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5 Things To Know for July 1

Today's Headlines: Recession Fears Loom As Consumer Spending Cools; 97% of Hoteliers Surveyed Suffer Hotel Staffing Shortages; US Hoteliers Roll Out Summer Programs To Drive Revenue; Italy Shifts Venice's Tourism to Quality Over Quantity; Thailand Offers Incentives to International Bleisure Travelers
Venice, Italy, in January will begin charging day-trippers a fee to access the city in order to help curb overtourism. (Bloomberg/Getty Images)
Venice, Italy, in January will begin charging day-trippers a fee to access the city in order to help curb overtourism. (Bloomberg/Getty Images)
Hotel News Now
July 1, 2022 | 2:22 P.M.

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1. Recession Fears Loom As Consumer Spending Cools

Household spending in the United States rose at the slowest rate this year, 0.2%, in May, according to the latest data from the Commerce Department and reported by the Wall Street Journal.

Economists at S&P Global Market Intelligence cut their economic output estimates twice on Thursday, now anticipating gross domestic product to shrink at a 1.5% annual rate in the second quarter. The Federal Reserve Bank of Atlanta estimates that output contracted 1%.

"Both estimates would mark the second straight quarterly contraction, after annualized output decreased at a 1.6% rate during the first three months of the year, according to an earlier Commerce Department report. Two consecutive quarters of contraction wouldn’t itself indicate a recession has occurred, though it is a rule of thumb some analysts use," the news outlet reports.

2. 97% of Hoteliers Surveyed Suffer Hotel Staffing Shortages

A recent survey conducted by the American Hotel & Lodging Association shows 97% of respondents are experiencing a staffing shortage at their properties, according to a news release, with housekeeping being the most challenging role to fill. AHLA surveyed more than 500 hoteliers between May 16-24.

"To meet the demand, hotels are offering a host of incentives for potential hires: Nearly 90% have increased wages, 71% are offering greater flexibility with hours, and 43% have expanded benefits," the survey release states.

3. US Hoteliers Roll Out Summer Programs To Drive Revenue

Several hotels across the U.S. are helping families and other social groups reconnect through creative packages and programming this summer, while also ensuring these offerings drive ancillary revenue, reports Hotel News Now's Dana Miller.

This year Omni Hotels & Resorts has launched its "Summer of Water + Color" program, which features unique room packages, on-site experiences and a wellness-focused poolside menu.

"What we are able to surmise is that many more travelers this summer, in comparison to last year, are looking for interesting experiences closer to home, therefore bypassing the cost to fly or drive," said Michelle Felton, vice president of revenue strategy at Omni. "Thankfully, we expect this demand for the program to remain steady and even increase as we get deeper into the summer months and look forward to sharing this unique experience with both new and returning guests."

4. Italy Shifts Venice's Tourism to Quality Over Quantity

Venice, Italy, is clamping down on day-trippers, or those who "clog the streets and strain the city's infrastructure but offer little to the economy," Bloomberg reports.

Starting in January, the city plans to charge these day-trippers $3.20 to $10.60, as officials determined that when about 40,000 people show up per day, it causes more harm than good.

"While officials are still determining final details, including how to charge and enforce the fees, the target encompasses hot spots along the Grand Canal as well as peripheral islands such as Lido, Murano and Torcello," the news outlet reports.

5. Thailand Offers Incentives to International Bleisure Travelers

Destinations such as Thailand and Indonesia are experiencing an uptick in foreign digital nomads booking resort stays of up to six months as borders reopen, Bloomberg reports.

To target even more digital nomads, Thailand's government has approved tax incentives for those with long-term visas. The country will also do away with all remaining COVID-related restrictions on Friday, the news outlet reports.

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