TRAVEL AND TOURISM:

PARTNERS IN
HOSPITALITY
The Relationship of Hospitality to Travel
and Tourism
Components of the hospitality network may be • The tourism industry is concerned with
independent and competitive businesses, yet attractions & events that draw tourist &
excursionist to an area.
they share a mutual interdependency.
• A destination is a location where
travelers choose to visit and spend
 Travel encompasses all movement of people but time, no matter what their
not all travel involves tourism. (refugees, migrants,
explorers, nomads, soldiers are not tourists)

 Tourism related travel involves the movement of

visitors to a place to enjoy its Attractions, Special
Events, Hospitality, Lodging, Food, and
Entertainment.
 A Traveller
• Tourists – are people who
take trips of 100 miles or
more & who stay at least
one night away from home.
• Excursionists – are people
who travel to a site &
return home on the same
day.
 Interdependence in the Hospitality and
Tourism Network (eg Hawaiian Islands)

• Desired destination is not enough to create a

successful tourism trade
• Each components must contribute to overall success
• Interdependence is important
 Intertwining within the Network
Through On-line sites,
travel agency or tourism
bureau to get Food & Beverage
information on attraction
& available activities)

During Lodging and

Selection of a
Vacations\ Accomodati-
Destination
Business Trip ons

Transportation services
to get to destination
Souvenirs
(own car, rent a car or /Gifts/Boutique
using the public
transport)
 “
“Interdependence among the components of
hospitality, travel, and tourism is vital in countries that
rely on hospitality and tourism
Revenue.”

Attraction + Hospitality = X popular destination

popular destination = X need for airport & Other transportation
Airport = Travel Agent
 FOOD SERVICE
INDUSTRY HOSPITALITY AND TOURISM NETWORK TRANSPOPRTATIO
COMPONENTS N INDUSTRY
• Catering And • Airlines
• Maritime
Banquets
• Food Service • Ground
MERCHANDISE
And Other Transportation
COMPONENTS
Business Industry
• Product Related
• Restaurant And To Other
Cafe Components
• Beverage
Establishment TRAVEL AND
• Instititions TOURISM
• Clubls INDUSTRY
• Travel Agency
Industry
• Tour Operator
HOSPITALITY Industry
INDUSTRY

LODGING INDUSTRY
COMPONENTS RECREATION
• Clubs SPORTS AND
• Institutions ENTERTAINMENT
• Hotels/Motels COMPONENTS
• Resorts
7
• Conventions Hotels
Marketing and Promoting Tourism and Travel

 Marketing → business activities that have the purpose of

satisfying demand for goods and services for consumers,
businesses, and government.

 Marketing Process → estimating the demand, producing the

product (the destination), pricing the product to satisfy profit
criteria, and promoting and distributing the product.
 DESTINATION DEVELOPMENT
◎ Begins with an idea and the selection of a site (natural or constructed site). Natural
site (Egyptian pyramids and grand canyon) Constructed site (Disney World)

◎ Developed by Private Investors or Government (private developers may work with

government agencies during planning, funding and building stages.

◎ The infrastructure or underlying economic foundation must be considered.

Additional basic framework includes transportation and communication system,
power facilities and other public services.
Government’s Role in
Tour and Travel
Development
◎ providing Facilities and Capital
Investment upkeep at government -
owned destinations (national parks ,
monuments and historical attractions
.
◎ Getting involved in the planning and
promoting sites that are developed
through the private sector.

◎ Helping the hospitality industry by

reducing or waiving taxes on
establishment to attract businesses to a
site.

◎ Develop and operate mass transit

systems (airports, ports, highways,
bus/train stations, also infrastructure –
water, sewage, electrical systems)
 26,800,000 Tourist , 2016 (Tourism Malaysia)

Another role of the Government

◎ control of the flow of people across national borders.
◎ Most government issues, passports to identify citizen who are travelling or living
in another country.
◎ Traveler receives a passport from his or her home country, while a visa is issued
by the country into which the traveler in entering
 Organization that promotes T&T
WTO (World Tourism The OECD (Orgn. For PATA (Pacific Asia
Organization) Economic Cooperation Travel Assoc)
◎ main objective to and Development) ◎ A membership
promote and develop ◎ A multinational organization of
tourism in the organization that government and
economic, social and
was created in private business
cultural progress of all
nations.
1960 – fosters the representatives that
- WTO provides a form planned promotes and
for addressing problem that development of monitors travel
affect tourism among countries
tourism everywhere. within the Pacific
Rim.
National Level
◎ Gov promotes their ◎ Promote their countries
countries in the through publicity
international tourist
◎ market through national
campaign,
tourist organization(NTOs)
◎ conduct research and
◎ • In US – the United States develop plans for
Travel & Tourism Adm destinations.
(USTTA)
◎ • In Malaysia – Ministry of
Tourism
State Level
◎ In Malaysia, each states ◎ 􀂃􀂃 these organizations are
has a tourism office that is in charge of developing
typically part of the state's and implementing tourism
agency for economic programs.
development. ◎ 􀂃􀂃 Produce and distribute
literature on destination
and promote convention
sites.
Regional and Local Level (US)
Convention and Visitor ◎ • This promotional tax is managed
at the CVB level in order to
Bureaus(CVBs) responsible supplement city-wide marketing
for promoting tourism. budgets
◎ • Promote the entire region or ◎ • Designed to allow stronger
city as either a business or competitive thrusts and
pleasure destination. intercommunity competition by
◎ • All CVB activities are funded enlarging the promotional budget.
by bureau members-suppliers
who
benefit from the city’s conventions.
 The Importance of
A Destination IMAGE.
• The Promoters of the hospitality and
tourism industry publicize
destinations.

• Work to make the public aware of

destinations and to overcome negative
images that the public may have.

• Promoters also tempt tourists to try

one destination over another by
offering incentives.

• Trendy or “HOT” destination

imaging is a valuable marketing
advantage in a competitive
marketplace
 The Role of
A Destination IMAGE.
• Major factor in determining where a
family or an individual
travel.

• Tourist don’t often have firsthand

knowledge of destination and
therefore, may choose a specific
destination based on images.

• Every destination has an image.

• Highly publicized images may be

commonly held. Malaysia Truly Asia
The ROLE of Destination Images
The SOURCE a Destination Image

Experience Picture
◎ Someone who have ◎ Books, Movies, Television, Postcards, Songs, Photographs,
visited a destination News , Stories and Advertising all contribute to images of
forms an image of that various destinations
place. ◎ Example: Austria became a popular vacation destination for
many Americans as a result of the favourable images portrayed
in the movie the sound of music.

◎ Images of destination are so important that countries spend millions of

dollar to build positive images of their destination..
Images and Tourist SATISFACTION

A tourist’s overall travel experience can be examined through the process

of destination images modification. The evaluation process includes a
comparison of his expectation and his actual experiences.

• If the actual experiences live up to the expectation there is satisfaction.

• If the actual experiences do not live up to expectation, there is dissatisfaction.

The primary images of a destination as perceived by a tourist have a lot to do with

the tourist’s ultimate satisfaction or dissatisfaction.
 Functional and symbolic Images
Tourist destination image can be described in both Functional and Symbolic
terms.
Functional Image of a destination is associated with specific activities and
attractions at the destination.
◎• Symbolic Image is related to the personality of the area as perceived by
the visitor.
◎- Symbolic Image of Disney World is family- oriented

Functional and Symbolic Images of a destination area are

highly correlated with choice.
◎- Choosing the particular area for vacation a tourist consider not only what
specific interests and activities are available, but also whether the destination
is ‘my type of place” to go.
 The effects of Hospitality and tourism and travel
Group Activities
form 3 major group, witin 10 – 15 minutes, discuss the impact of
tourism to a country.Present your findings

Economic Gain

Economic Cost

Leakage
The Economic Gain of tourism
 The effects of Hospitality and tourism and travel

A healthy tourism trade benefit countries economically,

Socio-culturally & environmentally.

Economic Gains and Costs

When a destination is developed for tourism, the number of
tourists coming in has a tremendous impact on the local and
national economy.

Sometimes the local economy reaps the benefits; at

other times, it bears the costs and outsiders take
home the gains.
 Economic Gains

􀂾 All destination required facilities and services nearby to satisfy

the needs of visitors.
􀂾Tourist usually spend money during their stay at a destination.
􀂾 Visitor spending provides income and profit for many
business, including hotel, restaurant and so on.
􀂾 Business travel to a destination for conventions and meeting
directly benefit transportation business, hotel and restaurant.
􀂾Almost everyone living in the destination area receives some
economic benefit directly from business travel.
 Economic Gains

􀂾 Destinations (usually local municipalities) invest in

convention centres to attract conventions, meeting, trade shows,
and expositions.
􀂾Tourism also generates government revenue from direct
taxation of tourism business and tourists.
􀂾Increased government revenue that may be used to improve the
area infrastructure can elevate the quality of life for local
residents.
􀂾Direct spending is money that goes directly from the traveller
into the economy. (payment for hotel rooms, meals, recreation,
entertainment etc)
◎ 􀂾 Indirect spending, generates
more income and further
employment.
◎ - The worker in turn pay for
housing , buy groceries , and so
forth. Expand the economy , is
called the multiplier effect.
◎ 􀂾 The greater the multiplier
effect , the more advantageous
tourist spending is to the local
economy.
Economic Cost
◎ Tourism can also have a negative
impact:
◎ i. The Opportunity Cost or the benefit
that will be sacrificed by using a
resource one way rather than another.
◎ - The opportunity cost of tourism is
the cost of developing tourism rather
than some other industry. (expanding
an airport to bring in more tourists or
allowing a manufacturer to locate a
particular piece of real estate)
Leakage
Another economic cost is leakage or money that flows out of the
local economy to purchase outside resources.
◎ • Many of the good and services that are needed to satisfy tourist desires
have to be imported. (Construction materials, equipment, hotel beds and so
on may not be available in a large enough quantity in the destination are).
◎ • Country has a small domestic automobile industry it may have to import cars or
buses to satisfy transportation needs of tourists. (not all of the direct & indirect
tourists expenditure money stay in the local economy) • The more imports, the
higher the leakage will be.
◎ • The more imports, the higher the leakage will be.
◎ • The more develop the local economy, the higher the multiplier effect.
◎ • The greater the leakage the less the multiplier effect on the local economy.
Thank You
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QUESTIONS?