AN ASSESSMENT OF SOCIAL

IMPACTS IN HOSPITALITY
INDUSTRY OF ANGELES CITY

By:
Pangan, Rodelito C. Jr.
Balmes, Christian Marc M.
Santos, Kristoper John S.
Quinawayan, Mavelle
Viogela, Iren
Chapter 1 – INTRODUCTION

Hospitality industry in the Philippines is one the biggest inustry in the country. This also is one
of the reason for the growth of the economy in the Philippines. Opportunities for growth have
never been more open for the hotel and hospitality industry than today.
"The hospitality industry consists of broad category of fields within the service industry that
includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and
additional fields within the tourism industry. The hospitality industry is a several billion dollar
industry that mostly depends on the availability of leisure time and disposable income. A
hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple
groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, etc.), management, marketing, and human resources."
The scope of the hospitality industry comprises of a range of businesses that provide services and
facilities such as accommodation, food and beverage, entertainment, gaming and related
products.
The term “hospitality” has become accepted over the years as a generic word, which describes
the well being of services and facilities related to tourists and travelers.
The hospitality industry is represented in every country in the world and is diverse and complex.
It encompasses a range of free-standing hospitality businesses and is also a component of a wide
range of venues whose primary function is not hospitality." (https://www.ukessays.com)
The hospitality industry basically provide the needs and wants of the customers travelling here in
the Philippines. It is very important for the personnel under hospitality industry to provide the
customer satisfaction for the traveler in order for the industry to maintain them.
"The hotel sector recorded total revenues in 2005 to be at P36.94 billion, over ten billion higher
than the 2003 level (P26.64 billion). Over the years the competition in the hotel sector has kept
industry players on their feet for constant service and management innovations as well as service
price changes.
In fact, lower-end hotels have started to build rapport in competing with high-end ones. One of
the business strategies for lower-end establishments is banking on making their service "closer to
home".
This strategy attempts to capture both tourist and business markets by establishing a homier feel
with guest access to living rooms, dining rooms, and kitchens. Some even include home
amenities not normally found in high-end hotels such as flat irons, microwave ovens, silverware,
and cooking utensils, among others.
Other low-end hotels cut costs by employing mostly non-professional helpers. Some are family
operated guest houses or lodging places that typically cater to local tourists, often families, who
are looking for lower rates, according to IDEA’s Industry Trends.
Furthermore, the same report revealed that “the Hotel and Restaurant Association of the
Philippines (HRAP) divides the hotel market into Makati and bay areas. In 2005, HRAP
estimates the Makati clientele to comprise around 95% of foreign travelers who aim to conduct
business in the country. The bay area clientele is largely comprised of international tourists.
Travelers will always be in need of a place to stay.
For this reason, the hotel sector heavily relies on tourists, whether foreign or local. The hotel
sector thus sees itself vulnerable to the same problems that the tourism industry suffers with:
troublesome peace and order situation, environmental and infrastructure degradation, and poor
marketing.
At the same time, the hotel sector benefits from the peaks of tourism activity: festivals (although
seasonal and location-sensitive), spectacles (such as beauty pageants, concerts, and the Papal
visit in 1995) and vacation periods (such as during summer and the holidays). With the holidays
ahead, tourism prospects may brighten the path for the hospitality industry. Still, even the
tourism industry has not been immune to the current global downturn.
As tourism activity declines in the wake of the crisis, so will activity in the lower end of the hotel
sector, particularly those heavily reliant on local tourism. In the longer run, the industry’s
sustained growth depends on how players maintain and improve the quality of service offered to
customers. For tourism-sensitive establishments, cooperation with the government and local
community is crucial in order to maintain the viability of certain locales as tourist spots.
For the industry as a whole, it is worth the investment to improve infrastructure and service
facilities. Furthermore, the industry will surely benefit much from a professionalized workforce.
Rigorous staff training is necessary if the domestic industry wants to be truly competitive with
other countries.
Overall, the trends show that the hospitality industry has greatly improved from its state ten years
ago. Hotels are constantly investing for refurbishment and facility improvements, especially in
the area of information technology and management.
Restaurants, particularly chains, likewise improve their production and distribution systems for
greater efficiency. In the short run, the industry anticipates a slump in the coming months as an
effect of the expected decline in tourism and consumer spending. In the meantime, better quality
of services will help sustain the growth of the industry in the long run according to IDEA."
(https://www.philstar.com)
Accommodation produces income for neighborhood economies legitimately when voyagers burn
through cash in inns, eateries and diversion scenes. ... Likewise, the travel industry can animate
the structure of framework, for example, streets and open transportation. Likewise, significant
financially are the occupations made by the business.
"The travel and tourism sector currently accounts for 10.4% of global GDP.* Projections say that
72 million jobs will be added to the tourism and hospitality sector over the next 10 years, and the
industry itself will grow 10%.†
Hospitality generates revenue for local economies directly when tourists spend money in hotels,
restaurants and entertainment venues. It also helps economies indirectly because tourists
purchase retail goods, pharmacy items and locally made souvenirs and crafts. In addition,
tourism can stimulate the building of infrastructure such as roads and public transportation.
Also important economically are the jobs created by the industry. In 2017, the hospitality
industry accounted for 313 million jobs worldwide, which translates to 9.9% of total
employment and 20% of all global net jobs created in the past decade.* Hospitality also supports
jobs in arts and culture industries, keeping theaters and arts festivals thriving."
(https://www.kendall.edu/blog/why-is-the-hospitality-industry-important/)
In the hospitality industry specifically in the hotel sector, there are direct impacts and indirects
impacts which greatly affect everyone who works under the hospitality industry or outside
hospitality industry. That's why the hospitality industry is one of the great contributor in the
economy of the Philippines.
"In the sense that the tourism and hospitality industries not only help economic growth but also
create higher value-added services and goods, it is an undeniable fact that they play an important
role in the world. The convincing evidence that presents the economic impact by tourism and
hospitality industries is adduced through both international and private institutes with public
confidence. To broadly identify the size and scale of economic impacts affected by the tourism
and hospitality sectors, information offered by the World Travel and Tourism Council and the
Dean Runyan Associates research company is presented. This will provide explanation for the
recapitulative economic impact of the tourism and hospitality industries. After a description of
the global economic impact generated by the tourism and hospitality sectors, national and
regional economic impacts are depicted." (HYOJIN KIM, B.A., M.S.2012)
Tourism and Hospitality industry has an important role in our economy, it generates revenues
because of the travellers who spend their money for accommodations, foods, entertainment and
also provide job opportunities for the locals.
In the hospitality industry is major service sector in the world economy. The industry encompass
an extensive variety of service industries that include food service, tourism and hotels.
Hospitality industry suffers from fluctuations within an economy every year. tourism and
hospitality industry.
"Tourism businesses themselves have taken part, individually and at the level of hotel chains and
tour operator associations, in a number of benchmarking exercises. Sustainability certification
has focused primarily on environmental issues due to its difficulties of calculating socio-
economic impacts . Many measures to improve socio-economic impact (such as increasing hotel
staff wages or purchasing local suppliers) increase risks and costs without any corresponding
increase in revenue. When there is any consideration of social or economic factors at the hotel
business unit level, this is generally on a compliance basis. The rationale for socio-economic
audits of hotels is to avoid reputational ‘harm’ for the individual hotel, hotel group or tour
operator using the hotel - rather than measuring the extent of positive economic impacts from
their operations. Therefore assessments of the socio-economic impact of hotels by the business
unit themselves rarely provide useful answers to our question regarding impact on the local
economy. " (JENNIFER Y.LO)
"Hospitality provides essential services (i.e., lodging and food) for travelers, whether they are on
the move for reasons of necessity, leisure or luxury. Hospitality is a major factor in every
vacation and business trip, and is thus important to individual customers and to businesses.
Serving customers well is the primary aim of hospitality businesses, which should focus on
creating high-quality environments and services and on hiring excellent employees who treat
customers with warmth, empathy and professionalism." (https://www.kendall.edu/blog/why-is-
the-hospitality-industry-important/)
The primary aim of hospitality industry is to provide good quality product or services in order to
satisfy the customers needs and wants. To achieve this they need also to hire employees who
work to create quality products and services and it also has an impact in our economy wich lead
to increase the money circulating in the marketplace.
“In general, hotels offer two major types of services: (a) accommodation and (b) dining services.
Based on the quality and extent of services provided, location, bedroom, front office/reception,
food and beverage, general facilities (service and staff), and special facilities (i.e., business
center, limousine services and airport transfers), hotels are further classified as Deluxe, First
Class, Standard, and Economy. Hotel guests can expect a room with private bath, telephone,
radio, and television, in addition to such customer services such as laundry, valet, cleaning and
pressing. Aside from the services mentioned, hotels have other facilities: function rooms,
ballrooms, health spas, coffee shops, dining rooms, cocktail lounges or night clubs, gift shops or
newsstand-tobacco counters, and business centers for social occasions, health buffs, and business
conferences. (https://dirp4.pids.gov.ph)
“The second-fastest-growing economy in Asia and a stable political environment are combining
to fuel a surging Manila hospitality market, particularly in the high-end luxury sector, with
escalating room rates and strong occupancies setting the stage for dramatic future growth for the
sector.
With an economy growing at 7.1 percent last quarter, just a few points behind China, the
Philippine hospitality sector is benefitting, according to the Manila Hotel Market Update report
from hospitality consulting firm C9 Hotelworks. The report points to an aggressive pipeline of
growth and investment in the luxury sector with a total of 5,797 rooms opening in the upper tier
of the market over the next five years, representing a 37 percent growth to existing supply. These
will include the introduction of internationally known brands such as Raffles, Fairmont, Grand
Hyatt, Shangri-La, Sheraton and Westin.” (https://www.travelpulse.com)
“Massive promotions of the Department of Tourism (DOT) particularly the viral effect of “It’s
More The Fun in the Philippines” campaign led to the increasing number of foreign and local
tourists and travellers in the Philippines. The growth of the infrastructure facilities like the
sprouting hotels is very much evident around cities and provinces. For instance, in Pampanga,
due to the efforts of the different local government units (LGUs) in the province, the arrival of
the tourists and travellers also noted as the biggest in region 3. In Central Luzon – 593,945 was
recorded as the number of travellers in 2010 while 547,139 in 2009. For the said timeframe, an
8.55% increase was achieved by the region. Among the 7 provinces – Aurora, Bataan, Bulacan,
Nueva Ecija, Pampanga, Tarlac, and Zambales-of the said region, Pampanga had the highest
number of travellers in 2009 and 2010 amounting to 146,991 and 123,893 respectively. A growth
rate of 18.64% was recorded for the said region (DOT website, 2012).
The development of the Diosdado Macapagal International Airport (DMIA) contributed a lot in
inviting both foreign and local tourists and travellers to visit Pampanga since it is near to Metro
Manila, the capital of the Philippines. This is one of the reasons why tourism may lead to
economic prosperity of one nation. More tourists and travellers mean more employment and
investments.” (https://pdfs.semanticscholar.org)
“Tourism is one of the most imperative characteristics for evolving states. Domestic and
international tourism both of them must be measured to estimate the effect of tourism on the
budget.
To the mass section/area tourism offers a basis for increasing travel as an export industry, which
reflects that the level of financial activities of the region shall rise over the transaction of goods
and facilities to the travelers. Tourism is also responsible for foreign exchange devoid of
distributing whatever out of the state and it delivers more even incomes for the nation than any
other business. Tourism may also intensify earnings related to export along with the proportion
of advancement of the economy. The profits in the earnings related to foreign exchange from
unseen exports that are useful in compensating the loss if any, which the nation may have from a
detectable export.” (Fortuny et al., 2008)
This stability in outgoings may also be demarcated as “a declaration of revenue and spending on
worldwide financial records”.
Expenditures and revenues on universal interpretation are of three categories:
• Observable stability of employment (involving to the import and export of products and
supplies manufactured.
• Imperceptible items (concerning to facilities for example shipping, transport, banking and
insurance)
• Transmissions of capitals

Distant from rise in profits the tourism also has influence on service generation.
Fortuny et al (2008) stated that tourism accelerates the enlargement of particular area. The sum
of visitor’s spending that rests in a region and offers a cause of revenue to inhabitants and trades
is called direct effect and this currency is paid in advance to suppliers, earnings of employees
and various objects used in generating the goods or facilities acquired by the tourists is the
subordinate effect. (https://www.dissertationplanet.co.uk/the-economic-impact-of-tourism/)
We believe that tourism is an important sector in the Philippines that helps the economy to gain
new opportunities for everyone who works under tourism industry and even non tourism industry
workers.
Social impact assessment (SIA) is the process of identifying and managing the social impacts of
industrial projects. It can also be applied to policies, plans and programmes. SIA is used to
predict and mitigate negative impacts and identify opportunities to enhance benefits for local
communities and broader society. Central to the principles and practice of SIA is the
involvement of affected communities and other stakeholders in the process. SIA should inform
decision-making by government and companies from the early stages of a project. Equally
important is the role of SIA in the ongoing management of social issues throughout the whole
project cycle until decommissioning and closure. As such, the social management plan that
derives from an SIA is extremely important. SIA is also an essential foundation for community
agreements and in processes of free, prior and informed consent (FPIC) conducted with
indigenous communities before the start of industrial development projects. This briefing
explores the core principles of SIA and the SIA requirements of selected international
instruments. It also considers some of the key challenges to implementing SIA in practice and
offers some recommendations for future practice.
SIA is an important tool to assess the social, economic and cultural impacts of industrial
activities on indigenous communities. This is particularly relevant for the extractive industries,
whose activities frequently encroach on the lands and waters that indigenous peoples depend on
for their traditional livelihood activities. An SIA identifies potential impacts on indigenous titled
lands and territories of customary resource use. As such, it helps to avoid potential negative
impacts on critical natural resources, such as water and forests, as well as impacts on cultural
resources, such as sacred sites. An SIA process also helps to identify ways that indigenous
communities could benefit from a proposed development, for example, through infrastructure
development, job creation or support for traditional enterprise, and should enable residents of
that community to shape the way the development moves forward. SIAs are considered to be
international good practice for managing the social impacts of extractive industry projects, and
are required by international financial institutions and corporate policies, often in the form of an
integrated environmental and social impact assessment or ESIA. These are then translated into
management plans for implementation throughout the life of the project. (Emma Wilson, 2017)

Social impact can be defined as the net effect of an activity on a community and the well-being
of individuals and families. One of the positive thing about this social impact in hospitality
industry is that it provide job opportunities for those who are working within and outside the
hospitality industry.

Social impact assessment

Social impact assessment (SIA) is a process for the identification, analysis, assessment,
management and monitoring of the potential social impacts of a project, both positive and
negative. The social impacts of a project are the direct and indirect impacts that affect people and
their communities during all stages of the project lifecycle.
An SIA is required for all projects subject to an environmental impact statement (EIS) process
under either the:
State Development and Public Works Organisation Act 1971 (SDPWO Act), orEnvironmental
Protection Act 1994 (EP Act).
Assessment process
The phases of the SIA process are outlined in the SIA process overview PDF icon (150 KB) and
explained in detail in the social impact assessment guideline. PDF icon (800 KB)
The outcomes of the SIA are to be documented in an SIA report. This report will be released for
public comment with the project’s EIS.
The SIA report will inform the Coordinator-General’s evaluation of the social impacts of a
project and the decision whether or not to allow the project to proceed.
In preparing the SIA, the project owner is required to undertake community and stakeholder
engagement to:
 understand who is likely to be impacted and how
 understand the affected communities
 identify and assess potential social impacts
 develop management measures to mitigate adverse impacts and enhance benefits
 support monitoring and reporting.
(https://www.statedevelopment.qld.gov.au/coordinator-general/social-impact-
assessment.html)
In our study, there will be positive and negative impacts that will affect the hospitality industry
but with the SIA (Social Impact Assessment) identify, analyze, assess, manage and monitor the
potential social impacts of a project, both positive and negative.

“Of the three main types of impact, the socio-cultural consequences of tourism are the least
obvious and hardest to measure. While the economic impacts of tourism are often the main
objective of tourism development in destinations, and its environmental impacts are often visible,
the impacts of tourism on the host community and culture emerge more slowly, affect each
destination and individuals within it in different ways, and are difficult to isolate from other
causes.
Although the social and cultural impacts of tourism are often discussed together, there are certain
differences between the two. Social impacts usually refer to interpersonal relations, social
conduct, crime, safety, religion, language and health. Cultural impacts usually refer to material
and non-material forms of culture (e.g. heritage and religious buildings, artefacts, rituals) and
processes of cultural change (Wall and Mathieson, 2006). A body of literature regarding the
socio-cultural impacts of tourism has developed since the 1970s, with key scholars such as
Cohen, Mathieson and Wall, Piznam, Pearce and Moscardo.
Like all impacts, tourism’s social and cultural impacts may be positive or negative. Major claims
have been made for tourism as a force for peace and greater understanding between
communities, but the experience of tourism in host communities in many destinations shows
that, in reality, tourism can be a force for rapid and undesirable social change.” (Clare Inkson,
2018)
In this chapter we identify the potential positive and negative social and cultural impacts that are
linked to tourism development and consider the factors that determine the extent of these
impacts. We conclude the chapter by discussing how the social and cultural impacts can be
managed effectively to ensure that tourism development adheres to the principles of
sustainability.
Since 1970s many different studies have analyzed residents’ attitudes and perceptions towards
tourism development. Pioneers in this area began investigating positive economic impacts of
tourism and eventually, the attention was drawn to the question of local residents’ attitudes on
various impacts of tourism. Pizam (1978) and Rotham (1978) pointed out the importance of
analysing residents’ attitudes taking into consideration the negative effects of tourism
development as well as the need to provide a solid base for high quality development of tourism
to mutual satisfaction of both residents and tourists.
In the 1980s scholars began with attitude analysis, but still insufficiently. In this period of
research, the focus was put on economic and social, positive and negative impacts of tourism
through the application of factor analysis with inadequate reliability and validity of the measures
applied. Belisle and Hoy (1980) analyzed residents’ perceptions of the impact tourism has on
destination development in order to minimize antagonism between residents and tourists. Based
on segmentation using THAID model, Brougham and Butler (1981) proved that positive and
negative effects of tourism did not have the same impact on all local residents.

They also found out the significant difference in the impact in relation to residents’ local and
personal traits. Using the same methodology, Sheldon and Var (1984) pointed out six major
determinants for the residents in North Wales (negative social impact, economic input, visitor
stereotype, purchase of apartments, cultural impact and environmental impact of tourism
development). Also, in their research on Hawaii, Liu and Var (1986) found out that tourism had
multiple positive cultural and economic effects, but they also emphasized negative social and
physic impacts. Based on the previous research and using factor analysis, Liu, Sheldon and War
(1987) isolated economic, social and environmental variables to explain the residents’ perception
of tourists and tourism. They also found that the residents in destinations in advanced phases of
tourism development were more sensitive to positive and negative environmental impacts of
tourism. (Ivana Pavlić, 2015)
An understanding of local residents’ attitudes towards tourism development and its social
impacts on their quality of life is essential in achieving a local community’s support for further
development. Furthermore, personal benefits from tourism development and community
involvement in tourism planning, as well as in solving problems arising from tourism, are main
components of future sustainable tourism development.
“In the 1990s the interest for this area of tourism research increased but with significant
difference in approach to identify the problem and methodology applied. On the basis of
conceptual model, Perdue, Long and Allen (1990) tested relation between residents’ perceptions
and tourism results and residents support for tourism development. The findings indicated that as
long as residents enjoyed personal benefits from tourism development they supported the present
tourism development policy. Based on social exchange theory, Ap (1992) analysed the reasons
for positive and negative perceptions of the impact of tourism residents had. He found that as
long as the exchange of resources between residents and tourists was high and balanced, the
impacts of tourism were positive from the residents’ perspective. Lankford and Howard (1993)
developed tourism impact attitude scale (TIAS) and stepped away from the traditional approach
in research. They tested the effect of in depended variables on the residents’ attitudes on tourism
development using multiple regression model. In the research of residents’ attitudes on
development over a 14 year period, Getz (1994) pointed out both positive and negative attitudes
towards tourism development. Akis, Peristians and Warner (1996) analysed the perception of
two majority residents’ groups of the costal tourism development in Cyprus and confirmed
Butler’s presumption on inverse relationship between tourism development level and perceived
effects of tourism. A year later, using comparative analysis in research of two urban centres,
Gilbert and Clark (1997) found out that the residents attitudes in centres which are in advanced
stages of life cycle were negative in spite of the economic effects tourism had on local
economy.” (Ivana Pavlić, 2015)
Tourism development will really help the industry to move forward and grow for the benefit of
the community. With this development, it will provide like jobs to the community. Positive
social impacts really has benefits for the people under tourism industry or even non tourism
workers but there are also negative impacts that can affect and make negative outcome.

POSITIVE AND NEGATIVE EFFECTS OF HOSPITALITY INDUSTRY

“The number of restaurant units in the U.S. reached 647,288 in 2017, which illustrates the sheer
number of competitors that you're up against in this one small niche of the F&B sector.
Significantly, while the number of restaurant chain units is growing year-on-year, independents
are going under at an alarming rate. Customers, it seems, prefer the lure of the known in their
dining experiences.
But, consumer tastes are changing. Increasingly, customers are looking for an "experience"
rather than just a meal or a stay, and this provides an opportunity for independent small business
to emphasize their point of difference compared to the uniformity of the chain operators.
The United Nations declared 2017 as the "International Year of Sustainable Tourism for
Development" putting ethical travel at the front of customers' minds. For many countries, tourism
is a major source of income. At the same time, irresponsible tourism can have a damaging effect
on local communities and the environment when resources are depleted.
For independent businesses who do not have to worry about maintaining consistency across a
chain of establishments, it means there's a tremendous opportunity to think morally and
responsibly when it comes to traveling. You have more latitude than chain operators to become
"green," reduce waste and have a positive impact on your surroundings.” (Jayne Thompson,
2019)
There are many relentless competitors and new existing players that is why every hotel or
restaurant must change their services once in a while to gain new customers or to retain them.
But the good thing about this is that every year it provides many job opportunities if you go with
what is the trend in the industry.
BACKGROUND OF THE STUDY

“The social impacts of tourism, however, spread much beyond. Improved living conditions for
local populations, increased employment and income, upliftment of women and disadvantaged
social groups, and, overall poverty alleviation, are some of the areas which fall within the
purview of social impacts of tourism.” (https://www.e-
unwto.org/doi/abs/10.18111/9789284410965)

We believe that positive impacts outweigh the negative ones in terms of tourism. For the
negative parts, firstly, it is not a good news for the local environment. Even if the tourists are
careful, their actions would have a negative impact on environment, like water, air quality
possibly. Secondly, many tourists' visits would influence the normal lives of dwellers, take H.K
as an example, it is usually too crowded after the flow of tourists. Thirdly, the housing price
would skyrocket, like in Florida, the housing price has increased for many times. The positive
impacts are various. From the economic perspective, tourists can relax themselves and work
more efficiently after vocation. And tourism could be a contribution to the economy of the
destination. Besides, the flow of people creates many job opportunities as it makes the society
more vibrant.

Here are some positive and negative impacts of Social Impact in Tourism:

Negative (-)

 Overcrowded environment, which may lead to conflicts with locals, crimes etc. (E.g.
popular tourists spot in a residential area/ nightlife venues nearby)
 Pollution (in simple means, everywhere tourist goes the litter is left and local authorities
can do little in this matter, especially in a case of mass tourism)
 Illegal goods and people trafficking (unfortunately, we don’t tend to notice such things
until we witness it personally. But it’s the reality, especially in underdeveloped countries
with bad government and economy)
 And, of course, the terrorism, which is a global problem for many decades.
 The key negative impact is physical overcrowding. For example, Venice has had to make
some paths in the historic centre one-way and has had to introduce restrictions on
busloads of tourists simply descending on the city. Much of Rome, too, is desperately
overcrowded, even in winter - never mind Easter.
Positive (+)

 Contribution to local economy (booking with local travel agents, hotel/ phone/ car
companies)
 Generate income and popularity (mass tourism can stabilize the tourism economy, so
people will usually spend more on retail, transport, hospitality, tourism and leisure within
their destination)
 Tourist relocation (e.g. Russian mass tourism in early 2000-s until 2014, targeting cheap
properties in Pattaya, Thailand) As a result, almost every second Thai in Pattaya speaks
fluent Russian and offers relevant products and services.
 Improvement of Travel & Tourism Services / ‘Cultural convenience’ (is when a relocated
tourist opens a business, assisting local government with tourism, language and cultural
issues - applicable to a well-developed tourism destination)
 Tourists spend - on accommodation, meals, drinks, local travel, excursions, souvenirs and
various other services. Some upmarket tourist destinations attract rich tourists who may
spend substantial sums.
 Tourism creates jobs, but many of these are seasonal and not well paid and are often done
by people imported from other places.

In our study, we will assess the effectivity of hospitality industry in Angeles City if the
community within the city are receiving the benefits of this social impacts in hospitality industry.
We will also try to lessen or avoid the negative social impacts that can prevent the effectivity of
the positive social impacts in the community of Angeles City.
STATEMENT OF THE PROBLEM
To know the effectiveness of the hospitality industry in Balibago, Angeles City, here are some
questions that we came up with:

1. How does social impact affect hospitality industry in Angeles City?

2. How does social impact in hospitality industry creates job opportunities?

3. Does hospitality industry affect the cultural exchange in the Angeles City?

4. How does social impact in hospitality industry increases the number of visiting tourists in
Angeles City?

5. Does hospitality industry affects the increase of economic income of tourism in Angeles
City?

OBJECTIVES OF THE STUDY

The researcher aimed to know the social impact of hospitality industry in Angeles City and how
will it be described.

The following below is the main objectives of the study relevant to the stated problem
previously. The researcher aims to:

 To find out the positive and negative social impact of Hospitality Industry in Angeles
City
 To investigate how the positive social impacts affects the community in Angeles City
 To identify the strategy in order to lessen the negative social impacts.
HYPOTHESIS

“Same as other industries, the hotel industry in Pampanga is confronted by several issues,
concerns, and prospects. To achieve sustainability and growth, the industry has prospects that
will benefit every hotel establishment in the province.

The research study concludes that the hotel industry in Pampanga is competitive as seen in the
competitive position analysis. Additionally, there are different factors affecting the internal and
external environments of the hotel industry in Pampanga as evidenced in the SWOT analysis
done. Despite the bright future of the hotel industry in Pampanga brought about by internal and
external factors, still, hotel owners and managers expressed their issues and concerns that can
directly and indirectly affect the hotel industry in general. Strengthening the tourism and
hospitality sector of Pampanga is a prerequisite to augment the level of competitiveness of the
hotel industry. On one hand, sustainability can only be achieved if there will be concrete
strategic plans aimed at creating economic activities in the hospitality and tourism sector thus
positively affecting the hotel industry in Pampanga.
It is recommended that the two frameworks – competitiveness and sustainability – be the
springboards in formulating strategic, business, and tactical plans for the hotel industry in
Pampanga. The success of hotel industry can contribute a lot not only in Pampanga but also in
the region.” (Jean Paolo G. Lacap, RMP,AFBE, 2014)

Based on the study shown above, the future of the competitiveness and sustainability in the hotel
industry in Pampanga will have great outcome in the future and will be beneficial for the
province, the City of Angeles, communities within Pampanga and it can also contribute for the
economy of the Philippines. Angeles City is now a developing city, there is an assumption that
the hotel industry in Pampanga will have a bright future and it will also affect the Angeles City
even though Angeles City is now a chartered city Pampanga.
SIGNIFICANCE OF THE STUDY

The importance of this study is to know the positive and negative social impacts in the
hospitality industry of Angeles City. The place will benefit a lot from this study it will enhance
the way of living based on the opportunity that the community can received. As well as the
enhancement of competitive advantage of the City. The purpose of this study is to know the
effectivity of social impacts in hospitality industry of Angeles City.

 Government – This study aims to fully developed the town and provide awareness on the
contribution and impacts of hospitality industry in different variables to the whole
government. And how will they maintain and to continue develop the industry to get
benefits from it.
 Community – It will help for business opportunities and improve quality of living
conditions. Increasing of economic income of the place that will serve as the external
advantage.
 Tourism Industry – They can used this as basis reference and guidelines for better
understanding the social impacts and how will they promote it based on the assumptions.
 Future Researchers – They will benefit from this study by using it as reference on how a
social impacts can contribute to our industry and what are the variables that could help
them to identify it.

SCOPE AND DELIMITATIONS

The purpose of the study is to assess the social impact of hospitality industry in Angeles City.
This is to know on how will it affect the community and the tourism in the country. This will
determine if the hospitality industry in Angeles City is effective. The purpose of this study is to
know if the social impact for the hospitality industry will increase the visits of the tourists in the
area or not.

DEFINITION OF TERMS
Social Impact - can be defined as the net effect of an activity on a community and the well-
being of individuals and families.
Hospitality industry - is a broad category of fields within the service industry that
includes lodging, food and drink service, event planning, theme parks, transportation, cruise
line, traveling and additional fields within the tourism industry.
Cultural exchange - is a broad definition given to any mutual sharing of information,
usually cultural, between two or more species for the purpose of improving friendship and
understanding between them.