Question 1

When we consider demand in tourism, what do we mean?

Accepted Answer

A)  It is the demand in relation to the supply that we offer. 
B)  It is people willing and able to buy at a schedule of prices. 
C)  It is demand at that particular price and year. 
D)  It is the number of people who potentially would travel to a particular destination. 
E)  It is the amount an area spends on tourist promotion. B

Question 2

Seasonal fluctuations in demand are a problem in most areas. A recommended method of leveling out demand is to:

Accepted Answer

A)  intensify and develop the area's best use. 
B)  slightly diminish quality of the area to reduce demand at peaks. 
C)  close down some hotels during the off-season. 
D)  increase multiple-use possibilities. 
E)  charge what the market will bear. D

Question 3

Which is the most meaningful measure of demand?

Accepted Answer

A)  visitor arrivals 
B)  visitor days or visitor nights 
C)  visitors 
D)  excursionists' visits 
E)  amounts spent E

Question 4

Visitor days as a measure of demand is:

Accepted Answer

A)  the number of visitors arriving at a destination each day for a year. 
B)  visitor arrivals x average length of stay. 
C)  number of days spent by visitors of one community/area in another destination. 
D)  expenditures by tourists in an area. 
E)  the total number of days spent by tourists at commercial lodging establishments in an area.

Question 5

Which of the following is not a viable method for forecasting tourism demand?

Accepted Answer

A)  time series analysis, secular trend 
B)  gravitation model 
C)  computer simulation 
D)  critical path analysis 
E)  multiple regression

Question 6

Demand for tourism is income elastic because:

Accepted Answer

A)  tourism is a highly desirable good. 
B)  tourism depends on discretionary income. 
C)  it is a necessity for the affluent. 
D)  tourism is not equally desirable to all people. 
E)  most tourists have a variable income.

Question 7

Tourism is the backbone of the economy of Nirvana. The industry is given top priority by the government that recognizes the high stakes involved. Given only data on annual arrivals of tourists to Nirvana, which method of projecting future demand should be recommended?

Accepted Answer

A)  multiple regression 
B)  trend analysis 
C)  simple regression 
D)  computer simulation 
E)  any of the above depending on size of research budget

Question 8

The best method of forecasting tourism demand is:

Accepted Answer

A)  time series and secular trends. 
B)  Delphi and mathematical models used together. 
C)  gravitation models. 
D)  computer systems models. 
E)  multiple correlation regression models.

Question 9

What is meant by elasticity of demand for travel?

Accepted Answer

A)  A cut in price results in fewer people buying the trip. 
B)  A cut in price results in more persons buying the trip. 
C)  A cut in price means less total revenue generated. 
D)  A cut in price means more revenue generated than at the higher price. 
E)  A cut in price has little effect on revenue.

Question 10

Which of the following is true regarding aggregate demand for international pleasure travel?

Accepted Answer

A)  the traveler wishes to maximize utility or opportunities but is subject to budget restraints 
B)  international travel expenditures are price-sensitive 
C)  international travel expenditures are not very price-sensitive 
D)  expenditures create substantial cross-elasticities of travel demand 
E)  future demand can be accurately forecasted

Question 11

From the standpoint of general recognition of tourism's importance in an area, which measure of demand is the most meaningful?

Accepted Answer

A)  amount of money spent in the area 
B)  occupancy of the area's hotels and motels 
C)  load factor of aircraft serving area 
D)  meals sold in the restaurants 
E)  number of persons employed in tourism

Question 12

Which of the following does not directly affect the demand for travel to a particular destination?

Accepted Answer

A)  income of tourists 
B)  quality of service at the destination 
C)  the income level of the host region 
D)  the economic distance between origin and destination areas 
E)  host government policies

Question 13

Which of the following is true when measuring demand through tax collections?

Accepted Answer

A)  If we know how much tax was collected, we can compute the tourist expenditures 
B)  Tourists pay many different types of taxes and these can be measured 
C)  Local people pay the same taxes as tourists, thus the collections are actually the same 
D)  We must separate taxable purchases by tourists from similar purchases by local residents 
E)  None of these is a good method

Exam 13: Measuring and Forecasting Demand