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1. IMF Says Ukraine Invasion Will Reduce Global Growth
In its April "World Economic Outlook" report, the International Monetary Fund said the Russian invasion of Ukraine will dampen global gross domestic product, with the United Kingdom to be hit harder than most. The report said the U.K.’s 2022 GDP growth “is revised down 1 percentage point — consumption is projected to be weaker than expected as inflation erodes real disposable income, while tighter financial conditions are expected to cool investment.” The U.K. was forecast to reach 4.7% GDP growth for full-year 2022.
The U.S. is less affected by the incidents in Ukraine, the report said. But due to the inflationary pressures and the job market, IMF predicts U.S. GDP for 2022 will be slightly lower, at 3.7% growth. The outlook added that “in some advanced economies, including the United States and some European countries, [inflation] has reached its highest level in more than 40 years, in the context of tight labor markets. There is a rising risk that inflation expectations become de-anchored, prompting a more aggressive tightening response from central banks.”
2. UK’s Competition Authority To Police Fake Reviews
The United Kingdom’s Competition and Markets Authority, charged with ensuring fairness and legality in business practices, has announced new powers to prosecute those who post fake reviews. Among other things, these regulations now make it a criminal offense to pay someone to write untrue claims, or to host those claims online.
The U.K.’s principal hotels and hospitality membership organization, UKHospitality, has welcomed the move. CEO Kate Nicholls said it is necessary to “stamp out the practice of fake reviews, which do irreparable damage to businesses. We therefore believe it is imperative that online review platforms be required to act and remove malicious and false reviews where appropriate.”
The CMA added “the average U.K. household spends around 900 [pounds sterling or about $1,175] each year influenced by online reviews and spends 60 [pounds sterling] on unwanted subscriptions.”
3. US Hotel, Travel Stocks Rise on Mask-Mandate Cancellation
The value of stocks in U.S. hotel and travel companies have risen after a federal judge struck down the latest mask mandate on April 18. The Transportation Security Administration also said it would no longer enforce wearing of masks on airplanes and trains.
According to Market Watch, at close of trading on April 19, shares in Hilton increased 3.66%, shares in Marriott International increased 3.57% and shares in Hyatt Hotels Corp. increased 2.67%.
Investor’s Business Daily reported similar rising stocks for airlines: “Airline stocks rallied on [April 19] … [United Airlines] stock rallied 4.5% … [and] Southwest Airlines added 2.4%.”
4. Dubai Hotel Occupancy Eclipses Pre-COVID-19 Numbers
Hotel occupancy in Dubai, the main business and leisure destination in the United Arab Emirates, grew 30.2% year over year in the fourth quarter but also increased 1.7% over the fourth quarter of 2019, according to Trade Arabia.
The newspaper added recovery is due in part by the easing of international pandemic restrictions and the UAE’s vaccination policy that has resulted in 92% of its population being fully vaccinated. It also said the UAE’s gross domestic product not generated by oil rose by 7.8% in the fourth quarter of 2021.
5. Forde Promoted to President at Island Hospitality Management
Gregg Forde has been named as president of hotel management firm Island Hospitality Management. Forde was promoted from his role as chief operating officer at the firm, a role he will continue to cover, according to a news release. Forde has been at the company for close to 20 years, following five years as a general manager at Marriott.
Island Hospitality Management is based in West Palm Beach, Florida, and has 75 assets in its portfolio across the U.S. in the select-service and extended-stay segments.