Introduction to Travel and Tour Management

Chapter 1: Global Directions of the Travel and Tour Sector

CHAPTER 1
Global Directions of Travel and Tours Sector

Tourism in the Global Setting

The tourism industry is one of the booming industries globally. In the worldwide scene, tourists flocking
to different destinations around the world accounts for national revenue and sales that is a driving
factor to develop and boost national economy. With a valuable economy on its own, the United Nations,
a congregation of 180 member states formed a specialized agency tasked to promote responsible,
sustainable and universally-accessible tourism.

(UNITED NATIONS – WORLD TOURISM ORGANIZATION)

The World Tourism Organization (UNWTO) is the United Nations agency
responsible for the promotion of responsible, sustainable and universally
accessible tourism. As the leading international organization in the field of
tourism, UNWTO promotes tourism as a driver of economic growth, inclusive
development and environmental sustainability and offers leadership and support
to the sector in advancing knowledge and tourism policies worldwide.

Global Code of Ethics for Responsible Tourism

Article 1: Tourism's This laid out policies on the protection of travelers in visiting destinations. It
contribution to mutual also calls for the responsible tourism mechanism by correcting criminal acts
understanding and relating to destruction of environment, and breaking of national peace and
respect between order.
peoples and societies
Article 2: Tourism as a This article became a foundation of ethical and responsible tourism where
vehicle for individual each individual must not exploit the rights of any individual in order to
and collective experience tourism. It also laid out affirmations for the use of tourism as a
fulfilment valuable tool for self-learning and education towards fulfilment.
Article 3: Tourism, a It explained that the development of any tourism circuit should be
factor of sustainable sustainable and can carry approved number of tourists without sacrificing
development the natural appeal of the destination.
Article 4: Tourism, a It recognizes tourism as a prime user and subscriber to cultural heritage of
user of the cultural the people, and in return, tourism should give back by allocating funds to
heritage of mankind further preserve cultural edifices for the preservation of cultural heritage,
and contributor to its identity and tradition.
enhancement
Article 5: Tourism, a It explains the importance of including local communities to the tourism
beneficial activity for manpower in search of a better living. It mandated principles of engaging
host countries and local communities and giving them priority over manpower provisions in
communities their own locale.
Article 6: Obligations The article dictates the responsibilities of tourism stakeholders in
of stakeholders in safeguarding the rights of travellers in case of any irregularity, and should
tourism development provide holistic formation of their internal customers by providing fair and
just compensation, equity and information.
Article 7: Right to It provides for tourism as a universal right of every inhabitant, and is related

1|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

tourism to the universal right of a human being to experience rest and leisurely time.
Article 8: Liberty of It states that human beings have the right to move from their origin to their
tourist movements desired destinations, right to communicate freely, and right to a free and
approved passage upon compliance to international immigration, customs
and health regulations.
Article 9: Rights of the It calls for the repositioning rights of the worker and entrepreneur as a
workers and universal one in the tourism industry. In lieu, it provides for the right to be
entrepreneurs in the hired based on merits, competency and performance; and having the right
tourism industry to exchange between tourism-generating and tourism-receiving regions.
Article 10: It echoes the need for public and private stakeholders to uphold the Global
Implementation of the Code of Ethics for Tourism in order to implement the vision of UNWTO to
principles of the consider tourism as sustainable and universally-accessible.
Global Code of Ethics
for Tourism

*Suggested Reading: UNWTO Global Code of Ethics for Tourism

The Philippine Tourism Industry

The tourism industry is a composite of industries and entities, both public and private, involved in the
planning, development, marketing, sales, operation and evaluation of destinations, products and
services that cater to the needs of both foreign and domestic travelers.

GOVERNMENT SECTOR PRIVATE SECTOR

Planning and developing destinations Planning and developing a single tourist product
Marketing of Philippine Destinations Marketing of specific tourist products
Sales and Operations on Tourist Products
Delivery of tourism services, Undertaking the evaluation of tourism services

2|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

GOVERNMENT SECTOR

This sector is responsible for the formulation of tourism policies, plans and programs. It provides
guidelines for selection and development of Philippine destinations, promotes travel to, and
investments in the Philippines, and regulates the industry, in coordination with other agencies.

Agencies:

1. The Department of Tourism (DOT)

First created in 1973, thru PD 189, reorganized thru EO 120 in 1986, reorganized again into the
present setup in 2009, via Sec. 107, RA 9593 (Tourism Act)

Sec. 4, of the Implementing Rules and Regulations of the Tourism Act defined DOT as, “the
primary planning, programming, coordinating, implementing and regulatory government
agency in the development and promotions of the tourism industry, both domestic and
international, in coordination with its attached agencies and other government
instrumentalities. It shall instill in the Filipino, the industry’s fundamental importance in the
generation of employment, investments and foreign exchange.”

Powers of the DOT:

a. Formulate, coordinate, implement and supervise tourism policies, plans and projects for the
development of tourism
b. Support, advance and promote the protection, maintenance and preservations of historical,
cultural and natural endowments
c. Provide an integrated marketing program and represent the government in all tourism
conferences, multilateral and bilateral tourism treaties, and agreements.
d. Evaluate tourism development projects for the issuance of permits and grating incentives by
the appropriate government agencies
e. Provide technical assistance to the LGU in destination development, standards setting and
regulatory enforcement, and monitor compliance to its standards
f. Perform other public related services such as tourism research and studies, collection and
integration of data, facilitation of obtaining travel documentation, and monitor conditions
on destinations.

3|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

Structure of DOT

Secretary of Tourism

Undersecretary - Undersecretary
Undersecretary - Tourism
Regulations Coordination Concerns
Development
& Resource Generation Administra

Office of Product Office of Tourism

Office of S
Development Standards and Regulations

Office of Tourism
Development, Planning, Office of Tourism
Admini
Research and Information Coordination
Management

Office of Industry Office of Resource

Office o
Manpower Development Generation

Foreign and Regional Fin

Offices Manag

UNDERSECRETAR Divided into three offices:

Y FOR TOURISM 1. Office for Product Development
DEVELOPMENT a. Conceptualizes and develops new product which will enhance
tourism sites and facilities;
b. Undertake tests on the viability and acceptability of new tourism
related products and services;
c. Encourage and promote joint undertakings with the Private Sector of
new tourism-related products and services.
This is further divided into two divisions:
Product Planning and Development
Product Monitoring and Evaluation
2. Office for Tourism Development, Planning, Research, and Information
Management
a. Prepares a National Tourism Development Plan that identifies
geographical areas with potential tourism value and outlines
approaches to develop such areas;

4|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

b. Formulate, monitor, evaluate programs and policies for global

competitiveness and national tourism development and approve
LGU’s own tourism development plans;
c. Provide assistance on technical matters regarding the execution of
tourism development plans;
d. Formulate an integrated tourism marketing and promotions plan,
source grants, manages the Department’s information system, and
pursue the Department’s interests.
This is further divided into 4 divisions, namely:
Statistics, Economic Analysis and Information Management
Tourism Development Planning
International Relations
Information Technology
3. Office of Industry Manpower Deployment
a. Develop training modules and conduct multi-skills training seminars
including continuing education programs for the industry manpower
in coordination with the appropriate government agencies and
tourism enterprises;
b. Develop training courses and apprecticeship programs in
coordination with the Office of Tourism Standards and Regulation,
for tour guides and other similar workers jointly with government
and private sectors;
c. Enlist the preparation of experts for the training and education
programs of the LGU;
d. Develop training and certification programs for tourism professions,
in coordination with TESDA.
This is divided into two, namely:
Manpower Planning and Monitoring
Manpower Training
UNDERSECRETAR Divided into 5 offices:
Y FOR 1. Office of Tourism Standards and Regulations
REGULATION, a. Formulate and enforce standards for the operation and maintenance
COORDINATION of tourism enterprises, prescribing minimum and progressive levels
AND RESOURCES of operating quality and deficiency consistent with local and
GENERATION international standards;
b. Coordinate with relevant tourism enterprises associations in
formulating and implementing rules and regulations for the
accreditation of tourism enterprises;
c. Develop and enforce a comprehensive system for mandatory
accreditation for primary tourism enterprises and voluntary
accreditation for secondary enterprises
d. Establish a system of registration, information, linkage and mutual
assistance among accredited tourism enterprises to enhance the
value of accreditation and improve the quality of service rendered by
such enterprises
e. Evaluate tourism projects in accordance with standards and endorse
the same to appropriate government agencies.
It is further divided into: Standards Development, Standards Monitoring and

5|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

Enforcement, Projects and Investments Evaluation.

2. Office of Tourism Coordination

a. Maintain close coordination with national government agencies.
LGU, NGO and other private entities for the development and
implementation of national tourism plans and policies;
b. Call upon the assistance or support of any of all the government
agencies in the implementation of Department’s policies;
c. Support the private sector in all tourism activities requiring
government coordination.
It has two divisions, Government Coordination, and Industry and Media
Coordination.

3. Office of Resource Generation

a. Ensure a sustainable funding mechanism for the implementation of
tourism plans, policies and programs and activities of the
Department;
b. Establish a Tourism Development Fund and formulate guidelines,
rules and regulations for its equitable allocation among projects
relating to the development and promotion of tourism;
c. Collect tourism charges and fees as may be deemed necessary
It has two divisions, Revenue Research and Revenue Collection.

4. Regional Offices
a. Implement laws, policies and plans of the Department
b. Accredit tourism enterprises in accordance with standards;
c. Collect and remit tourism charges and fees;
d. Coordinate with the regional office of other departments and other
entities in the implementation of national tourism development
plans;
e. Coordinate with the LGU the formulation and submission of local
development plans and the establishment of tourism information
ans assistance centers;
f. Undertake research and gather data on local tourism trends;
g. Provide technical assistance to the LGU, local communities and
tourism enterprises on tourism planning, product development,
standard setting, promotions, formulation and enforcement of laws,
rules and regulations; and conduct seminars and info campaigns
h. Supervise the implementation of domestic tourism promotions
programs.
Headed by a Regional Director, this is divided into Tourism Planning, Tourism
Regulation, and Administration.

5. Foreign Offices
a. Undertake research and gather data on tourism market trends
b. Coordinate in the implementation of plans, policies and programs
c. Supervise the implementation of international tourism promotions
in their areas of responsibility

6|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

d. Make recommendations on all matters relating to tourism within

their jurisdiction.
Headed by a Tourism Attache.
UNDERSECRETAR It has 4 offices:
Y FOR SPECIAL 1. Office of Special Concerns
CONCERNS AND a. Coordinate and monitor the implementation of the directives,
ADMINISTRATION pronouncements and issuance of the President pertaining to the
priorities of the Department
b. Perform other functions at the Secretary’s disposal.
2. Office for Administrative Affairs
a. Advise and assist the Secretary on all matters pertaining to
personnel and general services
b. Provides centralized and integrated system related to personnel
information, work environment, records, communication, supplies,
equipment, collection, disbursement, security and custodial work.
3. Office for Legal Affairs
a. Advise the Secretary on legal matters
b. Assist the Secretary in reviewing budget porposals of the attached
agencies,
c. Organize technical budget hearings
4. Office of Financial and Management Division
a. Budget
b. Accounting
c. Management

Attached Agencies to the DOT:

a. TOURISM PROMOTIONS BOARD

Former Philippine Conventions Bureau (PCB), it was created via PD 867 in 1976.
Transformed into a non-profit corporation in June 1978 via PD 1448.
With the reorganization in 1987, it was renamed as the Philippine Conventions and Visitor
Corporation (PCVC), thru EO 120-A.
Under RA 9593, it was changed to the present name.

“Be responsible in in marketing and promoting the Philippines domestically and internationally
as a major global destination, highlighting the uniqueness and assisting the development of
tourism products and services, with the end in view of increasing tourism arrivals and
investments, marketing the PHL as a major Meetings, Incentives, Conventions and Exhibitions
(MICE) destination, attracting, promoting, and servicing large scale events, international fairs,
conventions, congresses, sports, competitions, expositions and the like; ensuring the local and
international advertising of the country’s major tourism destinations and products, including
TEZ’s and providing incentives to travel agencies, tour operators, wholesalers and investors
abroad capable of drawing a sizeable number of tourists and tourism investments into the
country.”

Functions:

7|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of the Travel and Tour Sector

a. Develop and implement a plan to market the country as a premier tourism destination and
develop and promote the country as a center of international MICE, sports and wellness,
medical tourism, etc.
b. Direct and coordinate the resources and efforts of the government and the private sector in
the tourism and allied fields in the full realization of the plans and programs; and engage in
tourism business and perform such acts
c. Contract loans, indebtedness and credit, and issue commercial papers and bonds in
convertible currency from foreign governments and financial institutions, and in local and
foreign banks or similar institutions, execute any deed of guarantee, mortgage, trust and
assignment of property for the purpose of financing the program
d. Obtain the services of local and foreign consultants and enter into contracts locally and
internationally in the performance of its functions.

Structure of TPB

The Board of Directors is headed by the Secretary of Tourism, along with,

TPB Chief Operating Officer (Vice-Chair) Secretary, DTI (Member)

TIEZA COO (Vice-Chair) Secretary, DOTC (Member)
Secretary, DFA (Member)
5 Representatives from the following sectors, being appointed by the President, upon
recommendation of the Tourism Congress from a list of 3 nominees per sector:
Accommodation entreprises
Travel and Tour sector
Land, air and sea transportation sector
Conventions, meetings, incentive travel exhibitions and events services and facilities
Other accredited tourism enterprises

b. TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY (TIEZA)

Created as the Philippine Tourism Authority (PTA) in 1973 thru PD 189, as amended by PD 564.
Reorganized into its present office thru RA 9593.
The office is mandated to:

a. Designate, regulate and supervise the Tourism Enterprise Zone (TEZ)

b. Develop, manage and supervise tourism infrastructure projects in the country
c. Supervise and regulate the cultural, economic and environmentally sustainable
development of TEZ towards encouraging investments
d. Ensure strict compliance by the TEZ operator with approved development plans
e. Continue to exercise the powers of the old PTA.

Structure of TIEZA

Board of Directors include:

Secretary of Tourism – Chairman Secretary, DPWH – Member
TIEZA COO – Vice Chair Secretary, DENR – Member
TPB COO – Member Secretary, DILG – Member

8|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of Travel

5 Representatives from the following sectors, being appointed by the President, upon
recommendation of the Tourism Congress from a list of 3 nominees per sector:
Accommodation enterprises
Travel and Tour sector
Land, air and sea transportation sector
Conventions, meetings, incentive travel exhibitions and events services and facilities
Other accredited tourism enterprises

Tourism Enterprise Zone are geographical areas that conform to the ff:
1. Capable of being defined as one contiguous territory
2. Has historical and cultural significance environmental beauty, or existing integrated leisure
facilities within its boundary or reasonable distance
3. Has, or may have, strategic access through transportation infrastructure and access to
utilities infrastructure systems
4. Sufficient in size, such that it can be further utilized for bringing in new investments in
tourism establishments and services
5. In a strategic location such as catalyze the socio-economic development of neighboring
communities.
c. DUTY FREE PHILIPPINES CORPORATION (DFP)
Operates the duty and tax-free merchandising system in the Philippines, to augment the service
facilities for tourist and returning Filipino travelers to generate foreign exchange and revenue
for the government. Powers of the DFP are:
a. Exclusive authority to operate and/or franchise out the operation of stores and shops that
sell duty and tax-free items in air and sea ports and in TEZ
b. Authority to operate stores within air and sea ports
c. Operate without any prejudice to any privatization in the future.
d. TOURISM COORDINATING COUNCIL
e. LOCAL GOVERNMENT UNITS
f. OTHER NATIONAL AGENCIES
1. Department of Transportation (DOTr)
2. Department of Public Works and Highways (DPWH)
3. Department of Environment and Natural Resources (DENR)
4. Department of Foreign Affairs (DFA)
5. Department of Trade and Industry (DTI)
6. Department of the Interior and Local Government (DILG)
7. Department of Justice (DOJ)

THE PRIVATE SECTOR

A. Transportation Industry
It plays the most important role in the industry, since without travel, there is no tourism.
A.1. Air
It involves companies providing schedule air and charter services. Airports, air strips and
fields form an integral part of this sub-industry.
The Airbus A380 is currently the largest passenger aircraft in the world. It is a double-
decker, wide-bodied and 4-engined craft manufactured by Airbus.
The largest aircraft of a Philippine carrier to date is the Boeing 777-300, with its owner,
Philippine Airlines, while the largest all-economy aircraft of a Philippine carrier is the
Airbus A330-300, with Cebu Pacific.
The Civil Aviation Authority of the Philippines (CAAP), and the Civil Aeronautics Board
(CAB), both regulates and supervises the air transport industry of the country.
A.2. Sea
It includes all water transportation operators, both fresh and salt water, and the land-
based services for these, such as piers, ports, berths and wharves. This is divided into
Shipping and Cruise.

9|Page
Introduction to Travel and Tour Management
Chapter 1: Global Directions of Travel

SHIPPING CRUISE
Passengers and Cargo Passengers only
Fixed point-to-point routes Flexible circle routes
Full Facilities Full Facilities
Limited Amenities Full Amenities
Limited Port Facilities Excellent Port Facilities
Domestic International
Opportunity Shore Excursions

A.3. Land
It includes all land transportation facilities – rail and road, from the smallest entity to the
largest ones. It includes tricycle, jeepney, buses, trains, bicycles, etc.

A.4. Oil Companies

These are facilities that supply fuel for automobile units and other types of
transportation.

A.5 Space Travel

B. The Lodging Industry
It is composed of hotels, resorts, motor hotels, pension houses, dormitories and inns. These are
establishments that focus on providing lodging with or without meals for a monetary payment.

Classification of Lodging

a. Hotels – two or more floors with rooms located along common hallways. Services include
housekeeping, room service, bell service, business center, recreation, restaurants and bars.
b. Resorts – establishments with a leisure component and situated in semi-urban or suburban
or countryside locations.
c. Motels – offers parking next to lodging units. Services are limited only to pools and
restaurants. Situated along motor ways and roads.
d. All-Suites – units have a bedroom, kitchenette, living space and parlor.
e. Convention Hotels – provides meeting and banquet facilities for large groups
f. Spa – resort with wellness and health component.
Lodging Rates:
5 Star – Deluxe
4 Star – First Class
3 Star – Standard
2 Star – Economy/Tourist
1 Star – Budget

Resort Rates:
Triple AA – Deluxe
Double AA – First Class
A - Standard

C. Food and Beverage Industry

This consist of eating and drinking places, where eating and drinking are the two most favorite
pastimes of people, mostly travelers.

Restaurants – These include restaurants, fast-food units, coffee shops, cafeterias, specialty,
family and full-service restaurants, each with an orchestrated ambience.

10 | P a g e
Introduction to Travel and Tour Management
Chapter 1: Global Directions of Travel

Travel Food Services – operations on hotels and motels, roadside service to automobile
travelers, and transportation catering.

Institutional Food Service – operations on companies, hospitals, schools, nursing homes.

Types of Restaurants:

1. Table Service – host seats the guest; servers take orders at the table and food is brought at
the same place. The busboy the busses the table right after the service.
2. Buffet Service – associated with catering, guests go to the buffet to get meals.
3. Banquet Table Service – similar to table service; difference is that food is transported from a
central kitchen, to serving areas in bulk, for singular plating.
4. Cafeteria Service – similar to buffet, difference is that food is dished out in this service. They
have permanent service counters to take orders and serve food.
5. Family-Style Service – bringing in various food in platters sufficient for 5-8 members.
6. Room Service – popular in hotels, involves ordering food from a menu inside the room, and
having it brought inside the room for consumption.
7. Quick Counter Service – customer stands in the counter, orders and pays at a single counter
only, food preparation takes 1-5 minutes only.
8. Traditional Counter Service – customer sits at a stool in the counter, order, pay and
consume food in the same counter.
9. Take-Out Service – customer orders the food at take it home.
10. Delivery Service – prepared food is delivered to the customer’s home, fondly called as
“meals-on-wheels”

D. Activities and Attractions Industry

It is the latest addition to the lineup of tourism industry. It is also called as the Entertainment,
Leisure and Recreation Sector, which is best exemplified by theme parks, shopping centers,
night clubs, wellness spas, museums, cultural villages, disco houses, events, etc. It is composed
of all sites dedicated to offering attractions and provide entertainment to the travelers.

Attractions, may be categorized into:

NATURAL – botanical, zoological, mountain, seaside parks, are wonders that lure travelers to
enjoy the natural beauty and the inspiration they provide.
MAN-MADE – historic sites, prehistory, archaeological sites, cultural, religious sites, inspired to
learn more of contemporary and long-vanished civilizations.
Activities (Recreation and Entertainment)
LEISURE – defines as freedom resulting from the stoppage of work activities. It is time that is
free of duties. It can participatory or passive.
RECREATION – refreshment of strength and spirit after work and mean of diversion.

Facilities inside the Industry:

1. Amusement Parks – originated from the feria in the Philippines. It features a roller coaster
ride, plus some other rides. Today, it is now associated with educational recreation.
2. Theme Parks – operated like an amusement park, but on a larger scale and area. It operates
within a common theme. It aims to provide a friendly place where people can have fun.
3. Resorts – provides entertainment and recreation facilities, especially to vacationers.
4. Casinos – public places where gaming takes place. Gaming is the wagering or betting of
money or other valuables on the outcome of a game.
5. Cruises – self-contained ship and a floating resort or a way to visit faraway places with all
the comforts.
6. Dinner Theaters – features musical or dramas as form of entertainment, with food and
beverage services.

11 | P a g e
Introduction to Travel and Tour Management
Chapter 1: Global Directions of Travel

7. Spas or Health-Related Resorts – referred to as thermal or hot springs, which brings

medicinal value
8. Resort and Amenity Spas
9. Fitness and Health Clubs

E. The Travel Trade

It is made up of travel managers and tour operators, also called as intermediaries, or middle
men, and tour guides.

Travel Manager – seller of travel suppliers’ products and services. He provides information, gives
expert advice, and make arrangements to travel by air, sea or land, to any point in the world.
They are viewed as retailers.

Tour Operator – contracts and purchases the separate travel components from the suppliers or
vendors, and assembles it into one package, which he sells to the travelers thru a travel
manager. They are viewed as wholesalers.

F. Other Private Entities

a. Publishing Companies – producers of print and electronic news, features, and
advertising.
b. ITC Service Providers – these includes Central Reservation Systems (CRS) and Global
Distribution Systems (GDS)
c. Marketing and Public Service Organizations – planning and publicity and sales
campaigns, selecting target markets, selecting media, providing market researches,
discovering new markets.
d. Event Organizers – plans and executes MICE events, negotiates hotel rates for events,
planning meetings, seminars planning, budgeting, coordination with stakeholders,
promotions and public relations.
e. Social Media Sites – valuable tool for costless marketing, thru Facebook, Twitter,
Instagram, Pinterest, Snapchat, etc.
f. Miscellaneous Services – insurance, hospitals, clinics, police, sanitary companies,
laundry, construction, engineering, security, drug stores, etc.
G. Educational and Training Institutions
These are sources of talents for the different industries on the supply side. Among these are
vocational-technical schools, community colleges, universities, assessment centers, etc.

H. Tourism Congress
It was convened under the Tourism Act of 2009, RA 9593, and serves as a private body
consultative office to assist the government in the development, implementation and
coordination of tourism policies, plans and programs.

12 | P a g e
Introduction to Travel and Tour Management
Chapter 1: Global Directions of Travel

It is composed of representatives from accredited tourism enterprises from the Private Sector,
as well as past Secretaries of Tourism.

13 | P a g e