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HKDSE Tourism and Hospitality Studies Practice Paper: Visitor Demand, Hotel Operations and Sustainable Tourism (12 Questions, 100 Marks, 75 Minutes, with Answers)
HKDSE Tourism and Hospitality: Demand, Hotels and Sustainability
HKDSE Tourism and Hospitality Studies practice paper on visitor spending, hotel occupancy, RevPAR, seasonality, leakage and carrying capacity.
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Paper details Level: S6 | Subject: Tourism and Hospitality Studies | Time: 75 minutes | Marks: 100 | Questions: 12 | Answers included
Section A: Tourism Concepts and Visitor Demand (32 marks)
Answer all questions in Section A.
| # | Question | Answer and marking notes |
|---|---|---|
| 1 | (Visitor spending) A destination receives 4,800,000 visitor arrivals in a year with total tourism receipts of HKD 1020 billion; the average length of stay is 3.5 nights. (a) Calculate spending per arrival (3 marks). (b) Calculate spending per visitor-night (3 marks). (c) State two limitations of using spending per arrival to compare two destinations (2 marks). | Answer: (a) 1020 billion / 4,800,000 = HKD 21,250 per arrival. (b) 21,250 / 3.5 = about HKD 6,071 per night. (c) Length of stay and market mix differ; exchange rates and price levels are not adjusted, so the comparison over- or under-states real purchasing power. Marking: 1 mark for units, 1 mark for the full working. |
| 2 | (Hotel occupancy) A hotel has 12,500 rooms and operates 365 days a year; 3,467,500 room nights are sold. (a) Calculate the annual available room nights (2 marks). (b) Calculate the occupancy rate (3 marks). (c) If occupancy rises to 82%, how many extra room nights must be sold (3 marks)? | Answer: (a) 12,500 x 365 = 4,562,500 room nights. (b) 3,467,500 / 4,562,500 x 100 = 76.0%. (c) 82% requires 3,741,250 room nights, so 273,750 extra room nights must be sold. Marking: the room-night concept earns 1 mark; occupancy to one decimal place. |
| 3 | (Seasonality) Quarterly arrivals to a destination are 3.2 million in spring, 4.1 million in summer, 5.05 million in autumn and 3.85 million in winter. (a) Calculate total annual arrivals in millions (2 marks). (b) Calculate the autumn share of the annual total (3 marks). (c) Calculate the ratio of peak (autumn) to low (spring) season (3 marks). | Answer: (a) 3.2 + 4.1 + 5.05 + 3.85 = 16.2 million arrivals. (b) 5.05 / 16.2 x 100 = 31.2%. (c) 5.05 / 3.2 = 1.58. Marking: express the ratio as a multiple, not a percentage. |
| 4 | (Multiplier effect) Visitors spend HKD 5.20 million directly and the local tourism multiplier is 1.8. (a) Calculate the total contribution to the economy (3 marks). (b) Calculate the induced (indirect) contribution (2 marks). (c) Explain two conditions for a multiplier greater than one (3 marks). | Answer: (a) 5.2 x 1.8 = HKD 9.36 billion. (b) 9.36 – 5.2 = HKD 4.16 billion. (c) Local suppliers can meet visitor demand, and income stays locally with a low marginal propensity to import. Marking: the multiplier is the total output generated by one unit of initial spending. |
Section B: Economic Impact, Leakage and Hotel Operations (36 marks)
Answer all questions in Section B.
| # | Question | Answer and marking notes |
|---|---|---|
| 5 | (Economic leakage) Tourism receipts are HKD 1,240 billion, of which 28% leaks out through imported goods and repatriated profits. (a) Calculate the leakage (3 marks). (b) Calculate the net retention (3 marks). (c) Suggest two ways to reduce leakage (3 marks). | Answer: (a) 1,240 x 28% = HKD 347.2 billion. (b) 1,240 – 347.2 = HKD 892.8 billion. (c) Develop local farms and craft suppliers to replace imports, and require hotels to buy local produce and hire locally so profits stay in the economy. Marking: net retention must be shown as receipts minus leakage. |
| 6 | (Hotel performance) This year average daily rate (ADR) is HKD 1,180 with 76% occupancy; last year ADR was HKD 1,050 with 72% occupancy. (a) Calculate this year RevPAR (3 marks). (b) Calculate last year RevPAR (3 marks). (c) Calculate the percentage change in RevPAR (2 marks). (d) Explain why RevPAR reflects performance better than occupancy alone (1 mark). | Answer: (a) 1,180 x 76% = HKD 896.8. (b) 1,050 x 72% = HKD 756.0. (c) (896.8 – 756.0) / 756.0 x 100 = 18.6%. (d) RevPAR captures both price and volume, so a fall in room rate is not hidden by a full house. Marking: RevPAR equals ADR times occupancy. |
| 7 | (Carrying capacity) A beach is 850 m long with 45 m of usable width; each visitor needs 5 square metres. Peak daily use is 9,200 people. (a) Calculate the usable area (2 marks). (b) Calculate daily carrying capacity (3 marks). (c) Calculate the percentage by which use exceeds capacity (2 marks). (d) Suggest two ways to manage carrying capacity (2 marks). | Answer: (a) 850 x 45 = 38,250 square metres. (b) 38,250 / 5 = 7,650 people. (c) (9,200 – 7,650) / 7,650 x 100 = 20.3%. (d) Introduce booking or staggered entry, and divert visitors to alternative sites and shuttle services. Marking: capacity is a number of people. |
| 8 | (Source markets) Arrivals by market are 31.2 million from the mainland, 9.8 million short-haul, 4.6 million long-haul and 2.4 million other. (a) Calculate total arrivals in millions (2 marks). (b) Calculate the percentage share of each market (4 marks). (c) Explain two risks of over-reliance on a single source market (3 marks). | Answer: (a) 31.2 + 9.8 + 4.6 + 2.4 = 48.0 million arrivals. (b) Mainland 65.0%, short-haul 20.4%, long-haul 9.6%, other 5.0% (total 100%). (c) A policy or exchange-rate shock in one market causes an abrupt fall in arrivals, and a homogeneous market exaggerates seasonality, complicating hotel and airline capacity planning. |
Section C: Carrying Capacity, Sustainable Tourism and Impact Management (32 marks)
Answer all questions in Section C.
| # | Question | Answer and marking notes |
|---|---|---|
| 9 | (Air capacity) A route has 210 flights a week, 320 seats per flight and 52 weeks a year, with an average load factor of 82%. (a) Calculate annual seat capacity (3 marks). (b) Calculate annual passenger numbers (3 marks). (c) If flights rise to 240 a week but the load factor falls to 76%, calculate the new passenger numbers and judge whether the increase is effective (3 marks). | Answer: (a) 210 x 320 x 52 = 3,494,400 seats. (b) 3,494,400 x 82% = 2,865,408 passengers. (c) 240 x 320 x 52 = 3,993,600 seats, x 76% = 3,035,136 passengers, which is 169,728 more, so the increase is effective. Marking: compare passenger numbers, not flight frequencies. |
| 10 | (Employment) Direct tourism employment is 260 thousand and the employment multiplier is 1.45. (a) Calculate total tourism-related employment (3 marks). (b) Calculate indirect employment (2 marks). (c) Explain two seasonal features of tourism employment (3 marks). | Answer: (a) 260 x 1.45 = 377 thousand jobs. (b) 377 – 260 = 117 thousand jobs. (c) Peak seasons bring long hours and temporary posts with unstable income; low seasons bring lay-offs and short-time work, making it hard to retain skilled staff. |
| 11 | (Carbon emissions) Each visitor trip emits 0.32 tonnes of CO2 equivalent and there are 4,800,000 arrivals a year. If 30% of visitors switch to rail at 0.05 tonnes per trip, (a) calculate total annual emissions in ten-thousand tonnes (3 marks); (b) calculate the reduction in ten-thousand tonnes (3 marks); (c) state one administrative measure to cut tourism emissions (2 marks). | Answer: (a) 4,800,000 x 0.32 / 10,000 = 153.6 ten-thousand tonnes. (b) 4,800,000 x 30% x (0.32 – 0.05) / 10,000 = 38.88 ten-thousand tonnes. (c) Levy an aviation environmental tax or set a minimum load factor for short-haul flights. Marking: 1 mark for converting tonnes to ten-thousand tonnes. |
| 12 | (Tourism balance) Tourism export earnings are HKD 2,460 billion, residents outbound spending is HKD 1,780 billion and GDP is HKD 28,500 billion. (a) Calculate the net tourism balance (3 marks). (b) Calculate tourism exports as a percentage of GDP (3 marks). (c) Explain why a positive balance does not necessarily mean a healthy tourism sector (2 marks). | Answer: (a) 2,460 – 1,780 = HKD 680 billion. (b) 2,460 / 28,500 x 100 = 8.6%. (c) A positive balance may rest on a small number of high-spending visitors, so incomes and regional spread may not improve; outbound spending may also be under-recorded. Marking: use inbound receipts as the numerator. |
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