ABSTRACT

The economic aspects of tourism have been widely studied and extensively published in academic journals such as Tourism Management and Tourism Economics. Economists also examine a broader range of economic issues in terms of macroeconomics which is concerned with: the entire economy and interactions within it, including the population, income, total unemployment, the average rate of price increases (the inflation rate), the extent of companies’ capacities to produce goods and the total amount of money in use in the country. Within economics, the concern with the allocation of resources to satisfy individuals’ desire to travel means that transport economists examine the demand for different modes of travel and the competition between such modes in relation to price, speed, convenience and reliability. Economists are also interested in the supply of a commodity (e.g. hotel rooms) which is often seen as a function of its price and the price of alternative goods.