How's That Economy Richie?

Not so good?

• Hotel occupancy and average daily room rates have posted double-digit percentage drops over the first four months of this year compared with the same time last year.
  
  The decline is to be expected, given that consumers have pulled back discretionary spending and tourism is down nationally. The catch locally, though, is that the numbers are unlikely to improve as the summer travel season gets under way and consumer confidence improves, because the law of supply and demand is off kilter. Despite demand being down, the city's supply of hotel rooms is on the way up.

Supply up while demand is down? That sounds like the stage is set for a price war with different hotels undercutting each other for the cheapest night's stay. And as sales taxes are a percentage of the final cost (with downtown rates being a point or more higher), that means more declining revenue.

City Hall has already admitted their revenue "projections" were more than a little "optimistic." We pointed out that their budget was based on fantasy numbers from the word "go." Daley's "rainy day fund" and supposedly balanced budget for the next three years is about to go boom.