Florida Trend | Florida's Business Authority

Packing Them In


REASON TO SMILE: All indicators point to a brisk season for tourism, industry followers say.

Local experts predict the pace of tourism in Florida will likely eclipse the rest of the nation, which is expected to see growth of about 2% this year. Bob Bosselman, director of the Dedman School of Hospitality at Florida State University, says he has seen more companies interested in recruiting his students now than at any other time in the past five years. "Most are getting multiple offers," he says, "which suggests to me a very strong 2006."

Bosselman credits the coming boom to an adjustment in the mindset of Americans: "People have finally adjusted to a post-9/11 world," he says. Florida hotels, he adds, are destined to do particularly well thanks in large part to the fact that they did not overbuild after Sept. 11. Now, as demand is increasing, higher room rates are sticking. "They're going to be fairly cash rich," Bosselman predicts.

Abe Pizam, dean of the Rosen College of Hospitality Management at the University of Central Florida, expects a brisk season for tourism during the first half of 2006 but worries the threat of hurricanes could have a depressive effect on the industry. "The big question is what will happen in the summer," he says.

Every indicator she's seen, says Carol B. Dover, president and CEO of the Florida Restaurant and Lodging Association, also suggests that tourism will "continue to be strong." Even after Hurricane Wilma slammed into Florida, Dover says the hoteliers she spoke with reported that their numbers were up.

Hot Spots

Most popular domestic or international destinations for travel this winter:

  1. Caribbean
  2. Mexico
  3. Hawaii
  4. Florida
  5. Europe

Top 5 agent recommendations for the best "warm weather" domestic or international destinations for travel this winter:

  1. Caribbean
  2. Mexico
  3. Hawaii
  4. Florida
  5. Australia

Source: AAA surveyed its travel agents in October 2005, asking about travel during the winter season

THE SPORTS PLAY

Baseball's been a boon for tourism. Attendance at Florida spring training games last year reached record levels, with close to 1.6 million people, an average of 6,244 per game. Nick Gandy, spokesman for the Florida Sports Foundation, says amateur and recreational sports are also boosting tourism. In 2005, a ballroom dancing competition brought 8,000 people and $5.3 million to Broward County. In its last fiscal year, the Florida Sports Foundation awarded $653,000 in grants to 77 sporting events that are expected to draw about 227,000 out-of-state visitors.

Person to Watch


RICHARD KESSLER
RICHARD KESSLER
CEO, Kessler Enterprise,
Orlando

Richard Kessler, who built his fortune running the Days Inn of America motel chain, now focuses on high-end boutique hotels. His Kessler Enterprise operates nine four-star theme hotels across the country, including four in Florida. His latest project is the Grand Bohemian Hotel and Residences slated to open in 2009 in downtown St. Petersburg.

Foreign Interest

If Florida were its own country, it would be the fifth-most visited nation in the world by Expedia customers. International travelers spent about $13.4 billion in 2003 in Florida, according to the most recent statistics available, and the state ranks first among all destinations for Expedia's Canadian and U.K. customers. (It's the second favorite destination of German jetsetters and third among French travelers, an Expedia company representative reported at the 2005 Governors Conference on Tourism.) The number of British travelers to Florida slipped 17% last summer and is projected to be down 13% this winter, according to AC Nielsen. Virgin Holidays, the leading U.K. tour operator to Florida, says the decrease is driven by economic factors, fuel costs and confusion over the entry process into the U.S.


HURRICANE FACTOR:
Bobby Cornwell, president of the Florida Association of RV Parks and Campgrounds, says Florida's $5-billion RV park industry actually "benefited" from last year's hurricanes. Misplaced residents, insurance adjusters and aid workers filled up the 800 or so RV campgrounds around the state, and 2006 looks promising. "Reservations are up," says Cornwell.


FUEL FACTOR: Despite rising gas prices in 2005, consumers did not stay home en masse and are unlikely to do so this year. Whether higher heating costs this winter -- one-third to 50% higher -- keep them home remains to be seen.