Economic Impact of Tourism and Hospitality

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Questions and Answers

What are the three types of employment generated by tourism?

Skilled, Semi-skilled, Unskilled

Full-time, Part-time, Freelance

Direct, Indirect, Induced (correct)

Temporary, Permanent, Seasonal

What is the national income?

The sum of all income in a country.

How does tourism impact a country's balance of payments?

It only affects employment.

It decreases international tourism receipts.

It has no impact.

It increases international tourism receipts. (correct)

High inflation is a negative economic effect of tourism.

True Signup and view all the answers

What are high leakages in the context of tourism?

High leakages refer to the outflow of money from the local economy to external sources. Signup and view all the answers

What is one of the control measures for managing tourism impacts?

Maintain a scale of tourism appropriate for local environments. Signup and view all the answers

Tourism is described as a _____-intensive industry.

labor Signup and view all the answers

What is one benefit of early retirement for the tourism and hospitality industry?

More time for leisure travel Signup and view all the answers

The average family size is increasing, making travel more affordable.

False Signup and view all the answers

What trend is affecting vacation patterns in industrialized countries?

Vacations are becoming shorter and more frequent. Signup and view all the answers

What does marketing segmentation refer to in the tourism and hospitality industry?

Developing properties for selected market segments Signup and view all the answers

Ethics in the tourism and hospitality industry has been an issue for __________ of years.

thousands Signup and view all the answers

What is a major legal issue affecting the hospitality industry related to alcohol?

Increased alcohol-related accidents Signup and view all the answers

What factors contribute to greater mobility in travel?

Improved roads and better transportation. Signup and view all the answers

Sexual harassment can significantly affect an individual's work performance.

True Signup and view all the answers

What is one issue that hotel operators may face due to competitive pressures?

Need to develop new products Signup and view all the answers

Study Notes

Positive Economic Effects of Tourism & Hospitality

Tourism and hospitality generate income through wages, salaries, rent, profits, and interest.
Tourism is an income generator and redistributor.
The tourism multiplier is a common method used to estimate revenue from tourism.

Employment in Tourism

Tourism is a labor-intensive industry that provides employment opportunities in the destination.
The three types of tourism employment are direct, indirect, and induced.

Balance of Payments in Tourism

International tourism receipts are generated by tourism and hospitality.
Developing new attractions, promotions, and subsidizing exchange rates can maximize tourism receipts.
Tourism can help balance the deficit and surplus of payments.

Investment and Development in Tourism

Successful tourist destinations encourage investment in tourism and other industries - known as the accelerator concept.

Negative Economic Effects of Tourism & Hospitality

Inflation and Land Speculation: Tourist demand for goods and services at higher prices can lead to inflation. Additionally, the growth in tourism can drive up land values, increasing prices for property.
Leakages from Developing Countries: High leakages occur when goods and services are imported, profits and wages are remitted to outside sources, and funds are spent on promotion and publicity.
Low Returns Due to Seasonal Fluctuations: Tourist regions often experience low returns on investment due to seasonal fluctuations in demand, especially in hotels and tours.
Overdependence on Tourism: Destinations become susceptible to changes in tourist demand if overly reliant on tourism. This vulnerability can result in underutilized services, unemployment, and income loss.

Impact Control Measures for Tourism

Gradual Development: Gradual tourism development allows local residents to adapt and understand tourism, while enabling the government to plan, organize, and monitor the sector.
Appropriate Scale: Scaling tourism development to be suitable for both local and national environments is crucial, including considering small-scale dispersed tourism and promoting other economic sectors.
Resident Involvement: Involving residents and their representatives in planning and decision-making ensures their participation in shaping the future of the tourism sector.

The Bright Future of Tourism and Hospitality

Early retirement is increasing, with many people retiring earlier than in previous years. This trend benefits the tourism and hospitality industry as retirees have more time to travel.
The increasing population of older retired citizens due to pension programs and better health offers a larger pool of potential customers for tourism and hospitality businesses.
A shorter working week and increased leisure time make it easier for people to take frequent weekend vacations, boosting tourism and hospitality demand.
Higher disposable income, especially among families, leads to increased spending on consumer goods and services, including travel and accommodation.
Greater mobility due to improved roads and transportation makes travel more accessible and convenient, contributing to the growth of the tourism and hospitality industry.
The average family size has decreased, making family travel more affordable and feasible.

Marketing Issues

The population in developed countries is aging, leading to an increase in single-parent households and more people traveling for leisure rather than business.
Traditional two-week vacations are becoming less popular, replaced by shorter, more frequent trips and mini-vacations.
The success of limited-service properties has encouraged the development of properties catering to specific market segments. As new segments emerge, new properties tailored to their needs are likely to be developed.
Increased competition and the proliferation of properties have led to the development of frequent guest programs to promote repeat business.
The fast-food industry is maturing, and operators are developing new products to maintain sales.
Consolidation in the commercial lodging industry is becoming a trend, affecting both independent operators and smaller chains, who face challenges competing with large, established brands.

Legal Issues

Public concern over alcohol-related accidents has led to stricter regulations on serving alcohol, which has closed some bars and prompted some restaurants to stop serving drinks.
Business ethics in the tourism and hospitality industry remains a significant issue, with questionable practices by some operators.

Human Resource Issues

Sexual harassment is a prevalent issue in the workplace, with employers required to create a safe and respectful environment.
Employers have a responsibility to provide a workplace free from sexual harassment, which is defined as any unwanted sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.
Employers should adopt policies and procedures against sexual harassment and provide training to employees on how to recognize and report it.

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Description

This quiz covers the positive and negative economic effects of tourism and hospitality, including income generation, employment opportunities, and the balance of payments. It also discusses investment and development in the tourism sector, emphasizing the importance of strategic planning in maximizing economic benefits.