December 11, 2008

Visitor Spending Generates More Than $31 Billion in Economic Impact in 2007

ORLANDO, Fla. – With 48.7 million visitors in 2007, tourism generated $31.1 billion for the local economy, according to a new economic impact study by Global Insight. In 2007, visitation increased by 2 percent from 47.8 million visitors in 2006, while visitor spending grew 4.7 percent from $29.7 billion in 2006.

Based on domestic visitor volume provided by D.K. Shifflet & Associates released in June, Global Insight estimates that the 45.9 million domestic visitors (94 percent of total visitation) to Orlando in 2007 represented 82 percent of total spending or $25.6 billion. The area’s 2.8 million international travelers accounted for 6 percent of visitation, but were responsible for 18 percent of visitor spending, contributing $5.5 billion to the local economy.

2007 Economic Impact

Metro Orlando Visitor Spending
The $31.1 billion in visitor spending estimated by Global Insight for 2007 supports local employment and other services.  As Central Florida’s largest industry, tourism accounted for 236,000 direct industry jobs in 2007, 24 percent of the total private employment in the tri-county area (Orange, Osceola and Seminole), according to Global Insight. The tourism industry also accounts for 163,000 indirect and induced jobs, bringing the total to 399,000 jobs. Wages generated through direct industry jobs totaled more than $9 billion. Indirect and induced employment added an additional $8 billion in wages for a total of $17 billion.

Tourism Pays Its Own Way and Much More
According to a report prepared for the Orlando CVB by Fishkind & Associates, the tourism industry in Orange County generated $163.0 million in surplus revenues for the Orange County and City of Orlando governments, which supports many social services that area taxpayers would otherwise have to pay for out-of-pocket.  In addition, tourism generated a net fiscal surplus for the Orange County School Board of $26.5 million.  Because all government revenues received are budgeted, this surplus does not represent “spare cash.”  Rather, the fiscal surplus represents the degree to which the tourism industry not only pays its fair share of government expenses, but also subsidizes the community, helping reduce the overall burden of local taxes on residents.

• Net Fiscal Impact on Orange County and City of Orlando Governmen

Ø     Tourism revenues generated to Orange County and the City of Orlando governments: $527 
       million
Ø      Orange County and City of Orlando government expenses on behalf of tourism: $364.2 million
Ø      Annual surplus generated by tourism for the Orange County and City of Orlando governments: 
       $163.0 million

• Net Fiscal Impact on Orange County School Board

Ø      Tourism revenues generated to the Orange County School Board: $614 million
Ø      Government expenses for tourism employees’ children: $587 million
Ø      Annual surplus generated by tourism for local schools: $26.5 million

• Combined Net Fiscal Impact for Orange County, the City of Orlando and the Orange County School Board: $189.5 million.

Every Taxpayer Wins
The total taxable value of tourist facilities in Orange County was $18.0 billion, which creates a tax savings of $540 for every household in Orange County.  Fishkind & Associates estimated that due to additional property tax (millage) rates above the county-wide level, households in unincorporated Orange County save an additional $259 for a total of $799, while households in the City of Orlando save another $145 for a total of $685.

2007 Domestic Visitation

Among domestic travelers, leisure visitation increased 2.4 percent to 35.3 million and business travel declined 0.5 percent to 10.6 million visitors. Of the business travel segment, overnight visitors attending meetings and conventions declined by 4.5 percent to 3.8 million.

Total visitation to Orlando by Florida residents totaled 24.5 million in 2007, up 2.4 percent from 2006. Visitation by non-Florida residents increased 1 percent to 21.4 million. The division between Florida and non-Florida resident visitors remained unchanged from 2006 with Florida residents accounting for 53 percent of domestic visitation. The overall number of domestic leisure visitors staying overnight in the destination increased by 3.9 percent to 23.6 million in 2007.

The average leisure travel party in 2007 consisted of 3.2 visitors who spent an average of $1,867 in Orlando over the course of 3.2 nights. Those who spent at least one night in Orlando averaged 4.4 nights in the destination. Families with children accounted for 46 percent of domestic leisure travelers, an increase from 39 percent in 2006. Sixty-six percent of domestic leisure travelers visited a theme park, making the attractions the top activity for visitors.

The variety of accommodations utilized by domestic leisure visitors reflects the range of preference. In 2007, 64 percent of domestic overnight visitors stayed in a hotel or motel, a decrease from 65 percent in 2006. Timeshare usage remained unchanged from 13 percent in 2006. The proportion of domestic overnight visitors staying in a home, apartment or condominium remained unchanged at 17 percent.

2007 International Visitation

Total international visitation increased 5.7 percent to 2.8 million in 2007, but short of the record year in 2000 when international visitation was at 3.7 million. With increasing competition in both domestic and global travel markets, Orlando’s share of overseas arrivals to the United States has declined from 11.4 percent in 2000 to 8.6 percent in 2007. 

With 990,000 visitors in 2007, the United Kingdom accounted for 48.2 percent of Orlando’s 2 million overseas arrivals – making it Orlando’s top international market. Canada follows the United Kingdom with 783,000 visitors, a 13 percent increase from 2006. 

Recap of Key 2007 Visitation Numbers

Sources: D.K. Shifflet & Associates; U.S. Department off Commerce; and Orlando CVB Research
* International visitation does not include Mexico

Global Insight, Inc. is an international economic research, analysis and forecasting company headquartered in Waltham, Mass. The company employs more than 450 professional analysts, researchers and economists at 23 offices in 13 countries across North and South America, Europe, Africa, the Middle East and Asia.

As one of Florida's premier economic consultants, Fishkind & Associates, Inc. has extensive experience in economic and fiscal impact analysis, forecasting and finance throughout Florida and the United States.

D.K. Shifflet & Associates Ltd., a travel research firm, specializes in consumer-based travel data. DKS&A’s DIRECTIONS^® Travel Intelligence SystemSM collects detailed monthly travel data on more than 150,000 trips annually collected from a sample of US households.

The Orlando CVB is the official sales and marketing organization for the Orlando area responsible for generating brand awareness, increasing travel to the area and booking conventions and meetings. For more information, visit orlandoinfo.com/research.