The view from Florida still looks very sunny and enjoyable but one of the key segments of the economy are showing signs of concern - tourism:

An economic slowdown, a drop in consumer and corporate confidence and reduced airline capacity have combined to create the most challenging business environment the tourism industry has faced since just after the 2001 terrorist attacks.

Florida hotels began to feel the impact of the economic crisis in September, when statewide occupancy rates dropped 10.5% and revenue collected on the average hotel room fell 12.6%, according to Smith Travel Research.

Source: floridatrend.com

Anyone looking around during the recent Easter vacation may not have agreed with this, however.  Roads and restaurants were full, as usual.

But there are signs that European and especially UK tourists are finding it more and more difficult to budget for USA holidays, especially with the weaker UK exchange rate - down by one quarter from it’s peak a year or so ago.  Even European holiday experts such as this Portugal Vacations specialist recognize that the recession has taken it’s toll.

There are signs that the worst may be over, though:

• The UK’s exchange rate has weakened against the Euro also, so the USA’s disadvantage is not as great as it could have been.

• Many UK residents are actually better off than a year or so ago - for example, homeowners with a secure job (e.g. teachers and other local government employees) and a variable mortgage have enjoyed a magnificent increase in disposable income as interest rates have fallen dramatically.

• Florida in general and Disney World in particular are still the number one choice for thousands of children - and adults!

So keep your fingers crossed - if the Dow Jones settles down and the trillions of dollars spent by successive Federal governments achieves even the lowest level of expected benefit, the Florida economy should turn out to be just as sunny as the weather is guaranteed to be.