Economic Impacts of Tourism: A Comprehensive Guide for Travel and Tourism Professionals

Question 1

Which of the following is NOT a direct economic impact of tourism?

Accepted Answer

Increased economic activity in other sectors

Answer

Increased tax revenue from tourism businesses

Answer

Creation of jobs in the tourism sector

Answer

Growth in foreign exchange earnings

Question 2

Which of the following is NOT a potential positive economic impact of tourism?

Accepted Answer

Environmental degradation

Answer

Increased employment opportunities

Answer

Expansion of local businesses

Answer

Improved infrastructure development

Question 3

What is the concept of 'leakage' in tourism economics?

Accepted Answer

Money spent by tourists that leaves the local economy

Answer

Jobs created in the tourism industry

Answer

Amount invested in tourism infrastructure

Answer

Revenue generated by tourism-related businesses

Question 4

What is the term used to describe the measurement of the overall economic impact of tourism?

Accepted Answer

Tourism multiplier effect

Answer

Gross domestic product (GDP)

Answer

Economic growth rate

Answer

none of the above

Question 5

Sustainable tourism aims to achieve all of the following EXCEPT:

Accepted Answer

Encouraging mass tourism and overcrowding

Answer

Minimizing negative impacts on the environment

Answer

Maximizing economic benefits for local communities

Answer

Preserving cultural heritage and traditions

Question 6

Which of these is NOT a positive economic impact of tourism?

Accepted Answer

Environmental degradation

Answer

Job creation

Answer

Increased tax revenues

Answer

Foreign exchange earnings

Question 7

Which of the following is an indirect economic impact of tourism?

Accepted Answer

Improved infrastructure

Answer

Increased demand for accommodation

Answer

Increased employment opportunities

Answer

Increased revenue for local businesses

Question 8

The multiplier effect in tourism refers to:

Accepted Answer

The number of times tourist expenditure is reinvested within the local economy

Answer

The increase in tourism revenue during peak season

Answer

The impact of tourism on environmental degradation

Answer

The cost of tourism infrastructure development

Question 9

Identify the three fundamental principles that underpin sustainable tourism.

Accepted Answer

Environmental protection, social responsibility, economic viability

Answer

Economic growth, cultural preservation, environmental conservation

Answer

Social equity, technological advancement, environmental stewardship

Answer

Cultural exchange, heritage conservation, responsible tourism

Question 10

Which of the following is NOT a recognized economic benefit of tourism?

Accepted Answer

Environmental degradation

Answer

Job creation

Answer

Increased tax revenue

Answer

Economic diversification

Question 11

Which industry is considered the most directly impacted by tourism's activities?

Accepted Answer

Hospitality

Answer

Transportation

Answer

Retail

Answer

Agriculture

Question 12

How does tourism typically affect local employment opportunities?

Accepted Answer

It creates employment opportunities in various sectors

Answer

It leads to reduced employment in traditional industries

Answer

It has no significant impact on employment levels

Answer

It decreases job opportunities for locals

Question 13

Explain the concept of the tourism multiplier effect.

Accepted Answer

The indirect spending generated by tourism activities

Answer

The increase in tourism revenue over time

Answer

The number of jobs created by tourism

Answer

The ratio of tourist arrivals to local population

Question 14

What is the significance of the tourism multiplier effect?

Accepted Answer

It measures the total economic impact of tourism on a destination

Answer

It calculates the number of jobs created by tourism

Answer

It determines the amount of tax revenue generated by tourism

Answer

It estimates the percentage of tourism revenue that remains in the local area

Question 15

Explain the relationship between tourism and the environment. How can they influence each other?

Accepted Answer

Tourism can have both positive and negative impacts on the environment

Answer

Tourism is always harmful to the environment

Answer

Tourism has no impact on the environment

Answer

Tourism only benefits the environment

Question 16

Which of the following is a clear economic advantage of tourism?

Accepted Answer

Job creation

Answer

Environmental depletion

Answer

Resource depletion

Answer

Inflation

Question 17

In what way does tourism generate revenue for the government?

Accepted Answer

Through taxes and licenses

Answer

By directly creating jobs

Answer

By attracting foreign investment

Answer

By facilitating direct investment

Question 18

What is a potential negative economic impact of tourism?

Accepted Answer

Displacement of local residents

Answer

Increased revenue

Answer

Job creation

Answer

Improved infrastructure

Question 19

Which of the following is a challenge that arises in the management of tourism's economic impact?

Accepted Answer

Balancing economic gains against sustainability

Answer

Developing novel tourism products

Answer

Marketing the destination effectively

Answer

Attracting a diverse range of tourists

Question 20

In the context of tourism, what is the term 'multiplier effect' used to describe?

Accepted Answer

The wider economic impact of tourist spending

Answer

The amount of money tourists spend daily

Answer

The number of jobs created by tourism businesses

Question 21

Which of the following is a method used to track the economic impacts of tourism?

Accepted Answer

Tourist expenditure survey

Answer

Environmental impact assessment

Answer

Social impact assessment

Answer

Visitor satisfaction survey

Question 22

How can local communities benefit from the economic impact of tourism?

Accepted Answer

Through the development of local businesses and job creation

Answer

By increasing the cost of living

Answer

By displacing local residents

Answer

By damaging the environment

Question 23

Which of the following is an example of a sustainable tourism practice?

Accepted Answer

Utilizing renewable energy sources in tourism businesses

Answer

Building large-scale resorts

Answer

Encouraging mass tourism