Study-Unit Description

Study-Unit Description


CODE TRS1181

 
TITLE Basic Economics for Tourism

 
LEVEL 01 - Year 1 in Modular Undergraduate Course

 
ECTS CREDITS 4

 
DEPARTMENT Institute for Tourism, Travel and Culture

 
DESCRIPTION This study-unit provides basic economic background to students undertaking tourism studies. The course presupposes no prior knowledge of economics. Ideas are presented intuitively and explained with the help of examples directly related to the tourism sector.

The following topics are covered in this study-unit:

- Introduction to economics: the economic way of thinking, role of economic models and assumptions;
- Tourism demand: factors impacting demand and elasticities;
- Tourism supply: factors impacting supply and elasticities;
- Equilibrium: determination of product price in the market and comparative statics;
- Business operations: production, costs and revenues;
- Pricing: price discrimination and its effects;
- Profitability: application of Porter’s five forces model to tourism business activities;
- Economic activity: Gross Domestic Product and how it relates to tourism activities;
- Multiplier effect: the impact of tourism on the economy.

Study-Unit Aims:

This study-unit will explore basic terms and categories of economics when applied in the field of tourism, as well as to its organization in certain countries. Students will be encouraged to gain basic knowledge about the tourism market and trends in international and domestic tourism. Approaching tourism from an economic perspective allows for insights of the complex framework of tourism supply, tourism demand and object of trade within a tourism destination. Exposure to economic characteristics resulting from tourism expenditurewill prepare students to become more sensitive to the economic functions of tourism and its impact on the national economy.

Learning Outcomes:

1. Knowledge & Understanding
By the end of the study-unit the student will be able to:

- Demonstrate knowledge and understanding of basic economic models;
- Analyse tourism activities from an economic perspective;
- Evaluate economic arguments and policies in the area of tourism.

2. Skills
By the end of the study-unit the student will be able to:

- Perform basic economic analysis in the field on tourism, such as, understanding and anticipating price changes;
- Analyse the cost structures and pricing of tourism businesses;
- Evaluate how tourism-related activity is measured and can affect the economy.

Main Text/s and any supplementary readings:

Main Text

- Stevenson, B. et al. (2020) Principles of Economics: Worth Publishers Inc.,U.S.

Supplementary readings

- Acemoglu, D. et al. (2018) Economics: Pearson.
- Krugman, P. et al. (2018) Economics: Worth Publishers Inc.,U.S.
- Mankiw, G. (2020) Principles of Economics: Cengage Learning Inc.
- Sloman, J. et al. (2018) Economics: Pearson.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Resit Availability Weighting
Examination (2 Hours) SEM1 Yes 100%

 
LECTURER/S Malcolm Bray

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2020/1. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit