HT Objective 2.01 - 2.03 (1)

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

When tourists spend money at local attractions, the employees working earn income and spend a portion of their money at local restaurants and stores. Which concept does this situation illustrate?

• The economic multiplier

• The competitive advantage

• The channels of distribution

• The law of diminishing returns

Which process has led to an interdependency of travel and tourism activities among different countries to strengthen their national economies?

• Globalization

• Protectionism

• Domestic Trade

• Industrial positioning

Which economic indicators suggests that a country is likely to experience an overall increase in domestic travel and tourism?

• Sales taxes increase

• Consumer spending increases

• The standard of living decreases

• The strength of the US dollar decreases

Which economic condition typically occurs during a popular vacation destination's off-season?

• Increase in tourism

• Lower interest rates

• Higher unemployment

• Decrease in tax rates

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

Which is a factor that influences demand in the travel and tourism industry

• Tariff revenue

• Export quotas

• Production costs

• Economic conditions

During which phase of the business cycle is travel and tourism most likely to increase?

• Trough

• Contraction

• Expansion

• Recession

What is the typical result when a destination's hospitality and tourism businesses continuously attract visitors?

• The local economy thrives

• The local economy declines

• Local businesses are more likely to fail

• Local residents have less money to spend

The Dolly 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