Why is the economic impact of travel and tourism more difficult ...

[jrubin]

Question 1

How did government policy change the economics of the rental car industry beginning in the 1970s?
 
  What will be an ideal response?

Question 2

Why is the economic impact of travel and tourism more difficult to estimate than other industries?
 
  What will be an ideal response?

[Ksanderson1296]

Answer 1

Congress passed an Investment Tax Credit, which encouraged non-related companies to buy into this industry solely to take advantage of the huge annual fleet purchases that qualified for the tax credit. Profitability, operations, and customer service at the car rental units consequently suffered from neglect.

Answer 2

The economic impact of travel and tourism spending is more difficult to measure than other industries because of the many sectors within travel and tourism and the fact that not all spending in any one sector may be travel and tourism-related. For example, of all spending at restaurants, only about 20 comes from visitors outside of the local area.

[jrubin]

Thanks for the timely response, appreciate it

[recede]

Gracias!