Deck 13: Measuring and Forecasting Demand

Question 1

Demand for tourism is income elastic because:

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.

Answer 1

B

Question 2

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

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.

Answer 2

D

Question 3

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

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

Answer 3

D

Question 4

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

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 5

The best method of forecasting tourism demand is:

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 6

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

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.

Question 7

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

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 8

What is meant by elasticity of demand for travel?

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 9

Visitor days as a measure of demand is:

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 10

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?

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

Question 11

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

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 12

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

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

Question 13

Which is the most meaningful measure of demand?

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