Orlando Orange County Convention & Visitors Burea Report

Orlando Tourism & Meetings Update Gary C Sain President & CEO Orlando/Orange County Convention & Visitors Bureau, Inc Orlando/Orange County CVB Cost Saving Initiatives 2009 •Salary freeze for fiscal year 2009 •Executive incentives program suspended •One week mandatory furlough for all exempt employees, three day mandatory furlough for all hourly employees •15 open positions have not been filled for a savings of more than $1 million •Employee events suspended •Reduced attendance at industry conferences and trade shows •Suspended three percent voluntary contribution to 401(K) fund for 2009 •Emphasis on more cooperative partnerships to extend marketing programs •Negotiated reduced fees paid to agencies •Decreased activity in tertiary markets (i.e Spain & Italy) •Delayed online travel trade training for Mexico and Brazil •Delayed hiring public relations firm in Brazil until last half of 2010 •Delayed hiring public relations firm in Mexico – 2010 Strategic Plan 2008-2010 • Increase awareness and intent to visit the Orlando area (Branding) With special emphasis on overnight visitation • Position Orlando as the premier worldwide meeting, convention and tradeshow destination in order to increase the economic impact and maximize the full potential of the destination • Position Orlando as the premier worldwide leisure destination in order to increase the economic impact and maximize the full potential of the destination • Create a destination branding and marketing organization that is best in class, with primary focus on high quality staff team members, cost effective resources and a strong engaged membership, in addition to a strong board to achieve the mission Forecast 2008 Industry Review • Total: 48.9 million visitors • Leisure Travel Business • 35.3 million domestic visitors • million international • Business Visitors • 3.5 million overnight Conventions/Meetings visitors • 6.5 million other business visitors • $30.1 billion in total Visitor Spending • Domestic – 93% visitor share, 77% of visitor spending ($23.3 billion) • International – 7% visitor share, 23% of visitor spending ($6.8 billion) Sources: D.K Shifflet & Associates, Office of Travel & Tourism Industries, IHS Global Insight 2009 Key Lodging Markets October 2009 year to date versus prior year Occupancy Rate Market Average Daily Rate Rooms Sold 2009 % Change 2009 % Change Atlanta, GA -9.6% 54.3% -11.3% $84.10 -8.4% Los Angeles-Long Beach, CA -9.1% 65.6% -11.1% $114.86 -11.6% Orlando, FL -9.1% 61.4% -9.1% $93.90 -12.5% Chicago, IL -8.9% 58.0% -11.9% $113.62 -14.6% Anaheim-Santa Ana, CA -6.6% 65.5% -7.8% $110.90 -10.8% San Diego, CA -6.5% 65.5% -10.1% $127.15 -12.8% Boston, MA -5.9% 64.2% -7.3% $139.41 -10.8% Philadelphia, PA -4.9% 63.1% -6.4% $111.24 -9.6% New York, NY -2.7% 77.1% -7.3% $207.11 -23.7% Las Vegas, NV* -3.2% 82.8% -5.6% $92.42 -24.7% Norfolk-Virginia Beach, VA -0.5% 55.7% -4.2% $86.17 -5.3% Washington, DC 0.3% 67.6% -3.5% $146.92 -5.0% Top 25 Markets -6.6% 61.5% -9.5% $117.75 -11.9% All Other Markets -6.6% 54.6% -9.5% $88.09 -6.9% Source: Smith Travel Research *Las Vegas does not report to STR, data was provided by LVCVA, September 2009 National and Orlando Forecasts • Orlando outperformed national travel trends in 2008, but is forecasted to drop more sharply than overall travel in 2009 Slight decline for 2010 National Orlando 2007 2008 2009 2010 2007 2008 2009 2010 Total 0.3% -2.4% -3.9% 0.6% 2.0% 0.3% -9.1% -0.2% -0.1% -2.6% -3.8% 0.5% 1.8% -0.9% -9.0% -0.3% Leisure 0.3% -1.9% -2.3% 1.4% 2.4% -0.1% -8.3% -1.4% Business -1.1% -4.6% -8.4% -2.5% -0.5% -3.2% -11.5% 3.9% n/a n/a n/a n/a -4.5% -7.7% -15.2% -4.5% 9.8% 3.7% -7.7% 3.0% 5.7% 18.9% -9.6% 1.4% Domestic Overnight Conv/Grp Mtg International US Travel Association, TravelHorizons – May 2009 Source: IHS Global Insight, September 2009 Domestic Leisure Travel Outlook • Travel Intention: 53% of U.S adults expect to travel for leisure purposes between now and April 2010 • Future Orlando Visitation: 24% of October 2009 respondents plan to visit Orlando in the next two years, up percentage points from October 2008 (18%) Since this research began in March 2007, future visitation to Orlando in the next two years has ranged from 17% to 26% (peaked in July 2009) • Reasons Not Visiting Orlando: The most common reasons for October 2009 respondents that have never been to Orlando and/or have no plans to visit Orlando in the next two years are that it is too expensive (35%) and economic conditions (29%) Source: Travel Horizons International Travel Outlook • Slight increase in 2010 (primarily Canada/Latin America) • Many leisure visitors are keeping their primary holidays and giving up shorter weekends • South America visitation may deliver strongest increases Brazil accounts for a third of all U.S visits from South America Canada will become our number one international market in visitor volume by year-end • More Accessible – New direct service from Lufthansa, TAM, AerLingus, AeroMexico, JetBlue, Mexicana, Martinair and TACA Airlines • Orlando and the United States are still seen as a good value due to the exchange rate Source: Summer 2009 Outlook, U.S Travel Association Meetings & Conventions Brazil Print/Online • Tour operators reported an increase of 30-100 percent in bookings • Shared a broad offering and length of stay United Kingdom Advertorial Virgin Holidays Award Bronze Award – Best Destination Partnership Number One Golf Destination in America North American Golf Destination of the Year 2010 Union Station Takeover Canada Newspaper Advertorial Publicity and Promotions Television Online Community Initiatives Third Sino - U.S Tourism Directors Summit Education Initiatives Job Shadowship Day Jump at the Sun World Cup 2018/2022 NBA All-Star Game 2012 Advertising ROI 2007-2008 Domestic Return on Investment (ROI) D.K Shifflet & Associates, Ltd Objective: Measurement of the campaign ROI based on incremental visitors Key Topics • • • Awareness of advertising Influence of advertising Visitation and spending Study Sample: • Men and women 18 years or older with an annual household income of $35,000 or greater who had taken or planned to take a leisure trip in the past/next 12 months Methodology • • Four initial campaign contact waves covered the Spring 2007 (TV & Print), Fall 2007 (TV & Print, & Drive Market), Spring 2008 (TV & Print), and Fall 2008 (Print & Drive Market) to determine influence of advertising on intent to visit Orlando has been completed Three re-contact waves fielded during the two year campaign to determined how many of the ad aware respondents had visited Orlando Source: ROI Research – D.K Shifflet & Associates, Ltd 2007-2008 Domestic Return on Investment (ROI) Key Measures 2007/2008 TYPE OF CAMPAIGN National TV Thru Spring 08 & Print Full Years Ad Aware 67.0% Intended Incremental Conversion Rate 10.0% Visited Orlando Since Seeing Ads 34.9% Converted Households Total Incremental Spending Total Advertising Spend 2,124,000 $4,522,000,000 $54,200,000 Source: ROI Research – D.K Shifflet & Associates, Ltd ... Total: 48.9 million visitors • Leisure Travel Business • 35.3 million domestic visitors • million international • Business Visitors • 3.5 million overnight Conventions/Meetings visitors • 6.5 million... Airlines • Orlando and the United States are still seen as a good value due to the exchange rate Source: Summer 2009 Outlook, U.S Travel Association Meetings & Conventions 2009 Meetings & Conventions... International Convention & Exposition 2016 15,500 American Chemical Society Semi Annual Spring National Meeting & Exposition 2019 15,000 Florida United Numismatists Incorporated Annual Convention