As further proof that the worldwide economy is sputtering in a pretty major way, here come two reports on stalling growth in two key industry segments: hospitality and mobile communications.
Technology research and advisory firm Gartner, Inc. has announced that it is revising its 2012 mobile growth projections downwards.
In fact, Gartner is reporting that worldwide sales of mobile phones actually declined nearly 3% during the second quarter of the year. That’s a rude awakening for a market segment that’s been nearly impervious to downward economic pressures up to this time.
And on the hospitality front, industry research firm Hospitality Resource Group (HRG) is reporting that worldwide hotel rates during the first half of 2012 are essentially flat, following a significant rise charted throughout all of 2011.
While a smattering markets scattered around the world (Moscow, Mexico City, Dubai, San Francisco) have charted hotel rate increases in the 10%+ range, there were far more urban areas that experienced rate declines, led that dramatic drops in the following markets:
- Bangalore, India: -30%
- Barcelona, Spain: -26%
- Munich, Germany: -20%
- Bombay (Mumbai), India: -18%
- Istanbul, Turkey: -16%
It may be comforting to hear the reassuring words of select politicians in Europe, Asia and North America as they reiterate that recovery is just around the corner.
But the facts on the ground are delivering an unmistakable message that’s far different – the commercial equivalent of a skunk at the garden party: The economic doldrums aren’t going away anytime soon.