4 Tourism Economics Free Online FlashCards

What is tourism demand?

Tourism demand is the quantity of tourism goods and services visitors are willing and able to buy under different prices and conditions.

What is tourism supply?

Tourism supply is the range and capacity of services and experiences available to visitors.

What can happen when festival demand for rooms exceeds hotel capacity?

Room prices may rise, and some visitors may be unable to find accommodation.

What do Tourism Satellite Accounts help measure?

Tourism Satellite Accounts use a consistent framework to connect visitor spending with industries, production, employment, and other measures, helping measure tourism’s direct contribution.

What are tourism’s direct economic effects?

Direct effects occur when visitor purchases support businesses that serve visitors, such as hotels, restaurants, attractions, and transport providers.

How can tourism seasonality affect workers?

A short peak season can lead businesses to hire temporary workers and reduce hours or staffing in quieter months, making income less predictable.

What is tourism leakage?

Tourism leakage occurs when some revenue leaves the destination instead of circulating within its economy.

How can a destination increase local retention of tourism revenue?

Buying from local suppliers and hiring locally can increase the share of visitor spending retained in the destination, if local businesses can meet required standards and capacity.

Why is gross tourism spending not the same as net economic benefit?

Gross spending is not the same as net benefit. Assessment should account for leakage, public costs, alternative uses of resources, and tourism spending that replaces other local activity.

What factors influence tourism demand?

It depends on factors such as income, trip price and quality, exchange rates, preferences, safety, available time, access, season, holidays, and events.

Why may tourism supply be slow to expand?

Supply depends on attractions, accommodation, transport, trained workers, investment, infrastructure, and business capacity. These cannot always be expanded quickly when visitor numbers rise.

What are tourism’s indirect economic effects?

Indirect effects arise when tourism businesses buy from suppliers, supporting activity elsewhere in the economy.