Which of the following issues indicates a trend of industry expansion?

Prepare for the HSC Hospitality Exam with comprehensive flashcards and multiple choice questions. Each question comes with hints and explanations to help you succeed. Enhance your exam readiness now!

The correct answer indicates that an increase in tourism is a significant factor contributing to the expansion of the hospitality industry. When tourism rises, it typically leads to greater demand for various services, including accommodations, food and beverage options, and entertainment. This surge in demand can encourage businesses to expand their operations to accommodate more guests, invest in new facilities, hire additional staff, and enhance service offerings.

An increase in tourism not only reflects a growing interest in travel but also the potential for increased revenue, which can further drive the growth and investment in the hospitality sector. This trend is critical as it often serves as a catalyst for other developments within the industry, such as the creation of new restaurants, hotels, and attractions, ultimately contributing to a robust economic environment.

The other choices suggest negative indicators or downsizing, which are typically contrary to the trends of expansion that the hospitality industry seeks to achieve.

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