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January 2011 Vol. 10 - Issue 1

Fact of the Month

Revenues from gambling in Macau increased 58% in 2010.

Source: Reuters


Feature of the Month: Global Tourism

After two years of challenges for the travel industry, tourists are finally starting to return to their favorite vacation spots. Government leaders in many of the hardest hit locations are executing strategies to boost tourism through a combination of rate cuts, marketing campaigns and increasing airline capacity. Fortunately, world travelers have started to respond to these measures and their increased travel is a sign of a strengthening economy.

One location benefiting from the rebound in travel is the Caribbean. The IMF believes Caribbean GDP will grow roughly 1% this year and a new study suggests that the travel industry's contribution to GDP could reach 4.2%. St. Maarten is projecting a 5% visitor increase which Travel Weekly attributes to the aggressive marketing of early-booking bonuses and the increased availability of flights. Hotel executives believe that the increased flights will allow tourists to travel more economically and will be driven by the increasing popularity of low-cost airlines.

Another hard-hit country, Greece, suffered from bad publicity this year, but the facts have proven that you can only keep travelers away from beautiful beaches for so long. Greek News Online reports hotels have kept customers by lowering prices. They cite a study that estimates 50% of Greek hotels offered lower rates in 2010 which resulted in a 7 to 8% drop in overall revenues. The Greek tourism industry is also banking on low-cost airlines to bring new tourists to the country, however diplomats are concerned that new flights could hurt the two main Greek airlines and are being careful not to upset those relations.

Mostly known for its spring break getaways, Mexico's travel industry has largely rebounded with the strengthening of the United States which sends many tourists and day travelers to Mexico’s beaches every year. The Economist reports that some tourists have been lured by price cuts and the average tourist spent 5% less in 2010 than at its peak in 2008. Although there were slightly more foreign tourists this year, the decreased spending means that the industry will still be making less money than at its peak.

The overall trend in the industry is an increasing amount of travelers spending less money per visit. Insiders are hoping that employment conditions will improve and the great deals along with easy flights will convince travelers to make that trip they have been putting off.
 


From the globalEDGE Blog

Although some would argue that gambling may have helped cause the current economic recession, governments are increasingly seeing it as a way to increase tax revenue. Continue on to the globalEDGE Blog to learn more about current industry trends and gamblers' newest glitzy hotspot, Macau!


Featured Resources

Macau: Economic Services of the Macau Special Administrative Region
This governmental branch carries out the economic policies in the industrial, commercial and other economic sectors, while also providing licensing and registration of internal and external trade operations. Selected economic and financial indicators, general information on their services and a list of related links are provided. Site available in Chinese, English and Portuguese.
Category: Macau

PricewaterhouseCoopers: Hospitality & Leisure
PricewaterhouseCoopers, a professional service firm, provides worldwide background information on industry sectors. This site includes an up-to-date industry environment description, challenges facing the industry and potential solutions, free downloadable publications including annual reviews, and events.
Category: Hospitality & Travel


Featured Academy

Global Market Opportunity Assessment
The Global Market Opportunity Assessment module informs one on the following issues: why it is important to assess global market opportunities; how companies conduct market opportunity assessment; what makes market research effective; practical approaches to identifying foreign market opportunities. A sample global market opportunity assessment questionnaire and a case study on Thailand’s growing importance in the global export market are also included in the module.
Catoregy: Market Research & Entry


globalEDGE Business Review

"Globaloganization of Renault Development Strategy"
by Said Cherkaoui (Volume 4, Number 3, pp. 1-2, 2010)

This article presents the drive of Renault from the edge of bankruptcy to the rise of its model Logan to international preeminence, fame and success. At the same time, Renault concentrated its production in countries that have been considered by the major car manufacturers as solely a marketplace and not the location of their production.


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