Economist Chris Williamson of S&P Global says that the UK's economic difficulties have worsened this month. A drop in commercial activity indicates that the economy is "probably in recession". Antoni Riera, technical director of the Fundació Impulsa for Balearic competitiveness and productivity, who spoke at a conference in London on Monday, observes that tourism is "exposed to exogenous and intangible factors" that affect performance. "The sharp drop in the pound due to the delicate situation of the British economy and the first signs that Germany is headed for recession are not good news."
He adds that "the slowdown in the German and British economies is not at all reassuring for the Balearics, since these two markets are vital for the entire tourism industry". "This situation will encourage people to choose to stay at home and prioritise other types of things because of the loss of purchasing power due to inflation and the rise in energy and raw material prices." Riera says that "a lag of up to ten months is needed, but all the symptoms of recession are more than evident in Germany and the UK and this, like it or not, will affect the tourism sector". Easter next year, he believes, is when "these indicators" will be recognisable and point to how they will affect the summer.
The director of the Spanish Tourism Office in Berlin, Alvaro Blanco, says that there will be a "generalised degree of uncertainty" in Germany next year that will affect the tourism industry. The German Institute for Economic Research has this week given a warning of recession, Blanco adding that "we will have to wait to see how the German market reacts to the deterioration of the economy due to the increase in energy costs".
Manuel Butler, a former director of Spain's Turespaña agency and now Blanco's counterpart in London, says that the evolution of economic indicators in both countries will be decisive. Hoteliers and other tourist accommodation providers in the Balearics "will have to act to seek alternative markets and mitigate the possible falls that may occur in both German and British tourism".
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James WalkerWell, Ulla is right. It's no wonder you cower in fear and hatred. Look at what your politicians are and have been doing for some time now. Especially recently, raping and pillaging the country in the name of ideology (and acquiesce to those who put them in power). Luckily, not everywhere engages in that (at least not to the extent England does). And regarding mainstream media, well, again look at the UK, where much of the mainstream media in the UK is in the pockets of the Tories. They definitely want you to distrust any >rational< media, and go out of their way to incite that distrust. No wonder you see everything through that prism. Suit yourself. It's rather inconsequential to me and the rest of the world (though entertaining to watch at times).
James WalkerI love your blame at ALL organisations, especially the internationals non UK ones (not sure if Black Rock is UK or not). You live in a world trusting noone, so who do you trust, and how do you live your life will all this hate? Nothing is perfect in life, but hating you are the only one who suffer. Try to cheer up and certainly have a good day.
James Walker' I can't help not trusting politicians, corporations and the mainstream media anymore for so many reasons but mainly because there a bunch of hypocritical liars, corrupt down to the core ' That has always been the case and is nothing new. But there is no conspiracy. Corporations just want money and power so they buy some politicians through lobbying (which should be illegal). Noam Chomsky has been writing about this for 40 years or more At least you didn't blame Bill Gates and George Soros who are most conspiracy theorist's bogey men.
@ Morgan. Not to much to do with bankers. More to do with WEF, WHO, UN, BlackRock to name afew. Don't get angry with people that don't share the same views or opinions as you. We have been lied to over and over again the last 2 years. I can't help not trusting politicians, corporations and the mainstream media anymore for so many reasons but mainly because there a bunch of hypocritical liars, corrupt down to the core and all in cahoots with each other. Have a good day Morgan.
Now will the Authorities responsible for Increasing the Tourist Tax realise that they can not continue to "MILK" Tourists any more. The damage to Tourism will be felt across the World as Money Markets continue to fall, and the Pound/Euro rate remains very low to almost One Pound to One Euro. And against the Dollar.
James WalkerIt's a secret organisation of 5 secret bankers who secretly control the world. It's so secret, that even they don't know about it. But good job somebody does. Thanks for pointing that out. On another note, it's hard to not notice the way the economics are presented here: for Germany, it's a "recession", but in the UK, it's merely a "delicate situation". Right, then. Yes, Germany is going to have a rough ride, but nothing like the UK. And the currency is far more stable. Also, it's still not cost-prohibitive for Germans and most Europeans to come to Mallorca, and it's relatively cheap and easy for them. No doubt there will be some decline in travel, but many are already booking 2023, months earlier than usual. We'll likely lose a good chunk of British tourism due to the "delicate situation" In the UK, but from the looks of things, Europeans will still be coming in substantial numbers (barring some real disaster such as a war with Russia)
Restaurants and other tourist hospitalities will need to reduce prices. Some establishments in Palma and other popular areas have become absurdly expensive. Competition from other European destinations will increase whilst everyone is trying to attract a smaller pool of travellers. Mallorca has had a lengthy purple patch (covid aside of course) and whether it has the flexibility and sense to adapt through this period is in its own hands. I really hope it does.
People need to wake up and realise, this is a manufacturered crisis to crash the world's economy and create a global digital ID and currency. We will own nothing and be happy apparently.