Countries have to decide how to use their scarce resources. A number of countries are devoting more of their resources to tourism. Some of the jobs in the industry are, however, low-paid and offer little job security. The average age of workers employed, for example, in hotels is relatively young although some older workers have spent their working life in the hotel industry.

Mark scheme

Marking points from the official mark scheme (May/June 2016). The mark or mark type is shown in brackets.

1. [2] • Factors of production (1) that are limited in supply (1).
2. [4] • Job satisfaction (1) some people undertake jobs because of the pleasure they gain from e.g. nursing (1).
3. • Working hours (1) some people place a high value on leisure (1).
4. • Working conditions (1) e.g. a clean working environment (1).
5. • May not be able to take up a better job in another part of the country/geographically immobile (1) due to family ties/housing costs (1).
6. • Lack of qualifications/ lack of occupational mobility (1) some people may have no choice because they are not qualified to do better paid jobs (1).
7. • Lack of skills (1) workers may not be able to undertake the tasks required (1).
8. • Lack of experience (1) employers expecting lower productivity (1).
9. • Reluctance to accept responsibility (1) not wishing to take on a stressful job/position (1).
10. • Promotion chances (1) a worker may accept a low wage now in expectation of a high wage in the future (1).
11. • Fringe benefits (1) such as a company car given to a sales person (1).
12. • Some workers may be forced to accept such jobs because of lack of skills (1) high rate of unemployment (1) cut in or lack of unemployment benefits(1).
13. • Lack of awareness of availability of better paid more secure jobs (1).
14. [6] • Young workers may spend more as they may not have a family to save for (1) old workers may spend a smaller proportion of their income (1) as they may be paid more and so can afford to save (1).
15. • Young workers may save more to e.g. purchase a house (or other valid reason) (1) older workers may already have sufficient savings (1).
16. • Younger workers may spend more on high tech products (1) older workers more on healthcare (1)
17. • Young workers may save less as they do not have sufficient income (1) older workers may save more as they are preparing for retirement (1).
18. • Young workers may borrow more because they may be buying a car/house (1).
19. • Young workers may borrow less because banks may be more reluctant to lend to young workers/young workers may have less collateral/job security (1).
20. [8] Up to 5 marks for why it should:
21. • Foreign tourism brings in foreign currency (1) it is an export of services (1) improves the current account balance (1).
22. • Foreign tourism may increase government tax revenue (1) this could be spent on e.g. education which could improve living standards (1).
23. • Foreign tourism creates jobs (1) in e.g. hotels (1) reduces unemployment (1).
24. • Foreign tourism increases output (1) contributes to economic growth (1).
25. • Foreign tourism may attract MNCs/foreign investment (1) e.g. foreign hotel chains may set up in the country (1).
26. • More revenue from tourism may result in a rise in the exchange rate (1) this may reduce the price of imports (1).
27. Up to 5 marks for why it should not:
28. • Foreign tourism may create external costs (1) e.g. destroy areas of natural beauty (1).
29. • Foreign tourism may deplete resources (1) e.g. water (1).
30. • Foreign tourism may only provide low-paid (1) low skilled jobs (1) better paid and high skilled jobs may be undertaken by workers from the country of foreign holiday firms (1).
31. • Foreign tourist firms may send profits home (1) foreign hotels may be supplied by foreign firms (1).
32. • A higher exchange rate may reduce exports/international competitiveness (1).
33. • Foreign tourism may increase demand in the economy (1) pushing up the prices the local population have to pay (1).
34. Note: not accepting increased crime.