Unit 2 Favourable Unfavourable Travel Balances Travel Balances

Unit #2 – Favourable & Unfavourable Travel Balances

Travel Balances Tourism spending strengthens the economies of most countries and the world’s economy as well. Only the top 10 richest countries in the world have a higher GNP than all of the tourism spending totals in the world.

Favourable Travel Balance: - a country with more tourist money coming in (their own tourists and others) than going out (their citizens holidaying outside of their own country). Ex. Australia had $7, 335, 000 tourist dollars coming in and $5, 388, 000 tourist dollars going out. Which means they had a travel balance of $1, 947, 000.

Unfavourable Travel Balance: - a country with more tourist money going out (their citizens holidaying outside their own country) than coming in (their own tourists and others). Ex. Canada had $13, 985, 000 tourist dollars coming in and $15, 955, 000 tourist dollars going out. Which means they had a travel balance of -$1, 971, 000.

Questions Use the World Travel Balance, By Country, 1998 – 1 chart to answer the following questions: 1. Which country has the largest negative Travel Balance (Receipts minus Expenditures) OR the largest unfavourable trade balance? 2. Which country has the largest positive Travel Balance OR the largest favourable trade balance?

3. Which country has a travel balance of zero meaning their receipts are equal to their expenditures? 4. Name 3 influential nations that have unfavourable travel balances/ travel deficits of over $ 1 billion.

5. Suggest 1 reason for each of those 3 countries as to why they would have such large deficits (HINT: travel overseas, spending habits, living standards and therefore prices). 6. Canada is the only country in North America that has an unfavourable travel balance on this chart - why do you think this is the case?