Which term describes tourist dollars spent on imported goods so that revenue ends up in foreign economies?

Which term describes tourist dollars spent on imported goods so that revenue ends up in foreign economies?

• A. Leakage
• B. Intangibility
• C. Intermediary
• D. Leisure Travel

Answer: (A)

Leakage describes what happens when tourist spending leaves the local economy because money goes to imported goods or foreign-owned firms. Even though visitors spend, part of that money doesn’t stay locally, which reduces the overall economic benefit. The other terms don’t describe this money flow: intangibility is about services not being physical, an intermediary is a middleman in a transaction, and leisure travel is a travel purpose, not a financial flow.

Leakage describes what happens when tourist spending leaves the local economy because money goes to imported goods or foreign-owned firms. Even though visitors spend, part of that money doesn’t stay locally, which reduces the overall economic benefit. The other terms don’t describe this money flow: intangibility is about services not being physical, an intermediary is a middleman in a transaction, and leisure travel is a travel purpose, not a financial flow.