IGCSE Travel and Tourism Practice Exam

What is a potential benefit of foreign investment in tourism infrastructure?

1. Creation of local jobs

2. Increased national debt

3. Dependence on foreign companies

4. Loss of local culture

The correct answer is: Creation of local jobs

The creation of local jobs is a significant benefit of foreign investment in tourism infrastructure. When foreign companies invest in a region's tourism sector, they often build hotels, resorts, and other facilities, which require a workforce to operate. This leads to the hiring of local residents for various positions, ranging from construction jobs during the building phase to permanent employment in hospitality, management, and support services once the infrastructure is in place. This influx of jobs can boost the local economy, reduce unemployment levels, and increase the income of many residents. Additionally, as more tourists visit, there may be further job opportunities in ancillary services such as food and beverage, entertainment, and transportation, further contributing to the overall economic development of the area. The other options highlight potential downsides of foreign investment, such as increased national debt, dependence on foreign companies, and the risk of losing local culture, but these do not address the immediate and positive impact of job creation that accompanies the investment in tourism infrastructure.