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3.1 Study the foreign exchange rate table below and answer the questions that follow - NSC Tourism - Question 3 - 2020 - Paper 1
Question 3
3.1 Study the foreign exchange rate table below and answer the questions that follow. FOREIGN EXCHANGE RATES Rand per foreign currency unit CURRENCY CODE BANK SE... show full transcript
Worked Solution & Example Answer:3.1 Study the foreign exchange rate table below and answer the questions that follow - NSC Tourism - Question 3 - 2020 - Paper 1
Step 1
3.1.1 A South African tourist returns from the United Kingdom with £2 500.
Answer
To calculate how much the South African tourist will receive in rand, we first need to convert £2,500 using the bank buying rate for GBP.
The bank buying rate for GBP is 18.29. Therefore, the calculation will be:
o{R} = £2,500 imes 18.29
Calculating this:
o{R} = 2,500 imes 18.29 = 45,725
Thus, the South African tourist will receive R45,725.
Step 2
3.1.2 You have a friend who is studying in the United States of America.
Answer
To calculate how much your friend will receive in US dollars for the amount of R1,800 you wish to transfer, we will need to use the bank selling rate for USD, which is 14.73.
The calculation is as follows:
o{USD} = R1,800 ext{ divided by } 14.73
Calculating this gives us:
o{USD} = 1,800 / 14.73 ≈ 122.81
Therefore, your friend will receive approximately $122.81.
Step 3
3.2 It is important for sustainable tourism to find a balance between the impact on the environment and the economic benefits for the tourism industry.
Answer
To maintain a balance between environmental sustainability and economic benefits in the tourism industry, it is crucial to adopt sustainable tourism practices.
Sustainable Tourism Practices
A strong rand will promote better profits for businesses, enabling them to invest back into enhancing facilities and making their operations more sustainable. This creates an environment where businesses can elevate their service while also contributing to eco-friendly practices.
A Balance Between Economic and Environmental Benefits
By generating more profits through a strong rand, tourism businesses can simultaneously focus on being environmentally friendly. This becomes essential as customers increasingly prefer eco-friendly options. While the initial costs may be higher, over time, operational costs can be reduced by implementing sustainable practices.
Job Creation
Furthermore, a strong rand can lead to higher disposable income for local South Africans, allowing them to spend more on tourism-related products and services. This can spur job creation not only in tourism but also in related sectors, providing more opportunities and fostering a robust economy.
In conclusion, a strong rand assists in striking a balance that supports economic growth while safeguarding the environment.