AICE Travel and Tourism: Economic Factors

Flashcards covering economic factors and concepts from the 'Travel and tourism themes and concepts' lecture notes by Mr. Cook 2024-2025, Unit 1.3: Trends in Travel and Tourism.

Disposable Income

The amount of money people have available to spend on non-essential purchases, such as travel and tourism products and services, after taxes and essential living costs.

Employment and Unemployment Rates

Indicators that affect levels of disposable income; higher employment generally means more money for travel, while declining employment reduces business tourism flows.

GDP (Gross Domestic Product)

The total value of all goods and services produced in a country in a year, used to suggest money available for tourist spending, government infrastructure investment, and business development in travel and tourism.

GDP per capita

Gross domestic product per person, calculated by dividing a country's GDP by its population, enabling the comparison of economic wealth across countries.

Currency Exchange Rates

The value of one currency in relation to another, affecting the affordability of international travel and destinations; a high value of a tourist's home currency makes foreign destinations cheaper.

Government Investment

Money spent by national and local governments on developing their countries and areas, including infrastructure and funding for tourism development organizations.

Infrastructural Developments

Improvements in an area's transport framework (public transport, roads, railways, airports, ports) and basic services (electricity, water, waste disposal), which improve accessibility and increase tourism flows.