H&T Final Exam Review 2.01

What tends to occur when a nation’s economy experiences an economic

recession?

• Lodging facilities expand their operations.

• The food and beverage industry grows rapidly.

• Consumers save their money and reduce their travel.

• The workforce grows and spends less money on tourism.

The Wyndbriar Hotel chain has 710 hotels in 64 countries, sells shares of

stock to the public, and does not identify itself with one particular

“home” country. Which business structure is the hotel chain using?

• Joint venture

• Close corporation

• Limited partnership

• Transnational corporation

Why do popular vacation destinations tend to experience economic highs

and lows at certain times of the year?

• Tourists want to visit new places.

• Travel and tourism are cyclical.

• Airlines overbook their flights.

• Airport hubs close during certain seasons.

During which phase of the business cycle is travel and tourism most

likely to increase?

• Trough

• Contraction

• Expansion

• Recession

Tami is coordinating for a concert of about 30,000 attendees. She is also

coordinating with local hotels. Which activity is she addressing?

• The inflation rate increases.

• The demand for hotel rooms increases.

• The demand for transportation decreases.

• The local economy experiences a contraction.