(Bloomberg) — Airlines executives, including the CEOs of Boeing and IAG, will attend the final day of the Qatar Economic Forum. The sector is expected to return to profits in 2023, with the economy continuing to take bookings due to sluggish demand despite a firming up. However, there are challenges – including staff shortages that threaten to derail summer travel.
Accor CEO Sebastian Bazin said global inflation had yet to start hurting hotel margins, and Trip.com head Jan Sun said demand remained steady. Meanwhile, Harrods Managing Director Michael Ward said demand for luxury goods was strong, but warned that the sector was grappling with delays in its supply chain.
On Tuesday, representatives from Tesla CEOs Elon Musk and Nouriel Roubini to Atlas Merchant Capital’s Bob Diamond and Standard Chartered’s Bill Winters warned of a US recession. Former Treasury Secretary Steven Mnuchin said inflation could be brought under control if energy prices stabilize and the Fed follows through on its pledge to continue raising rates.
Note: Qatar’s Ministry of Commerce and Industry, Qatar Investment Authority and Qatar Investment Promotion Agency are the underwriters of the Qatar Economic Forum, run by Bloomberg. Media City Qatar is the host organization.
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Inflation hasn’t hit margins yet, says Accor (10:30 a.m. Doha)
CEO Bazin said global inflation hasn’t hurt hotel margins, at least not yet. “So far for hoteliers, we have the ability to go through full inflation with a higher price per room, so hoteliers have been able to maintain margins,” he said, adding that it was not clear how long they would take it. will be able to maintain.
Qatar Will Stick to Spending Plans (9:35 am Doha)
“High oil prices are good news for any finance minister,” Qatar’s Finance Minister Ali Al Quwari told Bloomberg TV in an interview. Still, “we are very disciplined about our spending and our financial reforms, so we are not changing our plans as a result of these high oil prices.” The remarks came a day after Energy Minister Saad al-Kaabi blamed low investment for high gas prices and called for more spending.
Al Quwari said the gas-rich Gulf country would continue to invest in Egypt, seeing the right opportunities and adding that the country “still has great investment potential in the future.”
Gulf countries, including Qatar, earlier this year pledged support for Egypt while supporting the economy under pressure from the war in Ukraine.
Egypt wants to turn page on carry-trade reliance (Doha at 5am)
“Now is the time for Egypt to focus on increasing exports and foreign direct investment, not carry trade,” Finance Minister Mohamed Mait said in an interview in Doha.
The North African country is rushing to limit its exposure to the economic impact of Russia’s invasion of Ukraine, which has threatened vital wheat imports and could curb its post-pandemic tourism revival. About $20 billion of foreign investment has come to Egypt this year as investors in local debt exited the preferred market.
Matt, who became finance chief in 2018, said Egypt has seen outflows from portfolio investments three times during his tenure and has become “used to dealing with it”.
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