Make a group with 5 members.

Choose one tourism business, provide the name of the

business, and make an impact study on the following:

a. Demand and Supply

b. Philippine GDP
c. Global Economy

Business Name: Island Paradise Tours

.
Demand and Supply
Island Paradise Tours is a tourism business that specializes in organizing guided tours
and travel packages to various islands in the Philippines. The demand for tourism services
is influenced by factors such as consumer preferences, disposable income, travel
restrictions, and overall economic conditions. As a result of the COVID-19 pandemic, the
tourism industry experienced a significant decline in demand worldwide, including the
Philippines. However, as travel restrictions ease and vaccination rates increase, the
demand for tourism is expected to gradually recover.
Supply in the tourism industry refers to the availability of travel-related services and
accommodations. Island Paradise Tours operates by partnering with local hotels, resorts,
transportation providers, and tour guides to offer a wide range of services to its customers.
The supply of these services can be influenced by factors such as infrastructure
development, government regulations, and the overall stability of the tourism sector. To
meet the demand, Island Paradise Tours needs to continually assess and adapt its supply
chain, ensuring a balance between customer preferences, available resources, and
market trends.

Philippine GDP
The tourism industry plays a significant role in the Philippine economy, contributing to
the country's GDP (Gross Domestic Product). Prior to the pandemic, tourism was one of
the major contributors to the Philippine economy, generating substantial foreign exchange
earnings and providing employment opportunities for millions of Filipinos. However, the

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TMBC 325 APPLIED ECONOMICS COURSEPACK 1
COVID-19 pandemic had a severe impact on the tourism sector, leading to a sharp
decline in visitor arrivals, revenue losses, and job cuts.
As the tourism industry recovers and travel resumes, businesses like Island Paradise
Tours can contribute to the revitalization of the Philippine GDP. By attracting both
domestic and international tourists, the business can generate revenue streams, create
employment opportunities, and stimulate economic activities in the destinations it serves.
Through collaborations with local communities, Island Paradise Tours can also promote
sustainable tourism practices, preserving the natural and cultural heritage of the
Philippines while supporting local economies.

Global Economy
The global economy has been significantly affected by the COVID-19 pandemic, with
various sectors experiencing disruptions and downturns. The tourism industry, in
particular, has faced immense challenges due to travel restrictions, lockdown measures,
and reduced consumer confidence. The recovery of the global tourism sector depends
on factors such as vaccine distribution, government policies, and the restoration of
traveler trust.
As the global economy gradually recovers from the pandemic, tourism businesses like
Island Paradise Tours can contribute to the revitalization of the global tourism industry.
By offering attractive travel packages and experiences in the Philippines, the business
can attract international tourists, generate foreign exchange earnings, and promote cross-
border economic activities. The success of Island Paradise Tours, along with other
tourism businesses, will be influenced by global travel trends, geopolitical factors, and the
overall economic conditions in key source markets.
Overall, Island Paradise Tours has the potential to contribute to the recovery and growth
of the tourism sector at the national and global levels. By understanding and adapting to
the changing demand and supply dynamics, the business can play a significant role in
the Philippine GDP and the broader global economy.

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TMBC 325 APPLIED ECONOMICS COURSEPACK 2
Modified True or False. Identify each statement if it is True or False. If it is False, provide
what is incorrect in the statement. (2 points)
TRUE 1. The economic significance of tourism is widely seen as it contributes to the three
main priorities of developing countries: the generation of income, unemployment, and
foreign-exchange debts.
FALSE 2. The significant growth of a country’s performance brought by Tourism will
result to an economic recession.
TRUE 3. Tourism will bring in local and foreign investment which creates additional
employment and labour will receive greater income.
FALSE 4. On the other hand, a significant decrease in Tourism will shift Q 1 to Q2,
reflecting increase in GDP.
TRUE 5. Increase in investments will increase the quantity demand of goods and
services in the economy.

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TMBC 325 APPLIED ECONOMICS COURSEPACK 3