Author Question: Using the numbers in Question 10, calculate the necessary ADR under the dollar per thousand rule. ... (Read 28 times)

mydiamond · **on:** Sep 11, 2019

Question 1

Why is travel and tourism more important as an industry to less-developed countries than more advanced countries?

What will be an ideal response?

Question 2

Using the numbers in Question 10, calculate the necessary ADR under the dollar per thousand rule.

What will be an ideal response?

Jevvish · **Reply #1 on:** Sep 11, 2019

Answer 1

Travel and tourism may be the dominant industry in the economies of less-developed countries but would never hold that position in a developed country. This is because wealthier countries tend to be relatively well diversified in terms of its economic base. In other words, many different industries operate in developed countries where this is not the case within poorer ones.

Answer 2

The dollar per thousand rule is based on the notion that a hotel should be able to command an average ADR of 1 for every 1,000 per room in property value.The calculation is as follows: 10 million total construction cost/100 room hotel = 100,000 construction cost per room/1,000 (dollar per thousand) = 100.