1
ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – OCTOBER 2013
B.COM – I SEMESTER (TRAVEL AND TOURISM)
TOURISM ECONOMICS
Duration: 3 Hours Max. Marks: 100
SECTION – A
I) Answer ALL the following questions. (10 x2=10)
1. Define tourism Economics.
2. What is a demand schedule? Give an example.
3. Mention four exceptions to the law of demand.
4. What do mean by Economies of Scale?
5. “Fixed cost is constant irrespective of the output produced.” True or false?
Give reasons.
6. Mention the difference between Average revenue and Marginal revenue..
7. State two conditions for a firm to attain equilibrium.
8. What is tourism product?
9. Explain Monopolistic Competition.
10. Give four determinants of supply.
Section – B
II) Answer any FOUR out of 6 questions. (4 x 5 = 20)
11. The rent of 5 rooms in Lake View Resort in Munnar was Rs 1000 ( Rs 200 for
each room). Due to off season the prices dropped to Rs 100 for each room but
the number of rooms demanded increased to 10 rooms. Calculate the
elasticity of demand.
12. Explain the indicators of Effective Tourism Demand.
13. Graphically explain any two importance of time element in the price theory.
14. Elaborate on the short run equilibrium under Monopolistic competition.
15. Breifly explain few tools of monetary policy taken up by the government.
16. Explain the elasticity of demand with help of graphs.
Section – C
III) Answer any THREE out of FIVE questions. (3 x 15 = 45)
17. Throw light upon the pricing approaches used in the Tourism Industry.
18. Explain in detail Economies and Diseconomies of Scale.
2
19. Describe the different phases of a Business Cycle.
20. Elaborate the Impact of Tourism on the Economy of the country.
21. Write short notes on: (5 marks each)
a) Tourism Product b) Perfect Competition c) Fiscal Policy
Section – D
IV) Compulsory Case study (1 x 15 = 15)
“Incredible India”
Tourism is a major industry in India and the Ministry of Tourism launched a
campaign to promote Incredible India as a tourist destination in 2002. The phrase
“Incredible India” was adopted as a slogan by the ministry. It formulated an
integrated communication strategy with the aim of promoting India as a destination
of choice for the discerning traveler. This campaign was a success and it lead to great
results. However success is not always the case. Before 2002, the Indian government
regularly formulated policies and prepared pamphlets and brochures for the
promotion of tourism, however, it did not produce the desired results for the Indian
tourism industry.
Reasons for the success of the New “Incredible India” campaign was, that it
projected India as an attractive tourist destination by showcasing different aspects of
Indian culture and history like yoga, spirituality, etc. The campaign was conducted
globally and received appreciation from tourism industry observers and travellers
alike. It is valid to note that it was not only, the campaign that could have made a
difference to the Indian tourism. Along with them portraying India as Incredible,
they also had to ensure that it was truly so. The situation at the tourism destinations
was despicable before 2002. A majority of the tourist destinations, in India lacked
proper civic amenities and facilities. Also the historic attractions were not properly
maintained and were not projected in a manner that was pleasing. For Example the
painting at the Ellora and Ajantha caves were not properly lit, thus making it
difficult for the tourists to admire the beautiful work of art. Additionally the tourists
like to shop, however the destinations lacked specialty stores, retail services and
personal care services.
The Ministry of tourism thus decided that there had to be a change in the overall
appearance of the Indian tourism industry. The government of India knew that a
large chunk of money had potential to flow into the country through tourism. They
thus decided to invest in an ad campaign as well as in bettering tourism
destinations. Thus better roads were laid in and around tourist hot spots. Civic
amenities were provided at convenient locations. A team was established to ensure
cleanliness. Shopping areas were set up that sold products that were original to the
region.
3
And this effort truly did make an impact. According to spending data released by
Visa Asia Pacific 4 in March 2006, India has emerged as the fastest-growing market
in the Asia-Pacific in terms of international tourist spending. The data revealed that
international tourists spent US$ 372 million in India in the fourth quarter (October–
December) of 2005, 25% more than in the fourth quarter of 2004.
Questions:
1. Define what is demand? With reference to the above case project the
importance of promotion and demand for tourism products.
2. What could be the drivers that made the government to focus on the tourism
sector?
3. Do you feel that the steps taken by the government are sufficient to ensure
that there is a sustained growth in Indian tourism? Validate your answer.
&&&&&&&&&&&&&&&&&&&&&&&&
Latest Govt Job & Exam Updates: