Evangelista, Dianne Kimberly E.

BSTM 1Y

Midterm Activity 1

1. Discuss the role of tourism and hospitality in economic development

Tourism and hospitality is a largely unnoticed export that varies from international
trade in a number of ways. OECD: Tourism and hospitality provide a significant
opportunity for growth for countries in the middle of their economic development
cycle. In tourism and hospitality, the customer picks up the product from the
exporting country, saving the exporter freight costs. Non-economic factors such as
local disturbances, political unrest, and improvements in the fashion ability of
resorts/countries drive demand for pleasure travel.

2. Explain the economic impacts of tourism and hospitality on a

destination area.

The main economic benefit of tourism for a region or country is that it creates jobs
and generates income at the international, global, regional, and local levels.
Tourism can also benefit regional and local economies by bringing money into
urban and rural areas, stimulating new business ventures and promoting a more
positive image of the area.

3. In what way does the tourism multiplier affect the economy of the host
country?

The term "multiplier effect" describes the result of a service or amenity generating
additional wealth or positive effects in a given region. For example, tourism in a
given area will generate jobs; as a result, tourism industry workers will have more
money to spend on other services in that area, therefore enhancing those other
services and allowing for more employment in that area.