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Tourism and Hospitality

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Hotel construction tends to come in waves, resulting in
a) a major increase of capital flowing into the industry
b) excess supply
c) excess demand
d) low interest rates on loans and mortgages
I think the answer is b, excess supply. Because since hotel in under construction,it is either close or not a lot of room available. Which results in low supply. Is this right?

  • Tourism and Hospitality -

    I agree that b is the best answer.

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