Universal Studios may be working towards completing and opening their Epic Universe, but don’t be surprised if many of your other favorite tourist destinations begin to pull back and delay cap ex investments. It wouldn’t surprise me to see Disney push back their Splash Mountain refurbishment even more than they already have. Dollywood’s planned expansions on their upper terrain may also be a bit longer in coming to fruition. The reason: fears of an American and global recession are growing.
According to CNN Business, Deutsche Bank is now the first major Wall Street bank to predict not just a recession but a major recession is on the way.
“We regard it…as highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel,” Deutsche Bank economists wrote in its report with the ominous title, “Why the coming recession will be worse than expected.”
Other banks have not shifted their outlook quite so drearily. Still even they are declaring that a recession is a strong possibility. It’s the word “major” in Deutsche’s assessment that has people shaken inside the financial sector. And as a result, investors and shareholders may be reticent to support major projects for theme parks, hotels, resorts, etc until all of this shakes out. Just as troubling is Deutsche’s determination that inflationary increases in everyday costs are “here to stay”.
You might miss this news about a recession being predicted by the bank because of incendiary reporting that a whistleblower from the institution was found dead after reporting on potential links between politicians and corruption. There doesn’t seem to be much there there after a cursory inspection:
“He supplied me and other journalists with Deutsche Bank documents that highlighted the bank’s deep Russia connections. It is very sad. I don’t suspect foul play. Val struggled with drugs on and off. Waiting on further info.”
He added: “Val’s father took his own life in 2014 and it consumed Val in recent years. To see his life end so short is incredibly depressing.”
Oh. Deutsche Bank whistleblower found dead in LA's Lincoln Park https://t.co/qShsMUYWe8
— Alan W. Silberberg 🟦 (@IdeaGov) April 26, 2022
Just know that there’s a huge story out of Deutsche Bank that could effect the entire world in regards to the economy, but it’s being largely buried by a political narrative that doesn’t appear to be very true. Isn’t that the story of the media for the past decade? Wistfully they go whistling past the real headlines time after time. Methinks it might be purposeful.
If other major banks begin to join Deutsche in a major recession assessment, we could see major tourism projects delayed until late 2024. Nobody wants to spend on things that won’t be enjoyed if consumers are penny-pinching even more than they already are. And just like I’ve been saying for a while now, if you are the type of person who can’t afford a big vacation, even your smaller vacations should probably be taken sooner rather than later. Inflation is eating up your set-aside money’s value, so lock in those reservations with your dollars’ maximum purchasing power.
In case you’re wondering how accurate a website on entertainment and theme parks can be in regards to this type of material, just consider this:
You’re hearing about food shortages and rising food costs today… we were predicting it two months ago. Some news organizations are beginning to talk about summer vacations being curtailed due to rising fuel costs. We covered that in February. We even were predicting gas prices for June 2022… back in November. In other words, we don’t always get everything right but we try darned hard to make sure you get the best information on tourism and travel as soon as we can reliably get it to you.
A look at the last recessions to hit the economy show that when money tightens, tourists find less new things on offer. And that shouldn’t be any big surprise.
For all the latest on news that we wish was fun, keep reading That Park Place. If you found this article insightful, drop a comment down below and let us know!
The fall in the demand for trucking is another indicator…
You mentioned Splash Mountain. On the WDW Magic forum, Visionary Soul said that “it’s looking less and less likely that the Florida conversion will happen as planned.” Is there a real chance that it could be cancelled in Florida?
A recession is actually the best time to begin construction due to lower prices of materials and labor. By the time a recession is over in 3 to 5 years, they can collect the money.
If there is a recession, this will be the weirdest recession.
We have a worker shortage, extreme liquidity, rising dollar, food shortage, and an oil something.
The recession will hit high worker industries dependent on travel and foreign travel specifically. Meaning, Disney might be the worse hit by this upcoming recession.
The set up May mean as demand drops, companies will need to increase pay to keep workers.