Hospitality 2.01: Question Preview (ID: 23764)

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What typically results when a destination's hospitality and tourism businesses continuously attracts visitors?
a) The local economy thrives.
b) The local economy declines.
c) Local businesses are more likely to fail
d) Local residents have less money to spend

What process has led to an interdependency of travel and tourism activities amond different countries to strengthen their national economies?
a) Globalization
b) Protectionism
c) Domestic trade
d) Industrial positioning

The Wyndbriar Hotel chain has 710 hotels in 64 countries, sells shares of stock to the public and does not identify itself with one particular home country. What business structure is the hotel chain using?
a) Transnational corporation
b) Joint venture
c) Close corporation
d) Limited partnership

Why do popular vacation destinations tend to experience economic highs and lows at certain times of the year?
a) Travel and tourism are cyclical
b) Tourists want to visit new places
c) Airlines overbook their flights
d) Airport hubs close during certain seasons

What tends to occur when a nation's economy experiences an economic recession?
a) Consumers save their money and reduce their travel
b) The workforce grows and spends less money on tourism
c) Lodging facilities expand their operations
d) The food and beverage industry grows rapidly

Which of the following is a factor that influences demand in the travel and tourism industry?
a) Economic conditions
b) Export quotas
c) Tariff revenue
d) Production costs

When tourists spend money at local attractions, the employees working at the local attractions earn income and spend a portion of their money at local restaurants and stores. What concept does this situation illustrate?
a) The economic multiplier
b) The competitive advantage
c) The channels of distribution
d) The law of diminishing returns

How does a high level of inflation affect the hospitality and tourism industry?
a) Tourists' purchasing power decreases
b) Tourists' have more money to spend
c) Hospitality and tourism businesses hire more employees
d) Hospitality and tourism businesses typically lower their prices

What is an advantage to a resort community that experiences an increase in travel and tourism?
a) More employment opportunities
b) Higher inflation rates
c) Less government regulation
d) Lower gross domestic product

Which of the following economic indicators suggests that a country is likely to experience an overall decrease in domestic travel and tourism?
a) Consumer spending increases
b) The standard of living decreases
c) Sales taxes increase
d) The strength of the U.S. dollar decreases

What economic condition typically occurs during a popular vacation destination's off-season?
a) Higher unemployment
b) Lower interest rates
c) Decrease in tax rates
d) Increase in tourism

Which of the following factors is most likely to have a positive impact on a destination's ability to attract tourists?
a) Improvements in the infrastructure
b) Increase in sales tax
c) Increase in crime
d) Fluctuations in interest rates

During which phase of the business cycle is travel and tourism most likely to increase?
a) Expansion
b) Trough
c) Contraction
d) Recession

Tami is coordinating for a concert of about 30,000 attendees. She is also coordinating with local hotels. Which activity is she addressing?
a) The demand for hotel rooms increases
b) The inflation rate increases
c) The demand for transportation decreases
d) The local economy experiences a contraction

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