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DSE Tourism and Hospitality Studies Paper 1 Practice Paper (12 Questions, 50 Marks, 75 Minutes)

DSE Tourism and Hospitality Studies Paper 1 Practice Paper (12 Questions, 50 Marks, 75 Minutes)

  • 2026-11-02

DSE Tourism and Hospitality Full Paper

DSE Tourism and Hospitality Studies Paper 1 practice paper: 12 original questions, 50 marks, 75 minutes, covering occupancy rate, arrival growth, tourism multiplier, leakage

Paper details Level: S6 | Subject: Tourism and Hospitality Studies | Time: 75 minutes | Marks: 50 | Questions: 12

Section A (Short Questions, 2 marks each, 12 marks in total)

Write the formula, substitute the numbers and give the units.

# Question Answer and marking notes
1 A hotel has 320 rooms and sold 260 of them on a certain night. Find the occupancy rate for that night as a percentage, correct to 1 decimal place. Occupancy rate = 260 / 320 x 100% = 81.25%, i.e. 81.3%.
2 A city received 28.50 million visitor arrivals in 2024 and 34.20 million in 2025. Find the percentage growth in arrivals, correct to 1 decimal place. Growth = (34.20 – 28.50) / 28.50 x 100% = 5.70 / 28.50 x 100% = 20.0%.
3 Visitors spend HK$2.4 billion directly in a destination. The tourism multiplier is 1.8. Find the total economic benefit and the indirect benefit created by the multiplier effect. Total benefit = 2.4 x 1.8 = HK$4.32 billion; indirect benefit = 4.32 – 2.4 = HK$1.92 billion.
4 A visitor spends HK$1,000 locally, of which HK$350 goes to imported goods and the profits of foreign-owned hotels. Find the leakage rate and the amount retained in the local economy. Leakage rate = 350 / 1,000 x 100% = 35%; retained = 1,000 – 350 = HK$650.
5 A beach has 6,000 sq m of usable area and each swimmer needs an average of 4 sq m. Find the daily social carrying capacity of the beach in visitor numbers. Social carrying capacity = 6,000 / 4 = 1,500 visitors per day.
6 An American visitor spends US$1,200 in Hong Kong. The exchange rate is US$1 = HK$7.8. (a) Find the amount in Hong Kong dollars. (b) If the Hong Kong dollar strengthens to US$1 = HK$7.5, how many Hong Kong dollars would the same US$1,200 buy, and what is the difference? (a) 1,200 x 7.8 = HK$9,360. (b) 1,200 x 7.5 = HK$9,000, a difference of HK$360; a stronger Hong Kong dollar reduces visitor purchasing power.

Section B (Application Questions, 4 marks each, 12 marks in total)

Show every step; an answer without working earns at most half the marks.

# Question Answer and marking notes
7 Monthly arrivals at a destination were 3.10 million in July and 1.55 million in January, with an annual monthly average of 2.00 million. (a) Find the peak-to-trough ratio. (b) Taking the annual average as 100, find the seasonality index for July and for January. (c) State two ways of managing seasonality. (a) 3.10 / 1.55 = 2.0, so the peak is twice the trough. (b) July index = 3.10 / 2.00 x 100 = 155; January index = 1.55 / 2.00 x 100 = 77.5. (c) Host conferences and exhibitions in the low season, offer local-market promotions, use differential pricing, and develop new source markets (any two).
8 A tour operator buys the components of a package at HK$6,800. It adds a 25% mark-up to set the tour price and charges a 6% commission on that price. (a) Find the tour price. (b) Find the commission. (c) Find the amount the operator keeps. (a) Price = 6,800 x 1.25 = HK$8,500. (b) Commission = 8,500 x 6% = HK$510. (c) The operator keeps 8,500 – 510 = HK$7,990.
9 Explain two economic benefits and two environmental costs that ecotourism brings to a destination. Economic benefits: jobs, foreign exchange earnings, better infrastructure, income for small local businesses (any two). Environmental costs: habitat loss, litter and sewage pollution, disturbance of wildlife, higher carbon emissions (any two).

Section C (Case and Extended Questions, 26 marks in total)

Calculate first, then explain in full sentences.

# Question Answer and marking notes
10 A cruise ship calls with 3,500 passengers on board; 65% of them go ashore, each spending HK$1,100. The terminal can handle at most 4,000 passengers a day. (a) Find the number going ashore. (b) Find their total spending. (c) If the leakage rate is 30%, find the net local benefit. (d) Find the terminal utilisation rate for the day, correct to 1 decimal place. (e) Suggest two ways of managing the carrying capacity of the terminal. (a) 3,500 x 65% = 2,275 passengers. (b) 2,275 x 1,100 = HK$2,502,500. (c) 2,502,500 x 70% = HK$1,751,750. (d) 2,275 / 4,000 x 100% = 56.9%. (e) Use timed booking slots, add shuttle services, disperse visitors to other attractions, and charge a passenger facility fee (any two).
11 A hotel has 1,250 rooms. In a certain month the occupancy rate was 76% and the average daily rate was HK$1,320. (a) Find the number of rooms sold. (b) Find total room revenue. (c) Find revenue per available room (RevPAR). (d) If occupancy rises to 82% but the rate falls to HK$1,250, find the new RevPAR and compare. (a) 1,250 x 76% = 950 rooms. (b) 950 x 1,320 = HK$1,254,000. (c) RevPAR = 1,320 x 0.76 = HK$1,003.2. (d) New RevPAR = 1,250 x 0.82 = HK$1,025, which is HK$21.8 higher, so trading rate for volume works in this case.
12 A major event is expected to attract 120,000 visits with average spending of HK$3,500 per visitor. (a) Find total visitor spending. (b) If the leakage rate is 30%, find the benefit kept locally. (c) If every HK$500,000 of local spending supports one job, find the number of jobs supported. (d) State two indicators for evaluating the event and one major risk. (a) 120,000 x 3,500 = HK$420 million. (b) 420 million x 70% = HK$294 million. (c) 294 million / 500,000 = 588 jobs. (d) Indicators: spending per visitor, source-market mix, job creation, low-season utilisation (any two). Risk: overcrowding that upsets residents, cost overrun, or weather and cancellation risk (any one).

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