Hospitality Vision, Global Performance Review
The clouds begin to gather: A question of confidence
With plunging global economies and unprecedented bail-outs during 2008, it was only a question of time before tourism shared the pain. The first half of the year, when the financial crisis still had some way to go, most world regions were reporting double-digit growth in hotel performance until mid-way through the year. Then the deepening recession took its toll. As business travellers and tourists started to think twice about trips away, there was a significant slowdown in hotel performance in most world regions, particularly in the final quarter.
The outlook for 2009 is naturally cautious, with the World Tourism Organisation predicting either a stagnation or slight decline in international tourist arrivals, forecasting a drop of between -1% and -2%. Meanwhile, most economists are expecting the recession to hold down employment, and housing and equity markets for some time to come.