Quiz #4: The Economics of Tourism

The demand for pleasure travel is largely independent on non-economic factors, such as local disturbances, political unrest, and changes in the fashion ability of resorts/ countries created mostly by media coverage.

• TRUE

• FALSE

The money paid by the tourists to businesses are in turn used to pay for supplies, wages of workers, and other items used in producing the products or direct services brought by tourists.

• Direct Effect

• Secondary Effect

This is used to describe the total effect, both direct and secondary, of an external source of income introduced into the economy.

• Leakage

• Economic Impact

• Multiplier

What are the two (2) Undesirable Economic Aspects of Tourism?

• Higher Prices

• Tourism Multiplier

• Leakage

• Economic Instability

Tourism brings many more monetary benefits and costs than other expert industries, such as social, cultural and environment benefits, and costs.

• TRUE

• FALSE

When travelers outside the destination area spend on goods and services within the destination, tourism acts as an (a)   industry by bringing in revenues from outside sources.

What are the 3 different economic strategies adopted to maximize the amount of revenue and jobs developed within the region

• Import Substitution

• Incentives

• Balance Growth

• Foreign Exchange

• Multiplier