# Om Assignment

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• Topic: Stay, Winter, Alps
• Pages : 2 (302 words )
• Published : October 5, 2011

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Assignment:
La Villa is a village in the Italian Alps. Given its enormous popularity among skiers its beds are always booked in the winter season and there are,

* On average, 1200 skiers in the village.
* On average the skiers stay for 10 days.

a. How many new skiers are arriving- on average- in La Villa every day?

1200 skiers in the village have been accumulated over a period of 10 days. So per day the rate of arrival is: 1200/10 = 120

b. A study done shows that :
* Skiers spend on average \$50 per person on the first day. * Skiers spend on average \$30 per person on each additional day in local restaurants. * The study also forecast that – due to increased hotel prices - the average stay for the 2003-2004 season will decrease to 5 days. * What will be the percentage change in revenues of local restaurants compared to last year when skiers stayed for 10 days. Assuming that hotels continue to be fully booked?