It is believed the present capacity of Ocean Park is well-sufficient in accommodating the heaviest flow of visitors at ease. And the annual visitors to the park fell to 5.7 million in 2019 having topped at 7.5 million a few years previously. Draft, with an illustration of the various cost concepts, the average total cost (ATC) curve which is most relevant and locate the point where the park has been operating at.

You are the accountant of White Hotel Berhad, a corporation that engages in the hotel businesses. The corporation is having a high value of buildings and has been using historical cost to measure it. The directors of White Hotel Berhad wanted to continue using the historical cost measurement since they feel that the valuation exercise is costly to the corporation. Prepare a note explaining 4 drawbacks of using the historical cost measurement for buildings.

Compensation to a customer when overbooking happens is an expense, right?

A friend of mine that booked a hotel on a site, notified her that there was an overbooking. The site compensated her by giving her a 5 start hotel instead. Compensating her by upgrading her hotel. The site probably paid the amount left that needed to be paid. In order to compensate my friend, right? This cost would go into the site's expense cost?

"The Role of the Room Rate" Analyze the hotel market in your state and determine if the room rates for the majority of hotels is elastic or inelastic. Explain your rationale and identify contributing factors (e.g., tax rates, competition, etc.). Imagine opening a small hotel in the town in which you attend class, Briefly describe the hotel and determine how you would determine the proper room rate.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

            Qa = 20 – Pa             where a is adult market

            Qc = 30 – 2 Pc          Where c is children market

            QT = 50 – 3 PT         where T is the two markets combined

Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:

1. Calculate the price, quantity and profit if the amusement park charges a different price in each market.
2. Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

            Qa = 20 – Pa            where a is adult market

            Qc = 30 – 2 Pc         Where c is children market

            QT = 50 – 3 PT         where T is the two markets combined

Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:

1. Calculate the price, quantity and profit if the amusement park charges a different price in each market.
2. Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $245 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)

Lynch was the loan officer at First Bank. Patterson applied to borrow $25,000. Bank policy required that Lynch obtain a loan guaranty from Patterson’s employer, a milk company. The manager of the milk company visited the bank and signed a guaranty on behalf of the company. The last paragraph of the guaranty stated, “This guaranty is signed by an officer having legal right to bind the company through authorization of the Board of Directors.” Should Lynch be satisfied with this guaranty? Would he be satisfied if the president of the milk company, who was also a director, affirmed that the manager had authority to sign the guaranty? Explain.

Ralph owned a retail meat market. Ralph’s agent Sam, without authority but purporting to act on Ralph’s behalf, borrowed $7,500 from Ted. Although he never received the money, Ralph repaid $700 of the alleged loan and promised to repay the rest. If Sam had no authority to make the loan, is Ralph liable? Why?

A guest arrived early one morning at the Hotel Ohio. Clemens, a person in the hotel office who appeared to be in charge, walked behind the counter, registered the guest, gave him a key, and took him to his room. The guest also checked valuables (a diamond pin and money) with Clemens, who signed a receipt on behalf of the hotel. Clemens in fact was a roomer at the hotel, not an employee, and had no authority to act on behalf of the hotel. When Clemens absconded with the valuables, the guest sued the hotel. Is the hotel liable? Why?

You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in Gatlinburg, Tennessee. You started working at the lodge in high school in the restaurant and after college, returned to Creekview as one of the assistant managers before being promoted to hotel manager. Recently, a 200-room hotel opened not far from Creekview Lodge, and although Creekview still maintains near 100% capacity there has been quite a bit of turnover. More than ten employees left to work for the larger hotel which boasted higher pay and better health insurance.

You were informed this morning by the front desk team that the latest customer survey results show a drop in the satisfaction rating for guest room cleanliness. The current report indicates that 73% of guests responded “completely satisfied”, 12% responded “satisfied”, 10% responded “neither satisfied nor unsatisfied”, and 5% responded “unsatisfied.” The housekeeping staff lost four employees to the new hotel, so although disappointed, you aren’t surprised by this news. Still, you could not remember a time that the hotel had received such a low satisfaction rating.

As manager of Creekview Lodge, what is your next step in addressing the problem?

A)Take immediate action and require that all rooms be inspected by the hotel manager (you) or an assistant manager before being made available to customers

D)Review the standards of performance and compare to current performance

Section A – Hotel Business in Hong Kong Question A1 Answer the below short questions (a) to (i) according to A Statistical Review of Hong Kong Tourism 2018, published by Hong Kong Tourism Board in June 2019.

a) What is the total number of visitor arrival to Hong Kong upon 2018? How many visitors stayed overnight?

b) Identify Hong Kong’s top THREE source markets of visitors’ arrival to Hong Kong in 2018.

c) Which month contained the highest visitor arrivals number in 2018?

d) Briefly describe the hotel performance in 2018.

e) Which hotel category noted a highest gain percentage in room occupancy compare with 2017?

f) State TWO districts which recorded the highest room occupancy rate in Hong Kong.

g) In 2017, which department in the hotel earn the second highest revenue and what is the total percentage.

h) Refer to the hotel room occupancy rate and average achieved hotel room rate in 2018, illustrate TWO indicators or messages reflected from those figures.

i) The percentage distribution of visitor arrivals by months 2018 were quite steady along the year, the range of percentage starting from 7.2% to 10.1%. If you were the manager of a hotel, try to briefly explain the reasons behind of the distributions. (For example: What is/are the factor(s) may affect the percentage of arrival on Dec 2018.)