Local News

Action needed soon to reverse tourism slide, new research says

Orlando Business Journal - 1:46 PM EDT Tuesday by Bob Mervine Staff Writer

In a two-hour "State of the Industry Report" Tuesday that Orange County Mayor Rich Crotty says raised more questions than answers, the tourist industry began its pitch that it needs more funding for advertising to halt and reverse a nine-month trend of declining visitation.

Orange County's hotel occupancy since October 2005 is at 75 percent, down 3.5 percent over last year, versus a 61 percent occupancy nationwide, which represents a 2.3 percent increase over last year.

Orlando/Orange County Convention & Visitors Bureau President Bill Peeper says Tuesday's presentation attempts to understand what consumers think, say and feel about Orlando as a destination and to review the issues needed to maintain the area's premiere positioning.

Peeper says the bureau is not yet prepared, however, to say what those conclusions will lead to as a solution.

The presentation was a prelude to a series of summer meetings designed to facilitate the review of -- and an eventual decision about -- a proposal to increase the county's resort tax from 5 to 6 cents. The revenue would fund both a bigger budget for advertising in the bureau's effort to market Central Florida and bond the funding to do three major public works projects, including a renovation of the Citrus Bowl, construction of a new performing arts center and rebuilding or replacing the existing T.D. Waterhouse Centre with a new events center.

The research indicates Orlando's visitation growth is expected to continue to be lower than the overall industry average and that fewer people are planning a vacation to Orlando in the coming year.

The data was collected from surveys gathered just six weeks ago of nearly 1,400 people, both in and outside Florida, with and without children. Peeper warned that the information presented Tuesday is very preliminary and does not include information about the business and convention travel market, information that will be incorporated into a more detailed presentation in August.

They board was warned that maintaining the status quo will continue to erode the region's share of tourist dollars and was urged to take steps immediately to maintain a competitive advantage.

"Orlando needs to act now to keep the competition from stealing your image," says Robert Fronk, a senior vice president with Harris Interactive who managed the "Orlando Futures Survey." Fronk says Orlando's competitors, most of whom far outspend the area in advertising, include Las Vegas, New York City, Mexico, the Caribbean and the cruise industry.

In the most extreme example, commissioners learned that while the bureau's advertising budget is about $6 million this year, the comparable amount budgeted by Las Vegas is $94 million. Casinos and hotels will spend another $395 million this year, an amount Peeper says our local industry advertisers such as Walt Disney World, Universal Studios and SeaWorld Orlando cannot match.


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