Tourism & Travel Economics: Checkpoint 1

Quick checkpoint - five questions on tourism exports, leakage, overtourism, tourist taxes and hotel pricing.

Question 1 of 5 Why do economists count spending by foreign tourists as an export?

Because tourists take goods home Because visitors bring in foreign currency, just as selling goods abroad does Because it is taxed at the border Because tourists work while visiting

Tourist spending is an export of services, even though nothing is shipped abroad.

Question 2 of 5 What is tourism leakage?

Tourists losing their luggage Tourist spending that flows out of the local economy through foreign ownership, imports and commissions Water shortages at resorts Tourists leaving early

High leakage means local communities gain less from tourist spending.

Question 3 of 5 Which city began charging day-trippers an entry fee on peak days in 2024?

Paris Venice London Tokyo

Venice was one of the first cities to charge such a fee.

Question 4 of 5 What does tax incidence examine in the case of tourist taxes?

How many tourists visit Who actually bears the cost of the tax, visitors or businesses How the tax is collected When the tax was introduced

If visitors can easily choose other destinations, businesses may absorb part of the tax.

Question 5 of 5 What does RevPAR measure for a hotel?

The number of staff per room Revenue per available room, combining occupancy and price The number of reviews per room The cost of cleaning each room

RevPAR divides total room revenue by the total number of rooms.

← Back to How Hotels Set Prices Next lesson → Short-Term Rentals and Local Housing

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