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E CASE PROBLEMS E
1.
Mr. and Mrs. Henry B. are considering taking their first trip
abroad. Deciding to buy a group tour, they nd that some
countries in which they are interested seem to offer a
much better value than do others. Assuming that the
ingredients of the tours being considered are very similar,
what factors are likely to account for this price difference?
director of sales and use taxes has recently advised the
governor that a special 5 percent hotel and motel rooms
tax should be added to the present 4 percent use tax,
making a 9 percent total rooms tax. Currently, the
state ' is budget is in the red. Thus, an increase in revenue
is badly needed. What economic advice should the
governor seek?
2.
A western U.S. state is quite popular with tourists,
hosting about 6 million visitors per year. The state ' s
ENDNOTES
1.
Sheldon, Pauline and Larry Dwyer, '' The Global Financial Crisis and Tourism: Perspectives of the
Academy. '' Journal of Travel Research, vol. 49, no. 1, p. 3.
2.
UNWTO World Tourism Barometer, vol. 8, no. 2, June 2010. Madrid: United Nations World
Tourism Organization.
3.
Ibid.
4.
Tourism 2020 Vision (2000).
Madrid:
United
Nations
World
Tourism
Organization
see
Web site: http://www.unwto.org/facts/eng/vision.htm .
5.
Ibid.
6.
Travel & Tourism Economic Impact: Executive Summary 2010. London, UK: World Travel
and Tourism Council
Web site:
http://www.wttc.org/bin/pdf/original_pdf_ le/2010_exec_summary_ nal.pdf .
7.
Travel and Tourism Works for America 2010
2011. Washington, DC.
-
8.
Donald E. Lundberg, '' Caribbean Tourism, '' Cornell Hotel and Restaurant Administration Quar-
terly, vol. 14, no. 4 (February 1974), pp. 30
-
45.
9.
Robert R. Nathan Associates and Resource Planning Associates, Recreation as an Industry
(Washington, DC: Author, 1966), p. 57.
10.
Stanley C. Plog, '' Why Destination Areas Rise and Fall in Popularity, '' Cornell Hotel and
Restaurant Administration Quarterly, vol. 14, no. 4 (February 1974), pp. 55-58.
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