Topics: Tourism, Economics, Macroeconomics Pages: 11 (2283 words) Published: January 28, 2013
37 Duke Street, London W1U 1LN


CTH Level 4 Diploma


Tourism Economics


January 2011

Marking guidelines are used by the CTH examining team to help structure a fair and consistent marking mechanism. Markers will allocate marks in accordance with the marking guidelines. In some cases acceptable answers are included in the marking guidelines, where this is the case care is taken to provide structured answers with a range of content; however, they cannot all be interpreted as definitive answers. Markers will use professional judgment to allocate marks where candidates have given alternative, relevant and satisfactory answers or part answers. Where discretionary marks are allowed within the mark scheme, markers will apply a working professional knowledge of the industry and subject area. Markers will award marks for demonstration of the assessment criteria of the syllabus. Candidates will not be penalised or negatively marked.

Tourism Economics Question 1 1.1 Explain, using suitable examples, the term FDI 3 Marks

Mark 2 marks to be awarded for explaining the term and 1 mark for the example. Scheme Learning Outcome Reference: 1 Evaluate how economic factors impact on the tourism industry. Assessment Criteria Reference: 1.1 Demonstrate an understanding of economic theory and its impact on the tourism industry (including GDP, FDI, balance of payments, effects of recession, inflation, standards of living, imports and exports, Pricing strategies: elasticity, supply and demand). 1.2 Explain the positive and negative effects of a weak foreign exchange rate on the flow of tourists to a destination in the recent economic recession Up to 5 marks are available for positive effects Up to 5 marks are available for negative effects. 10 Marks

Mark scheme

Out of every 5 marks, 1 mark is for identifying an impact and two marks for explanation and 2 marks for application to a required destination. As an example Weak currency at a specific destination (eg London) will make products and services cheaper and hence there will be more flow of international tourists. However it is bad if a tourist is planning to travel to areas with strong currency. Learning Outcome Reference: 4 Evaluate the positive and negative economic impacts of tourism Assessment Criteria Reference: 4.1 Assess the positive economic impacts on tourism (including: multiplier effect, direct and indirect economic effects, types of employment, tourist receipts, foreign exchange earnings). 1.3 In the economic recession, explain two economic impacts on a:  Privately owned tourist attraction  Public owned tourist attraction. Use examples to illustrate your answer Mark scheme Up to 6 marks are available for each category, total of 12 marks Out of the six marks in each case, 2 marks are available for identifying a relevant impact, 3 marks for the explanation and then 1 mark for an example. 12 Marks

Learning Outcome Reference: 3

Examination Session: January 2011
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Tourism Economics Assess the economic contribution of the tourism industry. Assessment Criteria Reference: 3.2 Assess the economic contribution of national tourism (including: public policy towards competition, public policy and tourism economic policy). Total Marks for Question 1 25

Question 2 2.1 Explain the term displacement effect. Use an example to illustrate your understanding. 5 Marks

Mark 3 Marks for explaining the term Scheme 2 marks for an appropriate example The explanation may include the process of development of one industry/sector at the expense of another or when a new tourism project takes customers away from the existing attraction. Other valid points should also be awarded. Learning Outcome Reference: 4 Evaluate the positive and negative economic impacts of tourism Assessment Criteria Reference: 4.2 Assess the negative economic impacts on tourism (including: dependence on tourism, interdependence,...
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