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The Honolulu Advertiser

Posted on: Sunday, September 14, 2003

Visitor count breaks record

By John Pain
Associated Press

Mark Weigner of San Francisco dines at News Cafe on Ocean Drive in the South Beach section of Miami Beach. The restaurant is seeing fewer big spenders and more budget-conscious visitors these days.

Associated Press photos

Businesses along Ocean Drive find that while the count is up, visitors are spending less at restaurants, hotels and tourist attractions.
MIAMI BEACH, Fla. — Two years ago, tourists at the News Cafe on South Beach's trendy main drag ran up big checks, ordering juicy steaks and pricey bottles of champagne. These days, diners from out of town usually order cheaper fare such as salads and coffee.

"The economy's tough," manager Michael Jack said. "I can't do anything about that."

A record number of visitors are coming to Florida, but the businesses that cater to them are still struggling while tourists, worried about the economy and job security, spend less on their trips. Many businesses, theme parks and hotels find they have to offer deep discounts to lure visitors, cutting into their profits.

Lower prices were just fine with Anne-Louis Belanger and Manuel Baca-Soto, who recently spent nine days visiting South Beach from Montreal. The couple came during the off-season in August to save a bit on their bed and breakfast. They stayed out of restaurants, instead buying groceries to conserve cash.

"It's not very expensive that way," Baca-Soto said.

The number of visitors to Florida has more than recovered from the decline following the Sept. 11 terrorist attacks. The figure in 2002 hit a record 75.5 million, beating the previous high of 72.8 million set in 2000. For the first half of this year, 38.2 million people visited Florida, 1 percent more than a year earlier.

But they spent an average of about $677 each last year, down 3 percent from about $699 in 2000 and more than 7 percent from about $730 in 2001. Officials say that trend is seen in other tourist destinations nationwide.

"Just about everybody in the country is down from two years ago," said William Talbert, president and CEO of the Greater Miami Convention and Visitors Bureau.

A more current measurement of how much visitors spend is the collection of tourist tax, charged in 52 Florida counties on each hotel, motel or short-term room rental. In Florida's largest tourist magnet, the Orlando area and its theme parks, lodging tax collection in the first half of the year dropped 5 percent to $49.6 million from the same period a year ago. That was also down 15.2 percent from the first half of 2001, before the terrorist attacks.

In the Miami area, collection was up 6 percent in the same period this year at $18.6 million, but still 5.7 percent lower than in the first half of 2001.

Officials say giving discounts is the only way to survive until the economy strengthens and visitors can afford to pay higher prices. "A little profit is better than no profit," said Bill Peeper, president of the Orlando/Orange County Convention and Visitors Bureau.

The Walt Disney Co. has also been hit by the trend, especially at central Florida's Walt Disney World. For the nine months ending June 30, the company's theme parks and resort revenues were $4.7 billion, down about 10.5 percent from the same period in 2001.

"The recovery in our theme parks is going to be gradual," spokeswoman Jacquee Polak said.

Tourist areas are getting more in-state travelers, but they tend to spend less because Floridians typically have shorter visits, said Tom Flanigan, a spokesman for Visit Florida, the state's tourism marketing agency. Floridians visiting Orlando stay an average of 2 1/2 nights per trip; out-of-staters and international visitors stay about 5 1/2 nights per trip.

One region of Florida that has bucked the trend of lower spending is the Panhandle, home to one of the nation's biggest spring break destinations, Panama City Beach. Tourist tax collection in Bay County has actually risen 5.1 percent to $2.8 million in the first half of this year from the same period before the terrorist attacks.

The Panhandle relies mainly on tourists from nearby states such as Alabama and Georgia who drive to the area's uncrowded sugar-white beaches with clear blue-green water.

"We seem to be insulated quite well," said Zandra Wolfgram, spokeswoman for Sandestin Golf and Beach Resort, about 50 miles west of Panama City Beach.