The United Nations' World Tourism Organisation has estimated that the proportion of the world's population who have visited another country will have reached only 7% by 2020. Increasing international travel might create jobs and influence incomes. However, it would also put pressure on finite resources and would create external costs.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [1] factors of production/inputs
2. [1] used to produce goods and services
3. [1] identification of type of factor of production – land (natural resource), labour (human resource), capital, entrepreneur
4. [1] external costs are harmful effects
5. [1] imposed on third parties
6. [1] social costs minus private costs
7. [1] reason why international travel may cause negative externalities e.g. planes burning fuel creating carbon dioxide
8. [2] examples of external costs caused by international travel e.g. air pollution, noise pollution, visual pollution, congestion, damage to wildlife and damage to the health of those not travelling (up to 2 marks)
9. [1] likely to increase incomes
10. [1] more jobs are likely to be created in the tourist/travel industry
11. [1] previously unemployed people who gain jobs will now have an income
12. [1] people already in the industry may gain higher wages
13. [1] more jobs are likely to be created in industries linked to the tourist/travel industry e.g. insurance, banking, retailing
14. [1] the increased spending of people in the tourist/travel industry
15. [1] is likely to increase demand for a range of other goods and services
16. [1] leading to higher employment and incomes in other industries
17. [1] increases geographical mobility of labour
18. [1] workers can move in search of higher incomes
19. [1] more people visiting a country may raise government tax revenue
20. [1] enabling the government to pay higher wages to workers in the public sector
21. [1] holidays/business at home may be a substitute for holidays/business abroad
22. [1] if e.g. more people holiday abroad, incomes at home may fall due to fall in demand for domestic holidays
23. [1] if incomes rise
24. [1] international travel is a luxury good
25. [1] business travel as well as tourism is likely to rise
26. [1] if the price of international travel falls
27. [1] demand is likely to rise/extend
28. [1] a rise in population
29. [1] more people to travel
30. [1] a fall in the price of complements
31. [1] for instance, hotel prices
32. [1] people may travel for a better future
33. [1] in search of better employment opportunities
34. [1] incomes may fall
35. [1] there may be a global recession
36. [1] price may rise
37. [1] causing a contraction in demand
38. [1] population may fall
39. [1] fewer people to travel
40. [1] a rise in the price of complements
41. [1] for instance taxi fares to airports/holiday insurance
42. [1] accidents or fear of terrorism may dissuade people from travel
43. [1] rise in availability of substitutes e.g. Skype, videoconferencing