During which phase of the business cycle is travel and tourism most likely to increase?
Trough
Contraction
Expansion
Recession
Which of the following is a factor that influences demand in the travel and tourism industry?
Tariff revenue
Export quotas
Production costs
Economic conditions
What typically results when a destination’s hospitality and tourism businesses continuously attract visitors?
The local economy thrives.
The local economy declines.
Local businesses are more likely to fail.
Local residents have less money to spend.
What process has led to an interdependency of travel and tourism activities among different countries to strengthen their national economies?
Globalization
Protectionism
Domestic trade
Industrial positioning
When tourists spend money at local attractions, the employees working at the local attractions earn income and spend a portion of their money at local restaurants and stores. What concept does this situation illustrate?
The economic multiplier
The competitive advantage
The channels of distribution
The law of diminishing returns
Which of the following economic indicators suggests that a country is likely to experience an overallincrease in domestic travel and tourism?
Sales taxes increase
Consumer spending increases
The standard of living decreases
The strength of the U.S. dollar decreases
What tends to occur when a nation’s economy experiences an economic recession?
Lodging facilities expand their operations
The food and beverage industry grows rapidly
Consumers save their money and reduce their travel
The workforce grows and spends less money on tourism
How does a high level of inflation affect the hospitality and tourism industry?
Tourists’ have more money to spend
Tourists’ purchasing power decreases
Hospitality and tourism businesses hire more employees
Hospitality and tourism businesses typically lower their prices
What is an advantage to a resort community that experiences an increase in travel and tourism?
Higher inflation rates
Less government regulation
Lower gross domestic product
More employment opportunities
Which of the following factors is most likely to have a positive impact on a destination’s ability to attract tourists?
Increase in sales tax
Increase in crime
Fluctuations in interest rates
Improvements to the infrastructure
What economic condition typically occurs during a popular vacation destination’s off-season?
Increase in tourism
Lower interest rates
Higher unemployment
Decrease in tax rates
Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
Tourists want to visit new places.
Travel and tourism are cyclical.
Airlines overbook their flights.
Airport hubs close during certain seasons.
Tami is coordinating for a concert of about 30,000 attendees. She is also coordinating with local hotels. Which activity is she addressing?
The inflation rate increases.
The demand for hotel rooms increases.
The demand for transportation decreases.
The local economy experiences a contraction.
The Wyndbriar Hotel chain has 710 hotels in 64 countries, sells shares of stock to the public, and does not identify itself with one particular “home” country. What business structure is the hotel chain using?
Joint venture
Close corporation
Limited partnership
Transnational corporation
