Macro Perspective of Tourism and Hospitality

 

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Tourism Commodies 

The Economics of Tourism 

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Fundamentally - Meas Measur urem emen entt and und under erst stan andi ding ng of deci decisi sion onss about the use and allocaon of scarce resources - Scarc Scarce e resou resourc rces es:: resou resourc rces es for for which which po pote ten nal al uses are greater than supply - Th Thus us,, choi choices ces must must b be e ma made de abo about ut whi which ch use usess to support Two branches - Macr Macro: o: fun funco coni ning ng of of la larg rgee-sc scal ale e econo economi micc systems such as labour markets, the eects of inaon and governmental economic policies - Micro: Micro: valua valuaon, on, pricin pricing, g, and dec decisi isionon-mak making ing by individuals, families and businesses

What is Economics? 

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Economics is a social science concerned with the producon, distribuon, and consumpon of goods and services. It studies how individuals, businesses, governments, and naons make choices about how to allocate resources.

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The Challenge of Tourism Tourism commodies are also purchased by people not engage in tourism: e.g. restaurant meals Tourism commodies are also produced by nontourism businesses: e.g. some department stores oer travel agency services Some tourism commodies are purchased frequently by people not engages in tourism, e.g. insurance (for ight cancellaons or illness), or clothing (purchased as a souvenir) 

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Economic Impact

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Measures the changes in an economy as tourism increases or decreases Three basic types - Direc Directt: magn magnit itud ude e of vis visit itor or sspe pend ndin ing g - Ind Indire irect ct: magni magnitud tude e of touris tourism m bu busin siness esses es purchasing supplies and services from other businesses - Ind Induce uced d: iimpa mpact ct o off e empl mploye oyee e sspen pendin ding g iin n community Employment impact: jobs created by tourism

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Other measures

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Employment Employme nt impact : job creaon driven dr iven by tourism

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KEY TAKE AWAYS 

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Economics is especially concerned with eciency in producon and exchange and uses models and assumpons to understand how to create incenves and policies that will maximize eciency. Economists formulate and publish numerous economic indicators, such as gross domesc product (GDP) and the Consumer Price Index (CPI).

Key Macro-economic Concepts 

Industry - A grou group p of of busi busines nesses ses produ producin cing ge esse ssena nall lly y tthe he same product using the same technology - A hier hierar archi chica call conc concep ept: t: can can refe referr to a gene genera rall type of business such as ‘accommodaon’ or to specic forms such as hotels, motels, resorts - Ne New w indu indust stri ries es eme emerg rge e over over me me and and old old one oness may disappear

A ‘characterisc commodity’ of a tourism industry is any service or good that earns a signicant poron of total revenues from persons engaged in tourism - ‘sig ‘signi nic can antt por poron on’’ is a ma mae err of jjud udgem gemen entt This is called a ‘tourism commodity’ - E. E.g. g. hot hotel el acc accom ommo moda dao ons ns,, pa pass ssen enger ger a air ir service, restaurant meals - Base Based do on n clas classi sic ca aon onss iin n tthe he CP CPC C

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Employme nt income : wages and salarie Employment salariess provided by tourism Tourism value-added valu e-added : the value of tourism g goods oods and services produced in a community, minus and wages, salaries and benets paid by the employer

 

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Others measures - Wealth Wages and salaries provided by tourism Increase in property values Investment income generated through tourism - Mulpliers Measure of overall increase in wealth arising from visitor expenditure; associated with economic impact Several types, each must be used and interpreted with cauon Value - Exchange - Intrinsic - Existence - Opon Assets - Tang Tangib ible le vers versus us inta intang ngib ible le - Cons Constr truc ucte ted d vers versus us na natu tura rall

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Consumer surplus

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Opportunity costs

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Economic rent

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Public goods - Comp Compe ev ve e vers versus us n non on-c -com ompe pe ve ve

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Merit goods

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Taxaon

PHP 482.15 BILLION VISITOR RECEIPTS IN 2019 An increase of 18.80%

TOURISM AND CULTURE

Key Understanding

Culture is the ‘way of life’ of people and includes characteriscs such as language, religion, customs, food, clothing, architecture, livelihoods, art and technology tec hnology 

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The world is divided up into dierent cultural groups and regions, each with a disncve way of life. Every culture, whether isolated or exposed to other groups, has adopted some aributes of other cultures A country’s culture and heritage sites are an important part of what it oers to tourists Cultural tourism is increasing as more people can aord the me and money and are becoming more culturally aware. Pop culture, high culture and sports tourism are all aspects of cultural tourism Heritage conservancy looks at ways to protect the oral and wrien tradions of a culture and its landscapes, historic buildings and places, collecons and natural sites, all which appeal to many tourists. Globalizaon of the music industry has resulted in increased interest in the music of dierent cultures Internaonal sporng events encourage interacon among cultures some sports tourism such as World Cup soccer can result in economic benets but also have negave impacts on the environment and people.

Key Word and Terms:

WHAT IS CULTURE? According to the denion adopted by the UNTWO General Assembly, at its 22nd session (2017), Cultural Tourism implies “A type of tourism acvity in which the visitor’s essenal movaon is to learn, discover, experience and consume the tangible and intangible cultural aracons/products in a tourism desnaon. These aracon/products relate to a set of disncve material, intellectual, spiritual and emoonal features of a society that encompasses arts and architecture, historical and cultural heritage, culinary heritage, literature, music, creave industries and the living cultures with their lifestyles, value systems, beliefs and tradions”.

Alternave tourism – individually planned tourist acvity that explores desnaons or events that are considered outof-the-ordinary Cultural tourism – travel that focuses on learning about characteriscs of life of people in dierent desnaons Cultural transmission – the transfer of traits when dierent cultures meet Culture various characteriscs of life shared by a group of people in a parcular community or naon

 

Democrazaon – travel for all Fully independent tourist (FIT) – traveler who makes all his or her own travel arrangements

Commodicaon 

Heritage conservancy – preservaon of important cultural and physical environments High culture – aspects of culture that include such acvies as opera, ballet, and theatre

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Popular culture – current cultural pracce and acvies of a society’s general public Sports tourism – travel that focuses on aending sporng events Transculturaon – the integraon of dierent traits from one culture to another

SOCIO-CULTURAL IMPACTS OF TOURISM 

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Socio-cultural impacts of tourism are the eects on host communies of direct and indirect relaonship with tourists, and of interacon with the tourism industry. For a variety of reasons, host communies oen are the weaker party in interacons with their guests gue sts and service providers. These inuences are not always apparent, as they are dicult to measure, depend on value judgments and are oen indirect or hard to idenfy.

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CHANGE OR LOSS OF INDIGENOUS IDENTITY OR VALUES Tourism can cause change/ loss of local identy and values by: 1. COMMODIFICATION 2. STANDARDISATION 3. LOSS OF AUTHENTICITY/ STAGED AUTHENTICITY 4. ADAPTATION TO TOURIST DEMANDS

Once a desnaon is sold as a tourism product, and the tourism demand for souvenirs, arts, entertainment and other commodies begins to exert inuence, basic changes in human values may occur. Sacred sites and objects may not be respected re spected when they are perceived as goods to trade.

Standardizaon 

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Desnaons risk standardizaon in the process of sasfying tourists’ desires for familiar facilies While landscape, accommodaon, food and drinks etc., must meet the tourists’ desire for the new and unfamiliar, they must at the same me not be too new or stage because few tourists are actually looking for completely new things. Tourists oen look for recognizable facilies in an unfamiliar environment, like well-known fast-food restaurants and hotels chains.

Loss of Authencity and Staged Authencity 

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NEGATIVE SOCIO-CULTURAL IMPACTS OF TOURISM

Tourism can turn local cultures into commodies when religious rituals, tradional ethnic rites and fesvals are reduced and sanized to conform to tourist expectaons, resulng in what has been called “reconstructed ethnicity”.

Adapng cultural expressions to the tastes of tourists or even performing shows as if they were “real life” constutes “staged authencity” As long as tourist just want a glimpse of the local atmosphere, a quick glance at local life, without any knowledge or even interest, staging will be inevitable.