| Resort-tax collections
reflect November stall - Tourism industry pins hopes on marketing
campaign Central Florida hoteliers are hoping that Orange
County's new multimillion-dollar promotional campaign will
reinvigorate the lumbering tourist industry and reverse a
long-running decline in hotel occupancy rates.
On Tuesday, the Orange County Comptroller's Office reported
that resort-tax collections -- the tax collected primarily
from hotel and motel room rentals -- rose a comparative 1
percent in November from the same month in 2005.
"We are obviously in a flat pattern as far as the hospitality
industry in Central Florida goes," said Rich Maladecki,
president of the Central Florida Hotel & Lodging Association.
"We in the industry feel we need to help jump-start the
market through our new marketing campaign."
The Orlando/Orange County Convention & Visitors Bureau
is coordinating the campaign, which will begin late this month
and last two years. Funds from a 1-cent increase in the resort
tax imposed in September will fund the effort.
In September, the resort tax rose from 5 percent to 6 percent.
That additional penny brought in $2.1 million in revenue in
November. In order to compare performance in November with
the previous year, the comptroller's office excluded the additional
tax.
On the first 5 percent, the county raised $10.5 million in
November, 1 percent more than in November 2005.
Smith Travel Research, which surveys metropolitan Orlando
hotels outside Walt Disney World, reported that hotel occupancy
was down 8.1 percent in November compared with November 2005,
while room rates rose an average of 7.7 percent.
Maladecki said the industry is eager for occupancy rates
to rise. He said the major obstacle is promotion -- other
destinations have bolstered marketing campaigns, he said,
while Central Florida has relied on theme parks and other
businesses to do most of the advertising.
"We just didn't have the resources to do our own promotion
in the past, but now we do," Maladecki said.
Kelly Repass, senior research director with the visitors
bureau, said her organization hopes the promotional drive
will contribute to increased travel to the area. But she said
the travel industry has cycles, and the pattern of lower occupancy
is probably indicative of a cycle.
"The pattern in 2006 was perhaps a more normal pattern
that followed big growth in 2004 and 2005," she said.
Greg Hauenstein, general manager of the Buena Vista Palace
Hotel and Spa and 2007 chairman of the Central Florida Hotel
& Lodging Association, said the industry hopes to break
free of the recent pattern as promotional spending rises.
"There is a lot of demand waiting to return to the Orlando
market," he said. "The timing is now perfect for
these new marketing initiatives."
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