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The Effects of Economic Factors on Global Travel and Tourism

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What are the major effects of economic factors on global travel and tourism?

Travel and tourism is an important industry around the world, yet there are many factors that can influence how successful tourism businesses can be. When planning for tourism it is important to monitor and address the economic factors on global travel and tourism. But what are these factors? Read on to find out…

Recession and Travel Spending

Economic boom and travel spending, higher employment and travel budgets, unemployment and travel budgets, rising fuel costs and air travel, fuel costs and driving vacations, strong currency and international travel, weak currency and travel affordability, economic stability and destination choice, cost of living and destination popularity, impacts of economic factors on global travel and tourism- to conclude.

Lets take a look at what the impacts of economic factors on global travel and tourism are and why these are important.

First up on this list of impacts of economic factors on global travel and tourism is travel spending. Economic downturns, known as recessions, significantly impact the tourism industry.

During these periods, households tighten their budgets, prioritising essential expenses over discretionary spending like travel. This shift often leads to an increase in staycations or the selection of budget-friendly destinations as alternatives to expensive overseas travels.

One example of this is during the 2008 global financial crisis, when many tourist destinations saw a decline in international visitors as disposable incomes shrank worldwide. Another example is the COVID pandemic and the disastrous impacts that this had on the travel and tourism industry .

economic impacts of tourism

Conversely, during economic booms, disposable income rises, leading to a surge in travel spending.

Consumers, feeling more confident about their financial security, indulge in luxury travels and seek out new, exotic destinations.

For example, the mid-2010s economic recovery in the United States saw an uptick in international travel, with American tourists venturing to more distant locations, such as Southeast Asia and Africa, regions that were previously considered too expensive for average travellers.

Employment levels play a crucial role in travel spending.

Higher employment rates boost disposable income, allowing more people to allocate funds towards leisure and travel.

This correlation was evident in the late 2010s, as countries like Germany and Japan experienced tourism booms alongside strong job markets, enabling their citizens to spend more on international travel.

On the flip side, higher unemployment rates lead to reduced travel spending.

Budget travel options become more appealing, and domestic trips or shorter vacations are favoured to save money.

The recent COVID-19 pandemic provides a stark example, where rising unemployment rates worldwide led to a sharp decline in international travel, with many opting for local or budget-friendly holiday options.

Fuel cost fluctuations have a direct impact on travel, particularly air travel.

Airlines often pass increased fuel costs to consumers, leading to higher ticket prices. This situation affects travellers’ destination choices, as higher flight costs may deter them from visiting far-flung locations.

The oil price surge in the early 2020s serves as a prime example, where increased jet fuel costs led to more expensive airfares, subsequently influencing travel decisions and patterns.

Types of Aircraft

Similarly, rising fuel costs affect the affordability of driving vacations.

Tourists may opt for destinations within closer driving distances to manage expenses better.

The spike in fuel prices in 2018 saw a noticeable increase in local tourism within the United States, as Americans chose to explore attractions closer to home rather than embark on costly road trips across the country.

A strong home currency enhances international travel affordability, providing travellers with more buying power abroad.

Destinations in countries with weaker currencies become more attractive, as tourists can enjoy a higher standard of living for less.

The strength of the Euro in the early 2010s, for example, saw European tourists flocking to destinations in Asia and South America, where their money stretched further. Likewise, foreign tourists get a lot for their money in 2024 when travelling to Egypt due to the currency devaluation .

Conversely, a weak home currency makes international travel more expensive and less appealing.

Tourists from countries experiencing currency devaluation may prefer domestic travel or postpone international trips to avoid unfavourable exchange rates.

The devaluation of the British Pound post-Brexit referendum in 2016 had such an effect, making overseas travel more costly for UK residents and increasing the popularity of staycations.

The 10 best babymoon destinations around the world

Tourists often seek out destinations perceived as economically stable. Stability suggests security, both in terms of personal safety and financial predictability.

Destinations experiencing economic instability, such as Egypt during the political unrest in the early 2010s , often see a decline in tourism as potential visitors choose safer, more stable locations.

Finally last up on this list of impacts of economic factors on global travel and tourism is the cost of living. The cost of living in a destination can significantly influence travel decisions.

Lower living costs make a destination more attractive to budget-conscious travellers, as their money goes further, allowing for longer stays or more luxurious experiences.

Southeast Asian countries like Thailand and Vietnam have become popular among Western tourists for this reason, offering affordable accommodation, food, and activities amidst economic downturns in the West.

As you can see the impacts of economic factors on global travel and tourism are considerably and these can affect the tourism industry significantly, both on a local and global scale. If you want to learn more about how this happens, I am sure you will find these articles useful:

  • 14 important environmental impacts of tourism + explanations + examples
  • 10 Economic impacts of tourism + explanations + examples
  • 13 Social impacts of tourism + explanations + examples
  • 15 reasons volunteering might not benefit you as much as you think: Negative impacts of volunteer tourism

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Watch CBS News

The solar eclipse could deliver a $6 billion economic boom: "The whole community is sold out"

By Aimee Picchi

Edited By Alain Sherter

April 6, 2024 / 6:00 AM EDT / CBS News

Steve Wright said he first heard about the total eclipse on April 8 four years ago, when a visitor booked the first room for the event at Vermont's Jay Peak Resort. Wright, the resort's general manager, said he soon started hearing rumblings from other ski areas. 

"They said, 'The hype is real'," he recalled, adding that he's never seen anything quite like the visitor excitement over the eclipse.

That early prediction turned out to be prescient, with Wright noting that all of Jay Peak's 900 rooms have been fully booked for April 7 — at a cost of about $500 per night — for a year and a half. By comparison, the resort had roughly 80 bookings on the same day last year. Roughly 800 rooms are booked for April 8, the day of the eclipse. 

Indeed, tourists are getting into the spirit of the rare celestial event, a major boon for local businesses across the eclipse's direct path. 

One couple is getting married at the 4,000 summit of Jay Peak during the eclipse, while the resort will have a Pink Floyd cover band paying "The Dark Side of the Moon" at the base. And with more than a foot of snow forecast to arrive just ahead of the eclipse, skiers are also likely to hit the slopes as the moon and the sun align. 

Wright said he expects his resort to book as much revenue over the April 5-8 weekend as it typically would during the entire month of April. 

"It has been well advertised that we're at the end of the path of totality and we will have the best look at the eclipse, at over three and a half minutes," he told CBS MoneyWatch, adding the event is giving a boost not just to Jay Peak, but to the entire region, a rural part of Vermont that is known for scenic farms and ski areas. "The whole community is sold out."

The total solar eclipse isn't just throwing shade across the dozen states in line for the astronomical event — it's also shining an economic bonanza on states from Texas to Vermont. The eclipse could bring a financial boost of as much as $6 billion, thanks to increased spending on hotels, restaurants and travel, according to an estimate from the Perryman Group, an economic analysis firm. 

"It is amazing how much this has captured the imagination," Ray Perryman, an economist and CEO of the Perryman Group, told CBS MoneyWatch. "It'll be concentrated in a short period of time, but it does give these cities an opportunity to show themselves off, including the smaller cities."

The eclipse is likely to jolt local economies partly because of its timing, Perryman noted. Americans have returned to their pre-pandemic travel habits, while the event is occurring in spring, when people are more likely to want to travel than in winter. 

"There's also the fact that we won't have another eclipse like this for many years," he said.

Tthe next total solar eclipse visible in the U.S. won't occur until 2045, according to NASA.

"It's not only a scientific phenomenon, but an emotional one as well," Dan Schneiderman, the eclipse partnership coordinator at the Rochester Museum of Science, told CBS News. 

Bill Nye and Dark Side Stout

April 8 will bring viewing parties across cities both large and small that lie in the eclipse's path. Events range from the Eclipse-O-Rama 2024 with science expert Bill Nye in Fredericksburg, Texas, at $325 per ticket, to a NASA-sponsored gathering  at the Indianapolis Motor Speedway (a more budget-conscious $20 per ticket.)

Companies also are issuing special commemorative items to draw people to their viewing parties, such as Rohrback Brewing Co. in Rochester, New York (a city in the path of the totality), which is making the Rohrbach Totality Black Lager. Switchback Brewery in Burlington, Vermont — another city that will witness the totality — will release Dark Side Stout for attendees at its April 8 event. 

"It's a great opportunity to market our city, and as a place where people might want to live one day,"  Malik Evans, the mayor of Rochester, New York, a Rust Belt city whose fortunes have drifted as once powerful manufacturing companies like Xerox and Eastman Kodak declined, told CBS News. 

Texas is forecast to enjoy the biggest economic gains at about $1.4 billion, according to Perryman's estimates. He said that's partly due to Texas' large population and to the number of big cities, like Austin and Dallas, that are in the path of the totality. 

Vermont, whose population of 650,000 makes it the second-smallest state in the nation, is expecting as many as 200,000 people to come to the state to witness the eclipse, CBS Boston reported . Its economic boost could reach $230 million, one of the smaller financial impacts for the states in the path of the eclipse, Perryman projected. Still, it's a significant bump for a state with annual GDP of about $43 billion. 

How much do solar eclipse glasses cost?

Americans are also spending on gear to properly watch the eclipse because gazing at the event without eye protection can permanently damage your vision. Sunglasses don't offer enough shielding to prevent harm to your eyes, either. 

Instead, people should buy solar eclipse glasses that have been approved by the American Astronomical Society and adhere to the ISO 12312-2 standard. A six-pack of glasses with this standard can be found at Amazon for about $16, or less than $3 a pair. 

But consumers can also pick up eclipse glasses as promotions at various retailers . For instance, Sonic Drive-In is now selling a Blackout Slush Float, with each purchase of the celestial-inspired drink coming with a free pair of eclipse viewing glasses. Eyeglass company Warby Parker is also giving away eclipse-viewing glasses through April 8. 

Even though the totality itself will only last a few minutes on April 8, businesses could get a boost all weekend, Perryman noted.

"It's almost a like a concert that causes people to come into town, but they might do other things and see other things," he noted. "I'm intrigued by the benefit for the small towns."

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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TOURISM GRADE 12 MEMORANDUM - NSC PAST PAPERS AND MEMOS NOVEMBER 2017

TOURISM GRADE 12 NOVEMBER 2017 MEMORANDUM NATIONAL SENIOR CERTIFICATE

SECTION A: SHORT QUESTIONS QUESTION 1 1.1 1.1.1 D✓ / Venice MTP 1.1.2 C✓ / Cholera MTP 1.1.3 C✓ / Loss of appetite MTP 1.1.4 A✓ / Japan MTP 1.1.5 D✓ / west MTP 1.1.6 D✓ / British TA 1.1.7 B✓/ Petra TA 1.1.8 A✓ / of people with special needs to access tourist attractions TA 1.1.9 C✓ / iSimangaliso Wetland Park CH 1.1.10 A✓ / South Africa’s domestic attractions are marketed M 1.1.11 B✓ / physical appearance TS 1.1.12 D✓ / environmentally irresponsible SR 1.1.13 C✓ / ensure that all passengers and crew leave the ship before him. TS 1.1.14 B✓ / resulted in the community losing income SR 1.1.15 A✓ / shower instead of bath SR 1.1.16 A✓ DRI 1.1.17 D✓ / seasonality DRI 1.1.18 B/C✓ upgrade and market the attractions / market attractions in other provinces. DRI 1.1.19 C✓ / visit reserves where animals roam freely DRI 1.1.20 A✓ / It is a personal way of reaching individual tourists. CC (20 x 1) [20] 1.2 1.2.1 local procurement✓ SR 1.2.2 working hours✓ TS 1.2.3 survey✓ CC 1.2.4 market share✓ DRI 1.2.5 terrorism✓ DRI (5) 1.3 1.3.1 Dome of the Rock✓ TA 1.3.2 termination of service✓ TS 1.3.3 ahead✓ DRI 1.3.4 optional tours✓DRI 1.3.5 UTC✓ DRI (5) 1.4 1.4.1 E✓ /credit card used internationally DRI 1.4.2 D✓/ foreign currency DRI 1.4.3 F✓ / local debit card DRI 1.4.4 A✓ / pre-loaded foreign currency debit card DRI 1.4.5 B✓ / SWIFT DRI (5) 1.5 1.5.1 C✓ / Do not disturb dangerous animals in a game reserve. SR 1.5.2 A✓ / Do not pollute the environment when enjoying the outdoors. SR 1.5.3 D✓ / Stay on designated paths in ecologically sensitive areas. SR 1.5.4 E✓ / Respect rules and follow regulations in museums. SR 1.5.5 B✓ / Do not disturb animals in their natural habitat. SR (5) TOTAL SECTION A: 40 SECTION B: MAP WORK AND TOUR PLANNING; FOREIGN EXCHANGE QUESTION 2 2.1 2.1.1

  • Valid passport MTP (2)
  • German visa
  • visa MTP (2)
  • International Driver's Licence Note: Do not accept “Driver’s Licence”. Do not accept “IDL”. MTP (2)
  • Provides important information to validate the South African driver's license in many different languages.
  • Serves as an additional source of identification.
  • Car rental companies often request a valid IDP when driving abroad
  • IDP is obtained from the internationally recognised Automobile Association (AA)
  • Safeguards tourists driving in a foreign country in the event of an incident. MTP (2)

2.1.3 To assist the tour planner/travel agent in making sure Mr Jackson's needs and expectations are met. ✓✓

  • To ensure Mr Jackson is satisfied during and after the trip.
  • To provide good customer care. MTP (2)

2.1.4 Prevent cross contamination of diseases such as Foot and Mouth disease to their animals. ✓✓ To protect the health of the citizens of the country. ✓✓

  • To prevent loss of livestock if there is cross contamination of diseases.
  • Negative economic impacts in the event of cross contamination of diseases. MTP (4)
  • Time difference South Africa +2 Abu Dhabi +4 MTP = 2 hours✓ Time in Abu Dhabi 12:00 (+✓) 2 hours = 14:00✓ (3) OR 14:00✓✓✓ OR 22:00 – 8 hours flying time = 14:00✓✓✓
  • Arrival time in Abu Dhabi 22:00 MTP Transit/layover time: 5 hours ✓ Departure from Abu Dhabi International Airport: 22:00 (+✓) 5 hours = 03:00✓ (3) OR 03:00✓✓✓
  • Time difference Abu Dhabi +4 Germany +1 = 3 hours Time in Berlin: 03:00 (-) 3 hours = 00:00 Flying time: 00:00 (+✓) 7 hours = 07:00✓(4) OR 07:00✓✓✓✓

2.2.2 8 hours + 5 hours + 7 hours = 20 hours ✓✓

  • 20 hours Note: Do not award part marks MTP (2)

2.3 2.3.1 Keep valuables locked away in the safe in the room. ✓✓ Ensure your room door /windows are always locked. ✓✓

  • Do not open the door to strangers.
  • Alert the hotel’s reception of anything unusual e.g. exposed wires found around the hotel, suspicious behaviour and unidentified/unfamiliar luggage lying around.
  • Avoiding leaving your luggage unattended when checking in or out. Note: Accept examples of precautionary measures. MTP (4)

2.3.2 Legal liability for the hotel✓✓ Financial liability for the hotel.✓✓

  • Negative publicity for the hotel.
  • Loss of income for the hotel.
  • Hotel may lose its trading licence. MTP (4) [34]

QUESTION 3 3.1 3.1.1

  • $44,22 Note: Do not penalise candidates if the currency code/symbol is omitted, as it is given in the question. FX (4)
  • R2 914,87 Note: Do not penalise candidates if the currency code/symbol is omitted, as it is given in the question. FX (4)

3.2 3.2.1 Euro✓/ € British Pound✓ / £

  • Great British Pound
  • Pound Sterling Note: Do not accept “Pound”. FX (2)

3.2.2 The South Africans will receive more value for money. ✓✓ It will give the South Africans greater buying/spending power. ✓✓ They can afford to stay longer/repeat visits at the destination and visit more attractions/activities.✓✓

  • Europe can become a value for money destination. FX (6)

[16] TOTAL SECTION B: 50 SECTION C: TOURISM ATTRACTIONS; CULTURE AND HERITAGE TOURISM; MARKETING QUESTION 4 4.1 4.1.1 H✓/ Statue of Liberty United States of America / USA✓ TA (2) 4.1.2 E✓ / Statue of Christ the Redeemer / Corcovado Brazil✓ TA (2) 4.1.3 D✓ / Great Pyramids of Giza / Sphinx Egypt ✓ TA (2) 4.1.4 B✓/ Taj Mahal India ✓ TA (2) 4.1.5 A✓ / Sydney Opera House Australia✓ TA (2) 4.1.6 C✓/ Great Wall of China China✓ TA (2) 4.1.7 F✓/ Kremlin / Red Square Russia ✓ TA (2) 4.1.8 G✓/ Big Ben England ✓

  • Britain / Great Britain
  • United Kingdom / UK TA (2)

4.2 4.2.1 The bullet-proof glass will give better protection to tourists in the event of future terror attacks. ✓✓

  • To upgrade and improve safety at the attraction.
  • To get rid of the metal barriers that obscures the view of the tower to get better photo opportunities.
  • The tower is one of the iconic structures in France that attracts many tourists and needs extra protection.
  • For aesthetical (attractive) purposes TA (2)

4.2.2 The Eiffel Tower, being one of the most popular tourist attractions in Paris, could become the target for large-scale terror attacks with huge loss of life. ✓✓

  • Destruction of an iconic structure symbolising engineering abilities of the time.
  • Fewer visitors to the attraction because tourists will not feel safe.
  • The absence of visible policing may increase criminal activities. TA (2)

4.2.3 The continuous international marketing of the icon.✓✓

  • General upkeep of the tower and the area around the tower.
  • Making the tower accessible to people with special needs (universal accessibility).
  • Allow opportunities for entrepreneurship around the tower.
  • Professional image of the staff.
  • The efficiency and ethical behaviour of the staff
  • Keeping the tower sustainable through good environmental management plans.
  • When visitors leave the tower with a feeling of pleasure and satisfaction. Note: Accept examples of factors that contribute to a successful tourist attraction. TA (2)

QUESTION 5 5.1 Cape Floral Region / Cape Floral Kingdom ✓✓ CH (2) Richtersveld Cultural and Botanical Landscape ✓✓ CH (2) Note: Accept any order. Do not award marks for “Richtersveld or Floral Region” only. 5.2 Western Cape✓and Northern Cape ✓ Note: Accept any order. CH (2) 5.3 Both WHS contain exceptional examples of natural beauty and unique plant species to be protected for future generations. ✓✓

  • Both sites are biodiversity hotspots.
  • Both sites contain plant species unique to the region and to South Africa.
  • Both the sites meet UNESCO’s criteria for being granted World Heritage Status. CH (2)

5.4 Showcases the country as a land of natural wealth and beauty and a haven of unique biodiversity. ✓✓ Markets South Africa as a highly attractive tourism destination of choice for those seeking unique experiences or interested in biodiversity hotspots. ✓✓

  • Attracts international media interest – publicity for SA.
  • Emphasises South Africa's biodiversity
  • Higher visitor numbers to these sites will increase South Africa's GDP.
  • Higher visitor numbers will set the multiplier effect into motion.
  • Attract foreign investment CH (4)

[12] QUESTION 6 6.1 6.1.1 South African Tourism✓

  • SATourism Note: Do not accept “SAT” M (2)

6.1.2 Constantly re-inventing South Africa's tourism products and services to increase the appeal of SA as a tourism destination. ✓✓

  • Changing the tourists’ perception of SA by indicating multiple opportunities and new offerings, hence encouraging repeat visits.
  • South Africa's marketing efforts shows innovative and creative awareness to entice visitors to the country.
  • Develops a sense of pride amongst South Africans. M (2)

6.1.3 It is part of their marketing strategy to create awareness of the brand.✓✓

  • To ensure that the brand logo is recognisable to visitors from all over the world.
  • To make South Africa more visible as an attractive tourist destination.
  • To attract visitors to the South African exhibition. M (2)

6.1.4 SATourism travels to different countries (Road Shows) to promote and market SA internationally. ✓✓ Advertises on buses and taxis in major cities around the world.✓✓

  • Advertisements on huge billboards
  • Advertise add on packages for business tourists / affordable packages
  • Advertises on printed media
  • On-line advertisements
  • Advertises on social media
  • Creates opportunities for networking with tourism stakeholders
  • Opens publicity offices abroad M (4)

6.2 The Tourism levy collection process Tourism businesses (e.g. accommodation, car rental, tour operators and travel agents) collect a 1% levy from tourists. ✓✓(2)

  • The businesses pay the levies to Tourism Business Council of South Africa (TBCSA) who gives it to TOMSA.

The role of TOMSA in the collection process TOMSA is the administrator of the funds. ✓✓(2)

  • TOMSA makes the funds available to SATourism.

An explanation of what these levies are used for SATourism uses the funds to market South Africa✓✓ both domestically and internationally. M (2) [16] TOTAL SECTION C: 50 SECTION D: TOURISM SECTORS; SUSTAINABLE AND RESPONSIBLE TOURISM QUESTION 7 7.1 7.1.1 B✓ / South African National Parks SR (1) 7.1.2 D✓ / Conservation SR (1) 7.1.3 C✓ / About us SR (1) 7.1.4 A✓/ Book your trip SR (1) 7.2 7.2.1 Wearing the uniform✓of South African National Parks. Badges (epaulettes)✓of the SA National Parks identify the organisation and display professionalism of the organisation.

  • He is neatly dressed SR (2)

7.2.2 The routine patrol shows the monitoring of wild life within the park indicating it is part of the environmental policy. ✓✓

  • The routine patrol which monitors poachers and criminal behaviour is also part of the environmental policy. SR (2)

QUESTION 8 8.1 8.1.1 Severe droughts✓ Fresh water loss✓

  • rising sea levels that threaten coastal resorts
  • reduced snowfall in alpine skiing areas
  • extreme weather conditions SR (2)

8.1.2 Less snow on the Alps will reduce the number of tourists visiting the area for skiing activities.✓✓

  • Melting snow can also result in unstable snow slopes and increase the risk of avalanches.
  • An increased risk of skiing accidents SR (2)

8.1.3 Benefits to the environment The tourism industry provides important income opportunities, eradicates (reduces) poverty and promotes development. ✓✓(2)

  • The tourism industry is beneficial in that it creates jobs and sustains many people globally.
  • Tourism businesses are re-evaluating their practices and finding ways to minimise their carbon footprint.

Damage to the environment It is also one of the largest contributors to CO 2 emissions which is destroying the very attractions and destinations that is the draw card. ✓✓

  • The accommodation and transport sectors are the main contributors to CO 2 emissions. SR (2)

8.2 8.2.1 TRANSPORT Environmental pillar: Destinations can find alternative modes of transport that is not dependent on the use of fuels such as bicycles.✓✓(2)

  • Use mass modes of transport such as trains and buses instead of cars
  • Support companies that use carbon efficient aircraft and vehicles.

OR Social pillar: Skills development OR Economic pillar: Economic and entrepreneurship opportunities EDUCATION Environmental pillar: Create awareness amongst tourists and tourism businesses of how they can off-set and reduce their carbon footprint. ✓✓(2)

  • Make more people aware of climate change and its impacts
  • Tourism industry contributes to education.

OR Social pillar: Make tourists more environmentally conscious and encourage good environmental practises. OR Economic pillar: Encourage future careers in environmental management.

JOB CREATION Environmental pillar: Create more environmentally responsible careers and jobs in the tourism industry. ✓✓ OR Social pillar: Employment opportunities improve the quality of life of local people OR Economic pillar: The tourism industry must continually find ways in sustaining itself and continue to support the economy by creating jobs and entrepreneurship opportunities. SR (2)

8.2.2 Conserve energy as far as possible✓✓ Limit and reduce water usage✓✓

  • Make use of recycle bins
  • Towel policy
  • Guest must adhere to environmental practises of the hotel Note: Accept examples of environmentally responsible practises. (4)

8.3 Offer learnerships to these learners.✓✓ Offer free tours to the B&B and nearby attractions.✓✓

  • Offer workplace experience.
  • Offer casual or part time employment opportunities.
  • Partner with the school for maximum benefits such as mentorship, guest lecturing, skills development and supply of resources.
  • Offer financial support SR (4)

[22] TOTAL SECTION D: 30 SECTION E: DOMESTIC, REGIONAL AND INTERNATIONAL TOURISM; COMMUNICATION AND CUSTOMER CARE QUESTION 9 9.1 9.1.1 Participants, spectators, media personnel come from all over the world.✓✓

  • It has a 140-year history that fascinates people all over the world.
  • Global media frenzy takes place to give media coverage for a global audience.
  • Players from many countries participate DRI (2)

9.1.2 Foreign exchange earnings from tourists attending the event.✓✓ Increased GDP contributions. ✓✓

  • Income generated before, during and after the event.
  • Spread of multiplier effect benefits in the local economy of workers earning wages at the event.
  • Entrepreneurial opportunities for locals.
  • Creates jobs
  • Upgrading of infrastructure
  • International publicity and exposure DRI (4)

9.2 9.2.1 Earthquake ✓✓

  • Natural disaster DRI (2)

9.2.2 Tourists visiting sites will struggle to get back to their accommodation and belongings due to damage to public transport.✓✓ Tourists will not be able to continue with their itineraries due to lack of transportation. ✓✓

  • If the airport is closed, tourist will not be able to enter or exit the country.
  • Tourists will feel unsafe to use any form of transport and may have to re-schedule or cancel their trip.
  • Publicity will impact on the tourists’ decision to travel to the destination. DRI (4)

9.2.3 Foreign bank notes✓✓

  • Euros Note: Accept any relevant payment method that does not require electricity. DRI (2)

9.3 9.3.1 R283 million✓✓

  • R283 000 000
  • 283 / 283 m DRI (2)

9.3.2 Eastern Cape ✓✓ KwaZulu Natal ✓✓ Note: Accept any order DRI (4) 9.3.3 They had a longer average length of stay.✓✓

  • Tourists stayed an average of 9.9 nights in the Eastern Cape and 8.5 nights in KwaZulu-Natal; longer than the 8.0 nights in the Free State. DRI (2)

9.4 To capitalise on the potential of this market because it has shown growth. ✓✓

  • To convert this market from an emerging market into an existing market.
  • To increase the number of tourists from China. DRI (2)

QUESTION 10 10.1 Follow-up call ✓✓

  • Feedback call
  • Personal call
  • Cell phone / telephone calls / telecommunication CC (2)

10.2 Feedback gathered from clients is used to evaluate service delivery.✓✓ To ensure satisfaction levels of customers are established.✓✓

  • The message that the tourism business cares about its customers are demonstrated.
  •  jThe information captured can be used to improve service delivery levels at the business.
  • Staff performance can be rated outside of purely reaching sales targets.
  • Quick feedback and problems are addressed immediately CC (4)

[6] TOTAL SECTION E: 30 GRAND TOTAL: 200

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COMMENTS

  1. Tourism Grade 12 Notes

    Tourism has the biggest impact on the services industry. Indirect contribution: Tourism is a service-based industry. It is responsible for 65% of the GDP in developed economies and 40% of the GDP in developing countries. Direct contribution: Tourism contributes 7,9 % of GDP in South Africa (compared to 12% worldwide).

  2. Tourism Notes

    notes grade 12 economics paper economic issues topic tourism: definition: tourism describes the activities of people traveling to and staying in places outside ... Sensible policy guidelines can counteract the potentially negative effects of tourism. - Prime tourism attractions are in rural areas. ... It is referring to as economic side-effects ...

  3. 10 Economic impacts of tourism + explanations + examples

    Development of the Private Sector. Negative economic impacts of tourism. Leakage. Infrastructure cost. Increase in prices. Economic dependence of the local community on tourism. Foreign Ownership and Management. Economic impacts of tourism: Conclusion. Further reading on the economic impacts of tourism.

  4. Tourism Explained

    DISCUSS IN DETAIL THE EFFECTS OF TOURISM ( PAPER 2 ESSAY)INTRODUCTIONTourism is the activities of people travelling to and staying in places outside their us...

  5. GRADE 12 ECONOMICS LEARNER HOMEWORK SOLUTIONS

    ECONOMICS GRADE 12 SESSION 1 3 (HOMEWORK SOLUTIONS) TOPIC 1: EFFECTS OF TOURISM. QUESTION 1: 20 minutes (Taken from The Answer Series) 1.1 Factors responsible for the growth of domestic tourism: o South Africa has a wide range of tourist attractions. o Many South Africans cannot afford to travel abroad. o Improved infrastructure.

  6. The Effects of Economic Factors on Global Travel and Tourism

    Impacts of economic factors on global travel and tourism- To Conclude. As you can see the impacts of economic factors on global travel and tourism are considerably and these can affect the tourism industry significantly, both on a local and global scale. If you want to learn more about how this happens, I am sure you will find these articles ...

  7. Sustainable and Responsible Tourism Grade 12

    Sustainable tourism. Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities. Responsible tourism. Responsible tourism focuses on short-term actions every one of us can take every day to have less of a negative ...

  8. Just-in-Time

    Just-in-Time - Tourism Grade 12 Study Guides. SECTION B. QUESTION 2: MAP WORK AND TOUR PLANNING. Itinerary. The itinerary specifies all aspects of a traveller's programme day by day. The itinerary indicates the planned activities, accommodation, meals, transport and optional excursions. World Health Organisation.

  9. GRADE 12 ECONOMICS LEARNER NOTES

    ECONOMICS GRADE 12 SESSION 1. 2 (LEARNER NOTES) SESSION 1. 2. TOPIC 1: KINDS OF INFLATION Learner Note: Inflation is a sustained and significant increase in the general price level over a period of time. SECTION A: TYPICAL EXAM QUESTIONS QUESTION 1: 10 minutes (Taken from DOE Exemplar 2008) Discuss the causes of demand-pull inflation.

  10. Gr 12-Tourism-Study Notes by Impaq

    Preliminary Examination (3 hour examination of 200 marks - Terms 1 - 3 content) 12. Study Notes G12 ~ Tourism. 4.4. Term 4. By now, candidates should have completed the compulsory six SBA ...

  11. Tourism Economics Tourism and its economic impact: ª The Author(s) 2018

    University Carlo Cattaneo, Italy. Abstract. Topics such as the relationship between tourism and economic impact, its potential benefits and negative externalities are characterized by both vastness and heterogeneity of contents. There-fore, it can be complex to pinpoint the seminal works of each area of study.

  12. PDF TOURISM TERM 2 GRADE 12 Topic: Foreign Exchange

    GRADE 12 Topic: Foreign Exchange Gross Domestic Product (GDP) The GDP is the total value of all goods and services produced within a country during a period of time (per quarter/per year). The GDP is used to measure economic progress in a country • If GDP is rising, the economy is good, and the nation is moving forward

  13. Analyzing the impact tourism makes on an economy

    What they found provides a more accurate picture of the effects of tourism. The tourism sector can primarily reduce income inequality through the creation of new job opportunities. However, the redistributive effect of tourism may favor the rich, thus leading to further economic inequality.

  14. Learner Guide

    0.24MB. Share this content. Learner Guide - Tourism Revision Material Grade 12 Term 3_2023. Language: English. Curriculum Alignment: CAPS aligned. Publication Date: 2020-09-04.

  15. Tourism Grade 12 Past Exam Papers and Memos

    For Grade 12 students, understanding the economic impact of tourism opens up insights into how tourism supports not only local economies but also promotes global economic stability.Bridging Cultures, Building Global Citizens Tourism serves as a bridge between diverse cultures, fostering a sense of global citizenship among students.

  16. Tourism and the Economy: Understanding the Economics of Tourism ...

    According to the World Tourism Organization (WTO), air and road transportation are the most widely used modes of transportation in international tourism. In 1998, air transportation accounted for 43 percent of international tourist travel, road transportation 41.4 percent, sea 7.8 percent, and rail 7 percent. However, the mode of travel varies ...

  17. Tourism and economic development: A literature review to highlight main

    The Journal of Asian Finance, Economics and Business 7(12): 693-702. Crossref. Google Scholar. Skerritt D, Huybers T (2005) The effect of international tourism on economic development: an empirical analysis. Asia Pacific Journal of Tourism Research 10(1): 23-43. Crossref.

  18. (PDF) Economic Impacts of Tourism

    For the full year 2010, UNWTO projects a growth in international tourist arrivals of. between 3 to 4 per cent. In 2010, tourism is expected to generate 21.7 per cent of world gross. domestic ...

  19. Tourism productivity and economic growth

    Overall, a 10% increase in tourism productivity leads to 0.61% growth in Spanish real GDP. In terms of the employment market, the tourism, non-tourism and public service sectors benefit from the productivity shock by 1.78%, 0.46% and 0.45%, respectively, and the unemployment rate decreases by 3.86%.

  20. Tourism Inflation Questions and Answers Grade 12

    Study the diagram below and answer the questions that follow: Define the concept tourism. (4) Explain the difference between an inbound and an outbound tourist. (4) List any THREE World Heritage Sites in South Africa. (3) Discuss the effect of tourism on infrastructure. (4 × 2) (8)

  21. Tourism Economics

    Preview abstract. Free access Research article First published August 4, 2020 pp. 1848-1855. xml PDF / EPUB. Table of contents for Tourism Economics, 27, 8, Dec 01, 2021.

  22. The solar eclipse could deliver a $6 billion economic boom: "The whole

    Its economic boost could reach $230 million, one of the smaller financial impacts for the states in the path of the eclipse, Perryman projected. Still, it's a significant bump for a state with ...

  23. Tourism Grade 12 Memorandum

    More in this category: « VISUAL ARTS GRADE 12 QUESTIONS - NSC PAST PAPERS AND MEMOS NOVEMBER 2017 TOURISM GRADE 12 QUESTIONS ... Negative economic impacts in the event of cross contamination of diseases. MTP (4) 2.2 2.2.1. Time difference South Africa +2 Abu Dhabi +4 MTP

  24. Tourism Economics: Sage Journals

    Tourism Economics is an international peer reviewed journal, covering the business aspects of tourism in the wider context. It takes account of constraints on development, such as social and community interests and the sustainable use of tourism and … | View full journal description. This journal is a member of the Committee on Publication ...