ABSTRACT
This chapter examines how the leisure and tourism sector contributes to the general level of economic activity. In particular, it examines the contribution of leisure and tourism to national output, national income and national expenditure, to the level of employment and considers the question of inflation. This chapter enables the reader to:
distinguish between microeconomics and macroeconomics
measure the total level of economic activity in an economy
distinguish between changes in real and money gross national product (GNP)
measure the contribution to GNP
understand the contribution to employment
understand the contribution to tax revenue
utilize simple economic models of the macroeconomy
understand and apply the multiplier principle
measure inflation in the recreation, leisure and tourism sector
interpret government policy in this area.
