AUGUST 15, 2009
Recession Chills Sunshine State Tourism
By PAULO PRADA
WSJ
Despite optimistic signs for the U.S. economy, the recession continues to cloud Florida's hopes that a busy summer travel season will revive its struggling tourism industry. Florida's hotels, theme parks and restaurants have suffered as out-of-state travelers vacation closer to home, or spend less time and money on trips to the Sunshine State. With tourism generating as much as 15% of total state tax revenue, and responsible for as many as one million jobs, many see the tepid summer season as evidence that good times are still a long way off. Exact visitation and spending figures for the summer are still being tabulated. But anecdotal evidence and the data so far suggest Florida tourism won't recover until well after the national economy rebounds.
Rising in-state tourism has made up for a small fraction of the drop in visitors coming from farther away. Even so, visits by non-Floridians are expected to have fallen by as much as 9% during the fiscal year ended June 30, according to the state legislature's Office of Economic and Demographic Research. Tax receipts from tourism and recreation-related activities in the state's current fiscal year are expected to fall by more than $235 million, or 6%.
Amid the backlash over government bailouts and executive excess over the past year, some Florida locales were devastated as corporate and government travel managers began shunning hotels or destinations that could be considered frivolous. Tighter corporate budgets also led to a sharp drop-off in conferences and other business-related events. Many in the tourism business pinned their hopes on a strong showing by travelers taking personal vacations to make up for losses in business travel. But families are spending considerably less than they used to on vacations. Vacationers are also waiting longer to book their travel, apparently hoping for last-minute deals , travel agents say. That has led to heavy discounting by travel and hospitality-related businesses.
Occupancy rates at Florida hotels have declined by about 11% compared with the same period last year, according to data compiled by Smith Travel Research. But room revenue is down by almost 21%. That means hotels are filling their rooms with low-paying customers.. Even Walt Disney Co., which operates the state's best-known attraction, said revenue at its U.S. parks had fallen early in the summer, though attendance climbed slightly.
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On St. George Island, a remote barrier island off the Florida panhandle that is popular with wildlife enthusiasts, visitors have been opting more for deep-sea fishing trips -- and the food that they produce -- instead of shorter, more scenic voyages, like dolphin-watching excursions.
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Printed in The Wall Street Journal, page A3