TABLE OF CONTENTS 
Chapter 9 looked at the effects of the economic environment on recreation, leisure and tourism organizations. The aim of this chapter is to examine the other side of this question, and ask how the leisure and tourism sector contributes to the general level of economic activity. In particular it will examine the contribution of leisure and tourism to national output, national income and national expenditure, to the level of employment and consider the question of inflation. The issue of economic growth will be covered in Chapter 13, and international impact of leisure and tourism will be addressed in Chapter 14.
By studying this chapter students should be able to:
distinguish between microeconomics and macroeconomics;
measure the total level of economic activity in an economy;
distinguish between changes in real and money gross national product (GNP);
measure the contribution to GNP;
understand the contribution to employment;
understand the contribution to tax revenue;
utilize simple economic models of the macroeconomy;
understand and apply the multiplier principle;
measure inflation in the recreation, leisure and tourism sector;
interpret government policy in this area.
Chapters 2 7 dealt mainly with microeconomic issues. These were issues concerning the actions of individuals (demand) and firms (supply) and their interaction to determine prices in specific markets (e.g. the market for television sets and the market for air travel).
