TABLE OF CONTENTS 
As well as measuring the contribution of the recreation, leisure and tourism sector to the level of national income we can consider its contribution at the international level to a country s balance of payments. The balance of payments records export earnings and import expenditure. Exchange rates are an important part of the picture. The exchange rate of a country s currency is inextricably linked with the balance of payments. Changes in a country s balance of payments may cause changes in the demand and supply for its currency and thus movements in its exchange rate. These currency movements may subsequently cause changes in the patterns of exports and imports which can cause feed-back to the balance of payments. The balance of payments is also one of the key macroeconomic variables which government policy-makers monitor closely. If the balance of payments should move into an unsustainable deficit, government policy would be changed to address the problem, causing repercussions throughout the rest of the economy.
After studying this chapter students will be able to:
understand the arguments for free trade, the role of the World Trade Organization (WTO) and General Agreement on Trade in Services (GATS);
understand the balance of payments accounts;
analyse the contribution of the sector to net export earnings;
describe and explain comparative data for balance of payments accounts;
understand the significance of exchange rates to recreation, leisure and tourism organizations;
distinguish between...
