Recent Question/Assignment

MPE 781/981- Economics for Managers
Trimester 2, 2015 Assignment: Economics Case Study
Due: 7th September (Monday, 11:59 pm), 2015.
I. Assignment Overview: This assignment is based on an article “Tourism Investment Monitor,” by Tourism Research Australia, May 2015. The article is already attached to this assignment question. Please read the article carefully before attempting this exercise. You will also need to draw on other resources available through the library as well as external resources. Please note that you need to provide clear references for your sources when citing research and data.
II. Learning Objectives: This assignment is d e s i g n e d to encourage you to think about the application of concepts learned in this unit in a real world scenario. This assignment, indeed, is interesting as it explains how the existing economic theories can explain markets like tourism in particular, how Government policies can shape up the tourism industry of a country. We hope that this assignment will expand the horizon of your thoughts.
III. Assessment: Your score on this assignment contributes towards 40% of your final score for this unit. Based on the attached Rubric, your assignment will be graded on your use of appropriate economic theory and concepts, clarity of exposition and overall quality of your answers. Although you can work in group, this is not a group assignment and you must submit answers individually.
IV. Submission: This assignment must be submitted electronically on CloudDeakin (CD) Dropbox area by all students by 11:59pm on the due date. No hard copy is required. Print your name and student ID clearly on the first page of your answers. Please check the Academic Honesty and Misconduct section in the Unit Guide. Submitting your answers automatically implies that you have read and accepted the Plagiarism and Collusion Declaration, and that the submitted answers are entirely your own work.
V. Questions: Answer all questions. Limit the total word count of your assignment to less than 3,000 words. You are encouraged to 1provide necessary graphs, figures and tables with data wherever possible, which are not subject to word limit. Please be careful in implementing referencing styles.
Question 1: (8 marks)
In your own words, summarize the article, “Tourism Investment Monitor,” by Tourism Research Australia, May 2015. In particular, what are the main messages of the article? [Hint: Please link your summary with relevant economic theories wherever you can]
Question 2: (8 marks)
Use appropriate diagrams to answer: Do you think increasing investment in Australian tourism industry is a prudent economic policy for the future sustainability? Why or why not? [Hint: Please do an extensive literature review to find out the pros and cons of the global tourism industry, their short term and long term impacts, etc.]
Question 3: (8 marks)
Suppose that the Australia’s hospitality industry is perfectly competitive (i.e., many hotel and/or accommodation providers). The federal government decides to levy a buyer’s tax (specific tax) on hotel accommodations. Use appropriate diagrams to answer:
(a) Examine the impacts of this buyer’s tax on the equilibrium rental prices, consumer surplus, producer surplus, and total surplus (or social welfare).
(b) Can an increase in the buyer’s tax raise social welfare?
(c) Can an increase in the buyer’s tax raise the federal government’s revenue?
Question 4: (8 marks)
Suppose that the tourism department’s prediction of increased tourism activities and investment has been proved right. Use appropriate diagrams to answer [Hint: Let’s assume the labor market in tourism industry is perfectly competitive]:
(a) What should be the new wage level in the tourism industry?
(b) If due to huge union pressure, the government sets minimum wage above this equilibrium wage, what should be the consequence? What would happen to social welfare?
Question 5: (8 marks)
Find three other countries or economies who are among the leaders in global tourism market. Give a brief description about their tourism industries [Hint: If possible present concrete fact and figures]. Provide your views or suggestions on the best measure to promote Australian as a highly sought tourism destination based on your research on the above three tourism based successful economies.
2
MONITOR 2015

CONTENTS
FOREWORD 1
INFOGRAPHIC - AUSTRALIAN TOURISM INVESTMENT PIPELINE 2014 2
CONCLUSION 19
FIGURES

TRA.GOV.AU

THE TOURISM INVESTMENT
ENVIRONMENT
RECENT ECONOMIC TRENDS INDUSTRY AND INVESTOR
SENTIMENT
FIGURE 1 IMPORTANCE OF FACTORS IN UNDERPINNING POTENTIAL TOURISM INVESTMENT IN THE NEXT 12 MONTHS
FINANCIAL
ENVIRONMENT INVESTMENT FUNDING RATES CONSUMER
CONFIDENCE AND DISCRETIONARY INTERNATIONAL SEAT CAPACITY
(AVIATION) DOMESTIC
SEAT CAPACITY
(AVIATION)
SPENDING
WHAT DOES THE FUTURE HOLD FOR AUSTRALIA’S TOURISM INDUSTRY?
DOMESTIC OVERNIGHT TRIPS AVIATION
ACCOMMODATION
KEY TOURISM INDUSTRIES – INVESTMENT AND SUPPLY
AVIATION
$1.8b ARTS, RECREATION
& BUSINESS
$5.0b
ACCOMMODATION
$1.1b
TOTAL INVESTMENT PIPELINE $4.3b (8.7%)
FIGURE 2: TOURISM INVESTMENT PIPELINE PROGRESS, 2011–2014
$ BILLION
FIGURE 3: TOURISM INVESTMENT PIPELINE – VALUE OF INVESTMENT BY SECTOR AND STATE/ TERRITORY, 2014
ACCOMMODATION
AVIATION INFRASTRUCTURE
ARTS AND RECREATION
AVIATION
INFRASTRUCTURE FLEET TOTAL
$4.1b $5.9b $1.8b
FIGURE 4: CHANGE IN AVIATION INVESTMENT, 2014 COMPARED TO 2013
POSSIBLE
ARTS, RECREATION AND BUSINESS SERVICES INFRASTRUCTURE
FIGURE 5: CHANGE IN ARTS, RECREATION
AND BUSINESS SERVICES INFRASTRUCTURE
INVESTMENT, 2014 COMPARED TO 2013
ACCOMMODATION
VALUE ROOMS TRANSACTIONS
$1.1b 3,890 39%
FIGURE 6: CHANGE IN ACCOMMODATION INVESTMENT, 2014 COMPARED TO 2013
CONSIDERATION/ UNDER COMPLETED
POSSIBLE CONSTRUCTION
OPPORTUNITIES
SCARCITY OF PRIME LAND IS FUELING INTEREST FROM ASIAN INVESTORS IS
MIXED-USE DEVELOPMENT INCREASING
FIGURE 8: MIXED-USE INVESTMENT, 2012 TO 2014
IMPROVEMENT IN PROJECT
PROGRESS THROUGH THE PIPELINE
FIGURE 9: PIPELINE PROGRESS, BY VALUE AND VOLUME, 2014 COMPARED TO 2013
CONCLUSION
TOURISM INVESTMENT MONITOR 2015 | May 2015

Question 3 Accessing
Demonstrates no Demonstrates a
Criterion (Problem ability to independently limited ability to
Solving); Total Marks:8 construct a clear independently construct
statement about a
complex problem or
research hypothesis.
Proposes no solutions or ideas to address new
and complex problems. Demonstrates no
evidence of initiative in planning and a clear and statement about a complex
problem or research
hypothesis. Proposes inappropriate
solutions or ideas to address new and
complex problems.
Demonstrates limited
identifies no viable evidence of initiative in approaches for solving planning and identifies complex problems. few viable approaches
Question 4 Accessing
Criterion Critical
Thinking (Existing
Knowledge, Research (0 - 2 marks)
Poor or missing analysis of theories.
Always presents information from for solving complex problems.
(2.1 - 3.9 marks)
Inadequate demonstrati on of
critica l analysis of relevant theories and
Demonstrates
satisfactory a bility to independently and
expertly construct a
clear statement about a comp lex problem or research hypothesis
w ith evidence. Creates an acceptable new object, solution, or
idea ; Proposes one or more acceptable creative solutions to existing and/or new situations in
professional practice; also the solution
reflects proficient
judgement of the pros and cons of the various options.
Demonstrates a good ability to independently and expertly construct
a clear statement about
a complex problem or
research hypothesis with evidence of
reasonably relevant contextual factors.
Proposes reasonable adaptations of existing objects, solutions or
ideas to address new
and comp lex problems
Demonstrates a very high level of initiative in planning and
identifies multiple
approaches for
resea rching and solving complex problems.
Provide relevant diagrams.
(4.8 - 5.5 marks)
Demonstrates a very good ability to
independently a nd
expertly construct a clear and insightful statement about a
complex problem or research hypothesis w ith evidence of
relevant contextua l factors. Create a
brilliant innovative
new object, solution or idea; Proposes
ada ptations of existing objects, solutions or
ideas to address new
and complex problems, reflects on and
evaluates the creative process and product .
Skilfully extends an existing idea.
Demonstrates a high level of initiative in
planning and identifies multiple, innovative
approaches. Provide
relevant diagrams.
(5.6 - 6.3 marks)
General demonstrat ion Accurate demonstration
of critical analysis of of critical analysis of
theo ries and models. Presents complex theories and models. Synthesises
(4 - 4.7 marks)
Mostly adeq uate demonstration of critical analysis of theories and models, Demonstrates exceeding ly high
ability to independent! and expertly construe a clear and insightful statement about a
complex problem or researc h hypothesis w ith evidence of all relevant contextual factors . Create a ground-breaking
innovative new object solution or idea ;
Proposes adaptat ions
existing objects,
solutions or ideas to address new and
complex problems, reflects on and
evaluates the creativE process and product. Outstandingly extends an existing
idea Demonstrates a very high level of
initiative in planning
and identifies multiple innovative app roache Proposes one or more exemplary creative, novel solutions to
existing and/or new situations in
professional practice.
Provide relevant diagrams.
(6.4 - 8 marks)
Scholarly demonstration of critical analysis of theories and models.
or/and Views); Total Marks:8
Question 5 Accessing
Criterion (Global
Citizenship); Total
Marks:8 ina ppropriate sources representing very limited points of view models; Poor reasoning and argument w ith no
supporting evidence.
Often presents information from
inappropriate sources
representing limited points of view or approaches .
(2.1 - 3.9 marks)
Demonstrates limited understanding of the
complex ity of global/ cultural I ethical
perspectives or of professional practice. yet some information from
inconsistencies remain relevant sources in the arguments. representing various
Presents information , points of view or information and Synthesises comple: knowledge from a information and range of relevant know ledge from a
sources representing broad range of various points of view, relevant sources
or approaches.
(0 - 2 marks)
Demonstrates no
from relevant sources representing various points of view or approac hes, and
demonstrat ing a
mastery of theoretical knowledge.
(4 - 4.7 marks)
Demonstrates
acceptable level of
understanding of the complexity of global/ cultural I ethical
perspectives or of professional practice. approaches, and
demonstrat ing a
mastery of theoretical knowledge. Provides
diagrams explaining one critical aspect of the theories.
(4.8 - 5.5 marks)
approaches and
demonstrati ng a high level of mastery of theoretical knowledge. representing various points of view,
approaches and
demonstrating a high level of mastery of
theoretical knowledgE and expert
understanding of recer developments in the
discipline and/or a rea
of professional practio Provides diagra ms explaining different
critical aspects of the theories.
(6.4 - 8 marks)
Demonstrates extraordinarily
sophisticated and dee understanding of the complexity of global/ cultural I ethical perspectives or of
Provides diagrams explaining different
critica l aspects of the theories.
( 5.6 - 6.3 marks)
Demonstrates very good sophisticated
understanding of the
complexity of global/ cultural I ethical
perspectives or of professional practice.
Demonstrates a high
level of understanding of the complexity of
global/ cultura l I ethica l perspectives or of
professional practice.
Provide diagrams and
understanding of the complexity of global/ cultural I ethica l
perspectives or of professiona l practice.
(0 - 2 marks) (2.1 - 3.9 marks) Provide diagrams and relevant figures to relevant figures to
make a consistent Provide diagrams and relevant figures to professional practice.
Provide diagra ms anc
make a consistent
argument w ith good reasoning.
(4 - 4.7 marks) argument with good reasoning.
(4.8 - 5.5 marks) make a consistent
argument w ith good reasoning.
( 5.6 - 6.3 marks) relevant figures to make a consistent
argument with good reasoning.
(6.4 - 8 marks)
Overall Score 0 or More 11or more 20 or more 24 or more 28 or more 32 or more
FAI L (N) FA IL (N) PASS (P) CREDIT (C) DISTINCTION (D) H GH DISTINCTION
(HD)

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