ISSN 1656-8788

INSIDE: A Glimpse of the Tourism Education Global Code of Ethics for Tourism, Part II
PAASCU and PACUCOA Accredited

February April 2011

The Power of Brand Trust Factors: Professional Accreditation, Research and Development Findings, Word-of-Mouth, Celebrity Endorsements and Perception Variation of Different Age Groups and Gender in the Philippines and the Asia-Pacific Environment
Ronald M. Pastrana, Ph.D. consumers reviews (28%). Endorsement from a celebrity or well known personality which is at the bottom of the ranking (10%). Refer to Table 1.
Table 1 Brand Trust Factors in Enhancing Product/Service Credibility: Percentage (%) Rated Very Important by consumers

The author was commissioned by Readers Digest (Singapore), through its Manila Office, to undertake the following: (1) validate the Readers Digest (RD) Survey undertaken by an independent Marketing Research firm among brands across industries in the Asia-Pacific Region; (2) provide a scholarly interpretation of the results of the RD Survey, backed up by a scientific research, to make the same acceptable to the participant-respondents, brands surveyed and the media; (3) make a presentation before the media and company representatives during the awarding nights called 12th Readers Digest Trusted Brands Survey Result Announcement Press Conference at the The New World Hotel, Makati City, 20 April 2010; and (4) publish in this special Faculty Journal for the International Hospitality Management research issues and trends, branding being an area under Tourism Marketing in the Tourism Professional/Core of the Bachelor of Science in Tourism Management (BSTM) Program. This paper aims to present the following: (1) brand trust factors rating and ranking; (2) perception variation of consumer groups (age group); and (3) reconcile theory, survey and practice. According to the survey, the top three factors that Filipino consumers regard as very important when trusting a product brand are: (1) Research and development findings (39%), accreditation from professiona l institutes (35%) and positive peer or LCCM Research Digest

Trust Factor
Research & Development Findings Accreditation from Professional Institutes Positive Peer/Consumers Reviews Positive Media/Reporters Reviews Endorsement from a Professional High Sales Volume Endorsement from a Celebrity/Well-known Personality

Philippines (%)
39% 35% 28% 24% 22% 22% 10%

Some hi-technology products or industries with R&D findings as trust factor are microprocessors for Intel; Mac, i-pod, i-phone i-pad for Apple; and Blackberry for Research In Motion. Refer to Table 2. Other products with the same trust factor are coffee for Starbucks, shoes for Nike and hamburgers for McDonalds. 1

Table 2 Trust Factor - R&D Findings: Hi-technology Products/Industries

Industry Semi Conductor & Microprocessor Electronics Tele-communications Golf Equipment Computer Company Intel Apple Research In Motion Callaway IBM Product/ Service microprocessor mac, i-pod; i-phone, i-pad Blackberry Golf Club Computer (mainframe) Software R&D Findings Processing Speed Storage/Logic Dual/Multi-Core 3:1 phone, e-mail, music PDA +phone + e-mail (office mobility) Materials (carbon fiber) NASA flight trajectory/COG Mainframe E-business solutions

Table 3 Trust Factor - R&D Findings: Other products-services, fast food, beverages, sports apparel using breakthroughs and innovations to gain market leadership
Industry
Beverages/ Coffee Shops Sports Shoes Softdrinks Sports Drink Fast Food Office Supplies

Company
Starbucks Nike Coca-Cola Gatorade McDonalds 3M

Product/ Service
Coffee Shoes Coke Gatorade Hamburger Post-it

R&D Findings
Coffee brewing Services Cushion technology Syrup formula Ions+ electrolytes (Stanford) Assembly-line non-sticky note pad (30 years)

Tables 4 and 5 present some data on accreditation and peer/consumer reviews as trust factor, respectively.

Table 4 Trust Factor - Accreditation from Professional Institutes

Category Government Regulatory Agencies Industry (local/national) Agency/Accrediting Body Food and Drug Administration (FDA) Department of Tourism (5-star category hotel) Member, Bankers Association of the Philippines (BAP) Member, Hotel and Restaurant Association of the Philippines (HRAP) Member, Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) Management Association of the Philippines (MAP) ISO 9001:2008 QMS ISO 9001:2004 EMS ISO 18001:2000 OHSAS ISO 2200 FMS/HACCP MBNQA (Bald ridge)/PQA Award

International

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Table 5 Trust Factor - Peer/Consumer Reviews

Peer or Group Philippine Dental Association (PDA) Philippine Association of Medical Technologist (PAMET) Famous Authors/Authorities Review No. 1 Brand Preferred by Dentists - Toothpaste (Colgate) Recommended by PAMET - Soap (Safeguard)

Book Foreword

Brand trust factor differs in perception with varying age groups with R&D valued more by a matured group from 50-up years. On the other hand, accreditation factor enjoys high preference among the younger group between 20-29 years old. Celebrity endorsement and age groups variation (Philippines) have complex results. Table 6 Percentage of consumers finding the statement very important by age group
Trust Factor
R&D Findings Accreditation from professional institutions Peer Reviews Celebrity Endorse

When people believe in something, they seek out others who believe in the same thing. They call themselves enthusiasts, a state likened to being filled with the gods. If fans or fanatics number is large enough, they become a sect, a culture, a nation. Important factors are that they belong and however you define their enthusiasm, evangelism and zealotry, it sparks others to belong. Brand Trust Factors are essential ingredients in sustaining this belief system. Research & Development findings excite the customers on breakthroughs and innovations and realize their dreams. Accreditation to resonate intangible benefits and prestige of quality and excellence. Peer review / word-of-mouth, endorsements give sense of belongingness and seek out others who believe in the same thing. Kotler (2010) presented Marketing 3.0 as the new model for marketing. He cited that customers should be treated not as mere consumers, but as the complex, multi- dimensional human beings. He added that customers in turn are choosing companies and products that satisfy deeper needs for participation, creativity, community and idealism. In age of highlyaware customers, companies must thus demonstrate their relevance to their customers at the level of basic values. The future of marketing lies in creating products, services, as well as in company cultures that inspire, include and reflect the values of their target customers. Thus I find the RD Brand Trust Survey 2010 results as: (1) scientific in research methodology; (2) theoretically sound; (3) valid; (4) realistic in its real world application; and (6) consistent with future predictions on consumer behavior and marketing practices. Finally lessons for advertisers and advertising firms: Focus on research and development and accreditation and less on endorsements to build brand trust in the long-term. References

20-29 years
33% 41% 28% 7%

30-39 years
42% 32% 31% 11%

40-49 years
36% 26% 25% 10%

50 & above
47% 36% 26% 13%

Conclusion To create trusted brands, a company must be able to create a belief system- a culture of belief that builds loyalty and patronage for the brand among the consumers and sustains a connection between the product and the target market, through intimacy and affinity that will lead to ideological preferences for the product-brand in the market. From the Readers Digest 2010 Survey in major Asian countries, creating great brands require the following top 3 trust factors: (1) Innovations and breakthroughs from Research & Development (R&D); (2) Accreditation from Professional Institutions; and (3) Positive Peer Review from consumer and media groups. These three top trust factors, specifically R & D, help a company gain competitive advantage for a specific brand through differentiation. These likewise sustain the brands existence in its product lifecycle (PLC). Thus, could be translated to market leadership, market share dominance and revenue generating power. Brand Trust Factors differ in perception with age groups among Asian countries, including the Philippines. R&D findings is highly valued by a more matured consumer group from 50 years of age-up; while accreditation from professional institutes has high preference for the younger age group between 20-29 years.

Dr. Ronald M. Pastrana David, F. (2009). Strategic management. Upper Saddle Executive-Vice President and
Faculty, School of Hotel and Restaurant Management and Tourism

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A Glimpse of the Tourism Education

Jennifer S. Florida, Ph.D.

The Tourism industry plays an important role in the development of the Philippine economy. It is also one of the major pillars of the Medium Term Philippine Development Plan (MTDP) 2004-2010, being the key element in the job generation strategy. As an economic growth engine for the country, tourism industry deserves to be included in the top priority for national development. Tourism has been described as the worlds largest industry (Goeldner & Richie, 2003). However, tourism education is a relatively new field of study that emerged from vocational education, which began in Europe. These schools emphasized training in core competencies such as hospitality, hotel management and related business skills (Morgan, 2004). It can be noted that over the years, school of tourism has mushroomed not only in Europe but as well as in the Philippines. Such growth has been fuelled by the rapid expansion of the tourism industry and recognition by governments that tourism contributes significantly to local and national economies. The Philippines is well-known tourists destination because of its world-class tourist spots and travel attractions around the country. The volume of international visitor arrivals to the Philippines has grown almost 20 times since 1973 (Bosangit & Mena, 2005). In 2010, inbound visitors to the Philippines reached 3.52 million surpassing the target of 3.3 million earlier set by the Department of Tourism (DOT). The influx of tourists has naturally led to increase in the demand for workforce in tourism industry. The huge scope of growth of the industry attracts students to enroll in Tourism education. In the early years of 1970, the Philippines embarked on tourism development and promotion as a major economic thrust. Consequently, Tourism education in the Philippines has been in existence for almost 30 decades. Tourism as a subject of higher education in the Philippines did not evolve over the years (Bosangit & Mena, 2005). In 2003, the Commission on Higher LCCM Research Digest

Education (CHED) has listed 114 schools offering tourism courses. However, it is characterized by a proliferation of bachelor degree programs instead of its growth to a higher level of education (Bosangit & Mena, 2005). Tourism education in the Philippines is said to be industry driven, therefore the tourism curriculum should respond to the needs of the hotels, airlines, restaurant and national tourism organization. Generally, Tourism program seek to achieve development of knowledge skills as well as preparing students to meet the labor needs of the tourism industry. The particular nature of tourism industry requires a field of study that will meet the demand of the growing industry. Cooper and Shepherd (1997) emphasized that Tourism, as an academic discipline requires the development of distinctive delivery methods, course design and strategies to involve educators in the tourism industry. The key elements for the tourism curriculum according to Koh (1995) were: Theories of human resource management, Written communication skills, Theories of marketing, Hotel & restaurant operations, Managerial accounting, The travel & tourism industry, Microcomputer literacy, Ethics & social responsibility, Entrepreneurship & innovation, Managing service quality, Interpersonal relation skills, Practicum after year three, Practicum after year two, Principles of tourism development and Practicum after year one. Dale and Robinson (2001) proposed that three domains should emerge in tourism education. Their model suggests that education program should offer: generic degrees that provide broad understanding of the tourism and interdisciplinary skills; functional degrees that focus on particular areas of tourism such as marketing, information systems, or planning; and market/product based degrees that focus on the development of a particular product or market, requiring expertise in the area. All three programs claim to provide students with the body of knowledge and skills that enable them to function effectively in the industry. Figure 1 shows the three domains model of tourism education. 4

Bosangit, C., & Mena, M. (2005). Tourism as a subject of higher education in the Philippines: Stakeholders views and perspectives. Paper presented at The 3rd Global Summit on Peace through Tourism Educators Forum, Pattaya, Thailand. Retrieved from http://74.125.155.132/ scholar?q=cache:pLSP1DvhBMJ:scholar.googl e.com/+tourism+curriculum+in+the+philippines &hl=en&as_sdt=0,5 Cooper, C., & Shepherd, R. (1997). The relationship between tourism education and the tourism industry: Implications for tourism education. Journal Tourism Recreation Research, 22 (1), 34-47. Cooper, C., & Westlake, J. (1998). Stakeholders and tourism education - Curriculum planning using a quality management framework. Industry and Higher Education, 12(2), 93-100. Dale, C., & Robinson, N. (2001). The theming of tourism education: A three-domain approach. International Journal of Contemporary Hospitality Management, 13(1), 30-34. Goeldner, C. R., & Ritchie, J. R. B. (2003). Tourism: Principles, practices, philosophies (9th ed). New York, NY: John Wiley and Sons. Gummesson, E. (2002). Total relationship marketing (2nd ed.). Oxford: Butterworth Heinemann. Koh, K. (1995). Designing the four-year tourism management curriculum: A marketing approach. Journal of Travel Research, 34(1), 68-72. Retrieved from http://jtr.sagepub.com/content/34/1/68.abstract Medium Term Philippine Development Plan 20042010. (n.d.). Retrieved from gov.ph/mtpdp2004http://www.news.ops. 2010.htm Morgan, M. (2004). From production line to drama school: Higher education for the future of tourism. International Journal of Contemporary Hospitality Management, 16(2), 91-99. Retrieved from http://www.emeraldinsight.com/ journals. htm?articleid=867522&show=html Presidential Communications Operations Office. (2010). PNoy launches "Pilipinas Kay Ganda" as new tourism campaign slogan. Philippine Information Agency. Retrieved from http://www.pia.gov.ph/?m=12&fi=p101114.htm & no=05 Ring, A., Dickinger, A., & Wober, K. (2008). Designing the ideal undergraduate program in tourism expectations from industry and educators. Journal of Travel Research, 48(1), 106-121.

Figure 1. The Three Domains Model of Tourism Education by Dale and Robinson (2001)

In a study conducted by Ring, Dickinger and Wober (2008), there are discrepancies between existing programs and what academics and industry professionals perceive as being important in tourism curriculum. Koh (1995) revealed that educators designed most four-year tourism management programs in the United States with very little or no empirical input from the industry. Thus tourism curriculum lacks relevance to the need of the industry. Stakeholders can influence curriculum planning and measurement of performance through quality management. Cooper and Westlake (1998) identified the two main roles of stakeholders in the educational process: first to influence the strategic direction of education via curriculum planning; and second, to measure performance, in particular through the quality management process. Gummesson (2002) considers it important for educators to enhance their links with industry, community and government as a subsequent symbiotic relationship will occur that might serve all stakeholders indefinitely. Critical issues about the future of tourism education have been raised that needs to be addressed by the tourism educator and key stakeholders in order for the tourism to sustain itself both as an industry and as a field of study.

References
Department of Tourism. (2011). 2010 Visitor arrivals reach an all time high. Retrieved from http://www.tourism.gov.ph/Pages/IndustryPerfor mance.aspx

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Global Code of Ethics for Tourism, Part II

World Tourism Organization

The following are the last five articles of the Global Code of Ethics for Tourism.

ARTICLE 6 Obligations of stakeholders in tourism development 1. Tourism professionals have an obligation to provide tourists with objective and honest information on their places of destination and on the conditions of travel, hospitality and stays; they should ensure that the contractual clauses proposed to their customers are readily understandable as to the nature, price and quality of the services they commit themselves to providing and the financial compensation payable by them in the event of a unilateral breach of contract on their part;
2. Tourism professionals, insofar as it depends on them, should show concern, in co-operation with the public authorities, for the security and safety, accident prevention, health protection and food safety of those who seek their services; likewise, they should ensure the existence of suitable systems of insurance and assistance; they should accept the reporting obligations prescribed by national regulations and pay fair compensation in the event of failure to observe their contractual obligations; 3. Tourism professionals, so far as this depends on them, should contribute to the cultural and spiritual fulfilment of tourists and allow them, during their travels, to practise their religions; 4. The public authorities of the generating States and the host countries, in cooperation with the professionals concerned and their associations, should ensure that the necessary mechanisms are in place for the repatriation of tourists in the event of the bankruptcy of the enterprise that organized their travel; 5. Governments have the right and the duty especially in a crisis, to inform their nationals of the difficult circumstances, or even the dangers they may encounter during their travels abroad; it is their responsibility however to issue such information without prejudicing in an unjustified or exaggerated manner the tourism industry of the host countries and the interests of their own operators; the contents of travel advisories should therefore be discussed beforehand with the authorities of the host countries and the professionals concerned; recommendations formulated should be strictly proportionate to the gravity of the situations encountered and confined to the geographical areas where the insecurity has arisen; such advisories should be qualified or cancelled as soon as a return to normality permits; 6. The press, and particularly the specialized travel press and the other media, including modern means of electronic communication, should issue honest and balanced information on events and situations that could influence the flow of tourists; they should also provide accurate and reliable information to the consumers of tourism services; the new communication and electronic commerce technologies should also be developed and used for this purpose; as is the case for the media, they should not in any way promote sex tourism;

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ARTICLE 7 Right to tourism 1. The prospect of direct and personal access to the discovery and enjoyment of the planets resources constitutes a right equally open to all the worlds inhabitants; the increasingly extensive participation in national and international tourism should be regarded as one of the best possible expressions of the sustained growth of free time, and obstacles should not be placed in its way; 2. The universal right to tourism must be regarded as the corollary of the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay, guaranteed by Article 24 of the Universal Declaration of Human Rights and Article 7.d of the International Covenant on Economic, Social and Cultural Rights; 3. Social tourism, and in particular associative tourism, which facilitates widespread access to leisure, travel and holidays, should be developed with the support of the public authorities; 4. Family, youth, student and senior tourism and tourism for people with disabilities, should be encouraged and facilitated;

ARTICLE 8 Liberty of tourist movements 1. Tourists and visitors should benefit, in compliance with international law and national legislation, from the liberty to move within their countries and from one State to another, in accordance with Article 13 of the Universal Declaration of Human Rights; they should have access to places of transit and stay and to tourism and cultural sites without being subject to excessive formalities or discrimination; 2. Tourists and visitors should have access to all available forms of communication, internal or external; they should benefit from prompt and easy access to local administrative, legal and health services; they should be free to contact the consular representatives of their countries of origin in compliance with the diplomatic conventions in force; 3. Tourists and visitors should benefit from the same rights as the citizens of the country visited concerning the confidentiality of the personal data and information concerning them, especially when these are stored electronically; 4. Administrative procedures relating to border crossings whether they fall within the competence of States or result from international agreements, such as visas or health and customs formalities, should be adapted, so far as possible, so as to facilitate to the maximum freedom of travel and widespread access to international tourism; agreements between groups of countries to harmonize and simplify these procedures should be encouraged; specific taxes and levies penalizing the tourism industry and undermining its competitiveness should be gradually phased out or corrected; 5. So far as the economic situation of the countries from which they come permits, travellers should have access to allowances of convertible currencies needed for their travels;

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ARTICLE 9 Rights of the workers and entrepreneurs in the tourism industry

1. The fundamental rights of salaried and self-employed workers in the tourism industry and related activities, should be guaranteed under the supervision of the national and local administrations, both of their States of origin and of the host countries with particular care, given the specific constraints linked in particular to the seasonality of their activity, the global dimension of their industry and the flexibility often required of them by the nature of their work; 2. Salaried and self-employed workers in the tourism industry and related activities have the right and the duty to acquire appropriate initial and continuous training; they should be given adequate social protection; job insecurity should be limited so far as possible; and a specific status, with particular regard to their social welfare, should be offered to seasonal workers in the sector; Any natural or legal person, provided he, she or it has the necessary abilities and skills, should be entitled to develop a professional activity in the field of tourism under existing national laws; entrepreneurs and investors especially in the area of small and medium-sized enterprises - should be entitled to free access to the tourism sector with a minimum of legal or administrative restrictions;

3.

4.

Exchanges of experience offered to executives and workers, whether salaried or not, from different countries, contributes to foster the development of the world tourism industry; these movements should be facilitated so far as possible in compliance with the applicable national laws and international conventions; As an irreplaceable factor of solidarity in the development and dynamic growth of international exchanges, multinational enterprises of the tourism industry should not exploit the dominant positions they sometimes occupy; they should avoid becoming the vehicles of cultural and social models artificially imposed on the host communities; in exchange for their freedom to invest and trade which should be fully recognized, they should involve themselves in local development, avoiding, by the excessive repatriation of their profits or their induced imports, a reduction of their contribution to the economies in which they are established;
Partnership and the establishment of balanced relations between enterprises of generating and receiving countries contribute to the sustainable development of tourism and an equitable distribution of the benefits of its growth;

5.

6.

ARTICLE 10 Implementation of the principles of the Global Code of Ethics for Tourism
1. 2. The public and private stakeholders in tourism development should cooperate in the implementation of these principles and monitor their effective application; The stakeholders in tourism development should recognize the role of international institutions, among which the World Tourism Organization ranks first, and non-governmental organizations with competence in the field of tourism promotion and development, the protection of human rights, the environment or health, with due respect for the general principles of international law; The same stakeholders should demonstrate their intention to refer any disputes concerning the application or interpretation of the Global Code of Ethics for Tourism for conciliation to an impartial third body known as the World Committee on Tourism Ethics.

3.

References International Council of Tourism Partners. (2005). The World Tourism Organisation's global code of ethics for tourism. Retrieved January 21, 2011 from http://www.gdrc.org/uem/eco-tour/principles.html World Tourism Organization. (1999) Global code of ethics for tourism. Retrieved January 10, 2011 from http://www.gdrc.org/uem/eco-tour/principles.html
LCCM Research Digest is published by the Research and Publications Center (RES) to serve as a sounding board of upto-date ideas and actions related to research, classroom management, and delivery of the faculty in the different schools of the College. It encourages and welcomes condensed versions or a short summary of research or review essays, conference papers, lecture notes, teaching guides, and other classroom materials for its quarterly publication. Editorial Board: Sr. Imelda A. Mora, OSA, President; Dr. Divina M. Edralin, Consultant; Dr. Jennifer S. Florida, Director Lay-out: Venancio N. Santos, Jr.

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