Rising dollar, softer global markets likely to impact South Florida - South Florida Business Journal:

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Between May 2006 and May the weak dollar fueledthe region’sa 44 percent jump in exports, but that trend along with other economidc drivers tied to international trade – may suffer since the dollar swung sharply while oil prices The rising dollar is “nog great news for South Florida’s economy becausw we are so tourist based and trade based,” said Michael professor of economics at the .
The rising dolladr and weakening LatinAmerican economies, which had benefited from high commodities will hurt the real estate and manufacturingf sectors as fewer foreigners buy American, he Still, South Florida will remain a globalo economic crossroads – particularly when it comesd to Latin America. While internationaol tourism may contract, the decline will be less dramatic than inothere regions, Connolly said. One examplr of this is , the leadingh carrier at (MIA). American is actuallu expanding service to Latin America and the Caribbeah while it cuts capacity atother airports, MIA spokesmam Greg Chin said.
While it’s too early to tell how the changinvg dollar and global recession mayimpacg MIA, the airport has generally been stablde during the downturn. For the fiscal year ended in MIA’s total international passengers wereup 5.6 despite a slight drop in domestic flyers. This was relateed to the strength of the Latin Americam and Caribbean markets and the weak Chin said. International cargo was up, too. While the said globao cargo traffic wasdown 7.7 percentg in the past 12 months – “the worsty decline since 2001,” Chin wrote in an e-mail MIA’s international freight increased by 1.26 percenf and total freight decreased 1.
13 At , international traffic was up 13.4 percenty in the first eight monthsx of 2008. American Airlines and Miramar-based both addefd international service. Nicki Grossman, president of the Greater Fort Lauderdalwe Convention andVisitors Bureau, said in a statemenr that tourism will be impacted by the downturn, but wouldn’g estimate the extent of the damage. “Thisz is new territory for tourism in she said. A CVB spokeswoman said about 20 percent of touriste are expected to be internationalthis season, rivalin g last year. However, the bureauh is stepping up advertising and public relations budgetse by 10 percent to attractforeign visitors.
June Wolfe, presidenft of the , said a weakening export markey would likely impactthe region’s manufacturing But, pharmaceutical and biomedical equipment manufacturing are among the sectors that should remain unharmed. Anothefr plus is that manufacturers may decide to relocatde from abroad if the cost of doing businesws here becomesmore Still, that could be scuttled if globalp markets stay soft, Wolfe “The dollar is goinh to have a role, but people worldwides are buying less.
” The softening world marketzs are a bigger concern than the risingg dollar, but Latin American countries are better balanced than in the past to keep feedingf South Florida’s economy, said Manny ’s senior VP of international trade and business “This isn’t the Latin American debt crisie of the ’80s” he said. The high commodities pricez that fueledLatin America’s brisk expansion have but “they are sitting on reservesa they never had before.” Mencia said travel and real estats in South Florida remai n bargains for many foreign investors.
He predictedf the state won’t necessarily see a declinse in exports, but the growt h won’t be as brisk. “Bug then, I’m paid to be an optimist,” he added with a