ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Sectors most affected include construction, manufacturing, and contact-intensive services (i.e., trade, transport, and hospitality).

Detailed explanation-2: -Notably, the negative impact of a fall in domestic tourism activity is much more significant than that of inbound tourism activity. The fall in domestic tourism activity in all the three quarters is estimated to be 20 to 30 percentage points higher than that in the case of inbound tourism.

Detailed explanation-3: -There is a fall in foreign tourists’ arrival rate by 68% from February to March 2020 and hence fall in foreign exchange earnings (FEE) by 66.32%, which has a significant impact on the economy (Statista, 2020. (2020).

Detailed explanation-4: -The economic effects of tourism include improved tax revenue and personal income, increased standards of living, and more employment opportunities. Sociocultural impacts are associated with interactions between people with differing cultural backgrounds, attitudes and behaviors, and relationships to material goods.