Suggested Answers of BT2 Revision Package - ASKnLearn

2010 PJC Prelims H1 Paper CSQ1: Tourism in Singaporea (i) Using Table 2, summarize the trends in tourism receipts. 2MarksGeneral trend1§ Overall increasing trend (tourist receipts rose by 55%)Refinement§ Tourism receipts from India rose the most by 89%§ The lowest increase in tourism receipts were from Japan (1.4%)§ There was a steady increase in tourism for all countries during thisperiod with the only exceptions being Japan in 2006 and the USA in20081a (ii) Explain the possible reasons for the above trends. 2Recall : Total revenue = Price x quantity§Rise in tourism receipts can be due rising number or tourists, or anincrease the prices tourists are willingness to pay for Singaporean goodsand services§The Singapore government has launched various initiatives includingsports events tourism. This has raised the supply of tourism. The highprofile events may have raised awareness of the country as a touristdestination leading to increased demand as well. This has led to anincreased number of tourist visiting and thus, an increase in tourismrevenue.§Rising incomes have led to increase in demand for normal goods suchas tourism, especially in rapidly growing economies like China and India.This has caused tourist numbers to rise and accounts for the rapid rise intourism receipts.Marking Scheme§§Explanation of increase in tourism receipts through a rise in touristnumbers (Quantity) or an increase in expenditureUse of data1m1mb (i)Using a demand and supply diagram, explain how hosting the FormulaOne Grand Prix and the imposition of a sales tax would affect themarket for hotel accommodation.There would be an increase in the number of tourists visiting Singaporeduring the Formula One Grand Prix. This would lead to an increase in the61