We had previously identified that the perfect stormcould be about to hit the massive UK tourism market (approx. $1,000,000,000) to Orlando. It would appear the perfect storm is now happening.
The British pound just hit a 25 year low against the dollar and is getting worse. The cost to a British person to visit Orlando based purely on the exchange rate is now at a 25 year high.
The reason for the dramatic devaluation in the pound is due to the problems in the banking industry in the UK which have reached dire proportions and are getting worse by the day. Royal Bank of Scotland’s problems appear to be wreaking more havoc on the UK economy.
In conclusion, the implosion of the UK economy will be tough on Orlando tourism and the economy as a whole. A 15% to 20% decline in this market for 2009 would not be unrealistic given the current circumstances, but then no one can predict the future including us – we are incompetent non-professionals.