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488 rebirth
over. Further, the comparison of current assets to
liability results in the current ratio, a coverage
expression.
Managers, creditors and investors use ratio
analysis. Ratios help managers to monitor the
operating performance of their operations and
evaluate their success in meeting a variety of
goals. By tracking a limited number of ratios,
managers are able to maintain a fairly accurate
perception of the effectiveness and efficiency of
their operation. Creditors use ratio analysis to
evaluate the solvency of hospitality and tourism
operations and to assess the riskiness of
future loans �lenders) and the extension of future
credit �suppliers). Creditors sometimes use ratios
to express requirements for operations as part of
the conditions set forth for certain financial
arrangements. Investors use ratios to evaluate
the financial performance of a company. They are
keenly interested in financial returns as they relate
to their investments.
Ratios are classified by the type of information
they provide. Five common classifications are
liquidity, solvency, activity, profitability and operating
ratios. Different user groups tend to focus on
different classes of ratios. Investors and creditors
focus primarily on solvency and profitability ratios.
Management focuses primarily on operating and
activity ratios and to a lesser extent the other
categories. The overall result of using ratio analysis
is to increase the understanding of financial
information. Each ratio is most meaningful when
it is compared to a standard and viewed over a
period of time. The standard for management is
often the budget. Ratios computed for the current
accounting period should be compared to those
computed for the past periods to detect trends.
Ratios used by investors and creditors generally are
compared to industry averages and the enterprises'
historical ratios, since detailed budgeted financial
information is generally not available to these user
groups.
In short, ratio analysis permits users to receive
more valuable information from financial statements
than they could receive from reviewing the
absolute numbers reported in the documents. Vital
relationships can be monitored to determine
solvency and risk, liquidity, operating performance
and profitability. A combination of ratios can be
used to efficiently and effectively communicate
more information than that provided by financial
statements from which they are calculated.
rebirth
RAYMOND S. SCHMIDGALL, USA
A return to the womb is a symbolic theme usually
employed by the language of tourism promotion in
reference to nature, and the maternal presence
evoked by valleys, caves, lakes and so on �see also
promotion, place). In tourism publicity, rebirth
also connotes the emergence of a new person and
the opportunity for self-discovery.
reception
GRAHAM M.S. DANN, UK
Reception refers to both the act of greeting the
guest and the area of the hotel, or similar tourism
settings, where guests are welcomed by front-line
staff. Friendly, courteous, sincere and prompt
reception gives the guest a good first impression.
Reception areas are where guests are registered or
are provided with orientation.
recreation
DEBORAH BREITER, USA
Recreation is considered as a pleasurable, socially
sanctioned activity that restores the individual,
concomitant with the experience of leisure.
Considerable debate exists about the nature and
meaning of recreation and its relationship to
tourism �Annals of Tourism Research 1987). While this
debate is ongoing, there appear to be continued
calls for merging of the fields of enquiry, from their
originally different ideological beginnings: leisure
and recreation as welfare; tourism as business
�Moore et al. 1995). Stephen Smith �1992) traces
the origins of the term to the Latin recreare, to renew
or to be re-created. The concept of restoring the
individual �often, historically, `to return to work')
still pervades most contemporary definitions. While