Author Question: Why is the economic impact of travel and tourism more difficult to estimate than other industries? ... (Read 93 times)

jrubin · **on:** Sep 11, 2019

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 · **Reply #1 on:** Sep 11, 2019

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.