|
|
The Economy of Tourism Big Profits and Perception Problems are All Part by
|
|
|
The Economy of Tourism Big Profits and Perception Problems are All Part by
|
The Emerald Coast tourism industry has long proven to be a survivor, despite hurricanes, beach erosion, drowning and shark attacks – and the negative international publicity that ensues following such attacks. This economic cornerstone surges ahead, bringing more than 7 million visitors – and their wallets – to Okaloosa and Walton counties each year and directly providing more than 45,000 jobs for residents.
The pristine beaches and waters, bountiful fishing, shopping, coastal dining and recreational opportunities thrive in a unique symbiosis that has lured visitors and sportsmen for generations.
This unique "economic ecosystem" must resist the predations of storms, erosions, competing markets, threats to fishing stocks and similar disasters in order to survive. Moreover, it must protect and preserve its image as a vacation destination.
Bed-tax collection data from the University of West Florida’s Haas Center for Business Research and Economic Development is a standard rule of measure of the health and resiliency of this industry sector. This targeted tax collection, drawn from lodging dollars, is assessed at 4 percent for Okaloosa and Walton counties and is used to support tourism initiatives.
"Proceeds from overnight visitor dollars are used to protect and maintain the beaches and market the destination throughout the country," said Kriss Titus, executive director for the Beaches of South Walton Tourist Development Council. "We collect 4 cents of bed tax for every dollar of lodging revenue on short-term room nights sold."
Combined, the two counties levied more than $17 million in collections from $425 million of lodging revenue in 2006. The Haas Center data further suggest that even during periods of unusual storm activity, the tourism dollars readily recover.
Since tourism activity and the tourism profile vary throughout the year, comparing monthly data on a year-over-year basis sheds light on how the area rebounds.
During the three-month period encompassing
Hurricanes Dennis, Katrina and Rita in the summer of 2005, total,
inflation-adjusted revenues, as reflected in the Haas Center’s bed-tax data,
declined by 17 percent from the same period in 2004. However, in the same
August-through-September period in 2006, collections were up more than 22
percent over 2005.
Beaches and Water: Pulling in Tourists
Among the myriad amenities that appeal to tourists, the economic engine is
driven by a key element: the beaches. Without them, the area would not have as
many tourists, and coastal land and properties would be just expensive seawalls.
"Without a doubt, the core driver of our economy is the beaches," said Shane Moody, chief executive officer of the Destin Area Chamber of Commerce. "That’s why people come to Destin and South Walton. People love the water – they always have. But while the beaches are the draw, the Destin Harbor makes us unique. There are very few resort areas you can visit and have a working harbor like we have here. And as redevelopment occurs on the harbor, it will become an even larger attraction – not just for our visitors and tourists, but for residents as well."
Dawn Moliterno, chief executive officer of the Walton Chamber of Commerce, agrees.
"The white sandy beaches are our core driver, and when you add in the emerald water, how much better can it get?" she asked.
Jim Breitenfeld, executive director of the Destin Harbor Association, a business association dedicated to revitalizing the harbor, also agrees that the beaches are important but also includes the harbor as something that distinguishes the area from the competition.
"The beaches are clearly the core driver of our tourism economy," Breitenfeld said, "but we will suffer if all we have is the beaches. Everyone for a hundred miles to our east and west has beaches. This is why we are working so hard to see responsible and exciting development come to the Destin Harbor District. It will be a new destination with many new alternatives for tourists."
Ted Corcoran, chief executive officer of the Fort Walton Beach Chamber of Commerce, adds that beaches are only the beginning of the attraction and that other amenities eventually appeal to visitors.
"Once here, they experience the shopping and
restaurants," Corcoran said. "Sometimes when they return they don’t
even go to the beaches anymore. Thus explains why Thanksgiving week and
Christmas shopping season have become busier."
Threats to Tourism – Real or Imagined?
Threats to our beaches and harbor clearly need to be addressed proactively.
However, some threats may exist only in tourists’ perceptions. Specifically,
adverse publicity or misinformation can do great harm in the increasingly
competitive arena of tourism marketing. Such negative publicity is further
exacerbated when it gets into the national spotlight, with coverage so wide that
marketing dollars simply can’t stand up to it.
Moody notes that the perception stemming from hurricanes persists long after the area has recovered.
"The past two years, the tourist-driven economy has been down due to the bad publicity we received because of Ivan and Dennis," Moody said. "In fact, we still get calls in our office with questions about ‘recovery.’ The ironic part of that is we were up and running shortly after both storms. It’s very difficult to overcome live media coverage from your beaches during those types of storms."
Moliterno, who also is a member of Walton County’s Beach Education and Safety Committee, agrees with the notion of visitor perception.
"When a hurricane happens anywhere in the Gulf Coast, the perception is that we are wiped out or not recovered," she said. "The Beaches of South Walton Tourist Development Council does an excellent job in getting the word out that we are open for business and our pristine beaches look better than ever."
However, a very real threat, according to Moody, is the issue of restoring local beaches.
"This is important, not just to have the
beaches for people to visit, but for the protection of the upland
structures," Moody said. "We have to move forward with beach
restoration, and we must find a way to fund it."
Turn Off the Weather Channel and Come on Down
With 32 years of economic development experience – 17 of those spent on
the Emerald Coast – Breitenfeld understands the importance of tourism to this
area. He said that in the increasingly competitive market for tourist dollars, a
proactive approach is essential.
"I think the biggest threats to tourism in Destin are perception and competition," Breitenfeld said. "The perception issue is one we share with the entire Gulf Coast, and it stems from our recent hurricane history. The near-hysteria the Weather Channel generates when a tropical storm with 35 mph winds makes landfall 300 miles from us causes many folks to change vacation and travel plans. We, as a community, need to find a way to more aggressively combat this with the facts. The competition issue simply means we need to keep reinventing ourselves while holding on to our core fishing heritage and maintain our harbor and beaches at their highest level."
Corcoran, who also serves as a Destin city councilman in addition to his chamber position, sees hurricanes as the biggest threat – but also places a lot of blame on the media.
"The Weather Channel is one of the worst things that could have happened to our tourist business," he said. "With over 90 percent of our visitors driving here, we have never seen a downturn since 1990 (when the Tourist Development council started tracking occupancies), except for after hurricanes. Hurricanes scare people away, and deservedly so – they are very scary.
"Before the Weather Channel, folks in our major feeder markets wouldn’t think twice about deciding to come down here on a Thursday afternoon or Friday morning and simply drive to the beach for the weekend," Corcoran said. "If it rained – once they were here and had paid their lodging facility – they had to find alternative fun besides the beach. Now, the Weather Channel is the first place they look before deciding to consider going to the beach. If they see even a potential for bad weather, the trip is canceled."
National Spotlight: It All depends
"I don’t think it affects us appreciably at all," Moody said. "Are there effects? Absolutely, but we keep moving forward. The key to (managing a) negative image is to be prepared to handle it, and I think the community does a great job at ‘keeping the faith.’"
Moliterno believes the Emerald Coast needs to be proactive.
"In today’s society, the news spotlight is fickle and changes in a heartbeat," she said. "Today’s headline is yesterday’s news. It is important for us to continue to tell the story about all the good events, beach restoration and great recreational opportunities we have to offer in this region, while educating the public on safety to avoid some of these tragedies."
Perceptions indeed reshape tourists’ mindset – and probably no event in our nation’s history did more to rattle the traveling public’s mind than the terrorist attacks of Sept. 11, 2001. In September 2001, bed-tax collections for Okaloosa and Walton counties dropped by 4.6 percent as compared to the same month the previous year. Collections rebounded for September 2002 by 17.9 percent, attesting to the area’s resiliency as a vacation destination.
Economic Diversity Ensures Survival
"The whole purpose of economic development is to diversify the economy from the onset," said Larry Sassano, executive director of the Okaloosa County Economic Development Council.
While the economic activity generated by tourism in Okaloosa alone approaches the gross national product of Nicaragua at $1.5 billion a year, the impact generated by the military and defense contractors anchor the county’s economic base with $4 billion per year, according to figures provided by the Okaloosa County Economic Development Council.
Consequently, the economic development councils of both Okaloosa and Walton counties pursue economic diversity objectives. Okaloosa County currently is focusing on the creation of an Emerald Coast Research and Technology Park to bring more research initiatives.
Although always on the lookout for opportunities to diversify the county’s economic base, Walton County Economic Development Council Executive Director Robert Smith acknowledges that the county is leveraging its strengths with tourism.
"Regardless of whether it was planned or came about as a result of demand and opportunity, Walton County followed a basic economic development principle: You identify your natural assets and resources, then add value and market your product," Smith said.
The Emerald Coast’s beaches, harbor and waters clearly are our most valuable natural assets – so protecting them, as well as the marketing message, is the challenge.
* * *
Scott Jackson
Mindlace Media & Photo
Destin, Florida
© 2007 Scott Jackson
