posted by orlandovacationhome on Oct 29
In what many consider to be a bold prediction, the U.S. Deprtartment of Commerce vis-a-vis the Office of Travel and Tourism Industry (OTTI) projects that international travel to the United States will increase 3% in 2010. This prediction of international tourism growth in 2010 may come as a surprise to many industry insiders. For 2009, a decline of 8% in international travel to the United States is expected. Click here for the full report.
The consensus among industry leaders is that leisure travel appears to be stabilizing, but business travel is still very much of a concern going into 2010. Air travel costs to Florida have also moderated which is of interest to this Florida oriented travel reviews site. Several new venues in Florid are slated for 2010 which should help boost regional travel.
Further trends culled from the OTTI report indicate that the largest country of origin declines in 2009 are projected to be from Taiwan (17%), Ireland (17%), Sweden (12%), Mexico (12%) and the United Kingdom (12%).
The Irish and UK tourism declines are especially troublesome because these areas add many guests for Florida hotels and vacation homes. Other notable contributors to the local economy include Canadian visitation which is expected to be down 6% for the year. On a previous post, we identified the importance of Canadian tourism to Florida hotels and for the Florida travel market in general.
As we indicated on a previous post in early 2009, bright spots for travel to the United States continue to include South America. As a region, South America is expected to rise 1% in 2009 with Brazil setting the bar with a 6% increase.
Consult our travel site for Florida travel reviews and coverage of Orlando vacation home news. The upcoming Florida holidays are a great time to enjoy sunshine and some great values on entertainment. In particular, Orlando has some great new venues opening in 2010 including Harry Potter World at Universal.
Orlando Tourism 2010
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posted by orlandovacationhome on Jun 17
As it becomes apparent that slow domestic economic growth may be with us in the short term, attention turns to where economic and visitor growth opportunities may exist for 2009-2010 and beyond. This will be critical for forecasting growth opportunities for Orlando travel and tourism with the strong indication that the domestic American economy will be negative to sluggish for at least the remainder of the year.
Although somewhat controversial in its application, national GDP growth is a relative indicator for the health of an underlying macroeconomy. According to EU, OECD and IMF national statistical offices, the following forecasted country growth estimates are applicable for 2009:
- United States – 1.5%
- Canada – 1.2%
- Western and Central Europe – 1.7%
- Mexico – 1.0%
- Brazil 1.0%
- Much of Latin America 0-1+%
- China and India 5-6%
The problem for Orlando travel and tourism growth in 2009 is that the top countries with negative economic growth are the biggest current contributors to Orlando’s baseline level of visitor activity.
Although projections can change at any time, Latin American economic growth should help stimulate the middle classes in those countries with the benefit of higher discretionary incomes and subsequent increased travel.
Moreover, there will be some pockets of growth and opportunity for Florida travel, but not enough to offset those areas that contribute such a significant amount to the local economy and provide needed resort tax revenues.
Orlando Travel
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posted by orlandovacationhome on Jun 14
On a previous post, we established that Florida was the third leading state for international travel to the United States according to the Office of Travel and Tourism Industries (OTTI). In fact, Florida was only 50,000 international visitors behind California in 2008 for the second spot. With California’s budgetary woes and most certain forthcoming state park closings, Florida will surpass California for the lucrative international travel tourism market.
On the table is a plan to close 220 of 279 California state parks effecting some 80 million domestic and international visitors. This would include such icons as Big Sur and the Redwoods State Park. This is all in an attempt to close the state budgetary shortfall for roughly $400 million spent on the parks system. More than likely, California will end up passing higher user fees to theoretically close the gap, but this will most likely have a net negative overall economic impact on the state.
Luckily Florida tourism vis-a-vis the state park system does not face these same challenges. The problem California has is that it’s magnificent parks are an implicit part of many international traveler itineraries. Closing or dramatically raising park fees will have a spillover effect on overall international travel volume and further lower state revenues. In fact, many economists calculate a positive 2 to 1 benefit to cost multiplier ratio for California state revenues.
Although Florida tourism is down, travel to Disney and other parts of Florida are still highly viable. As value to the average international traveler increases via discounted tickets, increased attractions statewide and improved international air service, Florida will most certainly surpass California for total international travel volume. Rather than reducing attractions and park services that lure visitors and bring in tax revenues, California should follow Florida’s lead.
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