Deck 11: Economic and Political Impacts of Tourism

Question 1

All of the following statements regarding comparative advantage are true EXCEPT which?

A) Tourism has a comparative advantage when a region is especially appealing to tourists.
B) Tourism has a comparative advantage when a region has no alternative industry to develop other than tourism.
C) Economic decisions must be based on comparative advantage.
D) Many island economies consider that tourism has a comparative advantage because of their currency exchange rate.

Answer 1

Many island economies consider that tourism has a comparative advantage because of their currency exchange rate.

Question 2

The United States falls in top-of-mind awareness of international travelers due to________.

A) security issues
B) unfriendly attitudes
C) currency exchange rates
D) lack of marketing dollars

Answer 2

lack of marketing dollars

Question 3

Researchers typically estimate the level of tourism activity by ________.

A) multiplying the number of tourists by the annual tourism budget
B) dividing the number of visitors by the annual tourism budget
C) multiplying the average number of visitors by the daily expenditures level per visitor
D) multiplying the estimated number of arrivals to a destination by the average expenditure per visitor

Answer 3

multiplying the estimated number of arrivals to a destination by the average expenditure per visitor

Question 4

From an economics perspective, scarce commodities for communities or countries would be ________.

A) the availability and quality of tourism services employees
B) tax revenues
C) money, available time, and the physical energy to travel
D) the amount and variety of natural resources and the pool of human resources

Question 5

All of the following statements about multiplier effect are true EXCEPT which?

A) Economic variables for which economists derive multiplier values do not include taxes and imports.
B) Island countries have very quick leakage and, therefore, very low output multipliers.
C) The multiplier effect is the sum of direct, indirect, and induced effects.
D) The multiplier effect occurs when some of the new money from the tourist is re-spent within the local economy.

Question 6

A community seeing higher expenditures on health care because of the increased number of residents drawn to the area for employment in the tourism industry is an example of ________.

A) induced effect
B) direct effect
C) indirect effect
D) leakage

Question 7

When tourism generates dollars that are not re-spent in the area, it is referred to as ________.

A) the multiplier effect
B) leakage
C) indirect effect
D) linkage

Question 8

Which of the following statements is NOT true of the economic impact of tourism?

A) Dollar values are assigned to increased tax revenues and increased employment opportunities.
B) Tourism revenues are largely unaffected by crisis events.
C) Increased needs for school and police systems are also assigned dollar values.
D) If the value of the positive impacts is greater than the value of the negative impacts, the total economic impact is positive.

Question 9

In a tourism-related public-private organization, government partners are most likely to fund

A) hotel development
B) infrastructure improvements
C) superstructure additions
D) additions to existing commercial attractions

Question 10

Which of the following is NOT usually true of convention centers?

A) They are public/private organizations to attract the professional traveler.
B) They are highly profitable enterprises.
C) They may also be completely financed and managed as nonprofit private associations of tourism-related businesses.
D) They offset annual marketing and operating costs through tourism-related taxes and membership fees generated from services provided to attendees.

Question 11

National and state/provincial governments support tourism development by performing activities that include collection of tourism information, regulation of tourism-related businesses Like airlines, promotion of tourism, funding infrastructure, and development of ________.

A) tourism policy
B) destination vision
C) destination image
D) superstructure facilities

Question 12

Predicting future demand and competitive environment is part of the ________ of tourism planning and processes.

A) analytical phase
B) definitional phase
C) operational phase
D) implemental phase

Question 13

The continuous process of research and development decisions to create and sustain tourism in a region is called ________.

A) tourism planning
B) privatization
C) cost/benefit analysis
D) policy

Question 14

A tourism planning organization needs to research market segments for trends and economic impacts, gain the cooperation of industry segments, change marketing priorities if required, and________.

A) tax goods and services
B) regulate airlines
C) preserve resources that attract visitors
D) build facilities

Question 15

All of the following are examples of direct tourism-related taxes EXCEPT ________.

A) lottery taxes
B) restaurant taxes
C) gasoline taxes
D) hotel/lodging taxes

Question 16

________ is the likelihood of the potential traveler to visit a destination in the near future.

A) Destination image
B) Conation
C) Cognition
D) Affect

Question 17

The reason why tourism development can lead to political tugs-of-war is that ________.

A) all of the constituent groups share the same priorities concerning how resources should be spent
B) tourism business owners and government officials are part of the constituent group
C) all of the constituent groups agree that quality of life is important
D) each constituent group has its own set of priorities

Question 18

Hidden taxes are often placed in which of the following tourism service suppliers?

A) theme parks
B) rental cars
C) airlines
D) restaurants

Question 19

All of the following are ways a tourism dollar could be re-spent EXCEPT?

A) refunded to tourist
B) paid to local employee
C) paid to local business for supplies
D) paid to non-local employee

Question 20

The most common and influential types of crises include all of the following EXCEPT?

A) disease epidemic
B) terrorism
C) natural disaster
D) economic crash

Question 21

Kamil and O'Donnell started Big ________ Walking Tours in New York City.

A) Grapefruit
B) Meatball
C) Apple
D) Onion

Question 22

All of the following are considered costs association with tourism EXCEPT?

A) increased need for utilities
B) increased tax revenue
C) increased police protection
D) increased need for schools

Question 23

A tourism policy has which feature?

A) offers a short-term perspective
B) delineates critical resources
C) written at the micro level
D) calculates information outputs

Question 24

The methods of determining estimated levels of tourism activity may vary, but the results will be the same.

Question 25

The factors that have led to rapid growth rate of travel to international destinations include increased disposable income, leisure time, and destination attractiveness.

Question 26

Public/private organizations or partnerships are a common way for tourism promotion and development decisions to be made and funded.

Question 27

Destination positioning is relative, as it relates the image of one destination to those of its competitors.

Question 28

One of the most important factors influencing the level of international tourism to a country is the relative exchange rate of its currency for other currencies.

Question 29

A single currency has little impact on international tourism expenditures.

Question 30

Tourism is an export industry.

Question 31

The tourism policy should provide a "destination vision."

Question 32

The higher the output multiplier, the more economically self-sufficient the country.

Question 33

Large increases in the number of tourists to an area usually result in economies of scale, which will decrease costs of providing services to residents.

Question 34

The design of convention centers ranges from tiny facilities that are little more than a single large room to immense complexes that can hold tens of thousands of conventioneers.

Question 35

The decision-making process for promoting and developing tourism typically happens through a rational process in which the interests of all parties are carefully consider ed and balanced.

Question 36

The action of converting a government-operated business to private ownership is called privatization.

Question 37

Key determinants for the site decisions of a convention center are price, size, and quality of facilities, and a wide variety of amenities or add-ons that will likely encourage prospective attendees of the convention to sign up.

Question 38

Convention centers are usually built with a combination of city and state funds.

Question 39

Marketing to attract convention and trade show business is similar to efforts used to entice leisure travelers.

Question 40

Analysis of current and future demand, competition, and promotion is a step in the analytical phase of the tourism policy and planning process.

Question 41

Tourism planning is usually undertaken by private consulting groups with little or no government involvement.

Question 42

The US is the country with the highest number of international visitors.

Question 43

New Orleans uses the amount of garbage collected during Mardi Gras to estimate the number of visitors.

Question 44

"Ripple effects"from additional spending are not included in the calculation of the multiplier effect.

Question 45

Having a diversified economy means that an area is not overly reliant on any one industry.

Question 46

By the end of 2001, the estimated decline in tourism from the September 11th attacks was 45%.

Question 47

Economics is a debate about quality of life.

Question 48

The cost of hosting the Sochi Olympic Games was over $50 billion.