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Overview of Tourism

Chapter 1
MAP 103
• There are various definitions have been set
forth to describe the most dynamic industry in
the world today.
• the Philippines is an active member of the
United Nations World Tourism Organization
(UNWTO), the country should adhere to the
international standards set by the
organization. To avoid misconception and set
a unified understanding of the terms used in
the tourism industry, the Philippines must
adopt the basic definitions set forth by the
governing body.
• Based on the UNWTO definition, tourism is
defined as the activities of persons traveling
to and staying in places outside their usual
environment for not more than one year for
leisure, business, and other purposes.
• What – corresponds to the term “activities” in the
tourism definition. This deals with actions,
events, undertakings or experiences of visitors
when they travel to a certain destination or when
they go on holiday. These activities may vary
from simple sightseeing, beach holiday, trekking,
and horseback riding to strenuous adventures
such as mountain climbing, spelunking (caving),
scuba diving, bungee jumping, etc. Basically,
tourism is an industry that involves actions done
by tourists.
• Who – pertains to the word “person/s.” It
identifies the doer of the action. When we
speak of tourism, we refer to travelers,
tourists, or people who undertake the
activities. The subject is neither, goods,
materials, nor products. The doers of the
action are people who engaged in traveling –
the tourists or travelers. The first word of the
definition being an action word (verb) tells us
that tourism is not a commodity that can be
bought and consumed. Persons are either to
undertake this activity or experience it.
• Where – this deals with the phrase “places
outside their usual environment.” This part
of the definition identifies the destination of
the traveler. This sets the area other than the
“usual environment” where a person must go
in order for him/her to be a visitor. “Usual
environment” means an area that is familiar
or frequented by the traveler. It may be
school, office, an abode, a company, or any
place a person routinely goes to in line with
his/her employment, study, business, or
• When – the phrase “for not more than one
year” corresponds to the time element. The
definition sets a time limit for people engaged
in tourism. These travelers must stay for a
maximum of one year in the place visited.
Otherwise, if the traveler exceeds the
maximum length of stay, he/she may no
longer be considered as a visitor. If he/she
stays for more than a year, he/she is
considered as a resident.
• Why – the purpose of travel is specifically
indicated by the phrase “for leisure, business,
and other purposes.” The definition states
the criteria for an activity to be classified
under tourism. Reasons beyond what was
included in the definition will be categorized
as other forms of travel.
• How – traveling to and staying – the definition
requires that a person must spend time in the
area visited for him/her to be considered as
part of tourism.
All types of travelers engaged in tourism are described
as visitors. Visitors are further classified as an
international visitor or a domestic visitor.
• An international visitor is a person who travels to a
country other than in which he/she has his/her usual
residence for not more than one year, and whose
main purpose of visit is other than the exercise of an
activity remunerated from within the country visited
• A domestic visitor is any person who, regardless of
nationality, is a resident of a country and who travels
to a place in the same country for not more than one
year and whose main purpose of visit is other then
practicing an occupation remunerated from within
the place visited.
• Center of economic interest - it is said to have a center of
economic interest when there exist some location-dwelling,
place of production or other premises-within the economic
territory on, or from, which it engages, and intends to continue
to engage, in economic activities and transactions on a
significant scale either indefinitely or over a finite but long
period of time.
• Domestic Tourism - Tourism of resident visitors within the
economic territory of the country of reference.
• Group Tour – a number of people traveling together following an
itinerary organized by a private entity such as tour operator or
travel agency or by a government institution.
• Guided Tour – a tour conducted for tourism purposes by a tour
• Inbound Tourism - Tourism of non-resident visitors within the
economic territory of the country of reference.
• Outbound Tourism - Tourism of resident visitors outside the
economic territory of the country of reference.
• Package Tour – refers to a set of products and
services offered to the visitors that is composed
of varieties of tourism characteristic products
(such as transport, accommodation, food
services, recreation, etc.). The component of a
package tour might be pre-established, or can
result from an "a la carte" procedure where the
visitor decides the combination of
products/services he/she wishes to acquire. This
can be synonymously used with "package travel
and/or package holiday".
• Resident - An institutional unit is resident in a
country when it has a center of economic interest
in the economic territory of that country.
• Same-Day Visitor - Visitor who does not spend
the night in a collective or private
accommodation in the place visited.
• Tour – refers to any arranged journey intended for
purposes of tourism to one or more places and back
to the point of origin. The arranged journey may not
necessarily be pre-paid.
• Tour Guide – pertains to an individual who guides
visitors for a fee, commission, or any form of lawful
remuneration or personnel from a government or
private entity who performs the above function
without fee or remuneration.
• Tour Operator – refers to entities engaged in the
business of extending/selling travel services (e.g.,
arrangements and bookings for transportation and/or
accommodation; handling and/or conduct of inbound
tours) to individuals or groups for a fee, commission,
or any form of compensation.
• Tourist - Visitor who stays one or more nights in the
place visited.
• Travel agency – refers to entities qualified to sell tours,
cruises, transportation, hotel accommodations, meals,
transfers, sightseeing and all other elements of travel to
visitors in a certain geographic area at a certain moment in
time and within certain conditions. The agency acts as a
broker, bringing the buyer and seller together. They do not
substitute the service-providing unit, but play the role of
providing information and access to the visitor and are the
middlemen in the purchase of certain services.
• Usual Environment - Corresponds to the geographical
boundaries within which an individual displaces
himself/herself within his/her regular routine of life;
consist of the direct vicinity of his/her home and place of
work or study and other places frequently visited.
• Visitor - Any person traveling to a place other than that of
his/her usual environment for less than 12 months and
whose main purpose of trip is other than the exercise of an
activity remunerated from within the place visited.
• The product is not brought to the consumer; rather, the consumer
has to travel and go to the product to purchase it.
• The products of tourism are not used up; thus, they do not
exhaust the country’s natural resources.
• Tourism is a labor-intensive industry. It requires more manpower
than other industries.
• Tourism is people-oriented. It is primarily concerned with people.
• Tourism is a multi-dimensional phenomenon. It is dependent on
many and varied activities which are separate but interdependent.
• The tourism industry is seasonal.
• The industry is dynamic. It is characterized by the changing ideas
and attitudes of its customers and therefore must be always
prepared and willing to adjust to these changes.
1. Contribution to the balance of payments – Tourism can
help correct the balance of payments deficit of many
countries by earning the much-needed foreign currency
in international trade.
2. Dispersion of development – International tourism is the
best means to spread wealth among countries thus,
bridging the economic gap between the rich and poor
3. Effect on general economic development – Expenditures
by tourists can have beneficial effects on all economic
sectors and lead to the development of different
industries and other economic activities.
4. Employment opportunities – Tourism is a source of
• Social benefits – Social exchange takes place when tourists
come in contact with the inhabitants of the places they
• Cultural enrichment – Tourism emphasizes a sharing and
appreciation of cultures rather than the lack of trust
brought about by isolation. Through tourism we can
appreciate the rich human and cultural diversity that the
world offers; evolve a mutual trust and respect for one
another and the dignity of life on earth.
• Educational significance – Tourism enhances one’s
education. International conferences, seminars, study
trips help each year enable people of all nations to
exchange ideas, propose solutions to problems and share
their concerns.
• A vital force for peace – Tourism, properly designed and
developed can help bridge the psychological and cultural
distances that separate people of different races, colors,
religions and stages of social and economic development.
The four basic components of tourism, namely:
• attractions,
• lodging,
• transportation, and
• food and beverage, are very important
In addition to these four basic components, there
are certain elements which are also crucial to
tourism. These include:
• Fine weather
• Historical and cultural factors
• Accessibility
• Amenities
Facilities are a necessary aid to the tourist center.
Attractions can be of two types: natural, e.g.,
beaches, sea-bathing, possibilities of fishing,
opportunities for climbing, trekking, viewing, and
manmade, e.g., various types of entertainments
and facilities which cater to the special needs of
the tourists.