Tourism and Hospitality Economic Development

To maximize revenue and jobs developed within the region.

By imposing quotas or tariffs on imports to protect and encourage local production.

Tourism and hospitality generate revenue, create jobs, and provide foreign exchange, which helps boost the economy.

<p>They provide reductions on imported machinery and materials to lower operational costs for businesses.</p> Signup and view all the answers

<p>As income levels in developed countries increase, the demand for tourism and hospitality services also rises.</p> Signup and view all the answers

<p>Subsidies guarantee a minimum level of profit or occupancy for businesses.</p> Signup and view all the answers

<p>Direct effects refer to the income businesses earn directly from tourist spending.</p> Signup and view all the answers

<p>It provides businesses with long-term predictability regarding their tax liabilities.</p> Signup and view all the answers

<p>They provide affordable capital for businesses to invest in growth and improvements.</p> Signup and view all the answers

<p>Indirect effects are the income generated from tourism spending that is reinvested in the local economy, such as paying employees and purchasing local supplies.</p> Signup and view all the answers

<p>They limit the amount of their own currency that tourists can bring in and take out.</p> Signup and view all the answers

<p>The tourism multiplier refers to the total economic impact—both primary and secondary—of tourism-related revenue introduced into an economy.</p> Signup and view all the answers

<p>It allows them to transfer back their invested capital, profits, and dividends with minimal restrictions.</p> Signup and view all the answers

<p>Changes in price and income can lead to fluctuations in demand for leisure travel, as higher prices may deter travel and increased income may encourage it.</p> Signup and view all the answers

<p>Foreign exchange is crucial for economic development, as it allows countries to purchase necessary goods and services internationally.</p> Signup and view all the answers

<p>Non-economic factors such as cultural events, political stability, and social trends can significantly influence travel demand.</p> Signup and view all the answers

<p>The tourism multiplier effect refers to the direct and indirect economic impact resulting from tourist spending in a local economy.</p> Signup and view all the answers

<p>The cost-benefit ratio is derived by dividing the total benefits from tourist expenditures by the total costs incurred.</p> Signup and view all the answers

<p>Increased costs of living and unstable economies are two negative economic effects of tourism.</p> Signup and view all the answers

<p>Balanced Growth Theory emphasizes integrating tourism and hospitality into a broad-based economy to maximize economic benefits.</p> Signup and view all the answers

<p>Unbalanced Growth Theory views tourism and hospitality as primary drivers of economic growth by stimulating demand.</p> Signup and view all the answers

<p>Challenges include higher costs for local consumers and potential displacement of local markets.</p> Signup and view all the answers

<p>It helps determine how much of the tourist dollar remains within the local economy, affecting the multiplier effect.</p> Signup and view all the answers

<p>Applying cost-benefit ratios helps communities estimate the income generated and costs incurred from tourism activities.</p> Signup and view all the answers

Developing nations use tourism & hospitality to boost economic growth, leveraging foreign demand and exchange.

Organization for Economic Cooperation and Development; international group focusing on economic policies.

Direct income received by businesses from tourist spending.

Money tourists spend flows to other businesses & workers, generating 'ripple' effects in economy.

Total impact (direct + indirect) of tourist spending on an economy's overall activity.

Money from abroad, currency transactions, essential for developing economies.

The amount of people wanting to travel, directly affected by income and price changes.

Revenue, jobs and foreign exchange generated by the tourism industry, significantly affecting a location's economy.

A calculation that estimates the total economic impact of tourism spending, considering direct and indirect effects in a local economy.

A ratio used to assess tourism's profitability, calculated from the total benefits of tourist spending divided by the total cost of tourism resources.

Rising prices for goods and services in a tourist destination due to increased demand and imports, impacting local consumers.

Fluctuations in prices and incomes caused by changes in tourism demand that can affect destination economies.

A tourism growth theory emphasizing integration of tourism into a broader economy to maximize local benefits.

Tourism is the engine of the economy and demand drives development.

The study of economic impacts of tourism from both positive and negative perspectives.

A set of strategies to maximize tourism-generated benefits in a destination.

Strategies used to attract investment in tourism and hospitality by offering tax breaks, guaranteed stable tax conditions, subsidies, low-interest loans, and free capital repatriation.

Incentives that reduce or remove taxes on imported machinery & materials used in tourism development.

Incentive promising consistent tax policies for a set period, attracting long-term investment in tourism.

Incentives that guarantee minimum profit levels, occupancy, or other targets in tourism companies.

Financial incentives attracting investors, enabling them to borrow at reduced interest rates.

Free/unrestricted removal of invested funds, dividends, and interest—an incentive for foreign investors in tourism to operate freely.

Restrictions on currency spending by tourists to maximize the use of foreign currency earnings.

Economic strategy that promotes local production by limiting imports of similar goods and supporting local industry through quotas and subsidies.