Tourism Assignment
Vanessa Acosta
ECO 2013
Professor Block
November 11, 2014
Tourism in the State of Florida The State of Florida is considered to be an interesting place to visit in the whole world. Florida is full of attractions, natural and man-made. This is what make people from other countries visit more often, stay longer and spend more money every time they visit. Tourism is the biggest industry in the state and supports more than 1 million of jobs. In average, 85 visitor/tourists that enter the state maintain the job of 1 employee. In other words, residents in the labor force get paid and money moves around because of the high tourism.
But not only tourists stop by for vacation and go. Approximately 1,000 people move to Florida every day to invest in businesses and or become residents and form part of the economy of the state. This attracts more and more people, because once new people become residents more people will want to plan a visit to their family members or friends now living in the state. For these reasons, tourism and people moving to Florida and staying, is why the state experience that new demand and new income circulating, what we call the multiplier effect.
As the tourism gets higher the aggregate demand changes. Tourism brings people, consumption increases and therefore aggregate demand increases. So, as mentioned before, the more tourism we get the more jobs supported. This means that the aggregate supply can meet the demand because companies can afford more employees, their wages and productivity grows. And the cycle keeps going and going the more people work, more people spending money, more money circulating, more money deposited in banks, whether in personal accounts or business accounts, banks are able to loan money, etc.
.
ECO 2013
Professor Block
November 11, 2014
Tourism in the State of Florida The State of Florida is considered to be an interesting place to visit in the whole world. Florida is full of attractions, natural and man-made. This is what make people from other countries visit more often, stay longer and spend more money every time they visit. Tourism is the biggest industry in the state and supports more than 1 million of jobs. In average, 85 visitor/tourists that enter the state maintain the job of 1 employee. In other words, residents in the labor force get paid and money moves around because of the high tourism.
But not only tourists stop by for vacation and go. Approximately 1,000 people move to Florida every day to invest in businesses and or become residents and form part of the economy of the state. This attracts more and more people, because once new people become residents more people will want to plan a visit to their family members or friends now living in the state. For these reasons, tourism and people moving to Florida and staying, is why the state experience that new demand and new income circulating, what we call the multiplier effect.
As the tourism gets higher the aggregate demand changes. Tourism brings people, consumption increases and therefore aggregate demand increases. So, as mentioned before, the more tourism we get the more jobs supported. This means that the aggregate supply can meet the demand because companies can afford more employees, their wages and productivity grows. And the cycle keeps going and going the more people work, more people spending money, more money circulating, more money deposited in banks, whether in personal accounts or business accounts, banks are able to loan money, etc.
.