1987 DHHM/BHHM 05 VARADHAMAN MAHAVEER OPEN UNIVERSITY, KOTA Contemporary Hospitality Industry & Hospitality Law DHHM/BHHM 05 Vardhaman Mahaveer Open University, 1987 Kota CONTENTS BHHM-15 Unit No. Name of Unit Page No. Unit 1 Introduction to Hospitality 1 Understand the current structure of the hospitality 15 Unit 2 industry Unit 3 Growth of hospitality Industry 32 Unit 4 Positive and negative impact of Hospitality Industry 45 Unit 5 Domestic and international tourism 59 Unit 6 Hospitality and Tourist Product 74 Unit 7 Tourist Attractions 86 Unit 8 Introduction to Law & Legal Sources 105 Unit 9 Law of Contract 122 Unit 10 Hotel Restaurant Licenses 147 Unit 11 Adulterant 162 Unit 12 Consumer Protection Act 1986 179 Unit 13 Contract of Insurance & Hotel Insurance 201 Unit 14 Labour Laws 216 Unit 15 Pollution Control Act, 231 Unit 16 Sale of Goods 241 Course Development Committee Chairman Prof. Vinay Kumar Pathak Vardhaman Mahaveer Open University, Kota Convener and Members Convener Prof. H.B.Nandwana Director SOCE, Vardhaman Mahaveer Open University, Kota Members: - 1. Mr. Virender Singh Yadav, IHM Jaipur 2. Dr.J.L.Saha , IHM, Gwalior 3. Dr.Lovkesh Srivastava ,CIHM Jaipur 4. Mr. Ravi Puri, IHMCS Jaipur 5. Ms Anjali Saxena, Guest Faculty (F&N) V.M.O.U,Kota Editing and Course Writing Editor Mr A.K.Srivastava – Rtd Principal, Govt Institute of Hotel Management, Jaipur Chairman – Institute of Hotel Management & Culinary Studies, Jaipur Unit Writers Ms. Megha Modi (Unit 1, 2, 7,14) Dr Girish Nandani (Unit 3) Sr Lecturer Institute of Hotel Management & Senior lecturer, School of Hotel Culinary Studies Jaipur Management, Babu Banarsi Das University, Lucknow Dr Lovkesh Srivastava (Unit 4, 8, 10, 13,15,16) Mrs Anjali Saxena (Unit 11) Director, Cambay Institute of Hospitality Management Guest Faculty, VMOU, Kota Jaipur Dr Ruchika Batla (Unit 5, 6) Mr Yogesh Sharma(Unit 9,12) PDF, VMOU, Kota Asco. Prof, VMOU, Kota Academic and Administrative Management Prof. Vinay Kumar Pathak Prof. L.R.Gurjar Vice-Chancellor Director (Academic) Vardhaman Mahaveer Open University, Kota Vardhaman Mahaveer Open University, Kota Prof. Karan Singh Dr. Anil Kumar Jain Director (MP&D) Additional Director (MP&D) Vardhaman Mahaveer Open University, Kota Vardhaman Mahaveer Open University, Kota Course Material Production Mr. Yogendra Goyal Assistant Production Officer Vardhaman Mahaveer Open University, Kota Production August, 2014 ISBN- All right reserved no part of this book may be reproduced in any form by mimeograph or any other means, without permission in writing from the V.M.Open University, Kota. Printed and published on behalf of V.M.Open University, Kota by Director (Academic) Printed Unit 1 : Introduction Hospitality Structure 1.0 Objectives 1.1 Introduction 1.2 Introduction to Tourism 1.3 Origin of Hospitality & Its Growth 1.4 Hoteliering & Pioneers of Hospitality Industry 1.5 Summary 1.6 Glossary 1.7 Review Questions 1.8 Check your Progress-1 Answer 1.9 Check your Progress-2 Answer 1.10 Suggested Reading 1.0 Objectives After studying this unit, the student must know: · Understand the origin and growth of Tourism Industry. · Trace the development of Hospitality Industry and its origin. · Understand the importance of various leaders of Hospitality Industry · Learn about the various leading hotel chains of the country 1.1 Introduction Travel is as old as mankind on the earth. Man at the beginning of his existence roamed about the surface of the earth in search of food, shelter, security and better habitat. The hospitality Industry is among the oldest commercial activities in the world. It is in fact, an integral part of the larger business enterprise known as travel and tourism, which provides a wide range of travel related services, such as modes of travel, accommodation, food and drinks, recreational activities, and other facilities required by modern-age traveller. This unit is aimed at providing an insight into the evolution and growth of tourism, hospitality and hotel industry and the core areas of hotel with reference to front office. 1.2 Introduction to Tourism Tourism is one of the world’s fastest growing industries and a major source of foreign exchange and employment generation for many countries Tourism may be defined as the processes, activities and outcomes arising from the relationships and the interactions among tourists, tourism suppliers, host governments, host communities, and surrounding environments that are involved in the attracting and hosting visitors. Four different perspectives of tourism can be identified: 1. The Tourist: The tourist seeks various psychic and physical experiences and satisfactions. The nature of these will largely determine the destinations chosen and the activities enjoyed. 1 2. The businesses providing tourist goods and services: Business people see tourism as an opportunity to make a profit by supplying the goods and services that the tourist market demands. 3. The Government of Host Community or area: Government perspective is related to the incomes their citizens can earn from this business. Government also considers the foreign exchange receipts from international tourism as well as the tax receipts collected from tourist expenditures, either directly or indirectly. 4. The host community: Local people usually see tourism as a cultural and employment factor. Of importance to this group, for example, is the effect of the interaction between large numbers of international visitors and residents. The word ‘tour’ is derived from the Latin word tornus , meaning ‘a tool for making a circle’. Tourism may be defined as the movement of people from their normal place of residence to another place (with the intention to return) for a minimum period of twenty-four (24) hours to a maximum of six months for the sole purpose of leisure and pleasure. The UNWTO defines tourists as ‘people who travel to and stay in places outside their usual environment for not more than their one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited’. The evidence of tourism can be traced back to the ancient civilization of Greece. Although participation in tourism was constrained by the difficulties and dangers of travelling any distance, and also by a lack of financial resources to do so, there was evidence of travel by the Ancient Greeks for the purposes of oracles, festivals and game competitions. In 776 BC visitors from all over the Hellenic world attended the first Olympic Games at Olympia. In the Roman Empire, the next major civilization of Europe, travel was facilitated by a sophisticated road system stretching 4,500 miles, the need to use only one currency, and a common language of Latin. The Roman Empire extended from Britain in the west to Armenia and Syria in the east, lasting for nearly 500 years in the west (c.31 BC–AD 476) and for 1,500 years in the east (c.31 BC–AD 453),necessitating the building of an extensive road network to administer and maintain order. A further point of consideration about tourism in Roman times was that similar to Ancient Greece, Roman society encompassed slavery. Hence, travel for the purpose of pleasure was restricted to a class who had both the available leisure time and disposable income to participate in it. It is not unrealistic to expect that this elite class of society would have been conspicuous by its ability to participate in tourism, a situation that existed until the nineteenth century, when the marked economic and Social changes associated with the Industrial Revolution would eventually permit a wider social participation in tourism. MEDIEVAL TOURISM During this period of approximately 1,000 years c.500–1500 AD, often referred to as the ‘Middle Ages’, travel was arduous and mostly being undertaken out of a necessity to trade or for religious pilgrimage rather than for recreation. Throughout the middle Ages, religion played an important part in folk culture, and the celebrating of ‘holy days’, from which the 2 word ‘holiday’ eventually developed, presented opportunities for a change from the typical employment in agriculture and cottage industries. THE GRAND TOUR The catalyst for the movement of a larger number of the wealthy beyond national boundaries was associated with the Renaissance, a period of revived interest during the sixteenth and seventeenth centuries in the classical civilizations of Rome and Athens. During Queen Elizabeth’s reign, as a refined form of education, a school to “finish” patricians by giving them firsthand experience of classical lands. Others in the upper class of society copied this practice, and travel to Italy for the purposes of teachings in classical civilization eventually became a part of a gentleman’s education. This upper-class travel dating from the Renaissance period became known as the ‘Grand Tour’, as it expanded beyond Italy into a circuit of Western Europe. As the eighteenth century progressed, more people could afford to participate in the Grand Tour as a consequence of an expansion in mercantile trade and subsequent increased wealth. With the increase in the numbers of participants in the Grand Tour came a widening of the variety of types of people and a diversification of themes. Progressively through the eighteenth century, the middle classes began to form the majority of tourists rather than the aristocracy, which led to a significant rise in family and women travelers. The Industrial Revolution is significant for marking a period of change from an agricultural based economy to an industrial one. Its origins lie in the mechanization of cotton and wool production in the north of England in the last two decades of the eighteenth century. Although the Industrial Revolution began in Britain, other countries have followed similar patterns of change. Urbanization caused the separation of people from nature and the land for the first time in human history.