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.
My family and I have been travelling to Florida for over 25 years now and have seen some major changes in the Disney area such as International Drive changing from what used to be “the place to stay” to now being “the place to avoid” unless you are into cheap tea shirts and Chinese ornaments. We have stayed at the Marriott (now Wyndham), the Castle and the Quality Inn Plaza, the first two of which were very comfortable but the Quality Inn left a little to be desired.
Having travelled there pretty much every other year for the first 18 years or so and saw the gradual decline in standards down International Drive we decided to buy a Villa on Lake Berkley Resort back in 2001 and have never looked back since. Sure we took a hit with rentals for a while after 911 and the market is depressed at the moment but we did get over 35 weeks rental in 2008 and have over 22 weeks so far this year which goes to prove that people still want to holiday in Florida and in particular the Disney / Kissimmee area, plus if you are on a well kept gated community such as ours it is a bonus.
Although new building work in Osceola County have more or less come to a standstill it is good to see that the old Beltz outlet on International Drive has been completely re-built to a more modern standard and work is going on where the old Mercado used to be. Florida is still high on the list for family holidays and as long as the GB pound is strong against the dollar I think the trend will continue.
John