Tourism Management Certificate Practice Exam 2026 – Complete Study Resource

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What is a significant economic impact of the travel and tourism industry?

Decreased local job opportunities

Contribution to GDP

The travel and tourism industry significantly contributes to the Gross Domestic Product (GDP) of many countries. This sector encompasses various activities, including transportation, accommodation, entertainment, and food services, which generate revenue and create jobs. When tourists visit, they spend money on local businesses, from hotels to restaurants to attractions, stimulating economic activity. This influx of spending leads to higher earnings for those businesses, which in turn can lead to increased tax revenues for the government and a rise in overall economic growth.

In contrast, decreased local job opportunities, reduction in international investment, and an increase in travel restrictions are generally considered negative impacts associated with tourism or external factors affecting the industry. These aspects do not accurately reflect the positive economic contributions that travel and tourism make to local and national economies.

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Reduction in international investment

Increase in travel restrictions

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