CHAPTER 3

THE ECONOMICS OF TOURISM AND HOSPITALITY

A. ONE OF THE DISCUSSION QUESTION

Explain the meaning of tourism multiplier?

 The tourism multiplier or multiplier effect is used to estimate the direct and
secondary effects of tourist expenditure on the economy of a country.

B. ONE CHAPTER OF ACTIVITY

In less-developed countries. Leaks in the economy occur when money is sent to out of
the country. How can these leaks be stopped?

 For me, to be able to stop these leaks the government itself should neutralize and
limit the process of sending out the money out of the country. In this terms, the
government will still have the control in the processed money.

C. CHOOSE FIVE WORDS IN THE KEY TERM AND CONCEPTS, AND

DESCRIBE THIS WORDS, AND USE THEM IN A SENTENCE/RELATE
EXPERIENCE ABOUT THEM.

Income - is the money that you get on a regular basis for the work you do.

 I learned that there is an advantages if you have extra income, as I learned it from
my father who holds our monthly income.

Employment - activity in which one engages or is employed.

 Due to the pandemic , I experienced hardships in sending my employment using

social media sites.

Demand - is a term which can be defined as, the specific ability to buy certain
quantity of goods.

 As I try online selling, I realized that one of the strategy that you need to do to be
able for your business to succeed is to first know the in demand products.

Economics strategies - is a relatively new and rapidly developing area of economic

consulting, involving the application of economic principles and methods to provide
clients with unique insight aimed at addressing specific issues/problems.

 The government are using different economics strategies just to survive in the
pandemic and we as a citizen been affected to it in bad and good ways.
Investment - is to allocate money in the expectations of some benefit in the future.

 I my opinion, it is more valuable to buy properties for my future investment.

D. ANSWER ALL THE OBJECT TYPE OF TEST

Identify the following.

Import substitution 1.It imposes taxes on imported goods which can be

produced locally.

Tourism multiplier 2. It describes the direct and indirect effect of an external

source of income introduced into the economy.

Cost-benefit ratio 3.A ratio obtained by dividing the benefits with the costs.

Economic impact 4.The value of goods and services that must be imported to
service the needs of tourism and hospitality.

Balance growth 5.An economic theory which emphasizes the development

of supply.

Foreign exchange 6. Earned from foreign currency spent by foreign tourists.

Currency restrictions 7.Limitations established by a country to control the

amount of money taken or exchanged within a country.

Unbalanced growth 8.An economic theory which emphasizes the need to

expand demand.

Incentives 9.Financial aid given by the government to industry.

Import 10.Goods bought from foreign countries.

Enumerate the following.

11-12.The undesirable economic aspects of tourism and hospitality

Higher prices
Economic instability

13-17.How to maximize the economic effects of tourism and hospitality

Growth
Economic strategies
Import substitution
Incentives
Foreign exchange
18-20.Forms of incentives

Tax holidays (limited period)

Loans at low rates of interest s