Economic Factors

Question 1

how can the economy affect the travel and tourism industry

Answer 1

The state of the economy can heavily affect the travel and tourism industry as it impacts how people spend their money and how businesses use, borrow and invest money.

Question 2

Recession

Answer 2

Recession – the economy is in recession when there is a significant decline in the production of goods and services, employment and income for longer than two financial quarters in a row.

Question 3

Growth

Answer 3

Growth – the economy is growing when there is a positive change in the production of goods and services over time. In a period of growth, customers are likely to spend more money

Question 4

Economic Factors

Answer 4

Recession
Growth
Currency exchange rates and fluctuations.
Available disposable income as a result of mortgage/loan rates changing, inflation or unemployment rates.
Oil prices.

Question 5

affect’s recession has on tourism

Answer 5

A recession might drive down rates and make trips more accessible and can provide much-needed income for business owners in the sector.
the loss of disposable income can make people stop traveling as they’d spend there money on more important things.