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8. Eight of the top ten aviation leasing companies in the world are based in Ireland - Leaving Cert Business - Question 3 - 2020
Question 3
8. Eight of the top ten aviation leasing companies in the world are based in Ireland. The aviation industry is part of the tertiary sector. (a) Explain the term ter... show full transcript
Worked Solution & Example Answer:8. Eight of the top ten aviation leasing companies in the world are based in Ireland - Leaving Cert Business - Question 3 - 2020
Step 1
Explain the term tertiary sector.
Answer
The tertiary sector, also known as the services industry, refers to the segment of the economy that provides services rather than goods. It is the largest sector in Ireland and encompasses a diverse range of activities aimed at businesses and consumers alike.
This sector includes services such as financial services, medical services, transport, leisure services, and tourism, which is one of the most significant contributors to the Irish economy. The labor-intensive nature of the tertiary sector makes it a major source of employment.
Additionally, the Irish Fiscal Advisory Council (IFAC) highlights the importance of engaging with internationally traded services in finance, insurance, and consulting, showcasing the tertiary sector's critical role in economic development.
Step 2
Outline two trends in the tertiary sector in Ireland.
Answer
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Decrease in Sales/Impact of Coronavirus/Covid-19: The Covid-19 pandemic has significantly impacted the demand for services within the tertiary sector. Many businesses, particularly in hospitality and tourism, have faced drastic declines in sales, leading to temporary or permanent closures and reductions in employment.
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Value Added Tax Increase: As of January 2019, the rate of Value Added Tax (VAT) in the tourism and hospitality sector was raised from 9% to 13.5%. This increase has put additional financial burdens on service providers, affecting their profitability and operational viability.