CHAPTER 6

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SITE
SELECTION
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LEARNING OBJECTIVES:

 Discuss the important of location in the

hospitality and tourism industry; and
 Enumerate the different criteria for site
selection of hospitality and tourism
facilities.
 INTRODUCTION
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Location is a crucial factor in a
person’s choice of where to live, work,
and build his/her business. The location of
a business is significant in the success of
its operation and determines the overall
growth of the trade. The choice of the site
provides the necessary platform to launch
the brand of the facility or to validae and
sustain their existing trademark. The
consideration in setting up facilities for the
industry of hospitality and tourism involves
several processes and considerations.
 CONTENTS
Johann Heinrich Von Thünen (1826) a landowner in Prussia, modern Germany
introduce the theory of agricultural location. His model suggested that a single market
surrounded by farmland creates maximum profits in relation to its location, rent, and
transportation cost. His theory is that the lower the cost to transport the goods the
higher the rent of the facilities and vice versa.

Alfred Weber (1909) introduce the location triangle. His work is considered the
foundation for modern location theory. He enumerated the three main factors that
influence industrial location. These are transport costs, labor costs, and agglomeration
economy. Agglomeration explains the advantage of clustering industries, urban growth,
and local economy.

William Alonso (1964) a economist explained how different types of land used for
housing, commercial, industrial, and institutional facilities are influenced by their
accessibility requirement. In his theory, wealthy households choose to live in the fringe
of the city because their need to be at the center is not as apparent as for the poor
households’ requirement to be near the city center for their jobs and access to goods
and services.
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GENERAL CRITERIA FOR SITE SELECTION

1. Location – The location of the facility is one of the top criteria of

travelers when choosing their accommodation whether for business
or recreation. This refers to a larger sphere of influence than that of
the facilities. The context can be a district, city or municipality,
region, or even bigger depending on the impact of the facility.

2. Site – The site of the project refers to both contextual and physical
manifestation of the area. The context of the area refers to the
environment of the location. This includes the zoning of the area,
the characteristics of the landscapes, the quality of the open
spaces, and the built environment. This also includes the following
concerns:
a. Acess to Transportation – This pertains to the services of the
movement of goods, services, and people. Access to Transportation
allows ease of mobility for a greater majority. The provision of public
transport is a criterion that should be considered in selecting a site for a
facility.

b. Access to Utilities – The provision of public utilities such as portable

water, electricity, telephone, and Internet service is a determinant in
identifying a suitable site for facilities. However, there can be an
exemption if the concept of the project is to focus on off-grid sources of
energy. The facility can use alternative source such as solar panels,
wind turbines, hydroelectric, and similar alternative source of energy.

c. Land Area – The size of the lot is dictated by the kind of facilities and
the concept of the project. In some cases, the owners would consider
modular development in the expansion of the facilities. This can be
determined with the help of professionals of the built environment and
other stakeholders.
3. Building – In cases when a facility of the hospitality and tourism industry
would choose a location inside a complex or a building, they must
consider the concept of the development. There are specific architectural
designs and images of a facility that a certain group of people would
gravitate to and patronize. The young will be more inclined to go to bars
with music and freestyle dancing, while more mature groups are
predispose to structure ballroom dancing.

4. Cost of Construction or Renovation – The decision of whether to build

a new structure or renovate an existing space or building becomes very
difficult when there are no variables to compare with. It is important to lay
down the pros and cons of building and renovation. Some of the issues
to consider are the following:

a. The extent of the renovation in order to achieve the concept of the facility
– There might be a need to update and upgrade the utility systems such
as water lines, sewage, electrical systems, and Internet connection to
address building code issues and adhere to the concept.
b. The cost of long-term and short-term construction – Renovating a
structure while in operation would take a longer time than constructing
in a vacant space. The time would also add up to the cost and the
possible revenue if the facility is in full operation.

c. Structural integrity – The structural integrity of the building will play a

big part in the construction cost if there is retrofitting to be done in
order to carry additional load. If the building holds historical value to
the community, changing its use and appearance might have an
impact on the facility’s acceptance in the community.

d. New construction – Building from scratch might cost more, but it is

more efficient in terms of layout because it is designed for its purpose.
The cost of maintenance can be lower because of the use of new
system and materials. The possibilities of design are endless in
creating the brand for the structure.
5. Legal Issues and Restrictions

• It is important to know the legal restrictions of the site being considered.

Zoning of the site will determine whether the area is appropriate for
proposed facilities.
• In a planned unit development such us Bonifacio Global City, ASEANA,
and Rockwell to name a few, there are specific designs and deeds of
restrictions that the designers need to follow before even applying for a
permit from the city or municipality.
• As a rule, the Comprehensive Land Use Plan (CLUP) of the city or
municipality dictates the development to monitor the rational use of the
land to ensure sustainable growth and development.
• The city or municipality should identify the land use zone in accordance
with the CLUP. For proper identification, the specific area marked as “R”
for residential districts, “C” for commercial districts, and “I” for industrial
districts. Zoning ordinances regulate the land use and building height
restrictions.
 Land use plan as used in CLUP is classified into the following
categories:

R1 – refers to Low Intensity Residential Zone which is characterized

mainly by single-family, single-detached dwellings, row, and duplexed
houses.

R2 – refers to Medium Intensity Residential Zone which is characterized

mainly by medium density housing such as low and medium-rise, multi-
household family dwellings on a limited scale.

R3 – refers to High Intensity Residential Zone which is characterized by

mixed housing types and high-density housing, similar to high-rise dwelling
structure.

C1 – refers to Low Intensity Commercial Zone which allows all permitted

uses under the R1, R2, and R3 classifications.
C2 – refers to Medium Intensity Commercial Zone which is characterized by
commercial development and can be a mixture of retail and wholesale trade
which may also contain the service and entertainment industries (such as
restaurants, stores, and commercial centers).

C3 – refers to Heavy Intensity Commercial Zone which is characterized by

heavy commercial developments that deal with trade, service, and
entertainment on a large scale of operations such as metropolis or those
regional in nature.

I1 – refers to Light Industrial Zone which covers industrial that are

classified as non-pollutive but may or may not be as hazardous.

I2 – refers to Medium Industrial Zone which covers industries that are

classified as sources of pollutants but may or may not be as hazardous.

I3 – refers to Heavy Industrial Zone which covers industries classified as

high in pollutants and possible sources of hazardous emissions.
Special District

A1 – refers to Agro-industrial District which is an area for industrial uses that are
derived from agricultural produce.

GC – refers to Government Center which is an area devoted to national, regional, and

local government offices, institutions, and edifices.

AGR – refers to Agricultural District which is an area with prime agricultural lands
where activities are restricted to agriculture and auxiliary structures such as drying and
milling areas.

C – refers to Cultural District Area which is reserved for cultural institutions like
galleries, museum, heritage buildings, and cultural and civic centers.

PUD – refers to a Planned Units Development which points to land development

projects that allows planned land use mixed designs that enhance the environment
rather than result in its deterioration. These are usually brownfields.

AZ – refers to Airport Zone which is a self-contained unit specifically devoted to airport

terminals, hangars, control towers, and other related facilities.
 Hotels with casinos or any establishment that caters to
gambling and selling of alcohol, cigarettes, or tobacco should
be 200 meters away from school or churches.

Creating a Brand Through Site Selection

The brand of the business affect the determination of the

location. The location of the facility is not limited to clients,
patrons, and guests gravitating to the establishment, it
should also consider the sources of resources such as
supply of goods and manpower. The brand works hands in
hand with the vibe and reputation of the location and the
ambiance of its architecture to promote an overall
experience.
Site Criteria by Major Sector of the Hospitality and Tourism Industry
1. Accommodation and Lodging – In the hospitality and tourism
industry, accommodation and lodging pertain to a place that provides
shelter for a guest to stay and sleep for a certain period of time. It can
encompass a wide range of services and activities which can include
food service, business centers, shopping area, convention center, and
recreation.

a. Hotels – Generally, hotels are

classified in terms of size, clientele base
and target markets, level of service and
ownership, and affiliations. Hotels are
usually found in high-density that are near
airports. Inland countries with an
established train system that crosses
borders also host major business hotels.
Waterfront Airport Hotel & Casino Mactan
b. Resort Hotel – This type of hotel is
classified differently from the previously
mentioned hotel accommodations because
of its location. The primary clientele for this
type of accommodation are vacationers.
These hotels are, more often, located near
natural resources and sceneries such as
beaches, lakes, and mountain ranges.
Pearl Farm in Davao
c. Bed and Breakfast – These types of
accommodations are usually family and
guest houses that are converted to
accommodate not more than 10 rooms.
Usually, they have shared bathroom
facilities and the only available meal served
is breakfast. They are relatively small and
sometimes share the facilities with the
owner who live in the same building or area. La Casita Mercedes Bed and Breakfast
d. Condotel – This type of accommodation
is intertwined with condominiums that allows
guests to prepare their own meals with
housekeeping services for linens and room
cleaning. The site is usually near business
districts and commercial establishments.

Manila Condotel at Shell Residence

3. Food and Beverage – The food and beverage component of the

hospitality industry accounts for the biggest segment in this line of
business. The three general classifications are the fast-food
concessioners, high-end restaurant and bars, and catering
establishments.
a. Fast-food concessioners are mostly
located in high-density areas such as inside
malls and near offices, schools, and zones
with heavy foot and vehicular traffic.
Fast-food Restaurant in a Mall
b. High-end restaurants can be seen in
five-star hotels as part of their amenities.
Stand-alone restaurants would focus on
finding a location that would complement
and supplement the brand and concept of
the establishment. Blackbird Makati, Nielson Tower

c. In determining the location of the commissary of

the catering service, the proximity of the possible
clientele must be established. There are maximum
distance that a caterer can provide delivery for their
services. Although there are refrigerated vans, the
quality of food is atill a major consideration.
Airline Catering
4. Travel and Tourism Offices – Travel
agencies are normally located in airports,
seaports, and malls with heavy tourism
visitors. There are also instances that they
are attached to hotels and tourist
destinations.

Travel Agency Inside the Airport

5. Entertainment and Recreation – In identifying
the site for entertainment and recreation, it is
important to identify the kind of operation. This is a
significant issue in determining the size of the lot.
Regarding the demographics of the area, questions
such as, “Are there possible users within a five-
kilometer radius?” or “Will it cater to local foreign
visitors and tourists?” should be asked. High-fiot
traffic for potential clients can also be a factor in the
site selection. The ordinances of the site determine if
Enchanted Kingdom in
the business will allowed by the government or not. Santa Rosa, Laguna
Likert Scale for Site Selection

Rensis Likert, a social psychologist, proposed the use of points to

develop a rating scale. The Likert Scale is used to measure conditions to
aid in decision-making by identifying criteria and assigning a rate.

Likert Scale for Site Selection for a Resort Hotel

Scoring is from 1 to 5 with 5 as the highest possible score.