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Introduction to Tourism and Hospitality industry

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1 Introduction to Tourism and Hospitality industry

2 Introduction to tourism and hospitality industry
Learning Objectives Understand the tourism and hospitality industry Overview of the different tourism sectors Classification of lodgings Analyze different kinds of consumers and what satisfies their travel needs

3 Why study Tourism and hospitality?
Employs 214 million people worldwide (est 2004) or 8.1% of total employment Leading economic contributor generating 10.4% of the world’s GNP (US$5,500B) Source :- World Travel & Tourism Council

4 How about local tourism and hospitality industry?
Estimated employment of 150,000 to 200,000 jobs 12% of GDP US$98.4B (2004) S$9.6 B tourism receipts (2004), S$6.9B (2003), S$8.8B (2002) Source : Travel News Daily

5 Tourism’s economic contribution in Singapore
Integrated Resort complex (Hotels and casinos) expected to hire 10,000 direct staff plus indirect employment (5,000)

6 Tourism’s economic contribution in Singapore
Ready in 2008/2009 at Marina Bay and Sentosa with theme parks, shopping plazas, museum and convention halls Total incremental employment of 35,000 jobs (unemployment 75, )

7 Tourism’s economic contribution in Singapore
Total incremental GDP of S$1.3 Billion Tourism contribution from 13.1% 1993 to 6.1% 2002 S$5B resort investment e.g. MGM-Mirage CapitaLand, Harrah’s Entertainment-Keppel Land etc.

8 Tourism’s economic contribution in Singapore
Expected to generate USD26.9billion of economic activity (Total Demand) in 2005 10.6% of GDP and 182,985jobs (8.3% of total employment) in 2005 Expected to grow 7.0% in 2005 and by 6.2% per annum, in real terms, between 2006 and 2015.

9 Singapore tourism’s vision
On 11 January 2005, STB unveiled Tourism 2015, its vision for Singapore’s tourism industry over the next 10 years. The STB aims to double visitor arrivals to 17 million, triple tourism receipts to S$30 billion and add 100,000 new jobs to the tourism industry by 2015. Source :- Travel News Daily

10 Definition of Tourism Individuals or groups that are travelling away from home requiring all providers of activities, services, and industries that delivers a travel experience e.g. You and your family travelling to Australia

11 Definition of Hospitality
Definitely not working in “Hospitals”

12 “Real” definition of hospitality
Lodging and food services (food and beverage) industries that cover theme and amusement parks, entertainment outlets, cruise companies E.g Any F&B providers locally or overseas

13 Hospitality industry Lodging :- continually changes to accommodate its guests, necessity for classifying hotels, cater to different groups of individuals. May include hotels, motels, convention hotels, farm stay, bed and breakfast and apartments.

14 Types of accommodation
Luxury hotels and resorts e.g. 4 Seasons, Banyan Tree, Fullerton Full serviced properties e.g. Ascott Limited-Serviced properties e.g. no daily housekeeping All-suites’ hotels (serviced apartments) Centrepoint

15 Foodservice operations
Foodservice :- offering menu in different forms from small establishments (push cart) to large chain restaurant organisations. Each foodservice operation responds to the needs and expectations of its market through its concept and menu.

16 Types of lodging ownership
Independent Ownership e.g. Bel Air Hotel Chain ownership e.g. Hilton International Management Contract e.g. Raffles Hotel Company-owned and operated e.g. Furama 5) Franchise-licensed e.g. Holiday Inns

17 Types of lodging ownership
Independent Ownership : No affiliations, usually hotels that are so famous e.g. Bel Air Hotel in Los Angeles So small that they don’t have the resources or see the need for brand affiliations

18 Types of lodging ownership
2) Chain Ownership :- Wholly owned by a parent chain corporation e.g. Hyatt, Hilton, Marriott or Fairmont, most people believe that if a hotel has a brand name, it’s owned by the parent chain, not very true as it could be “owned” in many forms.

19 Types of lodging ownership
Management Contract :- Provides executives to run the hotel, may use the chain’s brand name and reservations system Odd situations where the management of one chain (say, Marriott) oversees a property owned or franchised by another chain (e.g. Hilton)

20 Types of lodging ownership
Company owned and operated own and run by its own executives in areas of marketing, reservations, day-day operations of the various hotels

21 Types of lodging ownership
5) Franchised licensed Outside person or company (a franchisee) owns the property, pays a royalty, a percentage of room sales, must adhere to at least the minimum lodging standards that the chain sets

22 Brands and brand families
Represent a distinct value level e.g. Four Seasons rep upscale and pricey, Motel 6 has a chain of budget Hotels, basic and inexpensive

23 Classification of accommodation
Canada Select uses the following criteria to classify hotels and motels in Canada. cleanliness, state of repair and the amenities that each property offers. Each star level incorporates the requirements of the previous level and adds in new criteria.

24 Ratings of hotel accommodation
One Star Two Star Three Star Four Star Five Star

25 Ratings of hotel accommodation
5 Star Exceptional quality with the highest standard of furnishings, flawless service, meticulous guest care and exemplary provision and presentation of all aspects of the business. 4 Star Excellent quality, with the highest standard of furnishings, service and guest care. 3 Star Very good quality, with a commendable standard of furnishings, service and guest care. 2 Star Good quality, with a comfortable standard of furnishings, service and guest care. 1 Star Fair to Good quality, with an acceptable standard of furnishings and adequate service and guest care.

26 Ratings of hotel accommodation
Hotel Rate Type: San Francisco Hotels. Hotel Ratings: AAA Rating: 3 Diamonds; MOBIL Rating: 2 Star ...

27 How does it rate? Certain countries rate by governments on lodging, e.g. Australia, France and Mexico Most nations rate by private organisations, e.g. AAA, Michelin, Mobil Star Service

28 Categories of local hotels
Five star Hotels : Grand Hyatt, Meritus Mandarin, Grand Copthorne Waterfront, Goodwood Park, JW Mariott etc. Four Star Hotels :- Orchard Parade, Plaza Parkroyal, Traders Hotel, Carlton Hotel etc.

29 Categories of local hotels
Three Star Hotels :- Albert Court, New Park, Grand Central, Allson, Hotel Asia, Oxford, Garden, Hotel Miramar etc. 4) Budget Hotels :- Hotel 81, Fragrance, Metropolitan YMCA, Cactus, Dickson Court, Metropole, Royal Peacock etc.

30 Sectors of the industry
Transportation :- moving people and cargo through airlines, ferry, cruise ships etc Tour operators :- run packaged travel, independent tour packages with air/ground and land components

31 Sectors of the travel industry
Air industry :- airlines of all sizes and sorts and all airlines’ supporting services companies, for example, security, catering services. International airlines include SQ, QF, CX, EK and MH etc.

32 Sectors of the travel industry
Travel agencies :- businesses that help the public with their travel plans and needs, for example, Chan Brothers, Sakura Travel, Sunny Holidays, Reliance Travel etc.

33 Sectors of the industry
Visitors’ Attractions :- some places have become icons of the destination, for example, Eiffel Tower (Paris), Disneyland (Anaheim, California), Great Wall of China (Beijiang, China), Harvard University (Boston, MA)

34 Sectors of the industry
Theme Parks :- “super” attraction, businesses feature themed areas(e.g. Disneyland’s Tomorrowland and Frontierland sections), Orlando has the highest concentration of theme parks anywhere, including four within Walt Disney World, two at Universal Orlando, and one at SeaWorld

35 Sectors of the industry
Car rentals :- different types of cars for rental at various rental points with facilities, for example, airports, hotels or suburban locations, Brand names in the industry include Avis, Budget, Hertz and National etc.

36 Distribution channels
3 key players in distributing tourism and hospitality products include :- Consumers Suppliers Intermediaries

37 Why people travel? Self-motivating factors :- understand other
cultures, beliefs, values, see the world,

38 Three types of travelers
Dependables Venturers Centrics

39 Three types of travellers
Dependables :- Prefer predictable routine lives and avoid unusual things or challenging situations 2) Venturers :- bolder people, different and challenging things and love to travel to unusual, exotic places

40 Three types of travellers
3) Centrics :- psychological middle ground between dependables and venturers, little adventure in their lives but not too much

41 Summary Singapore’s tourism and hospitality industry is a major economic contributor to the economy Tourism and hospitality sectors work closely together to ensure an increase in its tourism receipts Singapore’s government is expected to introduce casino and Formula One when possible

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