(b) Three months into the business, Discovery Tours is doing well. The government budget has just announced a series of new policies to help support new businesses. Explain and discuss the consequences of the following for Discovery Tours. The government will raise the VAT rate for all businesses from 9% to 15%. The government announce a wage subsidy for all tourism business to help boost the sector and help cover labour costs. It is expected that international travel will not resume this year and that consumers are encouraged to holiday at home. (i) (ii) (ii)
(b) Three months into the business, Discovery Tours is doing well. The government budget has just announced a series of new policies to help support new businesses. Explain and discuss the consequences of the following for Discovery Tours. The government will raise the VAT rate for all businesses from 9% to 15%. The government announce a wage subsidy for all tourism business to help boost the sector and help cover labour costs. It is expected that international travel will not resume this year and that consumers are encouraged to holiday at home. (i) (ii) (ii)
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 1.4P
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Transcribed Image Text:(b)
Three months into the business, Discovery Tours is doing well. The government
budget has just announced a series of new policies to help support new
businesses. Explain and discuss the consequences of the following for Discovery
Tours.
(i)
(ii)
The government will raise the VAT rate for all businesses from 9% to 15%.
The government announce a wage subsidy for all tourism business to help
boost the sector and help cover labour costs.
It is expected that international travel will not resume this year and that
consumers are encouraged to holiday at home.
A major UK tourism and activity adventure company – AdventureSeekers has
just announced plans to launch and begin trading in Ireland. This is a major
competitor and is expected to possibly undercut prices in the industry.
Insurance costs for business particularly personal and business liability
insurance is expected to increase by 25% this year.
(iii)
(iv)
(v)
Transcribed Image Text:Question 2
Susan and Patrick (Discovery Tours) are keen to progress with their idea and
have begun to look at what is happening in the economy.
(a)
Based on your understanding of micro and macro economics, identify and
explain FOUR micro or macro economic concepts or terms that would be
relevant to the young owners successfully running their adventure /tourism
business. (students should clearly explain the relevance to Discovery Tours).
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