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Air transport and tourism: more and more serious growing pains

November 21, 2018
Steady growth in air transport is leading to capacity bottlenecks, both in terms of available planes and at individual airports. Capacities will need to be increased, which means that more money must be earmarked for fixed-asset investments as well as labour and operating expenses. Taken together, the growing pains in the aviation sector and the rise in jet fuel prices may prove an overwhelming chal-lenge for some market participants. Air transport growth has also resulted in higher capacity utilisation in related sectors, such as tourism (the “overtourism” phenomenon comes to mind). There are, in fact, discussions about limiting or redirecting visitor flows. [more]

More documents about "International"

77 (61-72)
July 30, 2009
Some years prior to the crisis, abundant global liquidity and investors’ strong risk appetite boosted asset prices to very high levels. The state of the global economy and financial markets deteriorated dramatically when the subprime crisis turned into a full-blown global banking and economic crisis. Central banks around the world were forced to inject extra liquidity to support the banking sector, the credit channel and the overall economy. Despite the presence of global excess liquidity short and medium-term risks to CPI inflation appear to be limited because of low capacity utilisation and rising unemployment. However, excess liquidity could still potentially stoke new asset price bubbles. Central banks are aware of this risk and are at the moment preparing post-crisis exit strategies from their current accommodative monetary policy stance. [more]
June 15, 2009
The ongoing global financial crisis, with its historic dimensions, will have a lasting impact on the banking sector. It will become a less "fashionable" and even more heavily regulated industry with greater state involvement, increased investor scrutiny and substantially higher capital levels. This will lead to lower growth, lower profits and lower volatility for banks than during the past few decades – a trend that is exacerbated by the expected lack of major growth drivers, at least for some time. [more]
June 4, 2009
Ever since the global financial crisis spilled over to the real economy, the WTO and the World Bank have reported huge increases in protectionist measures, including non-tariff barriers to trade and the abuse of anti-dumping measures, subsidisation of national industries or, very lately, calls to favour domestic products and companies, and restrictions on international capital flows or immigration. These factors threaten to unleash a spiral of protectionism that perhaps may not choke off the global recovery, but it will partly delay its progress. Therefore, shoring up open markets and free trade is the next major challenge in a globally coordinated drive to cope with the crisis. [more]
November 28, 2008
The Asian crisis 1997/98, the launch of the euro in 1999 and the global financial crisis 2007/8 have stimulated monetary cooperation in East Asia and debate about an Asian Monetary Union (AMU). The success story of the euro can serve as a role model but special features in East Asia have to be taken into account. Given the current heterogeneity of Asian countries the exchange rate orientation will remain dominated by a mixture of dollar-pegged and (managed) floating schemes for the time being. The introduction of a single currency requires strong political will as well as the building of institutions, a legal framework and trust. Therefore, it is likely to take at least another two decades before AMU can be launched. [more]
October 22, 2008
Sovereign wealth funds are headed for a new state of normality and set to be recognised as institutional investors like many others. With their commitment to the Santiago Principles on greater transparency and robust governance, they have made a strong and credible commitment to financial objectives. Their important and constructive role as investors during the financial crisis has earned them additional credibility. Eyes are now on the recipient countries to present guidelines for open and more uniform investment conditions. Policy efforts should focus on bringing OECD guidelines to fruition, and ensuring that they are adhered to worldwide. [more]
April 11, 2008
Climate change constitutes a challenge for the global tourism industry. The result will be regional and seasonal shifts in tourist flows. There will therefore be winners and losers. The Mediterranean region will be one of the losers, while – among others – Denmark, Germany, the Benelux countries and the Baltic states may benefit. The impact of negative climate developments will be particularly strong if climate-sensitive tourism has major economic significance. In Europe this applies to Malta, Cyprus, Spain, Austria and Greece. At a global level, however, the tourism business will remain a growth sector. [more]
February 14, 2008
After four years of above-average growth the global economy is clearly slowing down. The US housing recession and high oil prices are dampening global economic growth, even though the substantial USD depreciation of the last two years, decisive and timely Fed action and the USD 150 bn fiscal package will prevent a US recession. Due to robust domestic demand and solid current account surpluses in many cases the emerging markets – contrary to previous shocks – are providing an element of stabilisation. Europe will be affected by the US slowdown with a lag while the strong currency continues to be a drag. [more]
July 27, 2007
The US current account has swelled to USD 811 bn, or 6.1% of GDP, at the last count. We do not believe that a deficit of this magnitude is sustainable in the long term. A reduction of the international imbalances still need not take place abruptly. After all, the US current account deficit is also the upshot of investment decisions in the surplus countries. A strengthening of domestic demand in Asia and stronger diversification efforts in the oil-producing countries aimed at reducing their reliance on oil revenues suggest that less capital will flow to the USA. The still fast-expanding trade in services also points to an improvement in the US current account in the longer term. Here, the USA is a frontrunner, which gives it a competitive edge. [more]
May 29, 2007
Global liquidity has become abundant over the past few years mainly owing to extremely accommodative monetary policies in the US, Euroland and Japan. Since this liquidity "glut" has barely shown up in consumer price inflation, it has likely contributed to asset price inflation. There are basically two scenarios for how global "excess" liquidity could be cut back over the medium to long term: (1) continued global monetary tightening or at least no monetary easing soon and (2) global nominal GDP expanding faster than the money stock over time. [more]