You do not have to be a genius to understand the poor economy has been hurting many businesses this year, and cutbacks are still coming. This year I am predicting fewer holiday parties due to the sluggish economy and the threatening campaign of the White House to subsidize all its programs by taxing the wealthy. Already I have seen well-established companies, which have deep financial pockets, cut their holiday budget. Car dealerships that I have entertained in the past are downsizing to stay in business and have cut the holiday party out of their budget totally. Extravagant fundraising banquets will be scaling back as the wealthy tighten charity donations, and attendances will be at an all-time low. With the reduction of holiday spending, these companies/individuals ensure that their profits, or “salaries,” will not decrease. Who can blame them for securing their salary–I know I would cut holiday expenses to ensure my salary. However, as the individuals and companies watch the bottom-line cost, the entertainment community and hospitality industry will hit. Reductions in holiday parties mean a reduction in revenue to many businesses. With fewer people working, less money to spend this holiday season will translate into smaller and fewer holiday parties. So my opinion is the worst in not behind the entertainment community yet. I hope to see a spark in the economy early in 2010 and am hopeful by the end of the 2nd quarter. Then maybe, we can get back to business as usual.
Do you know of any markets that will be improving over the next few months that require entertainment? Let me and others know by leaving a comment.