c4 Flashcards
contribution to gdp
toursim directly contributes approximately 4% to the UK’s GDP
leakage
tourist income that comes into an area, but is lost to the local economy,i.e: it leaks away
why mgiht the income leak away
to pay for the supplies bought outside the area or to pay shareholders or staff who don’t live locally
profit margins
the different between their total income and all their costs
commission levels
the payment that an agent receives from a travel principal
economic multiplier effect
when tourists spend money on a day trip or in a destination this provides income for the company or people it is spent with
multiplier effects
the multiplier effect which in its simplest form is joe many times money spent by a tourist circulates through a country’s economy
multiplier effect
defined as direct spending by tourists, which is circulated through the local economy on indirect products and services
balance of payments
an account of all money coming into and leaving a country for whatever reason
Gross domestic product
(GDP)
the total value of a country’s output of all goods and services
air passenger duty
(APD)
a tax levied by the government and charged on long-haul and short-haul flights
leakage
tourists income that is spent in an area, but is lost to the local economy
multiplier effect
direct spending by tourists, which is circulated through the local economy on indirect products and services
recession
a period of temporary economics decline a country’s total GDP falls for 2 quarters (3month periods) in a row
disposable income
the amount of money left when all necessary household and personal expenditure has been met
