for name brands, and domestic products for imported ones.

In some areas, consumer production laws have been passed so that those who violate
the regulations risk fines and loss of licenses, It is is important that those in the tourism and
hospitality industry conduct their operations ethically in order that consumers will have
complete faith in the truth of their menus, the wholesomeness of their food, and the honesty
of their business practices.

Diet/Nutrition/Health
Since the public is very much concerned about healthy diets containing less fat and
lesser calories, many food service operators are adjusting their menus to the changing public
tastes. Some are devoting sections of their menus to food for the diet-conscious; others are
assigning certain menu items for those interested in food that is low in sodium and
cholesterol. An increasing number of restaurants exert efforts to attract health-conscious
diners. Some have eliminated unhealthy food from their menus.

The trend to healthier dining will surely continue. Successful food service operators
will have to give greater attention to the nutritional content of food in the years to come.

The Future of Tourism and Hospitality

The World Travel and Tourism Council forecasts that travel and tourism will grow at
40% to 50% in the next 10 years. This tremendous increase presents great challenges and
career opportunities for tourism and hospitality graduates nowadays. According to John
Naisbitt, the futurist, the global economy of the twenty-first century will be propelled by
three super-service industries namely telecommunications, information technology, and
travel and tourism. The following tourism and hospitality items are but a few examples of
the wave of the future:
1. increased speed and shopping use of the Internet in developed countries;
2. extended reach in less-developed countries;
3. improved security of personal information;
4. robotic labor sources;
5. reservation systems with more sophisticated, voice-activated, artificial intelligence;
6. improved navigational systems for rental cars;
7. electronic entertainment venues in rental cars and on planes and cruise ships;
8. upgraded Internet personal digital assistants for operations;
9. marketing mass customization;
10. comprehensive branding campaigns for large and small operators;
11. virtual online customer communication;
12. just-in-time seats/rooms/car inventories;
13. electronic travel agents;
14. blended hybrid accommodations;
15, global anti-terrorist microchip security systems;
16. more nutritional fast-food offerings,
17. emphasis on ecotourism; and
18. improved customer relationship marketing information.

SUMMARY
Several social and economic changes are likely to affect the future of the tourism and
hospitality industry. These are early retirement, longer life spans, shorter workweek, greater
disposable income, greater mobility, and smaller families. Many of the issues that have to be
considered by tourism and hospitality managers can be classified into five areas, namely,
marketing, legal, human resource, operations, and consumer affairs. Marketing issues
include changing demographics, changing vacation patterns, market segmentation, frequent
guest programs, maturation in the segments of the fast-food industry, and consolidation in
the commercial lodging industry. Legal issues include liquor liability and ethics in tourism
and hospitality. Human resource issues include sexual harassment, employee turnover,
employee assistance programs, and employee empowerment. Operations issues include
automation, smoking/ nonsmoking areas, sanitation and public health, and recycling solid
waste. Finally, consumer affairs issues include fire safety, truth in menus, and
diet/nutrition/health. Travel, tourism, and hospitality will grow tremendously in the global
economy of the twenty-first century.
 CHAPTER ACTIVITY

1. The study of the codes of moral conduct practiced by individuals or groups.

2. The unwelcome sexual advances, requests for sexual favors and other verbal or physical
conduct of sexual nature.

3. The problems of employers in dealing with their employees.

4. The assistance given by employers to their employees.

5. The merging of several independent businesses within the same company which is the
result of buyouts and takeovers.

6. Travelers who travel outside their home country.

7.The process of using electronic and mechanical equipment and machinery to complete the
tasks of a certain enterprise.

8. The study and use of practical measures for the preservation of public health.

9. The act or process of nourishing.

10. The food and drinks that a person normally consumes.

Enumerate the following.

11-16. List down the marketing issues in the tourism and hospitality industry.

17-20. Enumerate the human resource issues in the tourism and hospitality
industry.

CHAPTER ACTIVITY
1. Tourism that does not deplete the natural and built environments and preserves the
culture, history, and of the local community.

2. The number of visitors an area can accommodate

3. An international organization that established effective and Education strategies for

sustainable tourism development.

4. Environment which consists of built structures such as historic buildings, museums,

lodging, and attractions.

5. The effect of sustainable tourism to the world.

6. A set of principles to be followed by tourists in order to achieve sustainable tourism.

7. An international organization that gives recognition to outstanding business organizations

and places that have contributed very much in promoting the principles of sustainable
tourism.

8. The preservation of the environment to produce the greatest sustainable benefit to present
and future generations.

9. The advantages of sustainable tourism.

10. An international organization that established guidelines for sustainable tourism.

Enumerate the following.

11-15. List down five principles in the Code of Ethics for Tourists.

16 20, Enumerate five criteria to measure the extent to which tourist

destinations follow the best practices in a sustainable tourism
development.
 CHAPTER ACTIVITY

1, A change in meteorological conditions iane within within a tourist region.

2. A natural disaster that caused huge losses in tourism and

hospitality in Thailand.

3. Business transactions that use electronic means instead of traditional channels.

4. An association that promotes the common interest of the involved parties.

5. The increase in the average temperature of earth's near- surface air and oceans.

6. A contract between two or more persons to carry on a joint venture

7. The systematic use of violence and intimidation to achieve a goal.

8. All aspects of the surroundings of human beings cultural, natural, and man-made.

9. The first tourist to reach outer space.

10. It refers to what exists in nature such as climate, weather, and flora and fauna.
I

Enumerate the following.

11-15. List down five emerging tourism and hospitality markets.

16-20. Enumerate five natural disasters

 CHAPTER ACTIVITY

1. An international organization that regulates air navigation.

2. An international organization which deals with all aspects of travel and tourism.

3. A regional organization that promotes and facilitates travel in the Pacific area

4. A regional organization which coordinates national economies for the benefit of countries
in the Asia-Pacific region.

5. A national organization which includes travel agencies and tour operators from the United
States and Canada

6. An international organization that promotes safe and economical air transport.

7. The national tourism office of the Philippines.

8. A national organization whose main objective is to unify the non-IATA travel agents in the
Philippines.

9. A national organization which promotes conventions and exhibitions.

10. An organization of travel agencies in the Philippines

Enumerate the following

11-15. List down five international tourism and hospitality organizations

16-20. Enumerate five tourism and hospitality organizations in the Philippines.