The travel and tourism industry is more reliant upon economic health of nations and consumer confidence than mo
st other industries, which is why talk within the industry is no about recessionary counter measures, financial institution bonuses, and economic action plans than it is about the introduction of a new 5 star resort in Los Cabos. In years gone by Groundhog Day was a big deal as tour operators hoped for a few more weeks of winter to coax more vacationers to the sun in Mexico and the Caribbean.
So in the last few weeks some long awaited optimism has started to return, not because bookings are increasing, occupancy in hotels is up, or travel companies are hiring but because key economic indicators in the US are showing that the world's largest economy is growing. What was more of a surprise was how quickly:
It was reported today that the US economy grew at an annualised rate of 5.9% in the last 3 months of 2009. These were revised figures showing a higher rate of growth on the original figures. What this shows is that the US is coming out of the recession rapidly and what is healthy is that this increase was due to an increase in manufacturing output and not consumer spending, in fact consumer spending shrank in terms of the numbers but still show an increase overall.
Manufacturing has increased to meet demand as retailers and businesses replenished stock levels. Business spending on equipment and software saw a jump by over 18% and exports of US goods at 22.4% which is the fastest pace in 13 years.
While all this is very good news it is evident that the experience of this recession has effected people significantly and it could take many months even years before consumer confidence and spending return to the levels they were at during the late 1990s and early years of this century. That might be a good thing but overall everyone in the travel industry is praying that the good economic news is sustained and breathes new life into our flagging industry.