La Villa is a village in the italian Alps. Given its enormous popularity among the Swiss all of its beds are always booked in the winter season and there are on average 1200 skiers in the village. On average, skiers stay in the LaVilla for 10 days.
1. How many new skiers are arriving on average in La Villa every day?
2. A study done by the largest hotel in the village shows that skiers spend on average 50.00 per person on the first day and 30.00 per person on each additional day in local restaurants. The study also forcasts that due to increased hotel prices the average length of stay for the 2003/2004 season will be reduced to five days. What will be the percentage change in revenues of local restuarants compared to last year when skiers still stayed 10 days? Assume that hotels continue to be fully booked.