LESSON 1: OVERVIEW OF THE TOURISM AND
HOSPITALITY INDUSTRY
Macro Perspective of Tourism
• Provides an overview of the tourism and hospitality
industry in the local and global perspective. It examines
the various sectors that comprise the industry and the
involvement in the tourism system.
• Discussion center on the structure and scope, theories,
key concepts and forms of tourism; the impact of
tourism to economy, society and culture; the
psychological and consumer behavior theories; the role
of tourism and hospitality institutions and organizations;
the 2021 Sustainable Development Goals; Tourism and
Digital Revolution; Tourism and Hospitality Trends and
Issues in Local and Global Perspectives.
Micro Perspective of Tourism
• While Micro Perspective of Tourism centered on the
components and various influences that shape the
tourism and hospitality industry, it provides a brief
background of different sectors of the tourism industry
– their progress, type, structures, trends, best
practices, and the challenges and responses that each
sector is experiencing in terms of its operations.
• Discussion emphasizes the nine operating sectors of
Tourism; attractions, food and beverage,
accommodation, transportation, travel trade, and
tourism sectors, as well as basic competencies for
hospitality industry workers and managers.
Tourism
• Prof. Hunziker and Krapf of Berne University: Sum of
phenomena and relationships arising from the travel
and stay of non-reisdents.
• Tourism Society of Britain: Tourism is the temporary
short-term movement of people to destinations outside
the place where they normally live and work.
• Tourism Society of Cardiff: Tourism may be defined in
terms of particular activities selected by choice and
undertaken outside home environment.
• World Tourism Organization: Tourism is defined as
activities of persons travelling to and staying in places
outside their usual environment for not more than 1
consecutive year for leisure, business and other
purposes.
Tourists
• A tourist is a person who visits a country other than that
in which he usually resides for a period of at least 24
hours.
• A visitor is any person visiting a country other than that
of earning money (U.N. Conference on International
Travel and Tourism, 1963).
TWO CLASSES OF VISITORS
1. Tourists
• Temporary visitors staying at least 24 hours, whose
purpose could be classified as:
➢ Leisure such as recreation, holiday, health, study,
religion or sport
➢ Business
➢ Family
➢ Mission
➢ Meeting
2. Excursionists
• Temporary visitors staying less than 24 hours in the
destination visited and not making an overnight stay
including cruise travelers. But excluding travelers in
transit.
ELEMENTS OF TRAVEL
1. Distance
• Considerations
➢ Difference between local travel or travelling within a
person’s home community and non-local travel or
travelling away from home.
➢ It excludes commuting to and from work and
change in residence
• TRIP is defined as “each time a person goes to a place
at least 100 miles away from home and returns.”
• Local/Domestic Travel, Regional Travel, International
Travel.
2. Length of Stay at the Destination
• The definition of tourists and excursionists according to
the WTO is largely teased on the length of stay.
➢ Tourists are temporary visitors who make at least
one overnight stay.
➢ Excursionists are temporary visitors who do not
stay overnight in the country that they visit.
3. Residence of the traveler
• The residence or origin of the traveler is the third basic
element of travel. For business and research purposes,
it is important to know where people live.
4. Purpose of Travel
• Visiting friends and relatives
• Conventions, seminars and meetings
• Business
• Outdoor Recreation – hunting, fishing, boating and
camping
• Entertainment – sightseeing, theater, sports
• Personal – family, medical, funeral, wedding
THE NATURE OF A TOUR
1. Domestic Tourism
• Refers to travel taken exclusively within the national
boundaries of the traveler’s country.
• No language, currency, nor documentation barriers.
2. International Tourism
• Involves the movement of people across international
boundaries.
• Different language, currency, and documentation
requirements such as passports, visa, and other
condition of entry to be met.
3. Package Tour
• Sometimes called as inclusive tour, is an arrangement
in which transport and accommodation is bought by the
tourist as an all-inclusive price and the price of the
 individual elements cannot be determined by the ➢ Theater 3. Accessibility
purchaser himself. • Natural Attractions • Having regular convenience of transport in terms of
• Tour Operator organizes the package tour, purchases ➢ Landscape time/distance to the destination from the originating
transports and hotel accommodation in advance. ➢ Seascape country at a reasonable price.
➢ Parks
4. Inclusive Tour (IIT) ➢ Mountains TOURIST SERVICES
• Tourist travels to his destination individually. ➢ Flora 1. Transportation
➢ Fauna • Means to reach the destination as well as the
5. Group Inclusive Tour (GIT) ➢ Coasts movement at the destination.
• Tourist travels in the company of other tourists. ➢ Islands
• Public and Private Transportation, Domestic and
• Events International – land, sea, air
6. Independent Tour ➢ Mega events
• One in which the tourist buys the facilities separately, ➢ Community events 2. Accommodation, Food and Beverage, and
either making reservations in advance through a travel ➢ Festivals Entertainment
agent or en route during his tour. ➢ Religious events
➢ Sports events 3. Travel Agent (Distributor) and Tour Operator
THE TOURIST PRODUCT ➢ Trade events (Manufacturer)
➢ Corporate
• It is a service.
• Recreation 4. Currency, Documentation, Information,
• It is a largely psychological in its attraction.
➢ Sightseeing Sightseeing, Shopping
• It tends to vary in standard and quality over time.
➢ Gold
• The supply of the product is fixed. CHARACTERISTICS OF TOURISM
➢ Swimming
THE TOURIST DESTINATION ➢ Tennis
• Product is not brought to the consumer
➢ Hiking
• A tourist destination is a geographical unit where the ➢ Biking • Products of tourism are not used up
tourist visits and stay. ➢ Snow sports • Tourism is labor-intensive industry
• It may be a village, town, city, district, region, island, • Entertainment Attractions • Tourism is people-oriented
country or a continent. ➢ Theme parks • Tourism is multi-dimensional phenomenon
➢ Amusement parks • The tourism industry is seasonal
3 BASIC FACTORS OF A TOURIST DESTINATION
➢ Casinos • The tourism industry is dynamic.
• The success of a tourist destination depends upon the ➢ Cinemas
UNIT 1.2: THE INDUSTRY IN THE NEW NORMAL
interrelationship of the 3 Basic Factors: ➢ Shopping facilities
1. Attractions ➢ Performing arts NATURE OF T&H INDUSTRY – TOURISM
• Cultural Attractions ➢ Center
➢ Sports complexes • Tourism refers to travelling to a destination.
➢ Historical sites
➢ Architectural sites • Tourism is defined as activities of persons travelling to
2. Amenities and Facilities and staying in places outside their usual environment
➢ Architecture
• Amenities and facilities include accommodation, food, for not more than 1 consecutive year for leisure,
➢ Cuisine
➢ Monuments local transport and communications and entertainment business, and other purposes (WTO).
➢ Industrial sites at the site. • Tourism as an industry, consists of businesses that sell
➢ Museums ➢ Legoland hotel products or services to these travelers.
➢ Ethnic ➢ Themed airplanes
➢ Concerts
NATURE OF T&H INDUSTRY – HOSPITALITY
• Hospitality means welcoming a guest and making them
comfortable by providing their needs during their
temporary stay.
• Hospitality is the industry covering all the products and
services that serve travelers, tourists, and all types of
visitors.
NATURE OF T&H INDUSTRY – RELATIONSHIP
• Tourism brings revenue, growth, and development for
hospitality.
• The hospitality industry adds to the overall value and
importance of tourism.
• It creates more tourism demand, makes it look more
attractive, adds the much-needed comfort level for
tourists and travelers.
• T&H industry is a massive, collective industry offering
products and services to meet customer needs, provide
satisfaction, and generate revenue.
• It is interdependent in nature.
• T&H industry is under the service products.
• Products vary and are provided by multiple entities.
• Interdependent nature.
NATURE OF T&H INDUSTRY – CHARACTERISTICS
Intangibility
• As something that cannot be counted, measured,
inventoried, tested, and verified in advance of sale to
assure quality
Heterogeneity/Variability
• A variation in the service delivery from customer to
customer that is difficult to standardize the interaction
of employee-customer.
Inseparability
• The service product is not engineered at a
manufacturing plant and then later is sent to the
customer, but the customer has participated in the
process of production.
Perishability Growing Faster than the World Economy
• When the service product is not sold, then the value • Tourism is a key sector in many advanced and
will be lost forever or “unused” service today cannot be emerging economies
sold the next day.
IMPACT OF COVID-19
NATURE OF T&H INSUTRY – IMPORTANCE
• -74%: Loss of international tourist arrivals
Economic • 1 billion: Loss of international tourist arrivals
• International tourism could plunge to levels of 1990s
• Foreign exchange earning
• USD 1.3 trillion: Loss in international tourism receipts
• Contribution to government revenues
• Over USD 2trillion: estimated loss in global GDP (30%)
• Contribution to local economies
• 100-120 million: Direct tourism jobs at risk
• Employment generation
THE T&H INSUTRY IN THE NEW NORMAL
Socio-cultural
• Resilient
• Preservation of local culture and heritage
• Retrain, refresh and develop new concepts
• Revitalization/revival of traditional arts and crafts
• Sustainability, efficiency, innovation and technology
• Provision for social services
• Strengthening and empowering communities THE T&H INDUSTRY IN THE NEW NORMAL – WHAT
HAS CHANGED?
Environmental
Closer
• Environmental awareness
• Protection and preservation of natural resources and • Domestic tourism has shown positive signs in
wildlife many markets since people tend to travel closer.
Travelers go for ‘staycations or vacations close to
THE TOURISM AND HOSPITALITY INDUSTRY PRE- home.
PANDEMIC TIMES
New concerns
International Tourists
• Health & safety measures and cancellation policies
• International tourist arrivals in 2019 (10th consecutive are consumers’ main concerns.
year of sustained growth)
Get away
Millions of Jobs
• Nature, rural tourism and road trips have emerged
• With a high share of women (54% of the workforce)
as popular travel choices due to travel limitations
and youth and the quest for open-air experiences.
Export Revenues
Last minute
• 3rd largest export category • Last-minute bookings have increased due to volatility of
• 50% of total exports for many small developing pandemic-related events and the travel restrictions.
countries
Younger travelers most resilient • The United States of America is considered to be the ➢ Leisure parks
pioneer in the development of theme parks.
• Change in demographics: travel recovery has been INFLUENCES DETERMINING THE SUCCESS OF
• The first theme park was Disneyland created by Walt
stronger among younger segments. ‘Mature’ travelers VISITOR ATTRACTIONS
Disney in Anaheim, California in 1355.
and retirees will be the most impacted segments.
• The development of the attraction sector is not only • Professional management skills and the operator’s
More responsible concerned with theme parks; since the 1980s there has available resources
been a rapid growth in all types of attractions form • Type of attraction or product offering
• Sustainability, authenticity and local hood: travelers country houses to industry-related visitor centers. • Market demand for the product
have been giving more importance to creating a
Attractions • Ease of access from major routes and centers of tourist
positive impact on local communities, increasing
and resident populations
looking for authenticity.
• According to Pearce (2001), a TOURIST • Appropriate hours of opening
UNIT 2.1: ATTRACTIONS AND DESTINATIONS SECTOR ATTRACTION is a named site with a specific human or • Value for money
natural feature which is the focus of visitor and • Provision and quality of on-site amenities – parking,
THE NATURE AND SCOPE OF TOURIST management attention. visitor centers, signs and labels, shops, guides,
ATTRACTIONS • Swarbrooke (2001) defines attractions as single units; refreshments, toilets, litter bins, seating and disabled
individual sites or very small, delimited geographical provision
• Tourist attractions are major components of the tourism
units based on a single feature. • Proximity to and quality of near-site amenities, such as
industry that function as main motivators for travel
• Destinations are different from attractions because signposting, local accommodation, local services and
• Without attractions that draw tourists to destinations,
destinations are large areas that include several other attractions
there will be little need for other tourist services such as
individual attractions together with the support services • Quality of service, including staff appearance, attitude,
transportation, lodging, food distribution and others.
required by tourists. behavior and competence
KINDS OF ATTRACTIONS • The mood, expectation, behavior and attitude of visitors
CLASSIFICATION OF ATTRACTIONS
THEMES AND ISSUES IN THE MANAGEMENT OF
• Attractions may be classified according to its features.
VISITOR ATTRACTIONS
• These are following:
1. Core products
2. Physical environment
3. Ownership
4. Admission policy
5. Appeal
6. Size and capacity
7. Composition
THE EVOLUTION OF TOURIST ATTRACTIONS 8. Degree of performance
9. Visitor numbers FUTURE OF VISITOR ATTRACTIONS
• Tourist attractions are considered a modern creation.
• Attractions can be grouped as:
• The evolution of tourism depended on the existence • Management: revenue generation
➢ Historic houses
and development of attractions. • Marketing
➢ Museums and galleries
• As far back as the Roman Empire, travelers went to • Product development: creating world class destinations
➢ Wildlife attractions
Egypt to see pyramids. ➢ Castles • Interpretation and communication
• Later on, the Grand Tour routes were around the major ➢ Botanical gardens
cultural attractions of Europe. ➢ Steam railways
➢ Visitor parks
MOVING TOWARDS TECHNOLOGY-BASED ELEMENTS
OF ATTRACTIONS
• Creating a unique product
• Enhancing the visitor experience
• Competition
• Managing visitors
• Systems managements
UNIT 2.2: RECRATION AND LEISURE
Recreation
• The process of giving new life to something, or
restoring something.
Leisure
• The productive, creative or contemplative use of free
time.
RECREATIONAL ACTIVITIES
• Recreational activities include all kinds of sports, both
team and individual.
VARIED VIEWS OF RECREATION AND LEISURE
• Recreation means the network of public agencies that
provide parks, playgrounds, swimming pools, sports
fields, and community centers in several cities, towns,
countries, or park districts.
• Viewed as an outlet for the young people
• Means of achieving family togetherness
• Pursuing interesting hobbies, sports, or social activities
Recreation may be found in a senior center, a
• or pursue excellence in various forms of personal
sheltered workshop for mentally challenged individuals,
or a treatment center for physical rehabilitation.
• Environmentalists are concerned about the impact of
outdoor forms of recreation on our natural surroundings
such as forests, mountains, rivers, and lakes which are
the national heritage of a nation.
• Recreation and leisure is a rewarding form of human
experience and constitute an important aspect of
economic development and government responsibility.
• At present, the value of recreation and leisure is
universally accepted. As a consequence, the
government in both developed and developing
countries has accepted the responsibility of providing
and assisting leisure opportunities through extensive
recreation and park systems.
RECREATIONAL PARTICIPATION
• Recreation may be enjoyed with thousands of
participants or spectators or may be a solitary
experience.
• It may be strenuous or may be primarily a mental
activity.
• It may act as a lifetime of interest and involvement or
may consist of a single, isolated experience.
MOTIVATIONS FOR RECREATIONAL PARTICIPATION
• As a form of relaxation and release from pressures of
work and other tensions
• The need to express creativity, expose hidden talents,
expressions
• A channel for releasing hostility and aggression
• A way of struggling against the environment in
adventurous and high-risk pursuits
• An opportunity to make new friends or cooperate with
others in group activities
• Exploring new environment through travel and tourism
or seeking self-discovery or personality enrichment
through continuing education or religious activity.
FACTORS PROMOTING THE GROWTH OF
RECREATION
1. Increase in discretionary time
• Sophisticated technology has provided new forms
of recreation for people
• Outdoor recreation uses complex and expensive
devices in activities such as skydiving, hang
gliding, scuba diving, boating, roller blading, skiing,
and snowboarding.
• Computer dating provides a new form of social
contact for single adults
• Video games offers interactive competition and
exposure to “virtual realities”
• Internet provides information about vacation
choices and facilities in reservation
• Home-based recreation through electronic
entertainment
2. Public interest in health and fitness
• Growth of public interest in exercise and physical
fitness programs in the 20th century
• People are now concerned about improving health,
vitality and appearance through diet and exercise
• According to research, the most successful fitness
programs were those that provided recreational
interest and satisfaction
3. Commodification of leisure
• Various forms of recreation are being developed by
profit-seeking businesses- music, television, movie
businesses, sports stadiums, cruise ships, theme
parks and other leisure operations.
• In big cities, huge public fitness centers which
includes pools, aerobics, dance rooms, facilities for
family play are being built and charge membership
fees
4. Therapeutic recreation service
• Increased awareness of the recreation needs of
persons with physical, mental, or social disabilities
• Provides recreational programs for special
populations such as the mentally challenged,
mentally ill, and physically challenged
• Special Olympics – an international program of
physical fitness, sports training, and athletic
competition for children and adults with mental
retardation
5. New leisure roles for women
• At present, women play a more equal role in
recreational opportunities
• Growing interest in women’s tennis, gold,
gymnastics, track and field, and similar events in
every level of competition
• Outstanding women athletes have helped create a
new image of feminine strength, determination, and
self-confidence
TYPES OF ORGANIZED RECREATION
1. Government recreation agencies
• Federal, state, provincial agencies and local
departments that provide recreation and leisure
services as a primary function
• Also offers secondary responsibility such as those
concerned with social service, education, special
populations, and the armed forces.
2. Voluntary non-profit organization
• Non-governmental, non-profit agencies, both
sectarian and nonsectarian, which serve the public
at large with multiservice programs that includes a
substantial element of recreational opportunity
• Popular voluntary organizations include the Boy
Scouts, Girl Scouts, YMCA, YWCA, and YM-
YWHA
3. Private membership organizations
• Provide recreational and social activities for their
own members and assist community recreation
needs. Examples are golf, tennis, yacht, athletic,
and country clubs.
• Recreation sponsors connected to residence such
as swimming pools, sports or fitness complexes or
clubs attached to leisure villages, and apartments
or condominium units or retirement communities
are also included.
4. Commercial recreation
• Privately owned businesses which operate to make
a profit such as ski centers, bowling alleys,
nightclubs, movie houses, theaters, health spas or
fitness centers, dancing schools and theme parks
5. Employee recreation programs
• They serve those who work for companies or
employers by providing recreation as a part of a
total personnel benefits package, linked to other
services concerned with employee health and
fitness.
6. Armed forces recreation
• A form of government-sponsored activity
• Each of the major branches of the armed forces
operates an extensive network of recreation
facilities and programs
7. Campus recreation
• • It includes intramural athletics or sports clubs,
social activities, travel programs, performing arts
groups, entertainment, lounges, film series, and
other forms of recreation on college and university
campuses
8. Therapeutic recreation services
• Type of program designed to meet the needs of
persons with physical or mental disabilities,
individuals with poor health, dependent aging
persons, social deviant persons in correctional
facilities, and similar special groups.
TWO MAJOR RECREATION SERVICE COMPONENTS
Sports and Tourism
• SPORTS and TOURISM represent major areas of
recreational programming and constitute powerful
economic forces through their attraction for people of
every age and background.
• Strong links to each other through the growing field of
sports tourism and also overlap heavily with outdoor
recreation attractions.
SPORTS AS POPULAR RECREATION
• Major areas of recreational involvement.
• Sports command the highest degree of personal
interest and emotional involvement both for those who
participate actively in them and those who are part of a
big number of fans of school, college and professional
teams.
• Sports are defined as physical activities demanding
exertion and skill, involving competition, carried on with
both formal rules and general standards of etiquette
and fair play.
• Sports activities represent key recreation interests for
most youth and adults.
TOURISM – A MAJOR RECRETAION SERVICE
COMPONENT
• Tourism is a second major area of diversified
recreational involvement.
• Major elements in the tourism enterprise which are
closely linked to the growth of tourism as a form of
recreation are the following:
1. Theme Parks
• Concentrate on one dominant theme which may be
historical, cultural, or geographical.
• An example of a theme park with a single theme is
the marine zoological Sea World Park.
• Other parks focus on multiple themes like the Great
America in California, a hundred-acre family
entertain center divided into five themes: Home
Town Square, Yukon Territory, Yankee Harbor,
Country Fair, Orleans Place
 • The most popular theme park is Disneyland in
Anaheim, California, which was built by Walt
Disney, around the theme of Disney Characters.
• Theme parks create an atmosphere in which the
visitor is likely to experience fantasy, glamour,
escapism, THEME PARKS prestige, and
excitement.
2. Water Parks
• A special type of theme park that features wave
pools, slides, chutes, shows, and other forms of
water-based play and entertainment.
• Water parks are sometimes part of larger theme
park operations.
3. Fun Centers
• In heavily populated metropolitan areas,
entrepreneurs have developed a variety of indoor
fun centers, ranging from children’s play,
gymnastics, to family party centers, video game
arcades, and big restaurants with game areas.
• Some offer a combination of computer and video
games, billiards, miniature gold, entertainment by
clowns and magicians, music, and fast-food
refreshments.
• They also offer packaged birthday parties and
attractive family play activities.
4. Sports Tourism
• The purpose of sports tourism is to participate
directly in a form of sport or attend sports events as
a spectator.
• Today, both the team and the spectators travel to
the game especially where championship games
are involved.
• Major college and professional tournaments and
championships attract huge audiences.
• The World Olympics is the biggest sports event. It
attracts millions of spectators and generates
millions of dollars in revenue.
THE NEED FOR PROFESSIONAL LEADERSHIP 9. Expand and improve family-centered programs and
facilities;
• The professional’s assignment in the organized
recreation field tends to be more complex and difficult
10. Promote higher values and ethical practices in youth
than that of the volunteer leader or coach.
sports competition;
• It must involve carefully studied goals and objectives
and sophisticated planning and techniques.
11. Strive for fuller mainstreaming of persons with
• Recreation professionals should possess the skills
disabilities in community recreation programs;
needed for direct leadership and supervision, group
dynamics, and client assessment.
12. Plan for Iong-term role of recreation and leisure in
• They must have the ability to carry out basic research potentially job-scarce economy;
and write meaningful reports.
CHALLENGES FACING THE RECRETAION AND 13. Develop higher levels of professionalism through
LEISURE SERVICE FIELD IN THE 21ST CENTURY accreditation, certification, continuing education, or
program standards; and
Recreation professionals must be able to deal creatively
with the following challenges: 14. Unify separate branches of recreation and leisure
service fields (public, nonprofit, commercial,
1. Serve diverse society (race, age, gender);
therapeutic) in common programs and projects
2. Emphasize key social purposes of recreation in UNIT 2.3: MICE INDUSTRY
working with at-risk youth, serving persons with
disabilities, and promoting community development; THE MICE INDUSTRY: MEANING AND IMPORTANCE
• The MICE INDUSRTY is one of the fastest-growing
3. Achieve fuller public understanding of the value of
and lucrative sector of the tourism and hospitality
recreation and parks, and of the Ieisure-service
industry.
profession;
• It involves both tourists and nontourists.
• Visitors to MICE events: Participants, delegates, or
4. Upgrade recreation and park programs and facilities,
attendees.
particularly in inner cities and for minority populations;
• MICE activities usually take place outside the peak
season of leisure travel.
5. Adopt a benefits-based management approach;
researching, proving and publicizing positive outcomes THE EVOLUTION OF THE MICE INDUSTRY
of recreation;
• Before 1960, those travelling to conventions either
6. Promote recreation’s identity as health-related field; drove or traveled by train.
• The “jet age” stimulated business and leisure travel
7. Develop partnerships with environmental organizations • In 1970s, the intense construction of hotels and
to protect and restore wild lands, waterways; convention centers started.
8. Employ marketing approach to achieve fiscal
sufficiency and gain public respect and support;
THE MICE INDUSTRY: MEETINGS
- MEETINGS are conferences, workshops, seminars or
other events created to bring people together to
exchange information.
• These are usually organized by corporations,
associations, or social, military, educational, religious,
and fraternal groups (SMERF). The reasons for holding
a meeting can range from the presentation of a new
sales plan to a total quality management workshop
• Three types of meeting set-ups:
➢ Theater style
➢ Classroom style
➢ Boardroom style
Forms of Meeting
• CLINIC – a workshop where attendees learn by doing.
• FORUM – an assembly for a discussion of the group’s
common concerns, featuring a panel of experts who
take opposite sides of an issue
• SEMINAR – a gathering of professional who work
together under the guidance of a discussion leader
• SYMPOSIUM – a meeting where a subject is
discussed by experts and a consensus of the group is
gathered
• WORKSHOP – a small group led by a trainer
concentrating on skills enhancement
• CONFERENCE – a formal meeting of professionals for
exchange of opinions and information
• CONVENTION – a large meeting of people assembled
for a common purpose
• COLLOQUIUM – an informal discussion on
groupselected topics
• PANEL – consists of two more speakers stating their
viewpoints
• LECTURE – a meeting in which an expert speaker
addresses an audience
THE MICE INDUSTRY: INCENTIVES
- INCENTIVES are rewards for achievement used by
corporations to motivate employee to higher sales
efforts
• May be in the form of goods or trips to glamorous or
exotic places.
• Incentive travel as a global management tool that uses
an exceptional travel experience to motivate and/or
recognize participants for increased levels of
performance in support of organizational goals
(Swarbrooke & Horner, 2001).
THE MICE INDUSTRY: CONVENTIONS
- CONVENTIONS are usually larger meetings which
include some form of exposition or trade show.
• Conventions are now always held in convention
centers. Majority are held in large hotels for a three to
five day period.
Key Players in the MICE Industry
• Convention and visitors bureau (CVBs)
• Meeting planners + clients
• Convention centers
• Specialized services
• Exhibitions
Convention and Special Events Management
Companies
• Entities that provide convention and special events
management services include the following:
➢ Destination management companies
➢ Independent meeting management companies
➢ Travel management companies
➢ Special events professionals, public relations firms
➢ Government entities and tourism offices
Types of events in Special Events Market
• CORPORATE EVENTS – incentive programs, product
introductions, building openings, recognition events,
anniversaries, retirement, groundbreaking, and ribbon
cutting
• MEETINGS, CONVENTIONS, EXPOSITION S –
opening ceremonies, gala dinner, dances, opening
receptions, awards ceremonies, theme events, trade
shows, and expositions
• PUBLIC EVENTS – parades, fireworks, displays,
festivals, fairs, inaugurations/swearing in ceremonies,
holiday observances, military ceremonies, and sporting
events
• RETAIL EVENTS – grand openings, promotions,
celebrity appearances, and seasonal promotions
• SOCIAL/PRIVATE EVENTS – weddings,
anniversaries, graduations
THE MICE INDUSTRY: EXPOSITIONS AND
EXHIBITIONS
- EXPOSITIONS or EXHIBITIONS: Events designed to
bring together suppliers of products and services who
will demonstrate their products and services to the
attendees in order to make sales or establish contacts.
• Expositions need several hundred thousand square
feet of space, divided into booths for individual
manufacturers or their representatives.
MICE INDUSTRY IN THE PHILIPPINES
• Key MICE destinations: Manila, Cebu, and Davao
• Manila – “Pioneer of Asia’s MICE Industry”
• Davao – Booming MICE City
Source: TPD (2017)
Pandemic Situation
• MICE Industry can facilitate the economic recovery of
PH (DOT, 2021)
• The MICE Sector shifted to a hybrid format (e.g.
Philippine Travel Exchange (Phitex) in Bohol held in
September 2020) (Rocamora, 2021)
LESSON 2.4: GAMING AND ENTERTAINMENT
INDUSTRY
Entertainment
• Includes attending festivals, events, fairs, spectator
sports, zoos, botanical gardens, historic sites, cultural
venues, attractions, museums, and galleries (Wescott
et al., 2015)
• A powerful tourism magnet
• Wants of the travelling public:
 ➢ To have fun
➢ To be entertained
➢ To enjoy fantasy
➢ To escape from life realities
• Entertainment has risen to a new level in the vacation
decision - making process.
Entertainment Destination
• A venue where people go to enjoy entertainment
activities, such as concerts, musicals, medieval
festivals, magic performance, circus, comedy, sport
events, theatre, dancing, clubbing and theme park visit
(Besciu, 2013)
THE GAMING INDUSTRY
• It is also called Gambling that become a major force in
the tourism industry.
• Gaming as a recreational pursuit is becoming more
popular
• It covers various activities such as casinos, card
games, charitable games, lottery-operated and betting
on greyhound and horse races.
• It is often combined with other kinds of entertainment,
like nightclub shows and sports activities.
NEVADA- birthplace of gambling business.
MACAU – World’s Gambling Capital
• “Macau’s gambling scene is at least four times the size
of Las Vegas” (Turea, 2022)
HISTORY OF GAMING ENTERTAINMENT
• The gaming entertainment business has its roots in Las
Vegas.
• From 1940 to 1978, Las Vegas had a monopoly of the
casino business, not the gaming entertainment
business. During this time, casinos had no hotel rooms,
entertainment, and other amenities.
• Centralized gaming control by regulatory agencies
such as the Gaming Control Board and the Nevada
Gaming Commission developed during these years.
MEANING OF GAMING ENTERTAINMENT
• Gaming entertainment refers to one subset of the
gaming industry that is the casino industry.
• If offers games of risk as part of the total package of
entertainment and leisure activities.
Gaming Revenue
• Is obtained from casino win or the money that guests
spend on the casino floor.
Non-Gaming Revenue
• Comes from sources that are not related to betting on
the casino floor.
GAMES AND FACILITIES THAT EXIST ON THE CASINO
FLOOR
1. TABLE GAMES – these involves wagering or betting
between the casino and customers.
2. CARD GAMES – Casino card games is different from
table games in that the casino does not wager against
the player but merely offers games in which the players
can gamble against each other
3. SLOT MACHINE or VIDEO GAMES – Slot Machines
feature simulated or actual spinning reels that are
activated by the pull of a handle or the push of a
button, the video games include video poker, video
keno and video bingo.
4. KENO and BINGO – by random number selections
5. RACE AND SPORTS BOOKS - Race books feature
wagering on horse track betting while sports books
feature professional and collegiate sporting events.
6. CASINO CAGE – The financial customer and
accounting for money handled on the casino floor
represent integral activities for cage
7. SURVEILLANCE – Watch on all gaming activities. Also
known as the eye-in-the-sky.
8. ANCILLARY DEPARTMENT – these are support
departments that include restaurants operations, bars,
entertainment centers such as lounges and lodging
facilities.
REASONS FOR VISTING CASINOS
• The lure of gambling
• Recreation/Entertainment
• Social
• Economic
• Curiosity
• Amenity offerings
2 CONTROVERSIAL ISSUES IN GAMING
ENTERTAINMENT
1. The Impact on Organized Crime – organized crime
are more likely to be by-product of illegal gambling than
of well-regulated commercial gambling.
2. Gambling Addiction – or pathological gambling is a
chronic and progressive failure to resist impulses to
gamble
THE GAMING INDUSTRY IN THE PHILIPPINES
• Casino industry is significantly important to the
Philippine economy
• PAGCOR
➢ responsible for governing the casino industry.
➢ 100% owned by the government
➢ operates 13 casinos
➢ PAGCOR’s monopoly stopped in 2008
• “The casino/entertainment complexes in Entertainment
City have been, and will continue to be the main money
makers and tourist draws for the foreseeable future.”
• Mobile gaming has developed at an astonishing rate,
with 2.4 billion people playing games on mobile in
2019” (Jones, 2020)
• In 2020, mobile games generated $77.2 billion in
revenue recording a 12% increase in players to 2.5
billion (Forbes, 2021)
• Indonesia, Malaysia, Thailand, Vietnam, Singapore,
and the Philippines are the six most significant
countries for mobile gaming in Southeast Asia
LESSON 2.5: FOOD AND BEVERAGE
HISTORY
• The early inns provided a crude menu.
• The forerunner of the modern restaurant developed in
Rome.
• In 1200, public cook shops were opened in London
• 16th century
➢ British inns and taverns began to serve one meal a
day at a fixed time and price and at a common
table
➢ Meal – “Ordinary”
➢ Dining rooms – “Ordinaries”
• In the 17th century, ordinaries became:
➢ Fashion clubs
➢ Gambling places
➢ Centers for political activities
• RESTAURANT
➢ Used in the late 18th century
➢ Paris dining room serving light dishes
• 1830s
➢ Delmonico’s opened in New York
➢ Delmonico’s Restaurant was the first luxury
restaurant in New York, and over the course of
almost 100 years defined “haute cuisine” in
America.
➢ This was the very first restaurant or public dining
room ever opened in the United States. The
brothers modeled their restaurant on those which
were quickly growing throughout Europe.
• 1904
➢ First hamburger was served at St. Louis World Fair
• Royal Allen and Frank Wright
➢ The first root beer stand was founded
➢ A&W restaurant
• The Second World War brought many changes to the
American public. People became richer, the automobile
made them more mobile, and they shifted to the
suburban cities.
• Fast-food establishments emerged in the 1960s
TYPES OF RESTAURANTS
1. Family or Commercial Restaurants
• Offer a wide menu of “meat and potato” selections
with a price range that appeals to an average
family income
• Normally located near a residential area and
highways
2. Coffee Shops
• Characterized by a fast-food service
• Usually located in office buildings or shopping
malls
• Peak periods of coffee shop are lunch and coffee
breaks with operating hours from early morning to
late evening.
3. Cafeterias
• Usually located in shopping centers and office
building. Self-service is typical with limited menus
of soups, entrees, desserts, and beverages
• Often require a large preparation area and fast
service is necessary to handle the traffic volume
• The operating hours will depend on the location of
schools, office buildings, airports or highways
4. Gourmet Restaurants
• Require a higher initial investment than other types
of restaurant. They Cater to those who want a
higher standard and willing to pay the price.
• Food offerings are priced high
• Evening period is the main emphasis
5. Ethnic Restaurants
• Feature the food of a specific region or country with
ethnic motif
• Prices range from budget to high
6. Fast-food Restaurants
• Franchising is common
• Operate for long hours and generally for seven
days a week
• Pioneers in establishing more efficient food-
operating systems.
7. Deli Shops
• Provide delicatessen food service (traditional
delicatesses cold meats and cheese + takeout
sandwiches and salads)
8. Buffet Restaurants
• Established on a completely selfserve basis •
Usually “all you can eat” hot and cold food for a
single price.
9. Transportation Restaurants
• Generally found along auto and bus transportation
routes
• Also at bus, rail, and air transportation buildings or
transportation vehicles as trains and ships
• Require special cafeteria or buffet-type facilities
FRANCHISING
Franchised Restaurants - major component of the food
service industry
• Franchises are beneficial to the franchisees
• A regional franchises allows a franchise to develop
multiple outlets within a specific geographical area
• Franchised restaurants included fast-food chains,
buffet restaurants, dine-in types of restaurants, etc.
RESTAURANT PROFITABILITY
• Food Cost Percentage
➢ Used to measure a restaurant’s marketing success.
➢ Food cost ÷ sales x 100 = Food cost percentage
❖ Php 50,000 ÷ Php 110,000
• Gross Profit
➢ Selling price – food cost = Gross profit
• Labor costs
➢ Are controlled by expressing them as a percentage
of sales on a particular period and comparing the
actual cost with the standard desired
➢ Standard: 75% above (food costs + labor costs
must not increase)
• Average Guest Check
➢ Total revenue received – total number of guests
served = Average guest spending
➢ $ 4, 250 ÷ 300 = $ 14.17
• Breakeven Point
➢ A point at which a business will make neither a
profit nor a loss.
➢ Fixed cost- costs that remain the same regardless
of the business’s volume.
➢ Contribution margin – average check less variable
costs
❖ Fixed cost ÷ Contribution margin = BREAKEVEN
POINT
❖ Example: A restaurant has an annual fixed cost of
$ 125,000 and an average guest spending of
$10.00 and its variable cost such as food, labor,
and others is 75% of revenue or $7.50% guest
served
❖ $125,000 ÷ $2.50 = $ 50, 000
❖ Contribution Margin = Average guest spending –
Variable Cost
❖ Fixed Cost = Contribution Margin * Breakeven
Point
MENU
• The basic planning document for a successful
restaurant.
• It contains the following:
➢ Range of offerings
➢ Selling prices
• It determines the equipment needed and the
investment required
• It identifies the labor cost of a restaurant
LESSON 2.6: ACCOMMODATION
HISTORY OF THE ACCOMMODATION OR LODGING
INDUSTRY
• The lodging industry developed because of the need to
provide accommodations for travelers.
• Early roadside inns were mentioned in both the Old
and New Testament in the Bible.
• Excavations in Pompeii reveal that the Romans had
developed the concept of inns into a trade.
• The history of the hotel in its present form goes back to
the Middle Ages. In the 13th and 14th centuries,
German and English literature made frequent reference
to the inn.
• The development of the inn in the late medieval period
was due to the improvements in security in many
European societies.
• Early 1500s and 1700s, there was a greater demand
for accommodation as people migrated to the cities to
work.
• The Industrial Revolution and the development of spas
helped the growth of the hotel industry.
• By 1750, Brighton, Blackpool, Southern, and other
English seaside resorts were attracting bathers.
• • America’s first hotels were seaport inns. An example
of an early American inn in Manhattan’s Fraunces
Tavern.
• Pre-revolutionary boarding houses are preserved in
Guildfored, Connecticut, Colonial Williamsburg, Virginia
and elsewhere.
• By the middle of the 17th century, the public
stagecoach had appeared.
• In the next 200 years, the lodging industry was
influenced by the development of road transport.
Coach service was established by innkeepers to attract
business.
• Inn was used as a boarding house, booking office,
waiting place eating establishment, center of town’s
social activities.
• A different kind of hotel was developed due to the
development of railways in the 1820’s and 1830’s.
• In Europe, large hotels were built next to or across the
downtown railroad station.
• In the United States, hotels were constructed along the
railroad network.
• The development of the Automobile Industry led to the
establishment of the roadside hotel.
• With the construction of highways and expressways,
the lodging industry responded to the needs of the
motorists.
• The motel hotel or motel emerged.
• After the World War II, advances in air transportation
led to the increased number of travelers who
demanded more and more hotel space.
➢ Airports
➢ Downtown
➢ Resort Areas
HISTORY OF DELUXE HOTELS
• The most famous is Hilton Corporation built by Conrad
Hilton.
• His empire includes the Waldorf Astoria in New York
and the largest hotel in the United States, the Conrad
Hilton Hotel in Chicago with 3,000 rooms.
HISTORY OF FIRST CLASS HOTELS
• The fastest growing group was the Sheraton chain
founded by Ernest Henderson.
• The chain is now owned by International Telephone
and Telegraph Company (ITTI).
HISTORY OF HOTELS
• In 1952, Kemmons Wilson founded the Holiday Inn
chain and its concept of clean, comfortable, and
reasonably priced accommodations for the ordinary
traveler.
• The popularity of the sun vacation in the 1960s brought
about the development of the resort hotel.
• Hotels changed in appearance as extra features were
added such as glasscovered elevators, atrium lobbies,
a variety of restaurants and bars, functional meeting
rooms, and a full array of recreational opportunities.
TYPES OF ACCOMMODATIONS
1. Hotels
• Hotels can be a 10-room boarding house or a building
that has thousand or more rooms, convention and
meeting facilities, recreation facilities such as
swimming pools and tennis courts, 24-room service,
with several restaurants and bars and various types of
entertainment.
• Hotels have been designed and built to meet almost
any kind of budget or comfort level that the traveling
public might want.
2. Motels or Motor Hotels
• Motels only offers rooms and free parking to guests.
These are often found along busy highways and cater
primarily to transient and cost-conscious travelers.
3. Resort Hotels
• Resort hotels are intended for vacation travelers.
These hotels range from budget to luxury and can
accommodate these travelers and even convention
delegates. These are usually located near beaches and
offer more amenities, shops, and recreation
opportunities.
4. Pensions
• Pensions are found principally in Europe. These are
usually familyowned accommodation facilities. In
German speaking parts of Europe, a pension is also
called Gasthaus. Pensions and Gasthaus usually offer
continental breakfast but do not have facilities for other
meals. Pensions are known for their informal family
atmosphere.
5. Paradors
• Paradors are unique to Spain. These are generally old
castles, convents or monastries that have been
converted into hotels by the government and are
operated by the government.
6. Condominium Hotels
• Condominium hotels are a recent innovation. These
are often hotels with apartments (condominiums)
instead of basic rooms. The condominium units are
sold by the hotel developers to individuals who are
given a title to the physical real estate.
• The individual owners then contact the developer or a
management company to operate the hotel and rent
the space to visiting tourists.
• The individual owners have the right to stay in their
own units during specific periods of the year with a
reduced room rate.
• The developers or management company receives a
fee for managing and renting out the units.
7. Campgrounds
• Camping is a popular form of overnight accommodation
in both Europe and North America. In North America,
there are at present more than 20,000 campgrounds,
some of which are owned by hotels. Campgrounds
usually appeal to families who travel in recreational
vehicles RVs. Campgrounds and RVs stopping spots
are often found in government parks and forests.
8. Bed Breakfast
• Bed and breakfast is a form of lodging which originated
in Europe. This form of accommodation provides a bed
for the night and breakfast the next day.
9. Tourist Inns
• Tourist inns are lodging establishments that cater to
transients. These do not normally meet the minimum
requirements of an economy hotel.
10. Apartment-Hotels (Apartels)
• Apartment-hotels are buildings which contain several
independent and furnished or semi-furnished
apartments. These are leased to tourists and travelers
on a long-term basis and offer basic services to its
tenant, similar to hotels.
11. Health Spas
• Health spas are hotels and resorts which cater to
people who go to spas or mineral springs for medical
treatment or weight reduction.
• Several health spas in Europe offer modern techniques
such as medically supervised rejuvenation programs
which include supervised diets and rigorous exercises
to shed fat and reduced weight.
12. Private Homes
• The private home is the earliest form of overnight
lodging for travelers. It provides lodging to tourists who
cannot be accommodated in hotels and motels during
peak vacation periods.
13. Time Sharing
• Time-sharing is a more recent unique type of
accommodation. It started in Europe in the 1960s when
people found it difficult to make reservations every year
in popular hotels during summer.
• Time-sharing is the selling of vacation lodging, usually
condominiums, for a specific week or weeks over a
given number of years.
• The resort would rent the units during the time when
the owner was not in residence, providing an income to
help with the payments.
14. Hostels
• Hostels provide basic amenities such as a bunk bed
and a commonly shared toilet and bathroom. The
traveler provides his or her own bedding. Hostels
appeal primary to young travelers.
CLASSIFICATION OF HOTELS
There are different ways of classifying hotels, such as:
• LOCATION: Hotels may be center-city, suburban,
airport, or highway
• TYPE OF GUEST: Hotels are classified as commercial,
conventions, or resort
• PRICE: Hotels are categorized as economy, standard,
first class, or deluxe
RATING SYSTEM
• Rating systems are based on the quality of the physical
structure, furnishings, maintenance, housekeeping, and
overall service.
• The following are used to rate hotels, motels, inns,
resorts and guests ranches:
➢ 1-star = Good, better than average
➢ 2-star = Very good;
➢ 3-star = Excellent;
➢ 4-star = Outstanding; and
➢ 5-star = One of the best in the country
ORGANIZATION OF THE LODGING INDUSTRY
• A typical hotel has 7 major divisions: personnel,
engineering and maintenance, accounting, security,
food and beverage, marketing and sales, and room
division. Each division is run by its own division head.
HOTEL TERMINOLOGY
• Room rates for hotels are quoted in terms of what
meals are included in the price.
EUROPEAN PLAN (EP) - means that there are no meals
included. This is the most commonly used room rate
quoted by North American hotels.
AMERICAN PLAN (AP) - means the breakfast, lunch, and
dinner are included in the quoted price. In Europe, AP is
known as full pension. meals are usually a fixed menu with
little or no choice.
MODIFIED AMERICAN PLAN (MAP) - includes breakfast
and dinner but not lunch; breakfast and lunch but not
dinner. In Europe, this is known as demi pensi on.
CONTINENTAL BREAKFAST - is offered by most
European hotels and is included in the room rate. In
Europe, this type of plan is known as hotel garni or pension
garni which consists of rolls, coffee, and sometimes juice.
BERMUDA PLAN (BP) - is offered by hotels in Bermuda
and some other places. It includes both a room and a full
English or American type of breakfast. Bed and breakfast
hotels operate on a Bermuda Plan in Britain and the United
States and on continental breakfast plan in continental
Europe.