1 . Discuss the key determinants of demand for tourism. Use a diagram to explain the effect of changes in relative prices between tourism and other goods.

2. Traditional demand theory does not explain how preferences and tastes are formed and change over time. What do the theoretical studies of motivation suggest regarding motivation for the individual to undertake a holiday?

3. How can the 'social context of decision making' influence the level of consumption?

4. Helen runs a motel in Nadi which has 400 rooms. Usually 400 rooms per week are booked when the price is $100 per room. After experimenting with prices for some time, Helen has determined that the weekly demand can be found by using the equation d = 4400 - 40p, where d is the number of rooms and p is the price per room.

(a) Will Helen sell more or less if she raises her price from $100?

(b) What happens to her sales every time she raises her price by $10?

(c) Graph the equation.

5. With effect from January 2012, licensed hotels and vessels engaged in the carriage of tourists in Fiji and which provide overnight accommodation for passengers should charge a Service Turnover Tax at the rate of 5%. Discuss the possible impact of this tax of tourism consumption.