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I.Introduction
The Industry
The study adopts the definition of the Philippine Standard Industrial
Classification in identifying establishments as belonging to the sector. According to the PSIC, the industry is disaggregated into two sub-sectors: hotel and restaurant. The hotel sub-sector includes the various lodging units of different sizes and standards located both in urban and rural communities. The restaurant sub-sector, on the other hand, includes places that serve food and drinks, be it self-service or full-service. This covers a range of services including fine dining specialty restaurants, fast food outlets, canteens, and food courts. In terms of its contribution to the national economy, the hotel and restaurant industry accounted for 1.35% of Philippines’ 1998 gross domestic product (PHP12 billion in GVA compared to the Philippine’s PHP889 billion GDP during the period) and 1.28% of its national product (PHP12 billion in GVA compared to the PHP931 billion GNP). Moreover, the hotel and restaurant industry employed about 1% (282,142) of the country’s 31,278,000 labor force during the same period.

Meanwhile, the National Statistics Office (NSO) in 1994, classified 46,930 firms as belonging to the hotel and restaurant industry, employing a total of
221,954 people. At the time, each peso investment in labor contributed PHP4.40 to the industry’s total output while each peso investment yielded a PHP1.27 contribution to the same.
Hotel
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,

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