CASE PROBLEMS

1.To maintain and hopefully enhance the appeal and quality of its area’s natural resources, the city council has decided that it needs to enact protective laws to help ensure its future tourism success. What specific laws and regulations might these be?

2.Resort City is anxious to attract more tourists. The chamber of commerce has been successful in attracting several new tourist firms to the community. These firms plan to develop new hotels, lodges, shops, and restaurants. However, an influential member of the chamber of commerce expresses the viewpoint that the community should enact some strict zoning and building code laws before these construction projects get under way. The prospective developers and many other members of the chamber disagree. What do you think should be done to resolve this situation, and why?

Chapter 13

CASE PROBLEMS

1.Assume that the federal government has imposed an increase in the gasoline tax of 50 cents per gallon, effective in three months. How might a motel franchise headquarters organization estimate the effect on demand that this new tax would have for their member motels, which are located in all parts of the country? How could a restaurant chain organization operating turnpike food services make such an estimate? How could a regional airline?

2.Byron C. is director of development for a major hotel systems firm. His company has formulated a new concept in resort-type overnight and longer-stay accommodations. The new suites will possess an exciting array of electronic entertainment features, including a large screen, stereo sound, movies, and DVDs. Understandably, these suites are quite expensive to build. Thus, reasonably accurate demand forecasts are essential. Byron C. has tentatively selected your city as a location for the first of these new suite concepts. As executive vice president of your city’s convention and visitors bureau, what method would you use to assist Mr. C. in making these crucial demand estimates?

Chapter14

CASE PROBLEMS

1.Mr. and Mrs. Henry B. are considering taking their first trip abroad. Deciding to buy a group tour, they find 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?

2.A western U.S. state is quite popular with tourists, hosting about 6 million visitors per year. The state’s 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’s budget is in the red. Thus, an increase in revenue is badly needed. What economic advice should the governor seek?