Optimistic tourism outlook after a good month

Written by Monica Correa on October 18, 2022

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Optimistic tourism outlook after a good month

With a focus on “maintaining momentum,” the Greater Miami Convention & Visitors Bureau celebrated its annual meeting at the Arsht Center with more than 600 guests, including elected officials, industry leaders and representatives from media.

Weekly hotel demand in Miami-Dade has increased 14.2% since 2019, with 283,500 reservations as of October 1. On September 3, demand exceeded 45% change since 2019, according to STR.

“We actually had one of the best Septembers we’ve ever advertised,” David Whitaker, the office’s president and CEO, said at the event. “For decades, September has been the slow time.”

Miami-Dade’s weekly occupancy rate was 62.2% as of Oct. 1, up 1.6% from 2019. The average daily rate in the county was $170.38, up 17.4 % since 2019.
“We have increased our [hotel] room inventory by 10% over the past year and over 25% over the past three years,” added Mr. Whitaker. “Now we have to fulfill them, so we are encouraged.”

In January-August occupancy, Miami-Dade ranks third in the nation with an average occupancy rate of 73.7%, after the island of Oahu at 76.1% and San Diego. at 74.3%. Miami-Dade also has the second-highest average daily rate at $264.09 so far this year, and the second-highest revenue per available room (RevPAR) at $194.66, which measures the success of the hotel to fill all available rooms.

“We are anticipating a really special drop in terms of advance hotel bookings,” he added. “And for Airbnb occupancy, over $4 million is generated in resort taxes from our Airbnb collections.”

Additionally, during the week ending Oct. 1, Miami International Airport handled 167,426 international passengers, up from 171,065 in 2019, according to the Miami-Dade Department of Aviation.

“Our biggest challenges are the opportunities for our organization and our industry to maintain the momentum we currently have,” said Bruce Orosz, ACT Productions CEO and Office Chairman. “It is up to us to continue to nurture, support and utilize the traditional sectors that we have always relied on, as well as the new untapped potential they can bring us.”

With the announcement of the 26th Black American Film Festival, the 10-year contract with the Miami Formula 1 Grand Prix, the Football College Playoff series coming to Miami in 2026, the 2023 World Baseball Classic, the World Cup FIFA 2026, which is hosting matches in Miami and many other world-class events, “we’re just beginning to tap into the huge potential that’s out there,” Orosz said.

Another high-potential opportunity is harnessing the momentum of medical tourism, he added. “Miami is home to the Center of Excellence…and many of North America’s most influential and respected physicians and researchers, many of whom serve on our Board of Directors.”

The office welcomed 173 new members, surpassing a target of 140 in the 2021-2022 fiscal year, Mr. Whitaker said. The success of the partnership has generated $1,399,000 in revenue to date with 982 current partners. For fiscal year 2023, the target is 1,100.

The Professional Convention Management Association, the world’s largest community for business event, conference and convention strategists, held its Foundation Partnership Summit at the Biltmore Hotel September 15-18, and now she helps bring about 12 new convention leads to Greater Miami, including Federation Eau Environnement in November; the American Society for Nutrition in July 2023; American for the Arts annual meeting, potentially for 2024; the American Financial Services Association Independent Conference in 2025, and others.

The American Society of Association Executives’ annual meeting in Nashville last month helped bring additional leads, including the Society of Human Resource Management’s Inclusion Conference for October 2023; the annual meeting of the American Association for Clinical Endocrinology in May 2024 or 2025; and the American Association for Laboratory Animal Science in October 2027.

To achieve its advertising and programming goals, the bureau was recently approved for a budget of $41.3 million, of which $23.7 million comes from Miami-Dade tourism development taxes; $8.9 million from Miami-Dade food and beverage taxes; $7.9 million from the City of Miami Beach, $1.4 million from partnerships and approximately $950,000 from member programs. The budget plans to use the funds to cover 62%, or approximately $25.3 million, of sales, marketing and promotion; 24% or $9.8 million for personnel costs; 8% or $3.1 million for general and administrative expenses; 3% or $1.2 million for overhead; and the remainder for reserves for future host city events, booking incentives and other expenses.

“We need to engage with our consumers,” Mr. Whitaker said. “We need to be committed to raising awareness for our customers…with all of our members and partners and excited about the success of our growth and partnership. »

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