- JOSEPHS COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – OCTOBER 2014
B.Com (Travel & Tourism) – I SEMESTER
TOURISM ECONOMICS
Duration: 3 Hours Max. Marks: 100
SECTION – A
- Answer ALL the questions. Each carries 2 marks. (2 x 10 =20)
- Define Tourism Economics.
- With the help of a table and diagram show Market demand.
- Define Fiscal Policy.
- Explain the concept of Marginal revenue.
- Mention any two socio-cultural impacts of tourism.
- What is Tourism demand?
- Differentiate between stock and supply.
- Explain the term sustainable tourism.
- What do you understand by the term Production?
- Write any four common features of tourism products?
SECTION – B
- Answer any FOUR Each carries 5 marks. (4×5=20)
- What do you understand by the terms Micro and Macroeconomics? Differentiate between the Micro and Macroeconomics.
- Explain with the help of diagrams what will happen in the following cases:
- When this year we face extreme winters, how will the pullovers market be affected.
- In summer the supply of cold drinks increases.
- Discuss the various phases of Business Cycles.
- What is money cost of production? Also explain the relationship between AC and MC.
- Discuss the positive and negative economic impact of tourism.
- What do you understand by fixed and flexible exchange rates? Discuss the case for and against each of them.
SECTION – C
III) Answer any THREE questions. Each carries 15 marks. (3×15=45)
- Suppose an industry is characterized by the following characteristics: single seller, large number of buyers, barriers to entry and exit. Explain how the firm and industry will attain equilibrium in the short and long run. Also, decide the type of market this is.
- What do you understand by the term demand forecasting? Discuss the various methods of tourism demand forecasting.
- Define Monetary Policy. What are the various tools of Monetary Policy used to control the market?
- What do you understand by the term Environmental Impact Assessment? Discuss the various steps involved in EIA.
- Discuss the various economies and diseconomies of production.
SECTION – D
- IV) Case study- Compulsory questions. (15 marks)
- Goa – West India. Tourism gone wrong
Fact file
Situated on the west coast of India, approximately 400 kilometres south of Bombay. Goa’s coastal strip is approximately 100 kilometres long boasting idyllic sandy beaches and blue crystal seas.
Traditional industries included fishing, rice growing and toddy tapping – where an alcoholic drink is fermented from the sap of the coconut palm.
Literacy rate 77% – high for India.
Number of tourist visitors now exceeds 1 million annually – about 20% are arrivals from overseas.
Tourist season is from October through to May when average temperatures range from 31-34 degrees Celsius. Heavy rain prevents tourism from June to September.
Growth
Tourism has grown dramatically in the last four decades.
Until 1986 tourism was limited to Indian tourists, backpackers and the very wealthy. There were relatively few hotels and local people owned these. Backpackers could rent rooms from local families so increasing their cultural experience and injecting money into the local economy. Tourism is largely limited to the North of Goa. Tourists would total less than half a million with fewer than 30 000 from overseas.
The consequences for the environment, culture and economy were minimal and often positive.
1986 saw the arrival of the first package holidays from Europe. A new demand for three and four star hotels with pools and gardens starts to put pressure on the environment. Tourism begins to spread south and numbers soon exceed 1million with more than 200 000 from overseas. Local people and action groups are starting to become concerned about the effects of tourism on the economy, environment and culture. In 1987 locals express their concerns when they great tourists at the airport with cow dung and posters telling them to go home.
Tourism in Goa has continued to grow despite the protests of locals and action groups. Foreign tourists are being encouraged as they spend more than Indian tourists. Multinational companies increasing the likelihood of leakage are building more and more hotels. Numbers of foreign tourists are expected to rise to 350 000. There are plans to build new communication links including airports and railway stations which will open up more regions of Goa pushing tourism further north and south.
Consequences of tourism in Goa
Economy:
Largely negative although government ministers say that tourism has greatly improved the economy without the environmental consequences of traditional heavy industry.
Leakage:
There is considerable leakage of money out of the Goan economy. Foreign companies or nationals from outside Goa own the majority of large hotels.
Decline of traditional industry:
Local industries have in many situations been forced into decline. Toddy tapping is struggling as deforestation makes way for hotels and pool. Valuable farm- land is also lost and in some instances locals claim they have been forced from the land.
Fishing has been badly hit by trawlers but also the tradition of drying fish on the beach has been banned because the smell upsets tourists.
Land prices:
These have rocketed in recent years as speculators continue to force them up.
Anything positive?:
Hotel management courses set up by the local government are giving more of the local unemployed the skills to fill higher paid jobs in the industry.
Tourism has had a positive effect on many businesses including… bars and restaurants, boutiques, construction, cinemas, bakeries – the key issue is whether the growth in the economy is proportional to the growth in tourism.
Environment:
Huge pressures are placed on the environment by the pressures of tourism. Hotels with pools and gardens replace farmland and mangrove swamps. In summary tourism in Goa is in grave danger of destroying the very thing it is trying to sell.
Questions:
- What has gone wrong with tourism in Goa?
- What are the positive and negative impacts of tourism in Goa?
- What would you suggest to make Tourism Sustainable in Goa?
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