IJC_2008_H1Econ_Prelim2_Paper 1

8816/01/IJC/Sep 08 INNOVA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATIONS 2 in preparation for General Certificate of Education Advanced Level Higher 1 ECONOMICS Paper 1 Additional Materials: Writing Paper 8816/01 15 September 2008 3 hours

READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer one question. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. You are advised to spend several minutes reading through the data before you begin writing your answers. You are reminded of the need for good English and clear presentation in your answers. This document consists of 6 printed pages. Innova Junior College [Turn over

8816/01/IJC/Sep 08 2 Section A Answer all questions in this section Question 1 Tourism and global warming Figure 1: International tourist arrivals from 2000 to 2007 Source: The Economist, 15 May 2008 Extract 1: Ready for take-off The rise of emerging economies marks the third revolution the travel industry has undergone in the past 50 years. The first came in the 1960s, in the shape of cheap air travel and package tours. Rising incomes enabled people of modest means to travel more, to farther-flung parts of the globe, and to take advantage of “all-in” offers that may have included sightseeing trips, scuba diving or camel rides. The second was the advent of the internet, which has allowed millions to book flights, hotels, hire cars and package tours without going near a travel agent. Now fast-growing emerging economies are changing the world of travel once again, either as destinations or as sources of newly affluent travellers. The World Travel & Tourism Council (WTTC), the industry's main lobby group, claims that travel and tourism is the world's biggest industry in terms of its contribution to global GDP and employment. They forecast that global travel and tourism will account for US$5.9 trillion of economic activity in 2008, or about 10% of global GDP, employing 238m people. It expects employment to rise to 296m in the next decade. When all travel and tourism is lumped together, so that everything from airlines to cafés counts, it is no surprise. It accounts for a large part of many countries' foreign-exchange earnings. For many developing countries, it offers an important route out of poverty. The Chinese government for example is racing to build roads, railways and airports to speed up the development of tourism and other industries. In January it said that it planned to add 9