Tourism is one of 9 topics in the Grade 12 Economics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Direct spending by tourists on accommodation, food, transport and attractions represents which type of tourism economic contribution?
Direct contribution
Indirect contribution
Induced contribution
No economic contribution at all
Answer: Direct contribution — Direct contribution refers to the tourist's own spending on accommodation, food, transport, tours and attractions -- the first, most immediate layer of tourism's economic impact.
Easy
2. In the balance of payments, spending by foreign tourists in South Africa is recorded within which component of the current account, functioning economically similarly to an export?
The services component
The financial account
The reserve account
It is not recorded anywhere in the balance of payments
Answer: The services component — Foreign tourist spending brings foreign currency into the country similarly to an export, and is recorded within the services component of the current account.
Medium
3. What term describes the combined direct, indirect and induced rounds of spending triggered by an initial injection of tourist spending, similar in concept to the general fiscal multiplier?
Answer: The tourism multiplier (effect) — The tourism multiplier effect describes how an initial injection of tourist spending ripples outward through direct, indirect and induced rounds of domestic spending, generating a total economic impact larger than the initial spend alone.