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S6 Tourism and Hospitality Practice Paper: Industry Structure, Visitor Behaviour and Segmentation, Destination Attractiveness and Seasonality, Accommodation Operations and Revenue Management, Food and Beverage Cost Control, Leakage and Sustainable Tourism

S6 Tourism and Hospitality Practice Paper: Industry Structure, Visitor Behaviour and Segmentation, Destination Attractiveness and Seasonality, Accommodation Operations and Revenue Management, Food and Beverage Cost Control, Leakage and Sustainable Tourism

  • 2026-11-14

Tourism and Hospitality – Secondary 6 – Practice Paper

S6 Tourism and Hospitality practice paper: 24 parts on industry structure, source markets and spending, seasonality, hotel occupancy and RevPAR, restaurant costs and leakage.

Paper details S6 Tourism and Hospitality practice paper: 24 parts with marking points on industry structure, visitor behaviour, seasonality, hotel RevPAR, F&B cost control and sustainable tourism.

Part 1: Structure of the tourism industry and interrelationships

Study Source A and answer the following questions.

# Question Answer and marking notes
1 (a) With reference to Source A, calculate the year-on-year growth rate of visitor arrivals (percentage, one decimal place). Answer: (2,880,000 – 2,400,000) / 2,400,000 x 100% = 20.0%. 3 marks for the working, 1 mark for the unit and one decimal place.
2 (b) With reference to Source A, calculate the total room nights generated by overnight visitors in the year. Answer: overnight visitors 2,880,000 x 0.7 = 2,016,000; total room nights = 2,016,000 x 3.2 = 6,451,200. 2 marks for the overnight count, 2 marks for the room nights.
3 (c) With reference to Source A, calculate the annual hotel occupancy rate of the destination (percentage, one decimal place). Answer: available room nights = 22,000 x 365 = 8,030,000; occupancy = 6,451,200 / 8,030,000 x 100% = 80.3%. 2 marks for available room nights, 2 marks for the rate.
4 (d) Explain the mutual dependence between the accommodation sector and the food and beverage sector, giving one example for each. Answer: accommodation brings demand to F&B (in-house dining and room service), 2 marks; F&B raises the value of the accommodation product (room-with-breakfast packages, signature restaurants as a reason to choose a hotel), 2 marks; the two share reservation, staffing and procurement systems to cut costs, 2 marks. Names listed without explanation earn no marks.

Part 2: Visitor behaviour and market segmentation

Study Source D and answer the following questions.

# Question Answer and marking notes
5 (a) With reference to Source D, calculate the combined share of the Mainland China and Southeast Asian source markets. Answer: 55% + 20% = 75%. 2 marks for the two shares, 1 mark for noting that the two markets make up three quarters (75%), 1 mark for clear presentation.
6 (b) Using Sources D and A, estimate the total visitor spending of the destination for the year (in dollars). Answer: overnight spending = 2,016,000 x $6,800 = $13,708,800,000; same-day spending = 864,000 x $1,200 = $1,036,800,000; total spending = $14,745,600,000. 2 marks for the overnight part, 1 mark for the same-day part, 1 mark for the total.
7 (c) State two differences in the spending patterns of free independent travellers and package tourists. Answer: any two, 2 marks each: independent travellers plan their own itinerary and spend more in local retail and speciality dining; package tourists pre-pay accommodation, meals and transport so their incidental local spending is smaller; independent travellers usually spend more per head and stay more flexibly; tour groups shop at designated outlets, so spending is itinerary-driven.
8 (d) Suggest two promotional strategies for developing long-haul European and American markets, and explain the rationale for each. Answer: 2 marks per strategy (1 for the strategy, 1 for the rationale), maximum 5 marks, with the fifth mark reserved for a strategy supported by concrete implementation details. Examples: partner with long-haul carriers on flight-plus-hotel packages to cut search and booking costs; produce multilingual heritage and nature content and distribute it through overseas travel agents; offer off-peak incentives aimed at long-haul visitors to relieve peak-season prices and carrying capacity.

Part 3: Destination attractiveness and seasonality

Study Source F and answer the following questions.

# Question Answer and marking notes
9 (a) With reference to Source F, calculate the difference between the average visitor index of the peak months (July and August) and that of the low months (February and March). Answer: peak average = (145 + 150) / 2 = 147.5; low average = (68 + 72) / 2 = 70.0; difference = 147.5 – 70.0 = 77.5. 1 mark for the peak average, 1 for the low average, 2 for the difference.
10 (b) Explain two effects of seasonality on human resource planning in the tourism industry. Answer: any two, 2 marks each: peak seasons require temporary or part-time staff while low seasons leave surplus labour, creating recruitment and training costs; seasonal jobs fail to retain talent and make service quality uneven; cross-department deployment, flexible rosters and multi-skilling are needed to balance supply and demand for labour.
11 (c) Using Source F, identify three elements of destination attractiveness. Answer: any three, 1 mark each plus 1 mark for the source example: events and festivals (the index rises to 145 and 150 in July and August); natural and climatic conditions (summer suits outdoor and water activities while the index falls to 68 and 72 in February and March); scenic resources and facilities (the main area carries 35,000 visits per day); access and price (demand concentrates in the peak season).
12 (d) Suggest two measures to reduce seasonality and evaluate their effectiveness. Answer: 3 marks per measure (1 for the measure, 1 for the evaluation, 1 for the limitation), maximum 5 marks. Examples: fill low seasons with MICE business and sports events, which raises off-peak occupancy but needs venue investment; offer low-season packages to residents, which stabilises base demand but adds little foreign exchange earnings; use differential pricing to spread arrivals, which eases carrying capacity pressure but may damage brand image.

Part 4: Accommodation operations and revenue management

Study Source B and answer the following questions.

# Question Answer and marking notes
13 (a) With reference to Source B, calculate the annual occupancy rate of the hotel (percentage, one decimal place). Answer: available room nights = 400 x 365 = 146,000; occupancy = 116,800 / 146,000 x 100% = 80.0%. 3 marks for the working, 1 mark for the answer.
14 (b) With reference to Source B, calculate the annual rooms revenue of the hotel. Answer: 116,800 room nights x $1,150 = $134,320,000. 2 marks for the room nights, 2 marks for the revenue.
15 (c) Calculate the hotel’s annual revenue per available room (RevPAR) and explain its relationship with the average daily rate (ADR). Answer: RevPAR = $134,320,000 / 146,000 = $920, which equals ADR $1,150 x occupancy 0.80. 3 marks for the calculation; 2 marks for the explanation: RevPAR captures both price and volume, so a higher ADR with lower occupancy need not raise RevPAR, and revenue management has to balance the two.
16 (d) Suggest two methods a hotel can use to raise its RevPAR. Answer: any two, 2 marks each: apply demand-based differential pricing (higher rates during peak periods and trade fairs); increase direct sales to cut commission and distribution costs; refine overbooking and room-mix controls to lift actual occupancy; use packages and add-on services to raise revenue per room.

Part 5: Food and beverage cost control and financial analysis

Study Source C and answer the following questions.

# Question Answer and marking notes
17 (a) With reference to Source C, calculate the restaurant’s daily profit and profit margin (percentage, one decimal place). Answer: covers = 180 x 2.0 = 360; revenue = 360 x $260 = $93,600; food cost = $93,600 x 0.32 = $29,952; total cost = $29,952 + $26,000 + $8,000 = $63,952; profit = $29,648; margin = 31.7%. 1 mark for revenue, 2 for cost, 1 for profit, 1 for the margin.
18 (b) With reference to Source C, calculate the restaurant’s monthly food and beverage revenue (based on 30 days). Answer: $93,600 x 30 = $2,808,000. 2 marks for the working, 2 marks for the answer.
19 (c) If the food cost percentage rises by 5 percentage points, calculate the change in daily profit. Answer: extra food cost = $93,600 x 5% = $4,680; daily profit falls from $29,648 to $24,968, a drop of $4,680 (about 16%). 2 marks for the increase, 1 for the new profit, 1 for the drop.
20 (d) Suggest two ways of controlling food cost. Answer: any two, 2 marks each: use standard recipes and portion sizes to standardise output and cut waste; compare supplier quotations regularly and buy centrally; manage stock with first-in-first-out and daily counts to reduce expiry losses; analyse menu item contribution margins and drop weak sellers.

Part 6: Economic impact, leakage and sustainable tourism

Study Sources E and F and answer the following questions.

# Question Answer and marking notes
21 (a) With reference to Source E, calculate the tourism receipts actually retained in the local economy. Answer: $14,745,600,000 x (1 – 0.42) = $14,745,600,000 x 0.58 = $8,552,448,000. 2 marks for the working, 1 mark for the retention ratio, 1 mark for the answer.
22 (b) Explain two causes of leakage in the tourism industry. Answer: any two, 2 marks each: hotels and travel agents are foreign-owned so profits are repatriated; the destination cannot produce enough and must import food, beverages and equipment; visitors favour international brands and duty-free goods, so spending leaves the economy; foreign-currency payments and overseas promotion add to the outflow.
23 (c) With reference to Source F, calculate the daily number of visits exceeding the carrying capacity of the scenic area and the percentage of overloading (one decimal place). Answer: excess = 52,000 – 35,000 = 17,000 visits; overloading = 17,000 / 35,000 x 100% = 48.6%. 2 marks for the excess, 2 marks for the percentage.
24 (d) In response to the overloading described above, suggest two sustainable tourism measures and explain how each balances economic and environmental concerns. Answer: any two, 2 marks each: introduce reservations and daily caps on arrivals and divert visitors to secondary sites, protecting the environment while keeping revenue; replace private cars with public transport and electric shuttles and charge by carbon emission to cut per-visitor emissions (now 0.42 tonnes); promote community-guided tours and local sourcing to raise retention and reduce leakage; promote the low season to relieve peak pressure.

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