Economics Syllabus - BHM (TU)

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Course Description

Course objective

The course will provide students an understanding as to what constitutes a good economic way of thinking in general and tourism and hospitality industry in particular. This course envisages the thought process grounded in the understanding of the use of several economic concepts, models and theories. Drawing on issues in both microeconomics and macroeconomics, fundamental principles and applications are shown to transcend particular examples and allow the field to be seen as a coherent, unified whole.

Course description

The course will provide thorough and systematic understanding economic concepts, models, theories and their applications particularly useful to tourism and hospitality industry students. Starting with the basic information of what economics studies about, the course will broaden its horizon to incorporate resources in tourism, tourism demand and supply functions and their influencing variables, forecasting tourism demand, leisure and tourism and their markets, economic impacts of leisure and tourism on national economy and investment in leisure and tourism market.

 

Unit Contents

Course Details

Unit 1: Introduction                                                                                                                                             LH 8

Concept of economy and economics, scope of the study of economics, The concept of opportunity cost, concept and scope of tourism economics, An overview of Nepalese Economy, Importance of tourism for Nepalese economy, Challenge for the development of tourism in Nepal, Needs and types for economic analysis in the tourism industry

Unit 2: Resources in Tourism                                                                                                                                              LH 3

Composition of the tourism industry and its product: suppliers' and tourists' views, Concept of free and scarce resources in tourism, Controlling and rewarding resource use, Interrelationship between tourism and other sectors of the economy

Unit 3: Economics of Tourism Demand                                                                                                                                              LH 8

Concept of demand for the tourism product, tourism demand function, Demand Curve and Law of Demand, Types of variables influencing tourism demand, Levels of choices affecting tourism demand, Factors constraining tourism demands, Concept of shift in the demand curve, Concept of elasticity of elasticity of demand for tourism products, Measurement of Price, Income and Cross Price Elasticity of Demand, Lancastrian demand analysis, movement along the demand curve.

Unit 4: Forecasting Tourism Demand                                                                                                                                              LH 4

Meaning of tourism demand forecasting, Purpose/ Importance of tourism demand forecasting, Concept of Quantitative and Qualitative techniques of forecasting tourism demand, Concept of Time Series Model, Concept and importance of Survey Method for tourism demand forecasting

Unit 5: Supplying Tourism Products                                                                                                                                              LH 5

Meaning of supply of tourism products, supply function, supply curve and Law of Supply, Costs in tourism: relationship among costs, total revenue and profit in the tourism industry, Concept of shift in supply curve and the factors shifting supply curve of the tourism products, Concept of elasticity of supply for tourism products, Challenges for the supply of tourism products, movement along the supply curve.

Unit 6: Leisure and Tourism                                                                                                                                              LH 2

Meaning and determinants of leisure and tourism activities, Leisure and tourism growth in the world market

Unit 7: Market Structure for Leisure and Tourism Products                                                                                                                                     LH 7

Characteristics of the market with perfect competition, Price determination in the market with perfect competition, Concept of shortage and surplus in the market with perfect competition, Derivation of individual firm’s demand curve from the market demand curve in perfectly competitive market, Price determination by a monopoly in leisure and tourism market, Price discrimination in leisure and tourism market, Price determination by a price discriminating monopolist in third degree price discrimination.

Unit 8: Impact of Leisure and Tourism on National Economy                                                                                                                                     LH 8

Concept of impact of leisure and tourism on national economy, Multiplier effects in tourism - income and employment multipliers, Impact of tourism on GDP, Impact of tourism on employment, Inflation and its causes, Impact of tourism on inflation, Impact of tourism on economic growth, Impact of tourism on Balance of Payment (BOP), Impact of tourism on foreign exchange rate

Unit 9: Investment in Leisure and Tourism                                                                                                                                                   LH 3

Concept of investment and its principles, Investment appraisals by private sector in tourism, Investment appraisals by public sector in tourism, Factors affecting travel and tourism's yields and future

 

Text and Reference Books

Reference Books

Bull, A. The Economics of Travel and Tourism, New Delhi: Pearson Longman Adhikari, G. M. Introductory Microeconomics, Kathmandu: Asmita Publishers Adhikari, G. M. Macroeconomics, Kathmandu: Asmita Publishers

Tribe, T. The Economics of Recreation, Leisure and Tourism, United Kingdom: Taylor & Francis Mankiw, J. N. Principles of Economics, London: Thomson, South Western

Stabler, M, A. M. & Sinclair, T. The Economics of Tourism, London: Thomson, Routledge

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  • Short Name N/A
  • Course code ECO 311
  • Semester Fifth Semester
  • Full Marks 100
  • Pass Marks 45
  • Credit 3 hrs
  • Elective/Compulsary Compulsary