Holiday Quiz
Our summer quiz offers a test of your knowledge of holiday-related trivia through an economics lens. The answers along with a brief explanation are at the end of this note.
1. Which of the following cities is the most popular destination for international travellers?
A: Paris
B: Bangkok
C: London
D: New York
2. Where is the cheapest place to buy a Big Mac for a traveller carrying dollars?
A: Russia
B: Romania
C: Argentina
D: Vietnam
3. The Romans were early pioneers of tourism. If an occupant of Londinium (now called London) in the Roman period wished to escape the stresses and strains of city life and travel to Malaca (now called Malaga) in the south of Spain for a summer break, how long would the journey take?
A: 9 days
B: 17 days
C: 24 days
D: 62 days
4. In which of the following European beach resorts is a basket of nine typical tourist items, including sun cream, an evening meal and a bottle of lager, cheapest?
A: Algarve, Portugal
B: Marmaris, Turkey
C: Sunny Beach, Bulgaria
D: Benidorm, Spain
5. A number of companies such as Virgin Galactic and Blue Origin are developing a space tourism offering. How much did the first self-funded space tourist, Dennis Tito, pay for his eight days on the International Space Station in 2001?
A: $20 million
B: $51 million
C: $134 million
D: $941 million
6. In 2017, $68.5 billion of duty free goods were sold around the world, as per the figures compiled by the Duty Free World Council. According to price comparison website PriceSpy, what percentage of products sold by duty free shops could be purchased more cheaply online?
A: 15%
B: 30%
C: 60%
D: 90%
7. With recent sterling weakness, taking a staycation has never been a more attractive option. Which of the following is the sunniest holiday destination in the UK?
A: Isle of Wight
B: Penzance
C: Bognor Regis
D: Poole
8. Which is the busiest airport in the world?
A: Atlanta-Hartsfield-Jackson, USA
B: London Heathrow, UK
C: Paris-Charles de Gaulle, France
D: Beijing Capital International, China
9. Which of the following countries’ passports allows visa-free access to the most countries?
A: Japan
B: South Korea
C: Switzerland
D: Finland
10. In which of the following travel destinations do British visitors spend the most during a single visit?
A: Australia
B: New Zealand
C: Thailand
D: South Africa
Answers:
1. Which of the following cities is the most popular destination for international travellers?
B: Bangkok – According to the MasterCard Global Destination Cities Index, the Thai city of Bangkok is the most visited city in the world with 20.1 million international visitors in 2017. London, Paris and Dubai followed with 19.8 million, 17.4 million and 15.8 million visitors respectively. The popularity of Bangkok has risen over the last two decades partly due to its close proximity to India and China where an emerging middle class has driven a boom in international travel. When Bangkok became the most popular destination in 2012, its Suvarnabhumi airport and Siam Paragon shopping centre were the top two most photographed locations on Instagram. The rise in popularity of tourism among the residents of China has contributed to a dramatic fall in its trade surplus with the rest of the world. (Overseas spending on tourism is considered an import of services for a country’s domestic accounts.)
2. Where is the cheapest place to buy a Big Mac for a traveller carrying dollars?
A: Russia – According to the long-running Big Mac Index compiled by The Economist magazine, a Big Mac can be bought for the modest sum of 120 roubles in Russia, equivalent to $2.03. By contrast, the same burger in Britain is $4.10 (£3.29) and $5.74 in the US. The index aims to capture succinctly the purchasing power of different currencies. Based on this calculation, the rouble – despite rising 6.3% against the dollar so far this year – remains 65% undervalued.
3. The Romans were early pioneers of tourism. If an occupant of Londinium (now called London) in the Roman period wished to escape the stresses and strains of city life and travel to Malaca (now called Malaga) in the south of Spain for a summer break, how long would the journey take?
C: 24 days – According to Stanford University researchers, the journey, mostly by sea, would take 24 days and cost approximately 606 denarii, roughly equal to a year’s salary for a foot soldier at the time. Today the three-hour one-way flight can be purchased for as little as £18 or 0.09% of the salary of a British Army private. Spain is the most popular destination for British holidaymakers.
4. In which of the following European beach resorts is a basket of nine typical tourist items, including sun cream, an evening meal and a bottle of lager, cheapest?
C: Sunny Beach, Bulgaria – According to the most recent annual Post Office survey, prices are over a third lower in the Black Sea resort than in any of the resorts surveyed in the Eurozone. Algarve in Portugal and Marmaris in Turkey were runners up.
5. A number of companies such as Virgin Galactic and Blue Origin are developing a space tourism offering. How much did the first self-funded space tourist, Dennis Tito, pay for his eight days on the International Space Station in 2001?
A: $20 million – Mr Tito, a wealthy financier, rode a Russian supply ship to the ISS – which orbits approximately 400km above the earth – becoming the 415th person to travel to space. For comparison, an off-peak return train ticket from London to Newcastle, a similar distance, costs £141. Travelling to Newcastle does not require attaining a velocity of 17,100 mph however, a speed at which you would travel from London to Newcastle in 52 seconds. According to UBS, Virgin Galactic and Blue Origin will likely launch commercial space tourism flights in the next two years, with tickets predicted to cost six figures.
6. In 2017, $68.5 billion of duty free goods were sold around the world, as per the figures compiled by the Duty Free World Council. According to price comparison website PriceSpy, what percentage of products sold by duty free shops could be purchased more cheaply online?
D: 90% – Fragrances and cosmetics are the highest grossing items sold by duty free stores, comprising 35.8% of sales, followed by wines & spirits and then fashion and accessories.
7. With recent sterling weakness, taking a staycation has never been a more attractive option. Which of the following is the sunniest holiday destination in the UK?
C: Bognor Regis – Bognor Regis is the sunniest place in the UK with an average of 1,920 hours of sunshine between 1981 and 2010, according to Met Office data.
8. Which is the busiest airport in the world?
A: Atlanta-Hartsfield-Jackson Airport, USA – With many long-haul routes offered by major airlines involving a stop at the airlines’ hubs, airports serving as primary bases tend to be the busiest. Atlanta-Hartsfield-Jackson, the primary hub for Delta, handled over 107 million passengers in 2018. Beijing, Dubai, Los Angeles and Tokyo are home to the remainder of the world’s top five busiest airports.
9. Which of the following countries’ passports allows visa-free access to the most countries?
A: Japan – Holders of Japanese passports have access to 189 countries without having to obtain a visa in advance, the joint highest along with Singaporean passports, according to the Henley Passport Index.
10. In which of the following travel destinations do British visitors spend the most during a single visit?
D: South Africa – According to the ONS, visitors to South Africa spent an average of £1,911 during a single trip in 2018. Visitors to New Zealand, Australia and Thailand spent an average of £1,815, £1,616 and £1,544 respectively. The high spend per trip reflects that people are likely to stay longer in faraway destinations. The country identified as where UK residents spend the most per day is Luxembourg, not a common destination for your average holidaymaker.
OUR REVIEW OF LAST WEEK’S NEWS
The UK FTSE 100 equity index ended the week down 2.2% at 7,254 as investors reacted to weak UK economic data and concerns over US-China trade.
Economics and business
* The UK economy unexpectedly contracted for the first time in almost seven years in the Q2. Output shrank by 0.2% following the 0.5% expansion in the Q1
* The contraction was in part due to businesses drawing down on stockpiles amassed prior to the March 31st Brexit deadline
* Sterling fell against the euro to its lowest level since 2017
* German industrial output fell sharply adding to fears the economy may be heading for its first recession in six years
* French industrial production also fell sharply in June
* German export growth slowed significantly in the first half of the year
* US services sector growth fell to its slowest pace in almost three years in July
* Following President Trump’s announcement of further tariffs on Chinese imports China’s central bank allowed the currency to fall in value below the important benchmark of 7 yuan per dollar. In response, President Trump called China a currency manipulator
* On Friday Mr Trump called on the US Federal Reserve to cut US interest rates by 100bps claiming the economy was being “handcuffed” by the Fed
* The FT reports that in H1 inflows into fixed income mutual funds – widely seen as a lower risk investment – grew at the fastest pace since the financial crisis
* The Wall Street Journal reported that the US yield curve – a widely watched measure of recession risk – is giving its most bearish signal since April 2007
* Crude oil prices fell to a seven-month low in the same week that the International Energy Agency cut its forecasts for oil demand forecast saying that “economic woes hold sway over geopolitics”
* Hong Kong business activity slumped to a ten-year low in July as the city’s economy was hit by weeks of political unrest and the US-China trade war
* India’s prime minister Narendra Modi removed the special status accorded to Jammu & Kashmir in India’s constitution. Pakistan suspended diplomatic relations and bilateral trade
* Peer-to-peer lender Funding Circle said an increase in bad debts in its UK market weighed H1 results
* The number of wealthy non-domiciled taxpayers in the UK fell to its lowest ever level last year
* Ride-hailing app Uber posted its largest quarterly loss, $5.2 billion in the three months to the end of June, as it continues to spend heavily to expand
Brexit and European politics
* Cabinet minister Michael Gove said the EU “seem to be refusing to negotiate with the UK” over a new Brexit deal
* The European Commission said it was willing to hold further talks, "should the UK wish to clarify its position"
* UK prime minister Boris Johnson said the EU should show “common sense” and agree to change the Brexit withdrawal agreement. The EU has said demands to remove the Irish border backstop are unacceptable
* Boris Johnson announced plans for a “fast-track visa route” for highly skilled scientists to ease concerns over the future of the UK’s science industry after Brexit
* The FT reports that if a no-confidence vote succeeds against his government, Boris Johnson could wait until after the UK has left the EU on October 31st to hold a general election
* Labour Party leader Jeremy Corbyn has written to cabinet secretary Sir Mark Sedwill, warning that it would be an “anti-democratic abuse of power” if the UK were able to leave the EU on October 31st while an election campaign is ongoing before a new government is elected
* UK chancellor Sajid Javid announced a one-year spending review to give government departments “financial certainty” as they prepare for Brexit
* Italy’s populist coalition government is in danger of collapse after prime minister Giuseppe Conte said he would recall parliament for a no-confidence vote, requested by interior minister and leader of the far-right League Matteo Salvini
* Shadow chancellor John McDonnell said a future Labour government wouldn’t block a second Scottish independence referendum
* John McDonnell’s comments were rebuffed by the leader of the Scottish Labour Party Richard Leonard who said there is “no case” for a second referendum
And finally… according to reports in The Guardian, German police in Augsburg were called to a primary school after suspicious noises were heard in the playground. After an inspection of the grounds, the culprits were found to be a pair of courting hedgehogs. They quoted an expert as saying “hedgehogs snarl loudly during the hours-long mating ritual and the males make the most noise” – a prickly affair