TMC - Tourism Management Certificate Tourism Economics and Policy Questions and Answers

Question 1

A government invests $20 million to expand a regional airport to accept international flights.
This initial spending leads to jobs for construction workers, who then spend their wages at local shops and restaurants.
These businesses then increase orders from local farms and suppliers.
This chain reaction of economic benefit is best described by what concept?

Accepted Answer

The Tourism Multiplier Effect

Answer

Economic Leakage

Answer

Demand-Pull Inflation

Answer

Comparative Advantage

Question 2

A large, foreign-owned, all-inclusive resort is built in a developing country. While it creates some local jobs, it imports most of its food, uses an international management company, and repatriates its profits to its home country. This situation is a prime example of which economic phenomenon?

Accepted Answer

High economic leakage

Answer

A strong tourism multiplier

Answer

Economic diversification

Answer

Pro-poor tourism

Question 3

Which of the following is the primary purpose of a government implementing a specific occupancy tax (or 'bed tax') on hotel stays?

Accepted Answer

To fund destination marketing, tourism-related infrastructure, and convention centers.

Answer

To provide a direct subsidy to hotel owners.

Answer

To discourage citizens from traveling domestically.

Answer

To regulate the pricing of hotel rooms across a city.

Question 4

What internationally recognized framework allows a country to measure the direct economic contribution of tourism to its Gross Domestic Product (GDP) in a way that is comparable with other industries like agriculture or manufacturing?

Accepted Answer

The Tourism Satellite Account (TSA)

Answer

The Butler Tourism Area Life Cycle (TALC)

Answer

The Plog Tourist Motivation Model

Answer

The Uniform System of Accounts for the Lodging Industry (USALI)

Question 5

A core function of government in tourism policy is to provide the legal and regulatory framework for the industry. Which of the following actions best illustrates this role?

Accepted Answer

Establishing zoning laws, business licensing requirements, and environmental protection standards for tourism development.

Answer

Operating the largest chain of hotels in the country.

Answer

Setting the menu prices for all restaurants in a tourist district.

Answer

Publishing the official government-approved travel guide for tourists.

Question 6

A national tourism agency wants to ensure that tourism development provides direct net benefits to its most economically disadvantaged citizens. Which of the following policies best represents a 'pro-poor tourism' strategy?

Accepted Answer

Providing grants and skills training for residents in rural villages to establish community-owned tour guide services and homestays.

Answer

Focusing all investment on a single, large-scale luxury casino resort.

Answer

Authorizing the development of exclusive, gated tourism enclaves.

Answer

Offering tax breaks exclusively to large multinational hotel corporations.