16 Questions
What are the main learning outcomes of Chapter 6?
Determine the economic effects of tourism and hospitality
What are the visible impacts of tourism and hospitality mentioned in the text?
Negative impact on society
How does tourism and hospitality affect the economy of affected areas?
It affects income, employment, balance of payments, and investment
What is one of the serious long-term problems associated with uncontrolled tourism and hospitality?
Threat to society
What are the potential benefits of tourism and hospitality for destination countries?
Economic advantages
Which of the following is NOT mentioned as a classification of the economic effects of tourism and hospitality?
Effects on cultural heritage
What is the primary source of income in the tourism and hospitality industry?
Wages and salaries
Which type of employment is associated with providing goods and services directly to tourists?
Direct employment
What is the accounting of flow of goods, services, and funds in and out of a country during a given period called?
Balance of payments
Which sector benefits the most from employment opportunities in tourism and hospitality?
Tourist industry
What type of tax is an example of indirect taxation in the tourism and hospitality industry?
Value-added tax (VAT) on hotel bills
What type of employment consists of positions associated with other tourism-related activities but used by both local residents and tourists?
Indirect employment
Where does the majority of income in tourism and hospitality come from?
Wages and salaries
Which economic sector experiences faster employment generation from tourism and hospitality in developing nations?
Tourism and hospitality
What is the term for accounting for the flow of goods, services, and funds in and out of a country during a given period?
Balance of Payments
What type of taxation is imposed on hotel bills as an example of indirect taxation in tourism?
Value-added tax (VAT)
Study Notes
Chapter 6 Learning Outcomes
- Visible impacts of tourism and hospitality include economic, social, and environmental effects
- Tourism and hospitality can have both positive and negative effects on the economy of affected areas
Economic Effects of Tourism and Hospitality
- Provides income and employment opportunities for locals
- Can contribute to the overall development of a country
- Uncontrolled tourism and hospitality can lead to serious long-term problems such as over-reliance on tourism and loss of traditional industries
- Primary source of income in the tourism and hospitality industry is from foreign exchange earnings
- Direct employment is associated with providing goods and services directly to tourists
- Indirect employment consists of positions associated with other tourism-related activities but used by both local residents and tourists
- Majority of income in tourism and hospitality comes from foreign exchange earnings
Economic Concepts
- Balance of Payments (BOP) accounts for the flow of goods, services, and funds in and out of a country during a given period
- Taxation in tourism and hospitality includes indirect taxation, such as taxes imposed on hotel bills
- In developing nations, the service sector experiences faster employment generation from tourism and hospitality
Tourism and Hospitality Industry
- Potential benefits of tourism and hospitality for destination countries include economic growth, cultural exchange, and infrastructure development
- Not all economic effects of tourism and hospitality are classified as direct, indirect, or induced effects
Test your knowledge about the economic, social, cultural, and environmental impacts of tourism and hospitality. Explore the effects and influences of these industries on various aspects of society and the environment.
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