This is an individual assignment. The objective of this Assignment is to study the impact of increase in Tourism GST on demand and supply and how it affects profitability of small businesses, and to identify whether it has a negative impact on the tourism industry.
what should i have to write as a theory and which graphs and explanations have to give for the following assignment question.
From 1st November 2014 GST (Goods and Service Tax) on the tourism sector has increased to 12%. With global down turn in the major economies, and due to competitiveness last year occupancy rates of tourist resorts has declined. Based on Your understanding of demand and supply, the concept of utility, and the elasticity of demand, analyse the possible impact on sales, and consumer spending behaviour due to a further increase in GST. Do you think this increase in Tourism GST had any effect on the overall demand in the tourism industry?
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