macro (lesson 3)

Question 1

When travelers go to destination sites and expends money in that place for goods, services and products, the tourism and hospitality industry acts as an export industry by bringing revenues from outside sources. The activity of tourist in the destination sites also creates and mobilizes economic growth and development for the benefit of their own country.

Answer 1

Economic Impact

Question 2

ODI

Answer 2

Overseas Development Institute

Question 3

3 main pathways of how the tourism and hospitality industry impacts the economy of a country

Answer 3

1. Direct Effects
2. Indirect Effects
3. Dynamic Effects

Question 4

The wages and earnings of those who participate directly in the sector as workers or entrepreneurs which directly receives the actual payment or income from tourist expenditures

Answer 4

Direct effects

Question 5

Occur through the tourism value chain. The money received from the tourist expenditures will be used in turn to buy supplies such as raw materials, food, beverages, and materials for construction, transportation, and furniture and so on. This is also known as secondary effect

Answer 5

Indirect effects

Question 6

Tourism and hospitality can affect the livelihood strategies of local households, the business climate for small enterprise development, patterns of growth of the local or national economy and the infrastructure or natural resource base of the destination.

Answer 6

Dynamic effects

Question 7

• The total direct and indirect effects of an infusion of an external source of income into an area are termed the “multiplier.”
• Multipliers can be generated in terms of sales, income, employment or payroll.

Answer 7

TOURISM MULTIPLIER

Question 8

BCR

Answer 8

Benefit-cost ratio

Question 9

is a ratio used in a cost-benefit analysis in tourism and hospitality industry to summarize the overall relationship between the relative costs and extent of potential benefits of the industry.

Answer 9

Benefit-cost ratio

Question 10

A positive BCR must be greater than

Answer 10

1.0

Question 11

The formula for tourism multiplier is:

Answer 11

K=y/E

Question 12

K=y/E

Answer 12

K is the multiplier, y is the change in income generated by E and E is the change in expenditure which is also the initial sum of money spent by tourist.

Question 13

Undesirable Aspects of Tourism

Answer 13

• Negative Environmental Effects of Tourism and Hospitality
• Negative Economic Effects of Tourism and Hospitality (Economic Instability)
• Negative Social Effects of Tourism and Hospitality

Question 14

Tourism can often cause environmental damage with risks like erosion, pollution, the loss of natural habitats, and forest fires. Even if tourists behave responsibly, the sheer number of them can cause damage.

Answer 14

Negative Environmental Effects of Tourism and Hospitality

Question 15

• Foreign Poaching
• Tourism Dependence

Answer 15

Negative Economic Effects of Tourism and Hospitality (Economic Instability)

Question 16

While tourism can help preserve cultures, it can also be the cause of its trailing down due to commercialization and the effect of what we call “Crab-mentality.”

Answer 16

Negative Social Effects of Tourism and Hospitality

Question 17

HOW to Maximize the Economic Effect of Tourism and HOSPITALITY

Answer 17

1. Growth Theories
2. Economic Strategies
3. Foreign Exchange
4. Import Substitution
5. Economic Development Incentives

Question 18

Some economic growth theories have been proposed to maximize the economic effect of tourism and hospitality within a destination area. These are the theory of balanced growth and the theory of unbalanced growth.

Answer 18

Growth Theories

Question 19

To maximize the economic contribution of tourism and hospitality, economic strategies have been adapted such as import substitution, incentives and foreign exchange. The main objectives of these strategies are to: brand and campaign development of tourism and hospitality businesses, marketing Of local assets and make collaborations to maximize economic impact.

Answer 19

Economic Strategies

Question 20

Tourism and hospitality is not only the world’s leading service sector but also considered to be an important foreign exchange earner around the world and the largest export industry.

Answer 20

Foreign Exchange

Question 21

is usually used by developing countries or emerging-market nations that seek to decrease their dependence on developed countries. It imposes the protection’ development and production of globally competitive and high-quality local products.

Answer 21

Import Substitution

Question 22

An incentive is an object, item of value, or desired action or event that encourages the influx of capital, both local and foreign, necessary to develop tourism and hospital supply. Some forms of incentives include: Tax holidays and Government subsidies.

Answer 22

Economic Development Incentives