MACRO: FINALS Flashcards
The tourism and hospitality industry generates income within a destination country
Income
the sum of all income in a country.
National Income
The most common method for estimating the income generated from tourism and hospitality is by determining the___________ for a destination.
multiplier
The most common method for estimating the income generated from tourism and hospitality is by determining the multiplier for a destination.
National Income
The total revenue of a country is referred
National Income
are means of estimating how much extra income is produced in an economy as a result of the initial spending or injection of cash
Multipliers
In general, the tourist industry offers more employment opportunities than other economic sectors.
Employment
is generated as a result of providing goods and services directly to tourist.
Direct Employment
consists of those positions that are associated with other tourism-related activities but are used by both the local resident and the tourist.
Indirect Employment
refers to people working in positions only peripherally related to tourism and hospitality, but generated because of it
Induced Employment
is an accounting of flow of goods, services, and funds in and out of the country during a given period.
Balance of payments
Once an area has become economically successful, businessmen and government agencies may be influenced to invest in tourism and hospitality and other industries in that area.
Investment and Development
This is known by economists as an accelerator concept
Investment and Development
Tourism can drive up prices for goods and services, making them less affordable for local residents.
Inflation and Land values
Increased demand for land raises property values, benefiting some but creating financial burdens for others.
Inflation and Land Values
Developing countries often face losses as they import goods, services, and technology to support tourism. Profits and wages may also flow back to foreign investors, reducing local economic gains
Economic Leakages
Many tourist regions experience low returns on investment because of seasonal fluctuations in demand.
Seasonality
The seasonality of demand is reflected in hotel occupancy rates. Many hotels experience greatly reduced revenues during the off season. Nevertheless, most hotels prefer to remain open all year round to secure as much revenue as possible.
Seasonality
Accommodation investments are not the only ones with a low rate of return; tour operators also face similar problems.
Seasonality
some destinations have made themselves vulnerable to changes in tourist demand by becoming overdependent on tourism and hospitality for their livelihood.
Overdependence on Tourism and Hospitality
Tourism is highly susceptible to changes from within and outside the industry.
Overdependence on Tourism and Hospitality
This type of visitor is interested in being an active participant observer among the population.
Explorer
Also known as the “jet-setter” are a type of tourist who is few in number
Elite
He can afford to pay well for unusual vacations. His arrangements are either made by a travel agent or maybe pre planned.
Elite