ENTREPRENEURSHIP IN TOURISM &

HOSPITALITY INDUSTRY
TM-THC106
MW 10:00 – 11:30AM
The Role of Entrepreneurship in Hospitality and Tourism Industry

Learning Objectives:
At the end of this lesson, the student must be able to:
1. Explain what a tourism entrepreneur is;
2. Understand what does a Tourism Entrepreneur do;
3. Realize the importance of Entrepreneurship in the
hospitality and tourism industry.
What is a Tourism Entrepreneur?
A Tourism Entrepreneur is a person who undertakes a
risk to start up their own business. This risk could end
up making a profit or dishing up a loss. An Entrepreneur
usually has a vision, dream, or an idea which with a lot
of hard work, they try and make work.
A Tourism Entrepreneur, therefore, will have an idea
that will hopefully work in the tourism industry.
What does a Tourism Entrepreneur do?
 Defining what area of tourism you want your
business to be in
 Researching the tourism industry and tourism trends
 Writing a business plan
 Planning a working schedule
 Liaising with bank manager for a loan
 Hiring and firing the right people
 Working long hours to make sure your business takes off
 Marketing your business
 Networking with people in the industry that will benefit your
business
Entrepreneurs introduced the concept of Tourism Businesses.
Entrepreneurship plays a vital part in transforming the supply
of leisure and recreational opportunities. Entrepreneurship is
considered a critical factor in tourism development, both
regionally and globally.
Tourism Entrepreneur
• Is a person or a group of persons producing and
managing tourism products. Tourism entrepreneurship
has been recognized as the basic way to provide
strategic support for maintaining business development
especially in rural areas.
• The prominence of entrepreneurs in tourism
development and claimed that the birth of touristic
business is not an act of nature but an act of the tourism
entrepreneur.
• It is only when tourism entrepreneurs exist in a
society’s environment, landforms, flora and fauna,
historic artifacts, and cultural heritage enclaves
become tourism resources which can be renovated
and transformed into tourist attractions and
destinations. Tourism produces a great deal of profit
and it is the fastest growing sector in the world.
Importance of Entrepreneurship in the Hospitality and Tourism Industry

Entrepreneurship is an important force behind success

in any industry. This is particularly in the dynamic and
rapidly evolving hospitality, leisure, sport, and tourism
industries throughout the world. These entrepreneurial
industries are major contributors to national economies
and their growth are guaranteed to grow both in terms
of their quantity and quality.
There are challenges related to reaching growth targets
and these relate to capacity, availability, and skills of the
workforce, developing new products and services, and
ways of delivering these to the customer.
Hence, entrepreneurship is necessary for overcoming
these challenges, and in achieving this, the outcomes are
the various forms of innovation. Entrepreneurship then is
the key to gaining competitive advantage and as a result,
greater financial rewards.
What is a Competitive Advantage?

• A competitive advantage is an attribute that enables a

company to outperform its competitors. This allows a
company to achieve superior margins compared to its
competition and generates value for the company and its
shareholders.
• A competitive advantage must be difficult, if not
impossible, to duplicate. If it is easily copied or imitated, it
is not considered a competitive advantage.
Examples of Competitive
Advantage
• Access to natural resources that
are restricted from competitors
• Highly skilled labor
• A unique geographic location
• Access to new or
proprietary technology
• Ability to manufacture products
at the lowest cost
• Brand image recognition
References:
 De Guzman, Angeles
(2018).
Entrepreneurship
 Diola, Zenaida S., and
Tichepco, Edgar M.
(2009). Marketing: A
Simplified Approach
 Osorno, Rene D., and
Bajao, Grayfield T.
Entrepreneurship in
Tourism and Hospitality