Conexión Florida – May

Here’s the Conexión Florida ‘Tourism in the Gulf’ article for May.

Why do you go on vacation? Certainly, it is to rest and recharge your batteries. According to a multi-lingual friend of mine a phrase like “All work and no play makes Jack a dull boy” is used in many different cultures, so getting away from your usual routine is certainly a good reason to go on vacation. Here on the Northern Gulf Coast it’s usually assumed that our visitors come for the beach. After all our beaches are beautiful! Ask the tourists and that’s what they’ll probably tell you, but if you delve a little more deeply, the answers become more enlightening.

How many of our guests actually spend all their time on the beach? Relatively few, if truth were told. They come for the food, the shopping, and yes, the experiences. They come for the beach lifestyle certainly, but there’s much more to that than lying on the sand.

Tourists to the Gulf Coast are pretty much three main types: families, millennials (born between 1978 and 2000) and boomers (born between 1946 and 1964). The last two types are the largest traveling groups and they tend to arrive not only during the school vacations, but throughout the year. Both groups are looking for experiences. They want to do things that they can’t do in their day-to-day life, and they want to share that experience on their social media with friends……..

Read the rest of the article HERE

Conexión Florida April 2018

Here’s our Conexión Florida Tourism column for April.

Last month we discussed how tourism developed and how it contributes to local economies. Over the past few weeks there have been some developments to tourism here on the Northern Gulf Coast that I thought you’d find interesting.

Tourist Development Tax (TDT), commonly known as Bed Tax, was set up to be paid only by tourists and to fund the promotion of tourism in the areas where it’s collected. Now, you may think that that just means it can only be spent on advertising a destination, but that’s far from the case. Bed tax, certainly in Florida, can be used for a whole range of projects. This ranges from providing life guards on beaches, creating museums, running convention centers, developing artificial reefs, building beach access, repairing beaches where weather or tides have caused erosion, through, of course, marketing a destination.

As TDT can generate substantial amounts of revenue, it has attracted the attention of some legislators who would like to use it for non-tourist related uses, for example paving roads in non-tourist areas for example. Consequently, proposals have been put forward in the Florida Legislature to change the rules.

Read the rest of the column HERE

Conspiracy theory?

Okaloosa Island Beach

I received a comment recently from a visitor who was asking if there was a ‘coalition of local Hotel/Motels that controlled prices during the summer season’.  The gentleman thought that as rates were as low as $120 in the winter season and as high as $600 in the summer it must be a plot to rip off tourists.  His suggestion was that such summer prices were beyond the resources of less affluent travelers and that such rates would discourage visitors from out of state.

Naturally I told him that such collusion was illegal and was very much discouraged within the industry. The Florida Restaurant & Lodging Association actually read out an anti-collusion statement before each meeting just to make sure that everyone is aware.

Not only that but to actively jointly raise prices would take away the element of competition that drives the tourism industry.   I’m not saying such practices haven’t happened, but it doesn’t seem logical.

In fact I think there is a case here in Northwest Florida, and in other very seasonal destinations, where the low rates of winter are actually subsidized by the higher summer rates.  Accommodation providers suffer from a difficulty in employing enough staff for the summer peaks. They don’t want to loose good year round employees by laying them off during the winter so in many cases use the profits generated in the summer to keep everything running during the winter.   I think that applies to many restaurants too.

Basic economics would indicate that the law of supply and demand is working well.  Winter rates are low to encourage whatever business can be attracted.  Summer rates are high because there is a finite amount of stock and a limited amount of time when the majority of tourists can be here – essentially Memorial Day to Labor Day, although with schools breaking later and returning earlier that window is getting shorter.

Ideally our tourist season would be spread out allowing for a greater spread of rates. That would also encourage year round employment and less of a scramble for high season staffing.

All of us in the industry know this.  If there is any collusion it’s to try and encourage tourists during the periods outside of the peak summer months. Various attempts have been made to rename this as ‘the best season’. That’s fine as a customer facing branding exercise but within the industry we must call the seasons what they are: low, shoulder, peak and (July 4th week) Super Peak.

Of course by attracting tourists in April, May, September and October we’re in danger of alienating our locals who consider these periods of perfect weather and low traffic as ‘their own’ and reward for putting up with gridlock traffic and no restaurant space in June, July and August. Not to mention Spring Break – so I won’t mention it.

A similar situation exists in Europe where school holidays (vacations) govern package holiday and flight prices.  Another case of supply and demand.  Airlines and tour companies have been accused of artificially raising prices during the vacations making travel for families beyond affordable.  Some parents in the UK have been taking their kids out of school in term time to get lower prices.  They are fined by the schools, but just factor the cost of the fines into their vacation costs.

The solution?   Many little things I fear, each of which would have a small result but the culmination would be sizable.

  1. Encourage the school systems to stagger their break periods.  Some do this, but not enough.
  2. Work with school systems to stop shortening summer breaks. 
  3. Go after markets that have different school vacation periods – Canada and Europe for example.  UK Schools don’t break until July and don’t go back until September. They also have longer ‘half-term’ breaks in October and November and around Easter.  Our weather in those times is perfect for the Northern Europeans.
  4. Expand our marketing to those sectors that aren’t governed by school timetables.  Millennials, younger boomers, empty nesters, the list is almost endless.
  5. Actively promote lower rates outside summer. Many do this already.
  6. Strengthen weekend break and short break marketing, out of high season, to places like Atlanta, Birmingham, Tallahassee and new markets thrown up by the likes of Allegiant Air and Southwest.

We also need to have some regional agreement on marketing.  Continuing to market as just South Alabama, Escambia, Santa Rosa, Okaloosa, Walton, Bay, etc., etc., and ignoring the fact that for some marketing a regional approach is more effective can be counter productive.  Some work is being done in this direction and should be applauded and encouraged.

Of course we also have to get the message out to our visitors, like the gentleman who contacted me, that the reason the prices are high in the summer is exactly because we attract so many tourists at those times. Far from being put off they come anyway, and that lets us put up prices, subsidizing the less busy seasons.

As I say, basic economics.   …..or perhaps there is a conspiracy that I haven’t been told about!

Talking Tourism: Lesser-used facilities open gateways to cheaper travel

This article originally appeared in the Northwest Florida Daily News.

I recently had to take a flight back to England, and this allowed me time to give some thought to the changing face of aviation and its effect on tourism. Air services and airlines have been at the center of the explosion for tourism — not only worldwide, but within the U.S.

To many of us, all airlines are the same and essentially just a way of getting from one place to another. We tend to expect them all to provide the same sort of services and behave in the same way. There are, however, as many different sorts of airlines as there are different sorts of hotels and accommodations. Each matches the particular needs of varying sets of travelers.

For the business traveler, flights at the right time, that are on time and the ability to work while flying are probably more important than price. For the leisure traveler on a budget, price is the most important factor, with fast inflight Wi-fi and lots of leg room worth sacrificing. When I was involved in selling flights from the U.K. to Australia for vacationers, if our advertised price was $5 more than a competitor’s, our phones simply didn’t ring — and that was when the average price was around $1,200. Our lead-in price had to be $499 to get people to call.

I mention all this because a recent entry into the transatlantic flight market is stirring things up. Norwegian Airlines has been a “low-cost carrier” since 2002 and now serves 150 destinations around the world. Although they term themselves low-cost, they emphasize low fares with excellent service. Many in this category of airlines in the U.S. have achieved lower costs by using one kind of aircraft and cutting inflight service, meals and charging for what they term optional extras — like baggage! Norwegian claims instead that new efficient aircraft and a lean operation is their answer. They also fly to some interesting destinations.

For example, they not only fly from Gatwick Airport in London to both JFK in New York and Newark Liberty International in New Jersey, but also fly to Stewart International Airport, a lesser used facility 70 miles north of the Big Apple. They fly to Boston, but also to Providence, and not just to Los Angeles, but also Oakland.

By using lesser known gateways, they can keep their prices low. That leads me to think that the Panama City, Pensacola or Destin-Fort Walton Beach airports could be interesting potential gateways for a carrier like Norwegian. They can offer the Europeans low cost airports, fantastic beaches, great weather, access to the northern Gulf Coast, and the whole Southeast of the U.S. In return, that would also give us locals access to European destinations at bargain prices. Someone call the folks at Norwegian Air!

Of course, there are other airline types — legacy carriers, flag carriers, tourist and leisure airlines, main-line services, commuter and feeder lines, intrastate and regional carriers. All have different ways of getting us from here to there. We’ll look at differences in coming weeks.

Martin Owen is an independent consultant to the tourism industry and owner of Owen Organization in Shalimar. Readers can email questions to martin@owenorganization.com.

Tourism situation – now.

This article appeared in the Northwest Florida Daily News on Sunday, June 19, 2017

 

By this time of the year, we are usually in a good position to know what sort of success the tourism industry is having not only locally, but nationally and internationally, as well. At the midpoint of 2017, the state of the tourism market is throwing up all sorts of conflicting results.

Here in Northwest Florida, where only 1 percent of our tourism is currently of international origin, we think that our domestic, drive-in visitors make us immune from trends in other sectors. Strangely what happens in one market does have an effect on the other areas.

First, the good news. Our local hospitality professionals are reporting excellent advance bookings for the summer season and bed tax collections have been up for the first quarter of the year. Important also is that bookings for attractions and experiences have been very strong in the first quarter and advance bookings are ahead of last year.

Visitors to Florida were up by 2.5 percent for the first quarter of the year over 2016 with 3.1 million visitors arriving. Visitors from Canada and UK were down but an increase in domestic visitors more than filled the gap.

Statistics from credit card companies for Northwest Florida show an increase in spending from cards with Canadian, UK and German addresses. Okaloosa County’s DMO (Destination Marketing Organization) feels this can be put down to Canadians preferring our area to central and south Florida, and that new flights into New Orleans from London and Germany may be bringing visitors here.

On the other side of the coin, the strength of the dollar against overseas currencies and other factors may discourage Europeans from heading to U.S. destinations. Some areas of Florida are seeing drops in online inquiries from the UK by as much as 60 percent. Foursquare, a location technology company, says that America’s market share of international leisure tourism declined an average of 11 percent between October 2016 and March 2017. However, the financial attractiveness of traveling to Europe has seen a huge increase in Americans heading east across the Pond with an 80 percent jump in U.S. to UK bookings reported by Expedia, an on-line travel agent.

So, nothing really conclusive, but the trend is currently good for Northwest Florida, which relies on domestic tourists. But with fewer internationals coming to the U.S. and more Americans traveling to Europe, the U.S. destinations that usually welcome overseas guests may start looking at attracting “our” domestic visitors. That’s not a good portent for 2018.

If the proposal to close Brand USA and the cut to Visit Florida’s budget from $100 million to $25 million goes ahead, then the Sunshine State will loose out to California and other domestic and foreign places. Areas like Orlando and south Florida may use their budgets and publicity to try to steal “our” visitors. It’s a distinct possibility.

It’s essential that the Gulf Coast destinations redouble their efforts to keep our exiting visitors and develop new markets as soon as possible. Nothing is definite, and we look set to have a really good 2017, but 2018 … who knows?

Martin Owen is an independent consultant to the tourism industry and owner of Owen Organization in Shalimar. Readers can email questions to martin@owenorganization.com.

 

It should be noted that since this piece was written, the Florida Legislature have authorized a $75million budget for Visit Florida, albeit with severe restrictions on their ability to operate effectively.

TALKING TOURISM: Promoting area’s hospitality jobs worth exploring

This article was published in the Northwest Florida Daily News on Sunday May 20. 2017.

A few weeks ago I wrote about the need to train our tourism and hospitality employees, and mentioned the new courses being set up by Northwest Florida State College in addition to those being offered by the University of West Florida. At a recent meeting I sat with folks from our accommodation providers, restaurants and attractions who were discussing the challenges they face. All agreed that the advanced training being provided is absolutely vital to our future as not only a growing tourist destination, but one that was constantly increasing its professionalism, and as a consequence the quality of its tourists. Higher quality equals higher spending.

One of the biggest problems they face, if not the biggest problem, is actually finding those employees. Every spring sees a rash of “Now Hiring” signs along the Emerald Coast. Companies look far and wide to fill the positions that will cater to our tourists throughout the season to come.

To read the rest of the column, please click HERE

TALKING TOURISM: Breweries could offer a new tourism niche

This article appeared in the Northwest Florida Daily News on Sunday May 13, 2017

Our third president, Thomas Jefferson said “Beer, if drunk in moderation, softens the temper, cheers the spirit and promotes health.” He could have course said the same thing about tourism, particularly if combined with beer!

I recently visited Asheville, North Carolina, on a research mission – OK, it was vacation but I’ll stick with my story. We took in tours of a couple of breweries – New Belgium and Sierra Nevada both have large establishments there. These are craft brewers, albeit big ones who needed to have presence on the East Coast. Both companies started up out west and have found the combination of location, water supply and culture in Asheville matched their needs. There are also smaller brewers located in the area along with hard cider makers. The interesting thing is that these companies have become an integral part of the local tourist industry.

To read the rest of the column, please click HERE

TALKING TOURISM: There’s financial benefit to dog-friendly accommodations

This article appeared in the Northwest Florida Daily News on Sunday May 6, 2017

A couple of years ago I got into a conversation with the general manager of a very large hotel that is known for its attention to detail and 5-star accommodations. It’s also a large conference hotel, so it’s not a small “boutique-style” location.

We got talking about niche markets; those parts of the customer base that have particular needs and wishes. It appeared that the hotel was given the chance to become the host hotel for the largest dog show in the U.S. and her conference department could not pass up the chance for the amount of business the show would bring. Naturally, she was more than concerned at the thought of literally hundreds of dogs staying at a 5-star establishment.

To read the rest of the column please click HERE.

Tourism leader supports beach access for pups

This article appeared in the Northwest Florida Daily News on Tuesday, May 2, 2017.

Like other parts of Northwest Florida, Okaloosa County could attract a lot more economy-boosting visitors by opening a portion of its beaches to dogs.

That’s according to Martin Owen, a Shalimar-based tourism industry consultant who regularly attends Tourist Development Council meetings.

“It’s niche tourism we can attract, particularly out of season,” he said Thursday. “A lot of dog owners tend to like traveling with their dogs. Our neighboring counties are addressing this, and so is Okaloosa.”

County Marine Economic and Tourist Development Resource Coordinator Erika Zambello shared information with the TDC on Thursday about dog-friendly beaches in Walton County and Pensacola Beach in Escambia County. But she said she has not had any discussions with other Okaloosa County officials about establishing a dog-friendly section of beach.

With the exception of service animals and police dogs, dogs are prohibited on the publicly owned beaches of Okaloosa County, Destin and Santa Rosa County. In Walton County, property owners and permanent residents can bring their leashed dogs on the beach during certain hours and with a permit.

People who violate Okaloosa County’s law pertaining to dogs on the beach could be cited with a fine of at least $100. But such citations are rarely given, county officials said.

Usually, sheriff’s deputies will ask violators to remove their dogs from the beach and the dog owners do so without a problem, county spokesman Rob Brown said.

To read the rest of the article CLICK HERE

Two smooth Collies enjoy the beach on St. George Island, Florida
Two smooth Collies enjoy the beach on St. George Island, Florida

Daily News TALKING TOURISM: A layman’s look at how bed tax works

This column was published in the Northwest Florida Daily News on Sunday March 2, 2017.

I’ve been asked a number of times to explain how bed tax, or Tourist Development Tax, is used. There also have been some letters suggesting that it be used for items or services that aren’t currently covered, so I thought a brief explanation might be useful. Please bear in mind that I’m not a lawyer, but it would appear that even some lawyers can’t agree on the interpretation of some bed tax clauses, so I’ve gone with what the TDCs, tax collectors and others usually use.

You may remember that bed tax was set up to be charged on short-term rentals in designated tax areas. Some counties implement across the whole county (Escambia for example) while others have specified tax areas (e.g. Okaloosa and Walton). The tax is collected by the rental companies and hotels, and paid to the tax-collecting body of the county. Owners can pay direct to the county, too.

You can read the rest of the column HERE