HSC Geography People and Economic Activity: deep-dive 2026 guide

How People and Economic Activity fits into HSC Geography

People and Economic Activity is one of the major HSC Geography topics, examined as part of Section II (short answer and stimulus) and frequently in Section III (extended response). It carries around 25 marks of exam coverage in most years.

The topic requires students to study one global economic activity as a case study and one Australian economic activity as a contrasting domestic case study (often the same industry at a different spatial scale, or a closely related industry). NESA leaves the specific case studies to schools. Common choices have included tourism, viticulture (wine), wheat, cocoa, coffee and aviation at the global scale, and a chosen Australian industry such as the Australian wine industry, the Murray-Darling viticulture region, the Great Barrier Reef tourism industry, or the Australian wheat industry.

Because NESA's prescribed examples rotate, this guide describes the type of case study and the framework for analysing any economic activity, illustrated with generic descriptions of tourism and viticulture. Verify the current NESA-prescribed or school-prescribed examples for the year you are sitting before you finalise your case studies.

The framework: locational and ecological dimensions

The syllabus organises the analysis of any economic activity into two dimensions.

Locational dimensions

Locational dimensions are the spatial factors that shape where an activity occurs.

• Physical factors: climate, soil, water, terrain, latitude, altitude, proximity to the coast. A wine grape variety requires a particular range of growing-season temperatures, rainfall and frost-free days. A ski resort requires reliable snowfall. A coastal tourism industry depends on coral or beaches that no inland region can offer.
• Economic factors: market access, transport costs, labour availability and cost, capital availability, agglomeration economies (firms cluster to share suppliers, workers and knowledge). The tourism cluster in Cairns benefits from agglomeration: tour operators, hotels, airlines and reef tour boats reinforce one another.
• Social factors: consumer preferences and demographics, culture, language, security. A tourism destination depends on perceptions of safety and on culturally compatible amenities.
• Political factors: regulation, tariffs, trade agreements, visa policy, subsidies. The opening of the Chinese outbound tourism market through the 2010s and the introduction and removal of visa rules shaped global tourism flows.

Ecological dimensions

Ecological dimensions are the environmental impacts and dependencies of the activity.

• Resource use: water (irrigation in viticulture, drinking water in tourism), land (vineyard area, hotel sprawl), energy (aviation fuel, electricity).
• Pollution: greenhouse gas emissions (aviation, cruise ships, transport from farm to market), wastewater (tourism, wine production), agricultural runoff (nutrients into the Great Barrier Reef lagoon).
• Biodiversity loss: clearing of native vegetation for vineyards, coral degradation from tourist boats and warming.
• Climate sensitivity: viticulture is highly climate-sensitive, with growing regions shifting poleward and to higher altitudes; tourism dependent on reefs and snow is similarly exposed.
• Management responses: sustainable certification schemes (Sustainable Winegrowing Australia, Earthcheck for tourism), restoration projects, regulatory limits.

The skill the marker rewards is applying both dimensions to the case study, naming specific places, processes and statistics, and reaching a judgement about whether the activity is sustainable in its current form.

The role of transnational corporations and governments

Most large economic activities are organised by transnational corporations (TNCs) and shaped by governments.

TNCs

A TNC owns and controls production or service operations in more than one country.

• Global wine groups (such as Treasury Wine Estates, Pernod Ricard, Constellation Brands) own brands and vineyards on multiple continents and control branded distribution into supermarkets.
• Major hotel chains (Marriott, Hilton, Accor, IHG, Wyndham) operate or franchise tens of thousands of hotels globally and use central reservation systems and loyalty programs as competitive moats.
• Online travel agencies (Booking.com, Expedia, Trip.com) intermediate between consumers and accommodation providers, taking a substantial commission.
• Major airlines are part of global alliances (Star, oneworld, SkyTeam) that effectively coordinate scheduling and frequent-flyer arrangements across legally separate carriers.

The benefits TNCs bring are capital, technology, management expertise, brand power and global distribution. The risks are concentration of profits abroad, dependence on a few large buyers (a problem in cocoa and coffee), and exposure to volatile global demand.

Governments

Governments shape economic activity through:

• Regulation: environmental, labour, food-safety, planning.
• Tariffs and trade agreements: tariffs on imports of competing goods (until largely phased out for most goods), free-trade agreements that open export markets (Australian wine exports benefit from FTAs with China, Japan, Korea, the UK and ASEAN).
• Subsidies and incentives: research funding, tax incentives for film and tourism, drought relief for agriculture.
• Infrastructure: ports, airports, rural roads, irrigation systems.
• Marketing and promotion: Tourism Australia, Wine Australia, state tourism bodies promote the country and industry overseas.

The 2020 China to Australia wine tariffs (in place from late 2020 until 2024) are a striking recent case study of how government action in a single market can disrupt an industry. Australian wine exports to China fell precipitously after the tariffs were imposed, and recovered after they were removed.

A global economic activity case study: tourism (generic)

Tourism is one of the most commonly studied global economic activities. Before relying on specifics, verify the current NESA-prescribed or school-prescribed case study. The generic framework applies.

What it is

Tourism is travel for leisure, business or other non-immigration purposes that involves at least one night away from home. International tourism crossed around 1.4 billion arrivals per year in the late 2010s before the pandemic, fell sharply in 2020, and has substantially recovered. It contributes around 10 percent of world GDP and a similar share of global employment, including indirect impacts.

Locational factors

• Physical attraction: beaches, mountains, reefs, climate. The Mediterranean basin has been the world's largest single tourism region for decades, drawing on a mild climate, coastline and cultural heritage.
• Cultural attraction: heritage sites, cuisine, language and arts. Paris, Rome and Bangkok attract on cultural attributes that other cities cannot replicate.
• Access and infrastructure: airports, accommodation, transport links. The growth of low-cost airlines from the 2000s onwards expanded tourism flows substantially.
• Source markets: where the tourists come from. The opening of Chinese outbound travel through the 2010s reshaped global flows. Wealthy markets (North America, Western Europe, Japan, Korea, Australia) supply the high-spending segment.
• Security and political stability: tourism flows collapse rapidly in destinations affected by conflict, terrorism or political unrest.

Ecological dimensions

• Carbon footprint: aviation accounts for a substantial share of global emissions, and tourism more broadly is energy- and water-intensive.
• Water use: high per-tourist consumption in hotels, especially in dry climates.
• Coastal and reef ecosystems: damage from boats, sunscreen, anchoring and trampling.
• Cultural and social impacts: over-tourism in cities like Barcelona, Venice and Dubrovnik has prompted entry charges and limits on cruise visits.
• Climate sensitivity: ski tourism and reef tourism face existential climate threats. Tropical destinations face rising sea levels and increased storm intensity.

The role of TNCs and government

TNCs dominate the global tourism industry through hotel chains, airline alliances and online travel agencies. National governments compete actively for tourists through promotion bodies and visa policies. The COVID-19 pandemic (2020 to 2022) tested the industry: domestic and short-haul travel recovered faster than long-haul, and the pandemic accelerated structural shifts in business travel toward video conferencing.

Future trends

• Recovery from the pandemic substantially complete but uneven.
• Decarbonisation pressure on aviation (sustainable aviation fuel, electric short-haul aircraft in development).
• Over-tourism management in iconic destinations.
• Experience-based travel growing relative to mass-market resort tourism.

An Australian economic activity case study: viticulture (generic)

Australian viticulture is a common Australian case study because it has clear locational and ecological dimensions, well-documented government involvement (Wine Australia), and significant exposure to TNC ownership and global trade. Verify the current NESA-prescribed or school-prescribed case study before relying on specifics.

What it is

Viticulture is the cultivation of grapes for wine. Australia is among the world's top ten producers and a top five exporter by value in most years. The industry is concentrated in southern Australia: the major regions are South Australia (Barossa Valley, McLaren Vale, Coonawarra, Clare Valley, Riverland), Victoria (Yarra Valley, Mornington Peninsula, Rutherglen), New South Wales (Hunter Valley, Riverina, Mudgee), Tasmania and Western Australia (Margaret River, Great Southern).

Locational factors

• Climate: most premium regions have a Mediterranean climate (cool, wet winters; warm, dry summers). The Hunter Valley is an outlier, with a humid subtropical climate. Tasmania, the coolest region, produces sparkling wine grapes and aromatic whites.
• Soil: terra rossa over limestone in Coonawarra, sandy loams in the Barossa, alluvial soils in the Hunter. Different grape varieties suit different soils.
• Water: irrigation from the Murray-Darling system is critical for the Riverland and Riverina, where most of the volume (but not the highest value) of Australian wine is produced.
• Access to markets: Adelaide and Melbourne are the dominant ports for wine exports.
• Capital and labour: viticulture is capital-intensive (vineyard development, machinery) and seasonally labour-intensive (pruning, harvest).
• Tourism complementarity: many wine regions develop cellar-door tourism that supports the brand and broadens the income base.

Ecological dimensions

• Water use: irrigation pressure on the Murray-Darling Basin, regulated by the Murray-Darling Basin Plan (2012) which capped extraction at around 10,873 GL per year.
• Land clearing: vineyard establishment has cleared native vegetation in some regions; new plantings now face stricter environmental approvals.
• Pesticides and chemicals: integrated pest management and organic and biodynamic viticulture have grown rapidly. Sustainable Winegrowing Australia is the industry certification scheme.
• Climate change: Australia's wine regions are warming. Growing-season temperatures have risen, harvest dates are advancing, and varietal choices in many regions are shifting. Tasmania and high-altitude regions are gaining relative attractiveness.
• Frost and bushfire: spring frost can wipe out a vintage. Bushfire smoke taint can render an entire vintage unsellable.

The role of TNCs and government

• TNCs: large global groups own significant Australian vineyard and brand portfolios. Treasury Wine Estates is the major Australian-headquartered global wine company.
• Wine Australia, the statutory authority under the Wine Australia Act 2013 (Cth), conducts research, marketing and regulatory functions, including levies, geographic indications and labelling standards.
• Free trade agreements: AANZFTA, KAFTA, JAEPA, ChAFTA, A-UKFTA and CPTPP have progressively eliminated tariffs on Australian wine in major markets.
• The 2020 to 2024 Chinese tariffs on Australian wine, which were removed in 2024, are the standard recent disruption case study. Exports to China fell substantially after the tariffs were imposed and recovered after they were removed.

Future trends

• Climate adaptation: variety shifts (later-ripening varieties in warm regions, earlier varieties in cool regions), site selection, canopy management.
• Premium versus volume: Australian wine is positioned at both ends, with the Riverland producing volume for the global market and Barossa, Margaret River and Tasmania producing premium and ultra-premium wine.
• Sustainability certification demand from export markets continues to rise.
• Diversification of export markets to reduce concentration risk after the Chinese tariff episode.

Common HSC examiner traps

• Describing tourism or viticulture "in general" without naming a specific case study, place and statistic.
• Confusing locational and ecological dimensions or treating them as the same thing.
• Forgetting to discuss both TNCs and government.
• Quoting old figures without acknowledging recent disruptions (the pandemic, the China to Australia wine tariffs, climate shifts).
• Treating Australia's wine industry as monolithic; the Barossa, Margaret River, Tasmania and the Riverland have different economics, climates and risks.
• Skipping the future-trends paragraph that the rubric rewards.

Worked example: model extended-response paragraph

Check your knowledge

Answer all under timed conditions, then check the solutions block.

1. Define locational dimensions and ecological dimensions and explain why both are required to analyse an economic activity. (4 marks)
2. Identify three locational factors that shape the spatial pattern of any global economic activity, with one example for each. (6 marks)
3. Explain the role of a transnational corporation in a global economic activity you have studied. (5 marks)
4. Outline the role of government in regulating and supporting an Australian economic activity you have studied. (5 marks)
5. Explain two ecological pressures on one global economic activity and outline a management response to each. (6 marks)
6. Using a case study, explain how climate change is reshaping an economic activity. (6 marks)
7. Evaluate the future of one global economic activity you have studied. (8 marks)
8. "The spatial pattern of any economic activity is shaped by both physical factors and human factors, and is constantly being remade by ecological change." Discuss using one global and one Australian case study. Plan an extended response. (15 marks)

Related guides

• HSC Geography Urban Places deep-dive
• HSC Geography Ecosystems at Risk deep-dive
• HSC Geography practice questions
• HSC Geography hub

This guide is AI-written by Claude Opus 4.7 and has not been individually human-reviewed. The NESA-prescribed or school-prescribed case studies for People and Economic Activity rotate. Verify the current case studies and the latest industry statistics with your teacher and the relevant industry bodies (Tourism Australia, Wine Australia, ABS, BITRE) before relying on figures in an exam response.