Orlando Visitors Impact Local Economy by $29.8bil

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. October 14, 2008

ORLANDO, FL, December 26, 2007. With 47.8 million visitors in 2006, tourism generated $29.82 billion for the local economy, according to an economic impact study by Global Insight and Fishkind & Associates. According to the report by Global Insight, Inc., the 45.1 million domestic visitors to Orlando in 2006 (94 percent of total visitation) represented 83 percent of visitor economic impact, totaling $24.6 billion. The area's 2.7 million international travelers accounted for 6 percent of visitation, but were responsible for 17 percent of visitor spending, contributing $5.2 billion to the local economy.

2006 Economic Impact

Metro Orlando Visitor Spending

The $29.8 billion in visitor spending estimated by Global Insight for 2006 supports local employment, pays for government services and creates tax savings for area residents. According to a report prepared for the Orlando CVB by Fishkind & Associates, the tourism industry in Orange County generated $141.1 million in surplus revenues for the Orange County and City of Orlando governments, supporting many services that would otherwise be paid for by area taxpayers. Tourism also generated a net fiscal surplus for the Orange County School Board of $57.6 million. These surpluses do not represent excess revenue but the degree to which tourism pays its share of government expenses while helping to lower the tax burdens of area residents. In 2006, the combined net fiscal impact for Orange County, the City of Orlando and the Orange County School Board was $198.6 million. Fishkind & Associates estimated that government revenue from industry related sources such as tourism business property taxes save each Orange County household $489 in additional taxes.

As Central Florida's largest industry, tourism accounted for 224,057 direct industry jobs in 2006, 23 percent of the total employment in the tri-county area (Orange, Osceola and Seminole), according to Global Insight. The tourism industry also accounts for 154,959 indirect and induced jobs, bringing the total to 379,017 jobs. Wages generated through direct industry jobs totaled more than $8.3 billion. Indirect and induced employment added an additional $7.4 billion in wages for a total of $15.7 billion.

2006 Domestic Visitation

Among domestic travelers, leisure visitation decreased 4.8 percent to 34.5 million while business travel increased 1.9 percent to 10.6 million visitors. Of the business travel segment, overnight visitors attending meetings and conventions increased by 3.6 percent to 4 million. Visitation to Orlando by Florida residents totaled 23.9 million in 2006, down 2.8 percent from 2005. Visitation by non-Florida residents decreased 3.9 percent to 21.2 million. The division between Florida and non-Florida resident visitors remained unchanged from 2005 with Florida residents accounting for 53 percent of domestic visitation. The overall number of domestic leisure visitors staying overnight in the destination decreased by 3.8 percent to 22.7 million in 2006.

The average leisure travel party in 2006 consisted of 2.9 visitors who spent an average of $1,617 in Orlando over the course of 2.7 nights. Average party size and length of stay remained unchanged from 2005. Those who spent at least one night in Orlando averaged 4.2 nights in the destination. Families with children accounted for 39 percent of domestic leisure travelers, a decrease from 46 percent in 2005. Additionally, 67 percent of domestic leisure travelers visited a theme park, making the attractions the top activity for visitors.

The usage of different types of accommodations by domestic leisure visitors reveals some changes in visitor behavior. In 2006, 65 percent of domestic leisure overnight visitors stayed in a hotel or motel, an increase from 62 percent in 2005. Timeshare usage decreased from 15 percent in 2005 to 13 percent in 2006. The proportion of domestic leisure overnight visitors staying in a home, apartment or condominium increased to 17 percent in 2006 from 16 percent in 2005.

2006 International Visitation

Total international visitation remained unchanged at 2.7 million in 2006, but continued to fall short of the year 2000 peak of 3.7 million international visitors. With increasing competition in both domestic and global travel markets, Orlando's share of overseas arrivals to the United States has declined from 11.4 percent in 2000 to 9.2 percent in 2006. With 973,000 visitors in 2006, the United Kingdom accounted for 48.8 percent of Orlando's 2 million overseas arrivals - making it Orlando's top international market. Canada follows the United Kingdom with 693,000 visitors, a 5.5 percent increase from 2005.