Hospitality Exam Last and Final Tourism

Hospitality Exam Last and Final Tourism Questions with Complete Solutions (Latest 2025) Chapter 11 Economic and Political Impacts of Tourism What factors make international travel more attractive? - Correct Answers ✅Several factors interact to make

international travel attractive:

• Increased disposable income
• Increase in leisure time
• Destination

attractiveness

• Relative travel costs
• Local exchange rates

Describe comparative advantage. - Correct Answers ✅Economic decisions are often based on a concept called comparative advantage 1 / 3

Hospitality Exam Last and Final Tourism Questions with Complete Solutions (Latest 2025) Tourism has comparative advantage over other industries if it yields a better return on the region's human and natural resource inputs Tourism is likely to have a comparative advantage for a

region if:

• It has features that are highly attractive to visitors
• It is easily accessible to potential tourists
• It has necessary infrastructure and abundant labor force

Tourism may have comparative advantage if the region has no other industry alternatives What is the multiplier concept? - Correct Answers ✅One of the most common measures of the economic impact of tourism

• Money spent by tourists in a region is "added" to its

economy; "new money"

• Money is then re-spent within the region; it multiplies
• Tourist dollars are spent to buy goods and services

From an export point of view 2 / 3

Hospitality Exam Last and Final Tourism Questions with Complete Solutions (Latest 2025)

• An export is defined as a good or service manufactured or

provided in one country that is purchased by a person or business from another country

• Exports "add" money to one economy and "deduct" money

from another economy

• Tourism services sold to foreign travelers are considered

exports It also applies to domestic travel

• Dollars to pay for service are then re-spent by tourism

providers to pay for local goods and services

• Dollars are spent and re-spent until 100 percent of dollars

are leaked from the local economy

• The faster the leakage, the lower the output multiplier

Economists derive multipliers for a number of variables

• Income
• Employment - Output/Sales/Transactions Government

revenue (taxes) Imports Direct effects

• From first round of tourist spending

Indirect effects

• / 3