Question

Class work – Chapter 1 – Classification of business, Primary, secondary and tertiary sectors

Exercise #1,
Mauritius is a small island in the Indian Ocean with a land area of just 200km2. The Mauritian economy is dominated by the tertiary sector. In 2011, tourism, finance and another services accounted for 66% of total national output. In contrast, the secondary sector accounted for 28% and primary industries, mainly sugar production, just 6%. The Government is planning for 2 million foreign visitors by 2015 and the number of tourists is increasing by 9 % per year. These tourists spend a great deal of money on food, drink, travel and holiday gift.
Air Mauritius is one of the businesses that have benefited greatly from the expansion of the tourism in the country. The airline is partly owned by private owners and the Mauritian Government. It has won the “ Indian Ocean Leading Airline” prize six times in recent years.
Air Mauritius not only has an extensive network of air routes but it also offers services to other airlines operating in the region and owns holiday companies such as Mauritian Holidays UK. There are hundreds of hotels and guesthouses in Mauritius and these employ many local workers. Some of the largest hotel groups in the world operate in Mauritius, such as Radisson and Le Meridien.

a) Why do you think the primary sector of the Mauritian economy is relatively small?
b) Explain 3 ways in which tertiary sector industries contribute to the Mauritian economy.
c) Do you think that increasing numbers of tourist will bring only benefits to Mauritius?
d) Why do you think the Mauritian Government still owns part of Air Mauritius?

Answer 1

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