Visitor Profile and Economic Impact Study
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1 Synovate Tel NW 17TH Street Fax Suite Miami, Florida Visitor Profile and Economic Impact Study January-December 2008 Prepared for Prepared by Greater Miami Convention & Visitors Bureau Synovate - Miami Date May
2 I. INTRODUCTION This report contains a summary of the major results of the Visitor Profile and Economic Impact Study conducted for the Greater Miami Convention & Visitors Bureau during In 2008, 5,422 intercept interviews with Miami visitors were conducted. The study is conducted annually to determine a number of characteristics of the overnight visitor to Greater Miami and the Beaches, including: Total overnight visitors by region Purpose of visit Type of lodging used Area of lodging Satisfaction level Likelihood of returning Likes of area Areas visited Dislikes of area Demographic characteristics Party size Length of stay Expenditures In addition to determining a Visitor Profile, this study also develops estimates of the direct economic impact of overnight visitors on the Miami-Dade County economy. The following pages contain the major findings of the 2008 Tourism Survey of Greater Miami and the Beaches conducted by Synovate. 2
3 II. EXECUTIVE SUMMARY 2008 VISITOR INDUSTRY STATISTICAL HIGHLIGHTS Overnight Visitor Spending During 2008 (January-December), overnight visitors spent an estimated $17 billion in direct expenditures in Greater Miami and the Beaches, which can be highly attributed to international visitor spending. In total, the average daily expenditure per visitor was $244.72, and the average expenditure per person per visit was $1, The average length of stay in 2008 was 5.75 nights. Direct visitor spending increased in 2008 over 2007 due to higher lodging rates among international visitors. Pervisitor spending on entertainment and shopping dropped in 2008 among both domestic and international visitors. This suggests that while visitors wanted to enjoy a trip to Greater Miami, they economized on spending in the area. Total Overnight Visitors In 2008, the visitor industry showed growth with a 1.4% increase in overnight visitors to Miami and the beaches over 2007, largely a result of increased international visitors (up 5.4%). An estimated 12.1 million visitors stayed at least one night in Greater Miami and the Beaches in January-December Main Purpose of Visit Where They Stayed Vacation continued to be the main reason people visited Greater Miami and the Beaches, representing 73% of the total market mix in Business travel represented 13.0%. The following is a percentage breakdown of where visitors who used lodging stayed in 2008: Miami Beach 40.1% Downtown 19.2% Grove/Gables/Biscayne 13.1% N. Dade/Sunny Isle 12.7% Airport 9.8% South Miami Dade 5.9% Consistent with results in the past, Miami Beach continues to be visitors favorite place to stay during their trip to the Greater Miami area. 3
4 2008 VISITOR INDUSTRY STATISTICAL HIGHLIGHTS (CONT D) Hotel Occupancy The variety of attractions and points of interest supported high January- December 2008 occupancy rates reported by participating hotels throughout our community: Airport/Civic Center 78.1% Miami Beach 72.2% Grove/Key Biscayne 71.5% Miami-Dade 71.5% Aventura/Sunny Isles 70.6% North Dade 68.9% Coral Gables 68.0% Downtown 67.8% Central Dade 65.8% South Dade 59.6% While most areas show slightly higher occupancy rates compared to the same time period last year, the past few individual months have shown decline, likely due to the current economic situation. 4
5 III. Total Overnight Visitor Estimates A. The Tourist Universe More than 17 million passengers arrived at MIA in 2008 (January-December), a.9% increase compared to Arrivals at FLL in 2008 were essentially flat over 2007 (-.3%). The data in this report combines the interviews of visitors using both MIA and FLL who stay overnight in Miami-Dade county. An estimated 12.1 million visitors spent at least one night in Greater Miami and the Beaches in The greatest growth came from international visitors, which saw a 5.4% increase over 2007, and made up 48 percent of all overnight visitors. Domestic visitors, accounting for 52 percent of all overnight visitors, saw a decline since last year (-2.0%). Table 3A-1 Overnight Visitors To Greater Miami And The Beaches Domestic and International Origins (000) (000) (000) (000) (000) (000) (000) (000) % Change Over Prior Year Domestic Visitors 5, , , , , , , , % International Visitors 5, , , , , , , , % Total Overnight Visitors 10, , , , , , , , % % % % % % % % % Domestic Visitors % International Visitors % Total Overnight Visitors
6 B. Origin of Overnight Visitors The majority of domestic visitors to Greater Miami and the Beaches continue to come from the Northeast (more than 3 million visitors). The Southern and Midwest regions provided Miami with 2.7 million visitors in 2008, while the Western region continues to be a growing source, with more than 526,000 visitors. While the majority of international visitors to Greater Miami and the Beaches continue to originate from Latin America, this region saw an increase in visitors in 2008 (3.7 million) compared to 2007 (3.5 million). South America plays a large part in these visitors, accounting for nearly 2.5 million of those from Latin America. Visitors originating from Europe have been steadily growing over time, with nearly 1.4 million in More visitors from Canada were also accounted for in 2008, with 573,000 visitors in total. International Regions Overnight Visitors To Greater Miami And The Beaches International Areas and Domestic Regions Annual (000) (000) (000) (000) (000) (000) (000) (000) Latin America South America Central America Caribbean Europe Canada Others Total International Domestic Regions North East Southern Midwest Western Total Domestic Total Visitors 10, , , , , , , ,
7 IV. Characteristics of the Visitors Stay A. Purpose of Visit All Overnight Visitors Though more than half of total visitors indicated the purpose of their Miami visit was for vacation or pleasure, this area has experienced some decline over the past few years. More visitors are coming to Miami to visit friends and relatives, particularly international visitors. Table 4A-1 OVERNIGHT VISITORS TO GREATER MIAMI AND THE BEACHES PURPOSE OF VISIT % % % % % % % % Total Visitors Vacation/Pleasure Business Visit Friends/Relatives Cruise Personal/Other Domestic Visitors Vacation/Pleasure Business Visit Friends/Relatives Cruise Personal/Other International Visitors Vacation/Pleasure Business Visit Friends/Relatives Cruise Personal/Other Total Visitors 10, , , , , , , ,128.6 Vacation/Pleasure 6, , , , , , , ,549.4 Business 1, , , , , , , ,576.7 Visit Friends/Relatives 1, , , , , , ,340.8 Cruise Personal/Other
8 B. Choice of Lodging Hotel/motel is still the most common type of lodging for visitors, but has seen some slight decline over the years in favor of other lodging options. Since a higher number of visitors are coming to Miami to visit their friends and relatives, it s not surprising that they are staying with their friends/relatives as well. This area has seen a steady increase over time and may continue to trend upward as travelers look for less expensive lodging alternatives in today s economy. Table 4B-1 OVERNIGHT VISITORS TO GREATER MIAMI AND THE BEACHES TYPE OF LODGING (000) (000) (000) (000) (000) (000) Hotel/Motel Friends/Relatives Owned/Rented **Note: Visitors could have stayed in more than one type of lodging during a visit to the Greater Miami area. 8
9 C. Area of Lodging- Total Overnight Visitors While the Miami Beach area is still the most common area for visitor lodging, movement over time suggests other areas have gained in appeal, such as Downtown, Coconut Grove/Coral Gables/Key Biscayne and the North Dade/Sunny Isles areas. Table 4C Miami Beach 48.1% 43.4% 43.6% 40.9% 46.6% 44.4% 40.9% 40.1% Downtown 8.2% 9.8% 10.5% 9.3% 9.9% 14.0% 16.6% 19.2% Grove/Gables/Biscayne 4.9% 6.6% 5.5% 6.1% 11.1% 11.5% 12.5% 13.1% N. Dade/Sunny Isle 16.7% 13.1% 10.5% 18.6% 11.8% 12.7% 13.2% 12.7% Airport 14.6% 18.9% 16.8% 15.3% 15.2% 12.3% 10.5% 9.8% South Miami Dade 7.0% 8.1% 3.8% 9.6% 5.2% 4.8% 6.3% 5.9% **Note: Visitors could have stayed in more than one area during a visit to Greater Miami. Based on people who used lodging. Distribution of Overnight Visitors By Area of Lodging 2008 N. Dade/Sunny Isle 13% Total Visitors Airport 9% Miami Beach 40% Downtown 19% Grove/Gables/ Biscayne 13% South Miami Dade 6% Based on people who used lodging. D. Travel Party Size Compared to 2007, there has been an increase of those visiting Greater Miami alone and fewer visitors traveling with two or more in their party. This drove a slight reduction in the average travel party size in Table 4D-1 OVERNIGHT VISITORS TO GREATER MIAMI AND THE BEACHES % % % % % % One Two Three and more Average party size
10 E. Mode of Arrival There was a slight increase in visitors arriving by car in 2008 compared to the previous year. This is likely the result of higher airfares and additional fees being charged by airlines, as well as visitors economizing on travel spending. Table 4E-1 OVERNIGHT VISITORS MODE OF ARRIVAL By Air 95.2% 93.7% By Car 4.80% 6.3% 100.0% 100.0% By Air 11, , By Car Visitors 11, ,
11 V. Visitor Perceptions A. Satisfaction Levels As in the past, trip satisfaction and intention to return is very high among visitors to the Greater Miami area. Table 5A-1 Overnight Visitors to Greater Miami and The Beaches Satisfaction with Visit % % % % % % % % Extremely Satisfied Total Domestic International Very Satisfied Total Domestic International Extremely/Very Satisfied Total Domestic International Somewhat Satisfied Total Domestic International Somewhat/Very Dissatisfied Total Domestic International Total
12 B. Intention to Return to Greater Miami and the Beaches Table 5B-1 Overnight Visitors to Greater Miami and The Beaches Likelihood to Return % % % % % % % % Definitely Likely Total Domestic International Very Likely Total Domestic International Definitely/Very Likely Total Domestic International Somewhat Likely Total Domestic International Not Very/Not at All Likely Total Domestic International Total
13 C. First Time Visitors to Greater Miami Area Table 5C-1 Overnight Visitors to Greater Miami and The Beaches Total Visitors (000) (000) (000) (000) (000) (000) Have Visited Before 8, , , , , ,333.6 Have Not Visited Before 2, , , , , ,795.0 % % % % % % Have Visited Before Have Not Visited Before
14 D. Most Liked Features Total Visitors Table 5D * Total Visitors % % % % % % % % Weather Beaches International ambiance Night life South Beach/Ocean Drive Restaurants Attractions Shopping Friendly people Cleanliness Bayside Marketplace Prices Accommodations Service Employees *Features are ranked by 2008 responses 14
15 Domestic Visitors Table 5D * Domestic Visitors % % % % % % % % Weather Beaches Sun bathing Night life International ambiance South Beach/Ocean Drive Restaurants Attractions Friendly people Shopping Accommodations Cleanliness Prices *Features are ranked by 2008 responses International Visitors Table 5D International Visitors % % % % % % % % International ambiance Weather Beaches Shopping South Beach/Ocean Drive Night life Restaurants Attractions Friendly people Cleanliness Prices Bayside Marketplace Service Employees Accommodations *Features are ranked by 2008 responses 15
16 E. Areas Visited In Greater Miami and the Beaches Total Visitors Table 5E * % % % % % % % % Art Deco District/South Beach The Beaches Downtown Miami Lincoln Road Coconut Grove Bayside Marketplace Coral Gables Aventura Mall Little Havana Night Clubs Dolphin Mall N/A N/A N/A Dadeland Mall Miami Seaquarium Key Biscayne Theaters Bal Harbour Shops International Mall Parrot Jungle Water Sports/Activities The Falls Golf Place on Flagler One day/casino Cruise Everglades National Park Westland Mall Mall of the Americas Museums Parks *Areas are ranked by 2008 responses ** Visitors may give more than one response 16
17 F. Least Liked Features Total Visitors Table 5F-1 Nothing disliked Traffic Crow ded/developed Public transportation Weather Prices Other Total Visitors Domestic International 17
18 VI. Visitor Profile A. Age Characteristics of Respondents Total Overnight Visitors % % % % % % % % and over Overnight Visitors to Greater Miami and the Beaches Age of Visitor By Origin, % 5.2% 5.5% 7.0% 5.5% 8.8% 27.4% 28.7% 25.9% 65 and over % 36.9% 32.4% % 16.8% 19.9% 7.2% 7.0% 7.4% Total Visitors Domestic International Visitor Type, Annual 2008 Average Age (yrs) Total Domestic International
19 VII. Economic Impact of Overnight Visitors A. Direct Economic Impact: Expenditures Direct expenditures of overnight visitors to Greater Miami and the Beaches are estimated from visitor-reported spending collected in the continuing monthly profile study. Visitors are asked for the average daily expenditures on lodging, food, transportation, entertainment and shopping for their visitor party. Per party daily expenditures are divided by the number of people per party to estimate per visitor daily expenditure. Per visitor daily expenditure is multiplied by the average number of nights stayed to estimate average total expenditures per visitor for the entire visit. Total average expenditures per visitor are projected against the total number of visitors to estimate the total direct expenditures of overnight visitors. The tables on the following pages display the data in terms of the direct expenditures per party and per person in each of the categories, by domestic and international visitors. This data is then projected to develop estimates of the total direct expenditures made by overnight visitors to Greater Miami and the Beaches during 2008 (January-December). 19
20 B. Direct Visitor Expenditures Table 7B-1 Overnight Visitors to Greater Miami and the Beaches Average Daily Expenditures Total Visitors Type of Expenditure Lodging All Meals Transportation Entertainment $ $ $99.36 $ $ $ $ $ $99.26 $89.81 $78.41 $77.50 $87.97 $ $91.91 $96.37 $43.79 $41.30 $35.58 $35.29 $42.03 $43.65 $33.69 $33.42 $88.15 $75.28 $60.63 $57.59 $67.84 $82.34 $70.06 $60.85 Shopping $78.15 $80.41 $ $ $ $ $ $ Total: Avg Daily $ Per Party $ $ $ $ $ $ $ $ Divided by: Avg. Party Size Avg. Daily $ Per Visitor $ $ $ $ $ $ $ $ Multiplied by: Length of Stay (median # of nights) Total: $/Person/Visit $1, $1, $ $1, $1, $1, $1, $1, Multiplied by Total Visitors (000) 10, , , , , , ,128.6 Total Overnight Visitor Expenditures (In Millions) $13,919.5 $11,911.6 $9,914.7 $13,662.0 $15,382.6 $16,319.0 $17,117.9 $17,
21 Table 7B-2 Expenditures by Type Total Visitors Type of Expenditure $ (Million) $ (Million) $ (Million) $ (Million) $ (Million) $ (Million) $ (Million) $ (Million) Lodging $4,040.0 $3,252.4 $2,631.1 $4,299.1 $4,786.4 $4,668.5 $4,883.6 $5,325.6 All Meals $3,170.0 $2,711.6 $2,076.3 $2,495.2 $2,903.6 $3,051.0 $3,078.3 $3,394.3 Local Transportation $1,398.5 $1,247.0 $942.2 $1,136.2 $1,387.3 $1,325.4 $1,128.4 $1,177.1 Entertainment $2,815.2 $2,272.9 $1,605.5 $1,854.2 $2,239.2 $2,500.2 $2,346.5 $2,143.3 Shopping $2,495.8 $2,427.8 $2,659.7 $3,878.0 $4,066.1 $4,773.9 $5,681.1 $5,054.7 Total Expenditures $13,919.5 $11,911.6 $9,914.7 $13,662.7 $15,382.6 $16,319.0 $17,117.9 $17,095.0 % % % % % % % % Lodging 29.0% 27.3% 26.5% 31.5% 31.1% 28.6% 28.5% 31.2% All Meals 22.8% 22.8% 20.9% 18.3% 18.9% 18.7% 18.0% 19.9% Local Transportation 10.0% 10.5% 9.5% 8.3% 9.0% 8.1% 6.6% 6.9% Entertainment 20.2% 19.1% 16.2% 13.6% 14.6% 15.3% 13.7% 12.5% Shopping 17.9% 20.4% 26.8% 28.4% 26.4% 29.3% 33.2% 29.6% Total Expenditures 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Expenditures by Type, Total Visitors 2008 Table 7B % 14.6% 31.1% Lodging All Meals Local Transportation Entertainment Shopping 9.0% 18.9% Table 7B-4 21
22 Type of Expenditure Lodging All Meals Transportation Entertainment Overnight Visitors to Greater Miami and the Beaches Average Daily Expenditures Domestic Visitors $ $ $ $ $ $ $ $ $ $ $88.42 $90.59 $91.98 $96.42 $91.56 $96.58 $44.49 $44.36 $32.24 $42.31 $45.36 $40.53 $32.62 $37.20 $98.10 $90.29 $74.38 $79.03 $77.72 $78.57 $71.69 $62.66 Shopping $60.13 $59.22 $62.67 $62.69 $79.76 $ $97.34 $77.04 Total: Avg Daily $ Per Party $ $ $ $ $ $ $ $ Divided by: Avg. Party Size Avg. Daily $ Per Visitor $ $ $ $ $ $ $ $ Multiplied by: Length of Stay (median # of nights) Total: $/Person/Visit $1, $1, $1, $1, $1, $1, $1, $1, Multiplied by Total Visitors (000) 5, , , , , , , ,341.4 Total Overnight Visitor Expenditures (In Millions) $7,193.0 $6,283.7 $5,655.1 $6,884.4 $7,836.3 $7,841.8 $7,122.1 $6,513.6 Table 7B-5 Overnight Visitors to Greater Miami and the Beaches 22
23 Type of Expenditure Lodging All Meals Transportation Entertainment Average Daily Expenditures International Visitors $ $87.65 $77.69 $ $ $ $ $ $93.47 $74.49 $65.97 $66.42 $83.40 $ $92.36 $ $40.64 $37.47 $30.61 $29.55 $38.23 $48.35 $35.11 $30.51 $74.52 $56.37 $42.93 $39.17 $56.42 $88.00 $67.86 $61.69 Shopping $96.80 $ $ $ $ $ $ $ Total: Avg Daily $ Per Party $ $ $ $ $ $ $ $ Divided by: Avg. Party Size Avg. Daily $ Per Visitor $ $ $ $ $ $ $ $ Multiplied by: Length of Stay (median # of nights) Total: $/Person/Visit $1, $1, $ $1, $1, $1, $1, $1, Multiplied by Total Visitors (000) 5, , , , , , , ,787.2 Total Overnight Visitor Expenditures (In Millions) $6,726.5 $5,627.6 $4,259.5 $6,778.3 $7,543.3 $8,477.0 $9,995.9 $10,
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