Which term describes tourist dollars spent on imported goods so that revenue ends up in foreign economies?

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Get ready for the DECA Hospitality and Tourism Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Prepare for your assessment!

Multiple Choice

Which term describes tourist dollars spent on imported goods so that revenue ends up in foreign economies?

Explanation:
Leakage describes what happens when tourist spending leaves the local economy because money goes to imported goods or foreign-owned firms. Even though visitors spend, part of that money doesn’t stay locally, which reduces the overall economic benefit. The other terms don’t describe this money flow: intangibility is about services not being physical, an intermediary is a middleman in a transaction, and leisure travel is a travel purpose, not a financial flow.

Leakage describes what happens when tourist spending leaves the local economy because money goes to imported goods or foreign-owned firms. Even though visitors spend, part of that money doesn’t stay locally, which reduces the overall economic benefit. The other terms don’t describe this money flow: intangibility is about services not being physical, an intermediary is a middleman in a transaction, and leisure travel is a travel purpose, not a financial flow.

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