Tourism-pull inflation is caused by increases in aggregate demand due to the additional financial resources international tourists bring to a country.
Tourism Inflation Questions and Answers Grade 12
If the supply of goods and services in the destination country cannot adapt to the increased effective demand, the general price level will rise.
Activity 1
Study the diagram below and answer the questions that follow:
- Define the concept tourism. (4)
- Explain the difference between an inbound and an outbound tourist. (4)
- List any THREE World Heritage Sites in South Africa. (3)
- Discuss the effect of tourism on infrastructure. (4 × 2) (8)
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Answers to activity 1
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Activity 2
Choose the correct answer from the following alternatives:
Tourism is _________ intensive.
- Labour
- Capital
- Risk
[2]
Answer to activity 2
A. Labour
[2]
Activity 3
Choose the correct answer from the following alternatives:
Tourism benefits the household through_________ .
- Lower incomes
- Lower productivity
- More infrastructure
[2]
Answer to activity 3
C. More infrastructure
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