Question 1

The most common source of DMO funding is:

Accepted Answer

The most common source of DMO funding is the public sector, which includes government entities and tourism taxes collected from visitors.

Question 2

One of the great difficulties in achieving high levels of private sector funding for DMOs is:

Accepted Answer

The difficulty lies in classifying which businesses actually benefit from visitor spending, as it is not always clear which businesses are directly impacted by tourism. The other options listed (B and C) are incorrect as government funding is not always sufficient and legislation is not the main barrier to private sector funding.

Question 3

Policies to spread visitor flows to regional areas are used by governments to encourage:

Accepted Answer

Policies to spread visitor flows to regional areas are used by governments to encourage spatial redistribution, which means promoting economic growth and development in areas outside of major cities or urban centers. Border controls and induced spending are not directly related to the purpose of such policies.

Question 4

'Import leakage' is an example of:

Accepted Answer

Import leakage refers to the situation where a significant portion of tourism revenue earned in a destination country is spent on importing goods and services from other countries, leading to a negative economic impact on the local economy. This phenomenon reduces the potential benefits of tourism and limits the multiplier effect.

Question 5

Which of the following is regarded by government as a benefit of a strong tourism industry?

Accepted Answer

According to the question, the benefit of a strong tourism industry that is regarded by the government is mentioned. Out of the given options, economic development is the one that is directly linked with the tourism industry. A strong tourism industry can contribute to the economic development of a country by creating job opportunities, generating revenue through taxes, and boosting local businesses. Therefore, option C is the correct answer. The other options, such as border controls, lower taxes on business, and exogenous events, are not directly related to the benefits of a strong tourism industry.

Question 6

Approximately what ratio of jobs around the world is tourism related?

Accepted Answer

Tourism is a significant global industry, contributing to about 1 in 10 jobs worldwide. This includes direct employment within the tourism sector as well as indirect employment in related industries.

Question 7

The vast majority of tourism businesses are considered to be:

Accepted Answer

According to research and statistics, the vast majority of tourism businesses are small businesses. In fact, small businesses make up 87% of all tourism businesses globally.

Question 8

Governments make most of their fiscal revenue from visitor in the form of:

Accepted Answer

The answer of Governments make most of their fiscal revenue...

Question 9

A relaxation of the visa policy for international visitors would most likely result in:

Accepted Answer

A relaxation of the visa policy would make it easier for international visitors to enter the country, resulting in an increase in visitor arrivals. This is because a more relaxed visa policy would remove barriers that may have deterred potential visitors from coming, thus increasing the number of visitors.

Question 10

China's Approved Destination Status (ADS) scheme is designed to:

Accepted Answer

China's Approved Destination Status (ADS) scheme is designed to enhance service quality for Chinese visitors, enhance safety for Chinese travellers, and reduce the chances of illegal immigration. The scheme regulates the flow of Chinese tourists to selected countries and ensure that recognized travel agencies offer quality services to tourists. Additionally, the scheme ensures that tourists have safety and security measures in place during their travel. Finally, the scheme also helps regulate the free movement of people across borders, preventing illegal immigration.

Question 11

The earliest examples of government intervention to protect natural resources were the establishment of:

Accepted Answer

The establishment of national or forest parks is the earliest example of government intervention to protect natural resources. These protected areas were established to prevent the destruction of various species of plants and animals, to preserve natural beauty and provide recreational opportunities, and to ensure that the land is used in a sustainable way. Greenhouse gas emission taxes, land use planning legislation, and destination management organizations came into play later as more direct responses to specific environmental issues.

Question 12

Public funding of tourism destination marketing is often justified on the basis of:

Accepted Answer

Public funding of tourism destination marketing is primarily justified on the basis of the economic impacts it generates, such as job creation and increased visitor spending, and the resulting positive effects on the local economy. While market wants, visitor satisfaction, and portfolio modelling may be considered in developing marketing strategies, they are not the primary justifications for public funding.

Question 13

Government funding is usually provided by way of:

Accepted Answer

Government funding can be provided through a variety of sources, including grants, accommodation taxes, and levies on businesses. Therefore, the correct choice is D, which includes all of the above options.

Question 14

Globally, tourism accounts for approximately what ratio of jobs?

Accepted Answer

Tourism accounts for approximately 10% of global jobs.

Question 15

It has been suggested that if left to the private sector, the priority for individual businesses would to do what is best for their own operation rather than the destination. This is a description of:

Accepted Answer

This is a description of market failure, which occurs when the pursuit of individual profit maximization by firms fails to lead to an optimal outcome for society as a whole. In this case, the individual businesses prioritize their own operation over the well-being of the destination as a whole, leading to suboptimal outcomes such as over-crowding, environmental degradation, or unequal distribution of benefits to local communities. The other two options are not relevant to this scenario - the one industry concept refers to the interdependence of different sectors within a destination, and cooperating to compete refers to collaboration between individual businesses to enhance the overall competitiveness of a destination.

Question 16

Which of the following is characteristic of the 'exploration' stage of the destination life cycle:

Accepted Answer

The 'exploration' stage of the destination life cycle is characterized by tourists staying for longer periods, often because they are attracted by the unspoiled nature of the destination and the authentic experiences it offers. This stage precedes mass tourism, so the impacts on the environment and landscape are typically lower, and development has not yet occurred rapidly.

Question 17

In recent years there has been a shift towards DMOs being structured as:

Accepted Answer

Public-private partnerships allow for collaboration between government entities and private businesses, which can provide more resources, funding, and expertise for the DMO. This structure also allows for more flexibility and adaptability in responding to market trends and changes.

Question 18

The situation in which a DMO manage funding relationships with a number of different agencies has been referred to as the challenge of:

Accepted Answer

The situation described in the question, in which a DMO has to manage funding relationships with multiple agencies, can result in multiple accountability challenges. This is because each agency may have its own set of requirements, performance standards, and reporting expectations, which can create conflicts and complicate the DMO's efforts to obtain and allocate resources effectively. The other options listed in the question are not relevant to this specific challenge.

Question 19

Which of the following is not regarded as a characteristic of good governance?

Accepted Answer

Financial is not regarded as a characteristic of good governance, as it is not a defining feature of governance. Good governance is commonly characterized by lawful, transparent and responsive actions by the governing body.

Question 20

A central challenge in co-ordinating a destination tourism marketing network is:

Accepted Answer

All of the given options are challenges in co-ordinating a destination tourism marketing network. Stakeholders may have different priorities, including diverse target markets they want to attract, making it challenging to agree on a unified marketing strategy. Also, the sheer number and diversity of stakeholders involved, including local governments, hotels, tour operators, and transportation providers, make it difficult to manage and balance their interests. Additionally, stakeholders may prioritize their self-interests over collective goals, leading to conflicts and hinder effective collaboration.

Quiz 3: Destination Marketing Organisation Dmo Funding and Governance