A Strong Partner for Sustainable Development

Module
in
THC101

Macro perspective of Tourism and

Hospitality

COLLEGE OF BUSINESS AND MANAGEMENT

Bachelor of Science in Hospitality Management
1
1 WPU-QSF-ACAD-82A Rev. 00 (09.15.20)1
WPU-QSF-ACAD-82A Rev. 00 (09.15.20)
 Module No. 2

The History and Economics of Tourism and

Hospitality

1st Semester AY 2021-2022

ROY B. CABARLES
Instructor 1

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Table of Contents Page

Title Page i

Table of Contents iii

Instructions to the User iv

Introduction v

Module 2 1

Overview 1

Learning Outcomes 1

Pre-test 2

Lesson 1 4

A. Learning Outcomes 4

B. Time Allotment 4

C. Discussion 4

D. Exercises/Activities 22

E. Evaluation/Post-test 28

Lesson 2 30

A. Learning Outcomes 30

B. Time Allotment 30

C. Discussion 30

D. Exercises/Activities 39

E. Evaluation/Post-test 42

References 44

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INSTRUCTION TO THE USER

This module would provide you an educational experience while

independently accomplishing the task at your own pace or time. It aims as
well to ensure that learning is unhampered by health and other challenges. It
covers the topic about The History and Economics of Tourism and
Hospitality.
Reminders in using this module:

1. Keep this material neat and intact.

2. Answer the pretest first to measure what you know and what to be
learned about the topic discussed in this module.
3. Accomplish the activities and exercises as aids and reinforcement for
better understanding of the lessons.
4. Answer the post-test to evaluate your learning.
5. Do not take pictures in any parts of this module nor post it to social
media platforms.
6. Value this module for your own learning by heartily and honestly
answering and doing the exercises and activities. Time and effort were
spent in the preparation in order that learning will still continue amidst
this Covid-19 pandemic.
7. Observe health protocols: wear mask, sanitize and maintain physical
distancing.

Hi! I’m Blue Bee, your WPU Mascot.

Welcome to Western Philippines University!

Shape your dreams with quality learning experience.

STAY SAFE AND HEALTHY!

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INTRODUCTION

This module will serve as an alternative learning material. The instructor will facilitate
and explain the module to the students to achieve its expected learning outcomes and to
ensure that they will learn amidst of pandemic.

This material discusses The History and Economics of Tourism and Hospitality. It aims
to teach the learner about the History of Tourism and Hospitality Industry, Pioneers in
the Tourism and Hospitality, Origins of Tourism and Hospitality in the Philippines,
International Travel Pattern, Factors that Favor the Growth of Tourism and Hospitality
the role of Tourism and Hospitality in Economic Development and How to Maximize the
Economic Effect of Tourism and Hospitality. It is very important that the learner
cooperates by using this module page by page and completing all the given activities. At
the end of the module, the learning outcomes are evaluated based on the different tasks
given to the learner.

Through the learner’s cooperation in this kind of flexible learning delivery,

understanding the History and Economics of Tourism and Hospitality is possible. It is
expected that after using this module the learner will become well-oriented on the
coverage of this chapter.

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 MODULE 2
THE HISTORY AND ECONOMICS OF TOURISM AND HOSPITALITY

Overview

Module 2 is composed of 2 chapters that will discuss the history and

Economics of Tourism and Hospitality. Lesson 1 (chapter 2) presents the history of
Tourism and Hospitality which will focus on the contribution of the different Era/period
in the evolution of the tourism and hospitality, Pioneers in the Tourism and Hospitality
Industry, origins of tourism and hospitality in the Philippines, International travel
patterns and Factors That Favor the Growth of Tourism and Hospitality. Lesson 2
(chapter 3) describes the Economic of Tourism and Hospitality and will discuss the role
of Tourism and Hospitality in Economic Development and How to Maximize the
Economic Effect of Tourism and Hospitality

Learning Outcomes

At the end of this chapter, you can:

1.Discuss the contribution of the different era in the evolution of tourism and
hospitality industry;
2. Create a timeline showing the origin of tourism and hospitality in the
Philippines; and
3. Describe the factors that favor the growth of tourism and hospitality4. Explain
the role of tourism and hospitality in economic development;
5. Describe multiplier and its effect on the economy of the host country; and
6. Discuss the economic impact of tourism and hospitality on a destination area;

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 PRE-TEST
Test I – True or False
Instructions: Read each statement below carefully. Place a T on the line if you think a
statement it TRUE. Place an F on the line if you think the statement is FALSE

1. Travel and Exploration are basic to human nature.

2. The use of steam power provided the increased mobility

needed by the tourism business

3. The ancient Egyptians were the first to see that food service
and lodging should be provided to travelers.

4. The Ancient Egyptians were the first to begin the activity

we now call tourism and hospitality.

5. Major travel flows occur between the United States and

Western Europe.

6. Tourism and Hospitality in the Philippines began when

original inhabitants of the country roamed around in search
of gold.

7. Travelers from the Us, China, Japan, and Europe were not
provided inland tours by entrepreneurs with their
unregistered private cars called “colurom”.

8. Colurom means illegal tour handling and the illegal use of

private vehicles.

9. The firs tourism and hospitality association in the

Philippines was the Philippines travel and tour association.

10. Noah with his Ark was the first large-scale operator even
though his passenger were mostly animals.

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 PRE-TEST
Test II – Essay

We have discussed about the meaning, significance of tourism and

hospitality. Initially, you might have thought that these are all only about leisure and
travel. But, have you realized that these two play a significant role in in our economic
development?

While scrolling down your social media account or watching over

the news, you might have learned how tourism and hospitality contribute to
one country. Now, try to recall on one and share how do these provide
something to economic development

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 LESSON 1
The History of Tourism and Hospitality

A. Learning Outcomes

At the end of the lesson, you can:

1. Discuss the contribution of the different era in the evolution of tourism and
hospitality industry;
2. Create a timeline showing the origin of tourism and hospitality in the
Philippines; and
3. Describe the factors that favor the growth of tourism and hospitality

B. Time Allotment

1.5 hours

C. Discussion

History of the Tourism Industry

Travel and exploration are basic to human nature. Mas has traveled since the
earliest times although the term tourism was used only in the 19 th century. “Tourism” is
derived from the Hebrew word torah which means studying, learning, or searching.

In order to truly appreciate the tourism and hospitality industry, it is

important to understand its original origin. A person cannot project the future without
understanding the past. Philosophers say it another way: Knowledge is telling the past.
Wisdom is predicting the future.” (Cruz, 2019)

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EARLY BEGINNINGS Nomads
• NOMADS – first traveler in the world
▪ These people moved on foot from one place to another
seeking for food, shelter and safety from wild beasts
and hostile tribes.
▪ Started of farming, domesticating animals and
eventually settled down.

Source: https://www.pinterest.ch

• SUMERIANS – they invented money, plows, wheel & Source: https://www.dailysabah.com

cuneiform which facilitated travel and exchange of good. Summerians Inventio
Noah’s Ark
• PHOENICIANS – first known creator of Maritime Empire
and Master of Shipwrights Travel for Business
▪ toured and mapped trade routes throughout the
Mediterranean Sea as Merchants
▪ known as “Traders in Purple: because they use
purple dye from the Murex snail to make purple
clothing and such.
Source: https://gridclub.com

• NOAH’S ARK - Probably credited to be the first cruise

operator, even though most of the passengers were animals.

Early tourism has two forms: Travel for business and

religion
▪ Travel for Business such as trading - Throughout
history, merchants have traveled extensively in order to Source: https://www.britannica.com
Source: https://www.jpost.com
trade with other nations and tribes. The invention of
money, writing, and wheel by the Sumerians facilitated
travel and exchange of goods.

▪ Travel for Religious Reason - Travel for religious

reasons took the form of pilgrims to places of worship
such as Chaucer’s tale of pilgrims to Canterbury.
Pilgrims were made to fulfill a vow as in case of illness
or of great danger or as penance for sins.

THE EMPIRE ERA (EGYPT, GREECE AND ROME)

From 3200 BC to 476 AD, three significant empires

flourished-the Egyptian, Greek, and Roman. This period is known
to historians as the Empire Era. Each of these empires developed
hospitality services for increasing numbers of travelers.

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 EGYPTIANS
• THE EGYPTIANS
▪ The first cruises were organized and conducted from
Egypt.
▪ The earliest recorded travel for the sake of Peace and
Tourism was made by Queen Hatshepsut to the land of
Punt in 1480 BCE.
▪ They started the trait of purchasing souvenirs from the
Source: https://www.dkfindout.com
places they visit and gave it to their love ones.
▪ Pharaohs began to building interesting structures such
as Pyramids, Sphinx, Obelisks
▪ monuments etc. that became popular tourists sites in
ancient times and continue to this day.
▪ Graffiti- evidence left by the tourist.
▪ Egyptians were also the first ones to start celebrating Source: https://www.ducksters.com
festivals.
▪ Egyptians were the first to begin the activity we now
call tourism and hospitality.
▪ The first cruises were organized and conducted from
Egypt.
▪ They started the trait of purchasing souvenirs from the
places they visit and gave it to their love ones.
▪ Pharaohs began to building interesting structures such
as Pyramids, Sphinx, Obelisks monuments etc. that
became popular tourists sites in ancient times and
Source: http://www.xinhuanet.com
continue to this day.

• THE GREEKS Greeks

▪ first one to shape the modern-day travel.

▪ They were also the first one to organize, promote and
accommodate large numbers of visitors for sporting
events.
▪ OLYMPIC GAMES- was held every four years in
honor for Zeus of Olympus, the Greek king of the gods.
776 BCE Source: https://www.worldhistory.org
▪ The games created festivals, and attractions were born
out of it. Thus, some Greeks visited the sanctuaries of
the healing Gods and oracles to seek advice from them
▪ HERODOTUS- known as the father of history and 1st
travel writer.

Source: https://www.worldatlas.com

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 ROMANS
• THE ROMANS
▪ The prosperity of the Roman Empire was reflected in
the development of travel.
▪ They built excellent roads, transportation and
communication systems. Therefore, there’s a saying
that “Every Road lead to Rome”
▪ Mainly travel was done by military groups, government
officials and caravans.
▪ Employed relay horses which can cover 100 miles or
more in a day in between distances of 6 miles were
mutations and stables where horses could be change.
They are the equivalent of the present gasoline stations.
• ENTERTAINMENT:
▪ GLADIATORS most often came from a slave or
criminal background but also many prisoners of war
were forced to perform in the arenas. There were also
cases of bankrupt aristocrats forced to earn a living by
the sword, for example Sempronius, a descendent of Source: https://www.realmofhistory.com
the powerful Gracchi clan.

▪ CHARIOT RACES commonly took place in a circus.

The main centre of chariot racing was the Circus
Maximus in the valley between Palatine Hill and
Aventine Hill, which could seat 250,000 people.

▪ SATURNALIA was an ancient Roman festival in

honour of the god Saturn, held on 17 December of the
Source: https://en.wikipedia.org
Julian calendar and later expanded with festivities
through to 23 December. A festival in which slaves and
their masters would switch places

▪ With these events and festivals, they built rest houses.

(forerunners of hotels and inns)

Source: https://cocktailcalendar.wordpress.com

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TOURISM IN THE MEDIEVAL ERA (5TH TO 14TH MARCO POLO
CENTURIES)

• Travel was derived from the word Travail w/c means

Burdensome and dangerous
• It was considered as the duty of the Christians to offer
hospitality to travelers and pilgrims.
• MONASTERIES functioned as inns, providing Source: https://en.wikipedia.org
accommodations and food for the weary traveler
• HOSPICE OF ST. BERNARD – famous Monastery shelter CRUSADES AND PILGRIMS
• Providing services to travelers became a burden to the
religious houses due
• to influx of crusaders thus “Overbooking” was observed during
this era
• CRUSADES AND PILGRIMS were the only ones who
travelled
• KING RICHARD II OF ENGLAND (1388) decreed that
pilgrims must carry permits if they wished to visit religious
sites. These permits can be seen as the forerunner of the Source: https://www.thoughtco.com
modern passport.
• MARCO POLO (1254-1324), is probably the most famous
Westerner travelled on the Silk Road. He became a confidant THE SILK ROAD
of Kublai Khan. He travelled the whole of China and returned
to tell the tale, which became the greatest travelogue. (Silk
road from Venice to Beijing)

• THE SILK ROAD – the fabled road where the east met the
west.
▪ Some sections were directions across trackless steppe
or desert
▪ Silk was not the only thing traded there.
Source: https://www.historytoday.com

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TOURISM IN THE RENAISSANCE ERA AND GRAND TOUR
ELIZABETHAN ERA (14TH – 16TH CENTURIES)
• With the Universities built under Queen Elizabeth, Travel
for education became a trend for the young aristocrat and
in order for them to complete the formal education they
must travel the continent to widen their wisdom.
• GRAND TOUR (1670) -2-5 years travel experience for the
sons of wealthy to study language, culture, and history.
• As young men sought intellectual improvement in the
Continent, the sick sought a remedy for their illnesses in
“spas” or medicinal baths. Source: https://brewminate.com
▪ The term “SPA” is derived from the word Waloon
word “espa” meaning fountain. DYREHAVSBAKKEN
▪ Travelers immersed themselves in healing waters,
soon, entertainment was added, and dozens of
watering places became resort hotels (wellness
Tourism)

• CHRISTOPHER COLUMBUS- He discovered West

Indies, routes to the America were established.

• DYREHAVSBAKKEN ("The Animal Park's Hill"),

commonly referred to as Bakken ("The Hill"), it opened in
Source: https://www.bakken.dk
1583 and is the world's oldest operating amusement park.
• Increased interest in travel for education and
wellness tourism

Early Modern Period 16th to 18th Century) COACHING INNS ANDSTAGECOACH

• COFFEE AND TEA – began to influence the culinary habits

of Western Europe
• COFFEE HOUSES – forerunner of cafes and coffee shops
• ST. MICHAEL’S ALLEY, LONDON - (1st English Coffee
House)
• COACHING INNS AND STAGECOACH – tired horses
were exchanged with fresh horses and guest were fed and
given an overnight stay Source: https://fineartamerica.com
• QUALITY OF INNS IMMPROVED - “the innkee per
should ensure the guests’ property and provide guests’ safety”
• BOULANGER – he opened the very first restaurant in Paris
(RESTORATIVE, means restore/restaurant). Which served a
single dish - sheep’s feet simmered in a white sauce. He is
recognized as the first to create the first restaurant

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• In 1683, Kolschitski opened the first coffee house in Central
Europe. It was in this coffee house that the first cup of coffee
sweetened with honey and milk was served.
• ECOLE HOTELIERE DE LAUSANNE – in Switzerland,
the first school for hoteliers were established. (1893)
• ENGLISH COMMON LAW - forms the basis of US law
▪ Early common law required innkeepers to receive all
travelers, provided that the innkeeper had available
space and that travelers were in fit condition. This
meant that they were not sick, drunk, dishonest, or
exhibiting unpleasant behavior. Later, common law
established two principles which are now considered
basic in the hospitality industry-the innkeeper should
insure the guests’ property and provide for the guests’
safety.

TOURISM DURING THE INDUSTRIAL REVOLUTION

(18th CENTURY)
• The first product to affect tourism was the development of
steam engine.
• Steam powered ships and railways hastened the speed of
travel
• Factories emerged (Increased regular employment)
• Rapid growth of the wealth and education level of the middle
class
• Increase of leisure time and two days’ rest (birth of weekends) Source: https://numpaint.com
• Increase of holiday tourism activities.
• To escape from their responsibilities and the crowded city
environment, they traveled to the countryside or seashore for
their holidays which led to the creation of working-class
resorts near major industrial centers.
• COX & KINGS – considered as the oldest travel company
(1758) Mumbai, India
Source: https://www.mbaskool.com

(19TH CENTURY)

• As tourism become organized in the later years of 19th

century, the organization of travel became established
institution. Travel organizers emerged.
• Introduction of the railway. The railways created not only
more business by proving reliable and cheap transportation,
but also more competition as various private companies
invested heavily in hotels, resorts and entertainment facilities. Source: https://www.adb.org

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• Development of steam power. Steam power provided
increased mobility needed by tourism business.
• Steamers on the major rivers provided reliable and
inexpensive transportation that led to the popular day DAY-
TRIP CRUISES and the growth of coastal resorts near large
industrial towns.
• Cruise ships - Led by growth in worldwide trade.
• Establishment of P & O shipping line (1822) 1815:
Before it was P&O Cruises (which is still running today),
founded by Brodie McGhie Wilcox and Arthur Anderson for Source: https://www.flickr.com

trading between England and the Iberian Peninsula countries

of Spain and Portugal. THOMAS COOK
• Opening of Suez Canal in 1869 enables routes to India &
beyond.
• THOMAS COOK – known as the Father of Tourism. He
developed tour packages for mass travel. His first excursion
train trip was between Leicester and Loughborough in 1841
with 570 passengers at a round-trip fare of one shilling.
• He was a travel pioneer who built one of the largest travel
businesses in the world
Source: https://commons.wikimedia.org
• Karl Baedeker- published the most popular guide books.
CESAR RITZ
• CESAR RITZ
▪ Was the first, great modern hotelier.
▪ He created the concept of the “grand hotel”, which
turned out to also be the perfect stage for the “Grande
cuisine” being created by his business partner, Auguste
Escoffier
▪ César Ritz coined the phrase ‘the customer is always
right’, helping to transform the hospitality industry
forevermore. 100 years after his death, César Ritz’s
legacy lives on. Source: https://famoushotels.org/
▪ Known as ‘king of hoteliers, and hotelier to kings’,
César Ritz is a legend in the world of hospitality and his Auguste Escoffier
last name is synonymous with luxury in many countries
around the world.

• Auguste Escoffier
▪ Auguste Escoffier was one of the greatest chefs of all
time.
▪ He is known for his classic book, Le Guide Culinaire.
He also installed the Kitchen Brigade System.
▪ Escoffier revolutionized and modernized menus, the
art and practice of cooking, and the organization of the
Source: https://www.gettyimages.com
professional kitchen as well.

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Tourism During the MODERN ERA (20TH CENTURY)

• In the opening years of the 20th Century, travel for pleasure

continued to grow
• Leisure travelling is a trend
• Travel was safer and more comfortable and a generally with
the increased wealth, curiosity and outgoing attitudes of
people urged them to see the world. However, this was to
change with the outbreak of the first world war in 1914
• (1914) WORLD WAR 1 - led to introduction of passports
and all production of cruising came to a halt.
• POST WW1 led to large scale migration boosting Source: https://www.dw.com
international travel.
• New forms of mass communication (Radio, TV and Cinema) Prinzessin Victoria Luise
• Increased use of private cars for travel led to the decline in rail
travel.
• CRUISE SHIPS
▪ Prinzessin Victoria Luise (1900) The first ship
that was built exclusively for luxury cruising.
▪ Titanic sank (1912) Titanic sank which stimulated
the improvement of safety on cruise ships.
▪ Laconia (1922): The first world cruise was made by
Laconia, a British Conard Line which lasted six months. Source: https://en.wikipedia.org
• MOTOR CAR
▪ Benz – designed and built the first practical car
powered by an internal combustion engine. TITANIC
▪ Henry Ford – mass production of Model T Car (1914)
• Increased car ownership, better more efficient air travel, the
invention of the first camper van
• Before WWII: Air travel was expensive, unreliable and
uncomfortable
• After WWII: Left over aircraft from WWII was used for
people to start small scale airlines
▪ Advances in Aircraft technology
▪ BOEING 707 JETS (1958) the age of air travel for the
masses arrived. Source: https://www.britannica.com
Golden age of Mass Tourism
▪
Decline of sea travel
▪
Government created more vacation time that led to
▪
holidays and long weekends. They also issued Paid
leave for employees
Tourism During the POST-MODERN ERA (21ST
CENTURY)

Since the start of this century there have been a large number
of wildcard events that have affected tourism patterns and flows
at a global scale.

• TERRORIST ATTACKS - such as 911 or the bombings in

Bali. Source: https://www.britannica.com`

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• DISEASE OUTBREAKS - SARS, Meningococcemia, Bird Flu,
H1N1 virus, Zika Virus, COVID-19
• NATURAL DISASTERS - such as tsunamis in the Indian
Ocean and Japan, massive earthquakes in China, Japan and
New Zealand and hurricanes in the East Asia and the United
States
• ECONOMIC EVENTS – (Great recession 2008-2009)
global economic and financial crisis from 2008 on.
• POLITICAL EVENTS – such as the ‘Arab Spring’ in North Source: Coday.in
Africa and the Middle East, or regulatory changes in boarding
and passport requirements for travelers as a result of
increased concerns over security. This also includes sudden
changes in terms of what you can take onto aircraft as hand
luggage.

Given the impact of these events in terms of lives lost, damaged

infrastructure and economic loss, it is clear that society must
tackle these challenges head on. After the crisis, tourism activity
returns back to normal life.
Source: https://www.moving.com

Pioneers in the Tourism and Hospitality Industry

There are several outstanding individuals who have made a significant

contribution. To the growth and development of the tourism and hospitality industry.
They are Cesar Ritz, Ellsworth Milton Statler, Conrad Hilton, Thomas Cook, Howard
Dearing Johnson, J. Willard Marriott, Ray Kroc, Isadore Sharp, and Ruth Fertel.

Cesar Ritz

➢ Cesar Ritz became the general Manager of

the Savoy Hotel in London, one of the most
famous and luxurious hotels in the world.
He made the hotel a cultural centers for
High society The Ritz name is synonymous
with refined, elegant hotels and service. At
present, the Ritz-Carlton hotels bear his
name.
Fig.1 Cesar Ritz
Source: https://famoushotels.org/

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Ellsworth Milton Statler

➢ Ellsworth Milton Statler is considered to be the

premier hotel-man of all time. He brought a high
standard of comfort and convenience to the
middle-class traveler at an affordable price. He
was the first to put telephones and radios in every
guest room together with full-length mirrors,
built-in closets, and a special faucet for ice water.
Fig. 2 Ellsworth Milton Statler
Source: https://www.eventscouncil.org

Conrad Hilton

➢ Conrad Hilton was once recognized as “the

biggest hotel man in the world." He was
described by the New York Times as the
“master of hotel finance.” He was careful not
to over-finance and had a flawless sense of
timing. In 1954, he formed the first major chain
of American hotels-a group of hotels which followed
Fig.3 Conrad Hilton
standard operating procedures. Source: https://astrumpeople.com/

Thomas Cook

➢ Thomas Cook is recognized as the first

professional travel agent. He was the founder
of the world’s first travel agency. He is credited
for making world travel possible for the middle
class. The phrase “Cook’s tour” is still used at
present to refer to a tour that goes to many
places and stops briefly at each place

Fig.4 Thomas Cook

Source: https://commons.wikimedia.org

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Howard Dearing Johnson

➢ Howard Johnson was the pioneer of brand

leveraging. He was one of the first to introduce
franchising in the 19305. At present, Howard
Johnson is one of the famous names in the
restaurant and hotel business.

Fig.5 Howard Dearing Johnson

Source: https://en.wikipedia.org/
J. Willard Marriott

➢ J. Willard Marriott founded the Marriott

Corporation which has continued to be an
important asset to the hospitality industry.
Through his strong faith and determination, J.
Willard Marriott began with a root beer stand
which was founded by necessity and built it into a
multibillion-dollar industry.

Fig.6 J. Willard Marriott

Source: https://www.hospitalitydesign.com/
Ray Kroc

➢ Ray Kroc has been the most financially successful of

all hospitality entrepreneurs. He founded the
McDonald’s Corporation, a multibillion-dollar Source: https://en.wikipedia.org/

industry, through his strong dedication,

organizational skills, perseverance, and incredible
aptitude for marketing. Kroc developed several
operational guidelines such as Quality Service
cleanliness and Value or QSC&V. Kroc’s motto,” Never be
Fig.7 Ray Kroc
idle a moment” was also incorporated into the
Source: https://money.howstuffworks.com/
business

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Isadore Sharp

➢ Isadore Sharp, a First-generation Canadian, was the

founder of Four Seasons Regent Hotels, the world’s
largest hotel chain and a multimillion-dollar global
hotel empire. The success of the Four Seasons
Regent Hotels is largely due to the drive,
determination, and personal taste and style of
Isadore Sharp.

Fig.8 Isadore Sharp

Ruth Fertel Source: https://www.elitetraveler.com/

➢ Ruth Fertel was the founder of Chris Steak House,

the largest upscale restaurant chain in the United
States. It has 59 operations-S4 in the US and
Puerto Rico and five internationally. It sells more
than 11,000 steaks daily with a gross income of
two hundred million dollars a year. Because of
this volume, Ruth Fertel is the most successful
woman restaurateur at present.
Fig.9 Ruth Fertel
Source: https://alchetron.com

ORIGINS OF TOURISM AND HOSPITALITY IN THE PHILIPPINES

• Tourism and hospitality in the Philippines began when the original inhabitants
of the country roamed around in search for food.

• A more recognizable form of tourism appeared in the Philippines when the

country was discovered by Ferdinand Magellan and when galleons or wooden
boats sailed between Mexico and the Philippines during the galleon trade.

15
 The introduction of more comfortable and faster means of transportation gave
the early impetus for tourism and hospitality in the Philippines. Travelers from the US,
China, Japan, and Europe were provided inland tours by entrepreneurs with their
unregistered private cars and coaches called “colorum.”

• Colorum means illegal tour handling and the illegal use of private vehicles
for public use. It was tolerated by the government authorities at that time since
tourism was not yet developed.

Although there were already visitor arrivals from other countries, there were no tour
operators nor travel agencies which existed formally. There were some offices like the
American Express International which informally arranged land tours for foreign
travelers. Steamship offices endorsed tourists to private car and coach operators
(colorum) who rented their vehicles directly to tourists. The drivers of these vehicles
served as tour guides even without any formal training in tour guiding.

There were only a few tourist attractions and destinations in the Philippines. These
were Manila, Pagsanjan Falls, Laguna Lake Tour, Tagaytay and Taal Volcano, Mt. Mayon
tour, Legazpi tour, Baguio City, and Banaue tour. Other popular tours in the South in the
19205 were Cebu City and Zamboanga City.

In 1952, the first tourism and hospitality association in the Philippines was
organized. This was the Philippine Tourist and Travel Association (PTTA), which was
organized to put together all existing travel establishments serving both domestic and
international travelers. The PTTA was funded by the government to promote the
country’s tourism and hospitality industry. Later, the government organized the Board
of Travel and Tourist industry (BTTI) ’to regulate, supervise, and control the tourist
industry and to subsidize the PTTA as its promotional arm. In the late 19505, more hotels
and restaurants and entertainment facilities were established.

The Philippines had undergone economic, social, and political crises starting in
the 19605 up to the ‘705, which hindered the development and promotion of tourism
and hospitality. Accommodations were inadequate and airline companies were not given
much incentive to promote the Philippines as a visitor destination. Due to the turbulent
conditions in the country, the tourist industry was denied the peace and order,

16
sanitation, financial support, and other important factors for tourism and hospitality
development.

It was only in 1972, after the declaration of martial law, when tourism and
hospitality in the Philippines prospered. This was due to favorable conditions, such as
safety of tourism and hospitality, better services and sanitation facilities, more financial
support from ‘the government, and the vigorous cooperation of the private sector. Thus,
the Philippines became a "bargain destination” to foreign visitors. As several tour groups
arrived in the Philippines, more accommodations, food and beverage facilities, and more
airline frequencies were established. A temporary “tourist boom” existed in the
Philippines in the early 70’s.

Tourism and hospitality in the Philippines at present is the result of the

continuous development and promotion of tourism and hospitality from 1950 to the
present. However, the growth in the tourism and hospitality industry is not very
spectacular compared to our neighboring countries in terms of tourist arrivals. Records
show that the Philippines is still in the tail-end of arrivals compared to other Asian
destinations, such as Hong Kong, Singapore, Thailand, Korea, Taiwan, and Japan.

The National Tourism Organization (NTO) of the Philippines or the Department

of Tourism has embarked on several plans and programs to ensure the pleasant and the
hospitable entry, stay, and departure of tourists, as well as to assure a harmonious,
positive, and constructive development of the tourism and hospitality industry. Among
these are:

1. Increase visitor arrivals especially from nearby markets like Japan, Korea,
Hong Kong, and Taiwan and high-spending markets like Germany;

2. increase tourism and hospitality receipts through longer stays (now set at 11
days) and higher spending per day (estimated at $110 per day), which can be
accomplished by more attractive destinations and tours, more shopping and
dining, and getting not just the budget traveler, but also the upscale markets;

3. Expand domestic tourism and hospitality through more promotions, cheaper

tour packages, and new facilities, especially for the lower income segments;

17
 4. Expand the capacity for tourism and hospitality by promoting more private
sector investments;
5. Improve the standards of service through the expansion of training programs
for the professionalization of the tourism and hospitality management and Labor
force;
6. Program major tourism and hospitality infrastructure projects;
7. Engage in major tourism and hospitality estate and resort development;
8. Classify facilities in tourist sites according to international standards;
9. Strictly enforce the tour facility standards;
10. Promote self-regulation within the different sectors of the tourism a
hospitality industry;
11. Complete the national tourism plan and a destination tourism plan;
12. Encourage consumer advertising in selected markets;
13. Work closely with the private sector in product development; and
14. Develop and strengthen linkages with the local governments, the private
sector, and the general public through tourism and hospitality councils.

Today, Philippines is now one of the primer destinations not only in Asia but all over the
world. In October 2019, the Department of Tourism (DOT) proudly celebrated
Philippines’ ranking as the 8th favorite country in the world by Conde Nast Traveler
(CNT) Readers’ Choice Award 2019. The Philippines scored 90.63 from the 600,000
readers of the New York–based luxury and travel magazine

Now that you’ve seen an overview of the origin of tourism in the Philippines and
its status, let’s have a peak of the international travel patterns.

International Travel Patterns

Major travel flows occur between the United States and Western Europe.
Secondary regional patterns exist between South America, the Caribbean, Africa, Near
East, and the Far East. Travel to Africa is usually one way, originating in Europe.

The heaviest flow of air traffic into Europe is between New York and London
within Europe, the major flows are between London and Paris, London and Frankfurt
and Milan and Rome. The cities in Europe most frequently visited by tourists a London,

18
Paris, Frankfurt, Amsterdam, Brussels, Zurich, Geneva, Madrid, Copenhagen Vienna,
Milan, Rome, and Munich.

The top ten countries generating international travel in rank order are: Unite
States, Germany, United Kingdom, ‘Canada, Japan, France, Netherlands, Mexico
Switzerland, and Australia. Europe generates about one-half of overseas travelers to the
US. Travel between European countries-intracontinental travel-has been very popular.
This is one of the reasons for Europe’s large share of the worldwide travel market.

Factors That Favor the Growth of Tourism and Hospitality

Some of the positive factors that hastened the growth of tourism and hospitality are:

1. Rising disposable Income for large sections of the population. In general. More
money means more travel. At present, the two-income family is widespread.
Moreover, the world is experiencing a redistribution of income which encourages
more people to travel;

2. Growth in the number of retired persons who have the desire and the energy to
travel. Life expectancy is increasing. There are fewer deaths now than ~before
which is the result of more concern for diet and exercise;

3. Increase in discretionary time shorter workweeks and longer vacations. The

workweek has decreased considerably from 50 to 60 hours to less than 40 hours.
Flextime programs allow a three or four-day workweek. Some European countries
grant paid holidays to their workers;

4. Greater mobility of the population. People became more accustomed to travel

because of the increase in travel opportunities and desire to escape from the stress
and pressures of modern life;

5. Growth in the number of “singles.” People living alone have more free time than
couples; hence, they want to socialize through travel;

6. Greater credit availability through credit cards and bank loans. “Travel now,
pay later" stimulates travel;
19
7. Higher educational levels.” Since millions of students attend colleges and
universities, they tend to become more interested in foreign cultures;

8. The growth of cities. The Industrial Revolution brought about the migration of
people from the rural areas to the urban centers resulting in the growth of
urbanization. City residents travel more than people living in rural areas to escape
from the congested urban environment;

9. Simplification of travel through the package tour. Tour packages-everything

planned, arranged, and included in one piece are more important to the older
traveler, the new traveler, and the less sophisticated traveler;

10. Growth of multinational business. Worldwide business interests increase both

the need and habit of travel;

11. Modern transportation technology. Technological advances in transportation

have made long-distance travel faster, less expensive, and more comfortable;

12. Shift in values. At present, several people place more value on experience
rather than material possession. They prefer to travel rather than own expensive
houses, cars, clothes, and jewelry;

13. Advances in communication. Television and movies enlarge the travel

perspective. The world is brought into the living room through television. A
documentary film can create interest in places not considered as travel
destinations in the past; and

14. Smaller families and changing roles. American and European birthrates have
declined, giving the adults more free time to get away from family responsibilities.
Sexual equality and shifts in household roles encourage more travel.

20
 ACTIVITY/EXERCISE
Activity 1
Direction: Discuss/Explain the following questions. The rubric will be used to check
your work, and this will be recorded as part of your written works (5 points each a total
of 35 points).

1. What do you think are the most significant milestones of tourism since early times that
brought greater impact to the advancement of tourism? Please mention at least 3 and
explain. (5 points each)

2. Describe the evolution of travel and hospitality from Early Modern Period to Modern
Period.

3. Name two pioneers of tourism and hospitality industry and share your research on
their notable contributions/ innovations in the field. (5 points each)

21
 4. When and how did the Philippines gain its peak in the tourism industry?

5. What do you think are the significant factors in the growth of tourism in the
Philippines? State them and explain.

Rubric for essays and discussions

Rating(s) Traits

5 Main ideas/information/content/all sentences are well constructed.

The student makes no errors in grammar, mechanics, and/or spelling.

4 Some interesting ideas/information/content are constructed but the

points are not sustained or not fully developed. Makes a 1-4 errors in
grammar, mechanics, and/or spelling, but they do not affect with
understanding.

3 Some points/ sentences are well constructed but makes 5-9 errors in
grammar, mechanics, and/or spelling that affect with understanding

2 The topic and main ideas are somewhat clear. Sentences sound
awkward, are distractingly repetitive, or are difficult to understand.
The student makes 10 or more errors in grammar, mechanics, and/or
spelling that affect with understanding.

1 Ideas/information/content are irrelevant to the question.

0 Sign of plagiarism is observed.

22
 ACTIVITY/EXERCISE

Activity 2. Concept Map

Direction: Choose 5 significant contributions from different eras and periods of the
tourism and hospitality industry and discuss the impact of their contributions on today’s
tourism and hospitality industry (10 points each contribution 50 points). Rubric will
be the criteria to check your work. These activities will be recorded as part of your
performance task.

TOURISM AND
HOSPITALITY
INDUSTRY
TODAY

23
 ACTIVITY/EXERCISE

Activity 3. Timeline

Direction: Create a timeline of the origin of Philippine tourism. Make the timeline
creative. You are encouraged to use short statements/ texts only. To further support the
texts, you are required to add icons/ symbols/ graphics that represent each event in the
timeline. Create your timeline in a one-page short bond paper. (it could be portrait or
landscape presentation). Rubric will be the criteria to check your work. These activities
will be recorded as part of your performance task. (30 points)

Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The timeline contains appropriate and 10 pts
effective graphics (symbols, icons) to
represent each event/ era. Texts and icons
jibe with each other.

*2pts deduction for each item not observed

Organization and Presentation
The timeline has excellent formatting and 15 pts
very well - organized information.

*2pts deduction for each item not observed

Writing and Spelling
There are no grammatical or spelling errors in 5 pts
the timeline.

*2pts deduction for each item not observed

TOTAL 40 pts

24
 ACTIVITY/EXERCISE
Activity 4. Article Writing

Direction: Write an article (200-300 words) about the Philippine Tourism citing the
recent development and the salient features of the Philippines as tourist destination. (Do
not copy from google/classmates. Cite your references). Rubric will be the criteria to
check your work. These activities will be recorded as part of your performance task. (40
points)

25
 Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The presence of ideas developed through 20 pts
facts, examples, details, opinions, statistics,
reasons and for explanation.

*2pts deduction for each item not observed

Focus
The single controlling point made with an 10 pts
awareness of task about a specific topic

*2pts deduction for each item not observed

Organization
Presents information in logical, interesting 10 pts
sequence which reader can follow.

*2pts deduction for each item not observed

TOTAL 40 pts

26
 POST-TEST
TEST I -IDENTIFICATION

Instructions: This evaluation/post-test contains 15 questions. Identify the following

that best completes the statement or answers the question.

1. It is a travel for religious or spiritual purposes.

2. The inventors of money.

3. It is a travel experience for the sons of wealthy to study language,

culture, and history

4. He was the founder of the world’s first travel agency.

5. He is known for his classic book, Le Guide Culinaire.

6. He is known as the Father of Tourism.

7 The term given to medical baths.

8. He Opened the first coffee house in Central Europe. It was in this

coffee house that the first cup of coffee sweetened with honey and
milk was served.

9. These people moved on foot from one place to another seeking for
food, shelter and safety from wild beasts and hostile tribes.

10. They began a tradition of buying souvenirs from the areas they
visited and giving them to their loved ones.

11.They built excellent roads, transportation and communication

systems.

12. He is Known as ‘king of hoteliers, and hotelier to kings’

13. He published the most popular guide books.

14. They are first one to shape the modern-day travel.

15. Probably credited to be the first cruise operator, even though most
of the passengers were animals.
27
 POST-TEST
TEST II – MATCHING TYPE

Instructions: This evaluation/post-test contains 10 questions. Match Column A with

Column B

Column A Column B

1. He is the most financially successful of

all hospitality entrepreneurs. He founded A. J. Willard Marriott
the McDonald’s Corporation, a
multibillion-dollar industry.

2. He began with a root beer stand which

was founded by necessity and built it into B. Cezar Ritz
a multibillion-dollar industry.

3. His passion, tenacity, and personal

taste and flair have all contributed to the C. Isadore Sharp
success of the Four Seasons Regent
Hotels.

4. He was the founder of the world’s first

travel agency. D. Auguste Escoffier

5. He brought a high standard of comfort

and convenience to the middle-class E. Howard Johnson
traveler at an affordable price

6. He used to be known as "the world's F. Ruth Fertel

biggest hotel man." The New York Times
referred to him as the "master of hotel
finance."

7. The most successful restaurateur at G. Conrad Hilton

present.

28
8. He was one of the first to promote H. Thomas Cook
franchising. He is now one of the most
well-known personalities in the
restaurant and hotel industry.

9. One of the world's most famous and I. Ray Kroc

opulent hotels He transformed the hotel into
a high-society cultural center. His name is
connected with high-end hotels and
impeccable service.

10. Menus, the art and practice of cooking, J. Ellsworth Milton Statler
and the structure of professional kitchens
were all transformed and modernized by him.

29
 LESSON 2

THE ECONOMICS OF TOURISM AND HOSPITALITY

A. Learning Outcomes

At the end of the lesson, you can:

1. explain the role of tourism and hospitality in economic development;

2. Describe multiplier and its effect on the economy of the host country; and
3. discuss the economic impact of tourism and hospitality on a destination area;

B. Time Allotment

1.5 hours

C. Discussion

The Role of Tourism and Hospitality in Economic Development

Several developing countries have used tourism and hospitality development as

an alternative to help economic growth. The reasons for this are: first, there is a
continuous demand for international travel in developed countries; second, as income
in developed countries increases, the demand for tourism and hospitality also increases
at a faster rate; and third, developing countries need foreign exchange to aid their
economic development.

The Organization for Economic Cooperation and Development (OECD) has

concluded that tourism and hospitality provide a major opportunity for growth to
countries that are at the intermediate stage of economic development and require more
foreign exchange earnings.

Tourism and hospitality are an invisible export which differs from international trade in
many ways:
30
1. In tourism and hospitality, the consumer collects the product from the
exporting country, thereby eliminating the freight costs for the exporter, except
in cases in which the airline used are those of the tourist-receiving country.

2. The demand for pleasure travel is largely dependent on non-economic factors,

such as local disturbances, political unrest, and changes in the fissionability of
resorts/countries created mostly by media coverage. At the same time,
international tourism and hospitality is both price elastic and income elastic. This
means that changes in price and income will also change the demand for pleasure
travel.

3. By using specific fiscal measures, the exporting or tourist-receiving country can

manipulate exchange rates so that those for tourists are higher or lower (normally
the latter is implemented in order to attract large numbers of tourists) than those
in other foreign trade markets. Also, tourists are allowed to buy in domestic
markets at the same prices as the local residents (the exceptions are the duty-free
tourist shops operated in many Caribbean islands and elsewhere).

4. Tourism and hospitality is a multifaceted industry that directly affects several

sectors in the economy, such as hotels, shops, restaurants, local transport firms,
entertainment establishments, handicraft producers, and indirectly affects many
others, such as equipment manufacturers and utilities.

5. Tourism and hospitality brings many more non-monetary benefits and costs
than other export industries, such as social, cultural, and environmental ’benefits
and costs.

31
Economic Impact

When travelers outside the destination area

spend on goods and service within the destination,
tourism and hospitality acts as an export industry
by bringing in revenues from outside sources.
Tourist expenditures also increase the level 0f
economic activity in the host area directly. Many
countries have utilized tourism and hospitality as
a means to increase foreign exchange earnings to
produce investment necessary to finance
economic growth. The tourism and hospitality
industry’s economic impact on a destination area
Source: https//www.dreamstime.com/
can be immense since it provides a source of
income, employment, and foreign exchange.

Tourism and hospitality industry consist of a wide range of economic effects.

Tourists subsidize to trades, revenues, employment, tax incomes and profits in a region.
The maximum impacts that take place inside the main sector of tourism are restaurants,
fun fair, housing or accommodation, retail trade and transportation.

Importance of tourism and hospitality industry

• Sources of foreign exchange earnings industry of tourism and hospitality is

the key effective type of business worldwide.

• Employment Opportunities this industry is also one of the significant

segments. It creates opportunities related to employment. It offers services to
inexperienced, prenominal and experienced manpower. Director, labor etc. are
the individual or efforts necessary in the industry of tourism.

32
 • Sources of public as well as private income industry of tourism is the main
cause of earnings for public along with private sector government sales tax,
service tax and charges tax etc. which is recognized as government proceeds is the
revenue of community. Handicraft, arts etc. are the stuffs that fascinate tourist
and majority of them purchase them and the seller make some profit which is
called private earnings.

• Cultural Exchange business of tourism accommodates social interchange

tourist bring over several ethnic perceptions of other states wherever they visit.
Native individuals can pick up their linguistic, skill, talent, values etc. and vice
versa.

Direct and Secondary Effects

In order to measure the economic impact of tourism and hospitality on the

destination area, it is important to know the direct and secondary effects of visitor
expenditures on the economy of the area. Tourist expenditures received as income by
businesses such as hotels, restaurants, car rentals, tour operators, and retail shops
serving tourists have a direct effect on the economy of the host area. The term “direct”
means that the income is received directly. Indirect or secondary effects mean that the
money paid by tourists to businesses are, in turn, used to pay for supplies, wages of
workers, and other items used in producing the products or direct services bought by
tourists.

Tourism Multiplier

The term “multiplier” is used to describe the total effect, both direct and
secondary, of an external source of income introduced into the economy. The tourism.
multiplier or multiplier effect is used to estimate the direct and secondary effects tourist
expenditures on the economy of a country. The multiplier effect is illustrated in Figure
1.

33
 Figure 1 Multiplier Effect

Source 1 Mill, R.C. and Alastair Morrison. The Tourism System

A tourist makes an initial expenditure into the destination. This expenditure is

received as income by local tour operators, handicrafts store owners, hoteliers, and taxi
drivers. In the first round of transactions, a hotelier may use some of the money received
to buy some supplies, pay some wages, and retain some profits. The income in the second
round may be spent or saved, while the employee who has received payment for services
rendered may spend some of it on rent and some on food, and may put some into savings.
The money spent on supplies in the third round of spending goes for such things as seed,
fertilizers, and imported raw materials. Any income spent on imports has leaked out of
the local economy. This process continues until the additional income generated by a
new round of spending essentially becomes zero. Leakage is the value of goods and
services that must be imported to service the needs of tourism and hospitality. To
estimate the total economic impact on an area, imports must be subtracted from the
income generated by visitors.

34
Cost-Benefit Ratio

Those concerned with developing the tourism and hospitality industry, whether a
government or a private individual, would like to know the extent of potential benefits
and their costs. Benefits divided by costs equal the cost-benefit ratio. To arrive at these
ratios, the following procedures are used:

1. determine where the tourist dollar is spent;

2. determine what percentage of each expenditure leaves the local economy;
3. derive a “multiplier effect,” a ratio applied to income that reflects multiple spending
within an economy;
4. apply the multiplier effect to the tourist expenditures to arrive at the total benefit of
tourist expenditures in dollars;
5. derive a cost-benefit ratio expressed as dollars received/dollars spent; and
6. apply the cost-benefit ratios to tourist expenditures to provide estimates of income
and costs of tourist business to a community, for both the private and public sectors.

Undesirable Economic Aspects of Tourism

Some undesirable economic aspects of tourism and hospitality are higher prices
and economic Instability. Because of additional demand and/or increased imports,
tourist purchases may result in higher prices in a destination area. This would mean that
local residents would also have to pay more for products and services.

Since pleasure travel is a discretionary item, it is subject to changes in prices and

income. These fluctuations may result in economic instability.

35
How to Maximize the Economic Effect of Tourism and Hospitality

Growth Theories

Some economic growth theories have been proposed to maximize the economic
effect of tourism and hospitality within a destination area. These are the theory of
balanced growth and the theory of unbalanced growth.

Proponents of the theory of balanced growth suggest that tourism and hospitality
should be viewed as an important part of a broad-based economy. This theory states that
tourism and hospitality need the support of other industries. Its objective is to integrate
tourism and hospitality with other economic activities. To obtain maximum economic
benefit, tourism and hospitality goods and services. Should be locally produced.

Supporters of the theory of unbalanced growth see tourism and hospitality as the
spark to economic growth. While the proponents of the theory of balanced growth stress
the development of supply, supporters of the theory of unbalanced growth emphasize
the need to expand demand. As demands increased through the vigorous development
of tourism and hospitality, other industries will move to provide products and services
locally.

Economic Strategies

The key to maximizing the economic effects of tourism and hospitality is to

maximize the amount of revenue and jobs developed within the region. To attain this
objective, some economic strategies have been adapted, such as import substitution,
incentives, and foreign exchange.

36
Import Substitution

It imposes quotas or tariffs on the importation of goods which can be developed

locally. It also grants subsidies, grants, or loans to local industries to encourage the use
of local materials. Its objective is to minimize the leakage of money.

Incentives

The wise use of incentives can encourage the influx of capital, both local and
foreign, necessary to develop tourism and hospitality supply. The most common forms
Incentives are:

1. tax exemptions/reductions on imported machinery, materials, and the like;

2. reduction in company taxation by means of favorable depreciation allowances
on investment, or special treatment in relation to excise taxes, sales taxes, income
taxes, turnover taxes, profit taxes, or property taxes;
3. tax holidays (limited period);
4. guarantee of stabilization of tax conditions (for up to 20 years)
5. grants (for up to 30% of total capital costs);
6. subsidies (guaranteeing minimum level of profit, occupancy, etc.);
7. Loans at low rates of interest;
8. provision of land freehold at nominal or little cost or at low rents;
9. free and unrestricted repatriation of all or part of invested capital profits:
dividends, and interest subject to tax provisions; and
10. guarantees against nationalization or appropriation.

Before implementing an incentive strategy, a destination should:

1. examine the performance of the schemes of other countries in light of their

resources and development of objectives;
2. research the actual needs of investors;
3. design codes of investment concessions related to specific development
objectives with precise requirements of investors; and
4. establish targets of achievements and periodically monitor and assess the level
of realization of such targets.

37
Foreign Exchange

Many countries have placed restrictions on spending in order to maximize foreign

exchange earnings. They have limited the amount of their own currency that tourist can
bring in and take out of the destination to ensure that foreign currency is use to pay bills
in the host region. Tourists may be required to pay hotel bills in foreign currency. Visitors
may be required to show that they have enough money for their set before they are
permitted to enter the country or they may even be required to enter with a specified
amount of foreign currency for the duration of their visit.

To know more about the Economic Impacts of Tourism click/ check this link by
Professor Jerome Cleofas. https://www.youtube.com/watch?v=vPhIcn0dOVg

38
 ACTIVITY/EXERCISE
Activity 5
Direction: Discuss/Explain the following questions. The rubric will be used to check
your work, and this will be recorded as part of your written works (5 points each a total
of 15 points).

1. What are the direct and indirect effects of tourism and hospitality to the economy?

2. What are the opportunities/ potentials brought by tourism in a country?

3. How can we maximize the benefits of the tourism and hospitality industry?

39
 ACTIVITY/EXERCISE

Activity 6

Direction: Think of 1 scenario that will show us the multiplier effect of tourism and hospitality
activities. Use diagram to illustrate the scenario. The scenario should be presented through an
illustration. You may use SmartArt. Provide short discussion (5-10 sentences) below the
illustration. Rubric will be the criteria to check your work. These activities will be recorded
as part of your performance task. (30 points)

Scenario

Short Discussion:

___________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

40
 Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content (Discussion)
Presents information in logical, interesting 10 pts
sequence which reader can follow

*2pts deduction for each item not observed

Organization and Presentation
Contains appropriate and effective graphics 10 pts
(symbols, icons) to represent the scenario.
Texts and icons jibe with each other.

*2pts deduction for each item not observed

Writing and Spelling
There are no grammatical or spelling errors in 10 pts
the discussion.

*2pts deduction for each item not observed

TOTAL 40 pts

41
 POST-TEST
Instructions: This evaluation/post-test contains 10 questions. Encircle the letter of
your choice. Please read the statements carefully before you answer.

1. It is necessary to understand the direct and indirect effects of tourist spending on the
local economy in order to calculate the economic impact of tourism and hospitality on
the destination area.

a. True
b. False

2. The term "multiplier" refers to the overall influence of an external source of money
introduced into the economy, both direct and indirect.

a. True
b. False

3. According to the unbalanced growth theory, tourism and hospitality require the
assistance of other businesses. Its goal is to bring tourism and hospitality along with
other economic industries.

a. True
b. False

4. Maximizing the quantity of cash and employment generated within the region is the
key to maximizing the economic effects of tourism and hospitality.

a. True
b. False

5. The money spent by tourists on businesses is then used to pay for materials, worker
wages, and other items utilized in the production of the products or direct services
purchased by visitors. These are referred to as direct effects.

a. True
b. False

6. Tourist expenditures received as income by businesses such as hotels, restaurants,

42
car rentals, tour operators, and retail shops serving tourists have a direct effect on the
economy of the host area. These are referred to as indirect or secondary effects.

a. True
b. False

7. Tourism and hospitality is a multifaceted industry that directly affects a number of

economic sectors, including hotels, shops, restaurants, local transportation companies,
entertainment establishments, and handicraft producers, as well as indirectly affecting
a number of others, including equipment manufacturers and utilities.

a. True
b. False

8. Leakage is the value of goods and services that must be imported to service the needs
of tourism and hospitality.

a. True
b. False

9. The tourism and hospitality industry’s economic impact on a destination area can be
immense since it provides a source of income, employment, and foreign exchange.

a. True
b. False

10. The tourism. multiplier or multiplier effect is used to estimate the direct and
secondary effects tourist expenditures on the economy of a country.

a. True
b. False

43
References:

Cruz, ZL PhD. (2018). Macro Perspective of Tourism and Hospitality. The meaning
and importance of tourism and hospitality. Pp 19-36.

Lim, Romeo (2018), A Macro Perspective on Tourism and Hospitality, Mindshapers,

Co. Inc, Manila

Economic impacts of tourism. Open Textbooks for Hong Kong. (2016, January
19). http://www.opentextbooks.org.hk/ditatopic/37004.

https://www.cooksinfo.com/. Cesar Ritz

https://www.lesdamesdc.org/. Auguste Escoffier

the Economic Impacts of Tourism by Professor Jerome Cleofas.

https://www.youtube.com/watch?v=vPhIcn0dOVg

Disclaimer: This Module is prepared for instructional purposes only based on the
course syllabus. The teacher who prepared this module does not claim ownership on its
contents, but patterned the ideas from different sources.

44
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development of West Philippines and beyond.

Mission
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Development through relevant
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services.

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