S5 Tourism And Hospitality Studies Practice Paper (Set 1): Demand And Arrivals, Hotel Operations, Airlines And Agencies, Economic Impact, Carrying Capacity, Sustainable Tourism (with Answers)

S5 Tourism and Hospitality Studies Practice Paper (Set 1): Demand and Arrivals, Hotel Operations, Airlines and Agencies, Economic Impact, Carrying Capacity, Sustainable Tourism (with answers)

2026-11-15

S5 Tourism and Hospitality practice paper with answers: demand, hotels, airlines, economic impact, carrying capacity, green tourism; 24 parts, 100 marks, 60 minutes.

Paper details　

Tourist Demand and Arrival Statistics

Answer the following using the annual figures of a regional tourism board. Give percentages as whole numbers unless stated otherwise.

#	Question	Answer and marking notes
1	Annual visitor arrivals rose from 2400000 to 2760000. Find the percentage increase and state the extra arrivals.	Answer: extra arrivals = 2760000 minus 2400000 = 360000; growth rate = 360000 divided by 2400000 = 15 per cent.
2	Mainland visitors numbered 2070000. Find their share of total arrivals.	Answer: share = 2070000 divided by 2760000 = 75 per cent. Heavy dependence on one source market makes the industry vulnerable to policy and economic shocks there.
3	Overnight visitors totalled 1656000. Find the overnight share and the number of same-day visitors.	Answer: overnight share = 60 per cent; same-day visitors = 2760000 minus 1656000 = 1104000. Overnight visitors spend more and stay longer, so they support hotels and restaurants directly.
4	Total tourism receipts were HK$27600 million. Find the average spend per visitor.	Answer: average spend = HK$27600 million divided by 2760000 visitors = HK$10000. If only overnight visitors are counted the figure is much higher, so the denominator must be stated.

Hotel and Accommodation Operations

A hotel has 800 rooms and operates 365 days a year. It sold 219000 room nights, earning HK$175200000 in room revenue out of HK$292000000 total revenue.

#	Question	Answer and marking notes
5	Calculate the annual occupancy rate.	Answer: available room nights = 800 times 365 = 292000; occupancy = 219000 divided by 292000 = 75 per cent.
6	Calculate the average daily rate (ADR).	Answer: ADR = room revenue divided by room nights sold = 175200000 divided by 219000 = HK$800.
7	Calculate revenue per available room (RevPAR) and explain its link with ADR and occupancy.	Answer: RevPAR = 175200000 divided by 292000 = HK$600; it also equals ADR times occupancy = 800 times 75 per cent = HK$600. RevPAR captures both price and volume, so it measures performance better than ADR alone.
8	What percentage of total revenue comes from rooms, and how much is non-room revenue?	Answer: rooms share = 175200000 divided by 292000000 = 60 per cent; non-room revenue = HK$116800000. Food, banquets and spa income diversify the risk of room-rate cycles.

Travel Agencies and Air Passenger Transport

A route offered 200000 seats a year and carried 168000 passengers. A return ticket costs HK$2400 with 6 per cent agency commission; three hotel nights cost HK$900 each and the package adds an 8 per cent mark-up on cost.

#	Question	Answer and marking notes
9	Calculate the load factor of the route.	Answer: load factor = 168000 divided by 200000 = 84 per cent. When it is low, an airline may cut frequency or use smaller aircraft to control cost.
10	Find the commission per ticket and the total commission for the year.	Answer: commission per ticket = HK$144; total = 144 times 168000 = HK$24192000. Commission ties agency income directly to sales volume.
11	Find the cost and the selling price of the three-night package.	Answer: cost = ticket 2400 plus 900 times 3 = HK$5100; selling price = HK$5508.
12	Calculate the package gross margin and suggest how an agency can raise it.	Answer: gross profit = HK$408; margin = 408 divided by 5508 = 7 per cent. Bulk hotel buying, high-margin optional tours and direct selling lift the margin.

Economic Impact of Tourism

Tourism receipts were HK$27600 million with a leakage rate of 40 per cent and a tourism multiplier of 1.8. Tourism employed 180000 people directly; indirect jobs are 1.5 times the direct figure. Total employment is 3000000 and GDP is HK$2760000 million.

#	Question	Answer and marking notes
13	Find the tourism receipts retained in the local economy and give an example of leakage.	Answer: retained receipts = HK$16560 million. Leakage arises from imported food and drink, profits sent home by foreign-owned hotels, and fares paid to overseas airlines.
14	Calculate the total economic contribution after the multiplier effect.	Answer: total contribution = HK$16560 million times 1.8 = HK$29808 million. A larger multiplier means visitor spending recirculates more times within local supply chains.
15	Find direct, indirect and total tourism employment, and tourism share of total employment.	Answer: indirect jobs = 270000; total = 180000 plus 270000 = 450000; share of total employment = 450000 divided by 3000000 = 15 per cent.
16	Find tourism receipts as a percentage of GDP and comment on the economy dependence.	Answer: receipts are about 1.0 per cent of GDP, a moderate share, but the jobs are concentrated in retail, catering and hotels. A collapse in source markets would raise unemployment quickly, so diversification and higher-value tourism products are needed.

Socio-cultural Impact and Carrying Capacity

An island has 12000 residents and a daily carrying capacity of 3000 visitors; in peak season 4200 arrive daily. In a survey of 1200 residents, 720 supported a daily visitor cap.

#	Question	Answer and marking notes
17	Find by what percentage peak arrivals exceed the carrying capacity.	Answer: excess = (4200 minus 3000) divided by 3000 = 40 per cent.
18	Find the number of visitors per resident in peak season and outline the social problems that may follow.	Answer: each resident faces 0.35 visitors. Likely problems include crowded streets and transport, rising prices and rents, disturbance of daily life, and commercialisation of local culture.
19	Find the percentage supporting a cap and the number opposed.	Answer: support = 60 per cent; opposed = 480. A clear majority shows residents feel current arrivals hurt their quality of life, so authorities must balance income against residents well-being.
20	Suggest two management measures to reduce socio-cultural impact in peak season.	Answer: first, introduce a booking or quota system that spreads arrivals to weekdays and shoulder seasons; second, run community-guided tours, reserve facilities for residents and brief visitors on local etiquette.

Environmental Impact and Sustainable Tourism

A long-haul flight covers 8000 km one way and a short-haul flight 800 km, emitting 150 g of carbon dioxide per passenger-kilometre. The hotel uses 350 litres per room night, and produces 1500 tonnes of waste a year, of which 375 tonnes are recycled.

#	Question	Answer and marking notes
21	Find the carbon emissions per passenger on the long-haul flight in grams and kilograms.	Answer: emissions = 8000 times 150 = 1200000 g = 1200 kg. Aviation is among the most carbon-intensive transport modes per kilometre.
22	Find the short-haul emissions and the reduction compared with the long-haul flight.	Answer: short-haul emissions = 120000 g = 120 kg; the reduction is 90 per cent of the long-haul figure.
23	Find the annual water use of the hotel in litres and cubic metres.	Answer: water use = 350 times 219000 = 76650000 litres = 76650 cubic metres. Low-flow fittings and grey-water reuse cut this figure substantially.
24	Find the waste recycling rate and suggest two measures that promote sustainable tourism.	Answer: recycling rate = 25 per cent. Measures include cutting single-use plastics and sorting waste in hotels, promoting public transport with carbon offsets or an eco-levy that funds conservation, and capping arrivals to protect natural sites.

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