Why is the multiplier built from the respending ratio?

The formula 1 / (1 - respending ratio) assumes each round keeps the same share locally, so a higher ratio means the money circulates more times.

How does RevPAR differ from occupancy?

Occupancy counts only the share of rooms sold, while RevPAR folds in the room rate so it reflects both volume and price.

S5 Geography | Tourism and Sustainable Tourism Paper 2 (Advanced)

2026-11-04

Tutor Prep Guide · Secondary Geography

Paper 2 moves to the operating level: the spending multiplier and import leakage, room-nights and RevPAR, capacity overshoot, the peak-to-quiet monthly ratio, sewage load and eco-site margins.

Fix the denominator first　Allow about thirty minutes; state whether the denominator is capacity, income or the whole workforce before choosing a multiplier, a ratio or a difference.

01　Paper details (check answers afterwards)

Item	Detail
Questions	10 items
Suggested time	About 30 minutes
Difficulty mix	Foundation 4 · Intermediate 3 · Challenge 2 · Error redo 1
Chapter	Chapter: S5 Geography \| Tourism and Sustainable Tourism
Level	S5 (Secondary 5) Geography

02　Questions (10 items)

FoundationVisitors spend 800 million dollars locally in a year and each dollar is respent locally at 0.6. Using the multiplier 1 / (1 – 0.6), what is the total economic impact?
FoundationA hotel has 250 rooms, average annual occupancy of 76% and an average room rate of 1,200 dollars. Find room-nights, room revenue and RevPAR.
FoundationA site has an assessed daily capacity of 2,800 visitors but receives 3,600 on a peak day. What is the overshoot?
FoundationTourism directly employs 21,600 people out of a total workforce of 380,000. What share of total employment is that?
IntermediateOf all arrivals, 45% fall in four peak months and 55% in eight quiet months. How many times larger is an average peak month than an average quiet month?
IntermediatePeak-season visitors number 3,000 a day using 300 litres each, while 6,000 residents use 150 litres each. A plant treats 1,200 cubic metres a day. How much is the daily excess?
IntermediateAn eco-site charges 120 dollars, receives 800 visitors a day for 250 days, spends 9,000,000 on operations and 3,500,000 on maintenance. Find net income and net margin.
ChallengeVisitors spend 1 billion dollars, of which 40% leaves the local economy on imports. With a local multiplier of 2.5, what is the local impact and how much lower is it than with no leakage?
ChallengeA resort creates 500 jobs but pumps 2,000 cubic metres of groundwater a day, lowering the nearby farmland water table by 1.5 metres. Assess it on the three pillars of sustainable tourism and suggest one adjustment.
Error redoA student assumes 20% more visitors must mean 20% more receipts. If average spending per visitor falls 10% at the same time, what is the real change?

03　Answers and one-line notes

#	Answer	One-line note
1	2 billion dollars (a multiplier of 2.5 applied to 800 million).	Derive the multiplier from the respending ratio first, then apply it to the first round; a multiplier above 1 means the money circulates repeatedly.
2	69,350 room-nights, revenue 83,220,000 dollars, RevPAR 912 dollars.	Room-nights equal rooms times occupancy times 365; RevPAR also equals rate times occupancy, so both routes must agree.
3	800 extra visitors, or 28.6%.	Divide by capacity, not by the actual figure; using the actual figure understates the overshoot.
4	5.7% (21,600 / 380,000).	The denominator is the whole workforce, not tourism employment alone; state where you rounded.
5	1.64 times (0.45 / 4 divided by 0.55 / 8).	Divide by the number of months before comparing; comparing 45% with 55% directly reverses the conclusion.
6	Visitors 900 plus residents 900 gives 1,800 cubic metres, an excess of 600, or 50%.	Convert litres to cubic metres by dividing by 1,000; the excess percentage divides by plant capacity.
7	Income 24,000,000, net income 11,500,000 and a net margin of 47.9%.	The margin divides by income; multiply fee by visitors and days first, then deduct both cost lines.
8	Local retention 6 billion gives an impact of 15 billion, against 25 billion, i.e. 40% less.	Deduct leakage from the first round before applying the multiplier; reversing the order inflates the leak as well.
9	Economy is positive with 500 jobs; environment is negative through over-abstraction and the 1.5-metre fall; the socio-cultural pillar depends on community involvement in decisions. A workable adjustment is rainwater harvesting plus an abstraction cap set at the recharge rate.	Cover each pillar separately rather than calling the project simply sustainable, and make the fix answer the pillar that failed.
10	Receipts rise only 8% (1.2 times 0.9 = 1.08), from 78 billion to 84.24 billion.	Receipts equal arrivals times spending, so multiply the two changes; using arrivals alone overstates the gain by 12 percentage points.

04　What to do after marking

After marking, redo only the wrong items and write down which step went wrong (formula, unit, or misread number).
Repeat the same item two days later; move to the next paper only when both attempts are correct.
Parents only need the answer and note columns; there is no need to explain every item.

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