HT Unit 2.00 EOC Review

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

What is an advantage to a resort community that experiences an increase in travel and tourism?

• higher inflation rates
• less government regulations
• lower gross domestic product
• more employment opportunities

How does a high level of inflation affect the hospitality and tourism industry?

• tourists' have more money to spend
• tourists' purchasing power decreases
• hospitality and tourism businesses hire more employees
• hospitality and tourism businesses typically lower their prices

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

• tariff revenue
• export quotas
• production costs
• economic conditions

Which of the following factors is most likely to have a positive impact on a destination's ability to attract tourists?

• increase in sales tax
• increase in crime
• fluctuations in interests rates
• improvements to the infrastructure

What typically results 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.

What 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

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

• The economic multiplier
• The competitive advantage
• The channels of distribution
• The law of diminishing returns

What economic condition typically occurs during a popular vacation destination’s off-season?

• Increase in tourism
• Lower interest rates
• Higher unemployment
• Decrease in tax rates

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

• Trough
• Contraction
• Expansion
• Recession