September 2, 2009

Visitors Spending was up 0.2% to $30.0 Billion in 2008

Employment in Hospitality Industry Increases 

ORLANDO, Fla. – With 48.9 million visitors in 2008, tourism generated $30.0 billion for the local economy, according to a new economic impact study by IHS Global Insight. In 2008, visitation increased by 0.3 percent from 48.7 million visitors in 2007, while visitor spending grew 0.2 percent from $29.9 billion in 2007.

According to the report, the 45.5 million domestic visitors to Orlando in 2008 (93 percent of total visitation) represented 77 percent of visitor spending, totaling $23.3 billion. The area's 3.4 million international travelers accounted for 7 percent of visitation, but were responsible for 23 percent of visitor spending, contributing $6.8 billion to the local economy.

2008 Economic Impact

Metro Orlando Visitor Spending
The $30.0 billion in visitor spending estimated by IHS Global Insight for 2008 supports local employment, pays for government services and creates tax savings for area residents. 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, supporting many services that would otherwise be paid for by area taxpayers.

Tourism also generated a net fiscal surplus for the Orange County School Board of $26.5 million. These surpluses do not represent excess revenue but the degree to which tourism pays its share of government expenses while helping to lower the tax burdens of area residents. In 2008, the combined net fiscal impact for Orange County, the City of Orlando and the Orange County School Board was $189.5 million. Fishkind & Associates estimated that government revenue from industry related sources such as tourism business property taxes save each Orange County household $540 in additional taxes.

As Central Florida's largest industry, tourism accounted for 276,741 direct industry jobs in 2008 up from 236,000 in 2007, 31 percent of the total private employment in the tri-county area (Orange, Osceola and Seminole), according to IHS Global Insight. The tourism industry also accounts for 136,700 indirect and induced jobs, bringing the total to 413,441 jobs. In 2007, 399,000 Central Florida residents were employed either directly or indirectly by the hospitality industry. Wages generated through direct industry jobs totaled more than $8.4 billion. Indirect and induced employment added an additional $6.0 billion in wages for a total of $14.4 billion.

2008 Domestic Visitation

Among domestic travelers, leisure visitation declined 0.1 percent to 35.3 million and business travel declined 3.2 percent to 10.2 million visitors. Of the business travel segment, overnight visitors attending meetings and conventions declined by 7.7 percent to 3.5 million. Total visitation to Orlando by Florida residents totaled 24.3 million in 2008, down 0.9 percent from 2007. Visitation by non-Florida residents declined 0.8 percent to 21.2 million. The division between Florida and non-Florida resident visitors remained unchanged from 2007 with Florida residents accounting for 53 percent of domestic visitation. The overall number of domestic leisure visitors staying overnight in the destination increased by 0.8 percent to 23.7 million in 2008.

The average leisure travel party in 2008 consisted of 3.0 visitors who spent an average of $1,383 in Orlando over the course of 2.6 nights. Those who spent at least one night in Orlando averaged 4.0 nights in the destination. Families with children accounted for 44 percent of domestic leisure travelers, a decline from 46 percent in 2007. Sixty percent of domestic leisure travelers visited a theme park, making the attractions the top activity for leisure visitors.

The usage of different types of accommodations by domestic leisure visitors reveals some changes in visitor behavior. In 2008, 60 percent of domestic overnight visitors stayed in a hotel or motel, a decrease from 64 percent in 2007. Timeshare usage increased from 13 percent in 2007 to 15 percent in 2008. The proportion of domestic overnight visitors staying in a home, apartment or condominium increased from 17 percent in 2007 to 19 percent in 2008.

2008 International Visitation

Total international visitation increased 18.9 percent to 3.4 million in 2008, 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 9.6 percent in 2008.  With 959,000 visitors in 2008, the United Kingdom accounted for 39 percent of Orlando's 2.4 million overseas arrivals – making it Orlando's top international market. Canada follows the United Kingdom with 940,000 visitors, a 20 percent increase from 2007.

Recap of Key 2008 Visitation Numbers

Sources: D.K. Shifflet & Associates; U.S. Department of Commerce; and Orlando CVB Research Department 

IHS Global Insight, Inc. is an international economic research, analysis and forecasting company with more than 3,800 clients in numerous industries. The company employs more than 700 professionals, researchers and economists at 25 offices in 14 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/Orange County CVB is the branding, sales and marketing organization responsible for positioning Orlando as the destination of choice for leisure and meetings business for the economic benefit of the Orlando region.  The organization celebrates 25 years of destination management excellence in 2009. For more information, visit orlandoinfo.com/research.