Spring 2018 Tourism Report - Florida's Space Coast

TOURISM REPORT

PASSENGER

CRUISING

COCOA BEACH

VISITATION

MARATHON

AT THE PORT REPORT

HALF

2 0 1 7

S P R I N G

2 0 1 8

E C O N O M I C I M PAC T

F L O R I D A’ S

Don’t worry about missing your flight or getting stuck in traffic.

Arrive early and start your cruise vacation walking down the beach.

This world-class cruise port is only 45 minutes from Orlando, laid-back and best of all, uncongested.

And Port Canaveral isn’t just a cruise port – it’s also home to some of the best seafood on Florida’s Space Coast. Not to mention the various leisure attractions and activities that allow you to relax before your upcoming cruise.

So what are you waiting for? Snooze ‘n cruise in Cocoa Beach and don’t miss the boat!

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TABLE OF CONTENTS Letter from the Executive Director

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Meet the Research Team

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Visitation Report

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2018 Florida Pro Surf

25

Ron Jon Cocoa Beach Half Marathon

28

Passenger Cruising at Port Canaveral

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Florida’s Space Coast Office of Tourism 430 Brevard Avenue Suite 150, Cocoa, FL 32922 Phone: (877) 57-BEACH (2-3224) (321) 433-4470 Fax: (321) 433-4476 VisitSpaceCoast.com |

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A LETTER FROM THE EXECUTIVE DIRECTOR Travel by its nature is a temporary thing, except for the memories created and kept; and possibly personal relationships established through the travel experience. While these are very powerful benefits to the individual, the benefits to the community are sometimes overlooked. Tourism development offers the opportunity to create positive, lasting community impact. On Florida’s Space Coast we are surrounded by this. In this issue, we will learn about the development of Port Canaveral as the second most popular passenger cruise port in the country and its importance to our community.

Stories like this bring to mind the idea of legacy. What will be our legacy?

“Live. Laugh. Love. Leave a legacy.”

– STEPHEN COVEY

I am excited to see the first of several Tourism Community Development projects get underway. The Cape Canaveral Lighthouse Foundation recently broke ground on the construction of a reinterpretation of a caretaker’s cottage. The Cape Canaveral Lighthouse is an amazing community asset and tells the story of Florida’s Space Coast and the founding of the Kennedy Space Center. Partially funded with $500,000 from tourist development tax revenue, the new facility will allow for more tours and events at the historic lighthouse.

Soon we will begin reconstruction of soccer, lacrosse and football fields which will provide world-class facilities for our local kids. An investment of $5 million of tourist development tax revenue in the latest AstroTurf field surface we will provide the additional use capacity to also bring in tournaments and events to drive lodging revenue.

But more importantly, with the great fields to play on, how many kids will develop in their chosen sport and possibly earn college scholarships? Or learn the important lessons of sportsmanship instilled through team sports?

These and future projects, carefully considered and recommended by the Tourist Development Council, will contribute to overall quality of life for citizens of Brevard County. The reinvestment of a portion of tourist development tax revenue into tourism projects which are important to the community will be our legacy. n

ERIC GARVEY SPACE COAST OFFICE OF TOURISM

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MEET THE

RESEARCH TEAM DR. MIKE SLOTKIN is Professor of Economics in the College of Business at the Florida Institute of Technology. Mike earned his Ph.D. in economics from the University of North Carolina at Chapel Hill in 1995, and his scholarly activity surrounds the application of economics to the environment, to regional economies and industries, and pedagogical issues in the conduct of business education. He consults with corporations, NGOs, and government agencies, and to date, has coauthored more than thirty economic impact or contribution studies. Born and raised in Miami, Florida, Mike resides in the town of Grant with his life partner Karen and their three cats: Zippy, Curry, and Luna. He is a long-time, eternally optimistic, Miami Dolphins fan.

DR. ALEX VAMOSI is an associate professor of economics in the College of Business at the Florida Institute of Technology. He earned his Ph.D. in economics from the University of North Carolina at Chapel Hill, and an M.A. in economics from the University of Alberta, Canada. Alex’s scholarly and consulting activities involve the application of statistical and quantitative analysis related to environmental economics, regional economies and industries, and pedagogical issues in the business education. He has consulted on over 20 economic impact studies for various Brevard County organizations, and presented papers on these topics both locally and internationally. Alex also has extensive management experience, working as the Associate Dean of the College of Business from 2007 to 2015.

TIFFANY MINTON has served as the Marketing Director of Florida’s Space Coast Office of Tourism for three years. Tiffany was born in Florida and has lived on the Space Coast for 30 years. She is a graduate of Florida Institute of Technology with a Bachelor of Science degree in Communication. Tiffany worked for Boeing and L-3 Communications and her last position was a Senior Marketing and Communications Specialist for Health First. She lives in Merritt Island with her husband and enjoys the beach, surfing, boating and practicing yoga.

DEBORAH WEBSTER was born and raised in the Philadelphia area, spending summers in Ocean City, New Jersey. She relocated to the Space Coast in the summer of 2015, after frequent visits to family over the past 20 years. In her role as Research and Analytics Director, she supports the Marketing team with data to best reach visitors to Florida’s Space Coast. Deborah is a graduate of Widener University and spent 15 years as an educator. She has two daughters; Anna Grace, 14 and Charlotte, 12 and lives in Cocoa Beach.

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Tourism on the Space 10 | VisitSpaceCoast.com

VISITATION REPORT 2017 WRITTEN BY DR. ALEX VAMOSI

EXECUTIVE SUMMARY In 2017, the Space Coast Office of Tourism (SCOT), in partnership with the Florida Institute of Technology (FIT), began compiling a tourism database using information collected from an ongoing survey of domestic visitors who stayed overnight in a Space Coast hotel or accommodation. This domestic tourism, accommodations-based (DTAB) market is a large, economically vital component of the overall tourism market. We further subdivide the overall DTAB market into cruise/noncruise markets and 3-month/12-month return visit markets. The estimates and figures reported in this issue are for trips made to the Space Coast in calendar year 2017.

Coast

The following bulleted items summarize the main findings in this report.

• A typical DTAB party consists of 3.1 individuals, including 2.4 adults and 0.7 kids.

• Party size is about the same in the cruise and noncruise markets; however, parties in the cruise market stay about one night less in a hotel/motel or other Space Coast accommodations. Return visitors with a 12-month horizon have both a larger party size (0.5 individuals) and longer length of stay (1.2 days) than return visitors with a 3-month horizon.

• Average expenditures per visit in the DTAB market is about $1,488 per party or $481 per person. The distribution of spending is highly skewed; the median amount spent per party is $955.

• Average expenditures are highest in the non-cruise and 12-month return sub-markets.

• For attractions, satisfaction ratings are generally favorable, with average scores exceeding 4 points on a 5-point scale for eleven of the twelve activities listed; beach accessibility, personal safety and beach cleanliness were the highest rated amenities, which were generally lower in satisfaction level.

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SURVEY BACKGROUND & STRUCTURE The inaugural issue of this publication, released in Fall 2017, contains an extensive description of the survey instrument and methods used to collect the data. In this section we recap the main points from this discussion as it relates to the tradeoff between quality and quantity of surveys, survey platforms used to collect the data, and the screening question(s) used to identify eligible participants. This is followed by a description of the overall market and various sub-markets which are the focus of this issue.

Quality vs. Quantity The purpose of these tourism reports is to provide a broad profile of Space Coast visitors and the tourism market. From the outset the research team agreed that survey quality would be given higher priority than survey quantity. In order to gather the desired information about trip profiles, motivations and satisfaction, as well as information related to economic and marketing conditions, a longer survey was required. Longer surveys, however, lead to lower response rates and fewer surveys collected, and as a consequence, less precise estimates of population values. This is a tradeoff that FIT/SCOT research team agreed was worth taking.

Survey Platforms When surveying initially began, the chosen platforms for gathering the data were bookmarks given to hotel guests and coasters and table tents placed in hotel rooms, lobby’s and restaurants. This was later bolstered through Facebook paid ads with a link to the survey that were sent to users who had made a Visa card purchase in a Brevard County hotel. Facebook quickly became the primary platform for gathering the data, yielding over 88% of the useable surveys that were gathered in 2017.

Using the Facebook platform, however, limits the population to domestic residents; ads were not sent to individuals who reside in countries outside of the United States.

Screening Question(s) All surveys begin with one or more screening questions to ascertain whether an individual is part of the population group that is being studied. Those who are not part of the intended population are disqualified from taking the rest of survey. The screening question for the SCOT survey asked individuals whether they had stayed overnight in a Space Coast hotel or accommodation in a preceding time period (effectively, calendar year 2017). People who visited the Space Coast but stayed with friends or family, or did not stay overnight were disqualified from taking the survey.

Market Segmentation The screening question described above and the overwhelming reliance on Facebook ads to collect the data restricts the tourism market to what we refer to as DTAB. The DTAB market is a subset, albeit an important subset, of the overall Space Coast tourism market; it does not include day-trippers; it does not include people staying with friends or family; it does not include foreign residents, etc.

The estimates presented in this publication are valid and reliable for those in the DTAB market only.

Inferences about other groups based on these data should NOT be made.

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The survey information that was collected allows us to further sub-divide the DTAB market into Cruise and Non-Cruise markets, and several Return Visit Markets.

Questions were asked that identify those who took cruises originating from the Space Coast, and those with highest likelihood of making a return visit and the corresponding timeframe for their next visit. Table 1 lists the different markets and the sample size associated with each.

TABLE 1: SUMMARY OF MARKET SEGMENTS

Trip Profile

Market

Sample Size

Overall DTAB Market

761

Cruise Market

162

Non-Cruise Market

599

Return Visit Markets

699

Within the next 3 months

187

Within the next 6 months

156

Within the next 12 month

223

Within the next 24 months

90

More than 24 months

43

For calendar year 2017, a total of 761 useable surveys were collected for the overall DTAB market. An additional 242 surveys have been added to the database since the release of the Fall 2017 issue. The cruise market, respondents who reported that they took a cruise during their visit to the Space Coast, makes up about 21% of the total DTAB market; the remaining 79% is labeled non-cruise market. We estimate that about 92% of the DTAB market have a high likelihood of returning for a visit to the Space Coast, with about 81% reporting a timeframe of “within the next 12 months� or less.

SURVEY RESULTS & FIGURES In this issue, some refinements have been made to visually enhance the presentation, and to foster more meaningful comparisons between specific markets. First, several of the figures have been reworked, different chart types have been added, and some of the data has been coalesced differently. Second, detailed information about the noncruise market has been added so that we may offer readers a more accurate comparison with cruise-market visitors.

We start with a summary of the trip profile, satisfaction ratings and participation rates, and visitor spending in the overall DTAB market. This is followed by a comparative analysis of the cruise and non-cruise markets, and 3-month and 12-month return visitor markets.

Overall DTAB Market This issue reports on the full database that was compiled for 2017 visits to the Space Coast, and includes 761 14 | VisitSpaceCoast.com

useable surveys. A total of 242 additional surveys were added to the database since the last issue, an increase of just over 40 percent. The value of increasing the sample size is twofold. First, all else being the same, a large sample size produces more precise estimates of the unknown population values. Second, the additional data was collected during the last four months of 2017, a period that includes a natural slowdown in the tourism industry, as well as lower prices charged by hoteliers.

The average size of a DTAB party is 3.1 individuals, composed of 2.4 adults and 0.7 kids. About 71% of the accommodations were rented in hotel or motels; 60% of these hotel/ motel accommodations were located on Cocoa Beach/ Port Canaveral, while another 24% were in Palm BayMelbourne-Titusville. The primary reason given for visiting the Space Coast was overwhelmingly vacation/holiday, which accounted for 64.5% of visiting parties; another 11.2% came to visit family and friends, followed by business (7.5%) and private occasions (7.0%). These four motivations collectively account for about 90% of the DTAB market.

Marketing is an important element used by the SCOT and other tourism stakeholders to attract visitors to the Space Coast. Respondents in the overall DTAB market report that they saw, on average, about 2.5 marketing platforms. The most observed platforms were social media videos (47.6%), billboards (37.6%) and websites (29.3%).

There are several websites devoted to Space Coast tourism that people can use in preparation for their Space Coast visit. VisitSpaceCoast.com (14.2%) and GoCocoaBeach. com (9.6%) were the most viewed websites.

Satisfaction Ratings & Participation Rates The Space Coast offers a broad menu of attractions and activities to attract and engage its visitors. We asked respondents to report their participation and satisfaction with twelve well-known Space Coast activities and attractions. A typical respondent participated in about five activities while visiting the Space Coast. The highest participation rates were Beach Activities (83%), Ron Jon Surf Shop/Cocoa Beach Surf Company (59%), Cocoa Beach Pier (48.5%), Historic Cocoa Village (46.3%) and Kennedy Space Center Visitor Complex (46%).

Satisfaction was measured on a 5-point Likert scale: (1) = very unsatisfied; and, (5) = very satisfied. The median score was 4.26 and almost all the items listed had an average score above 4.0. The highest ranked items were Kennedy Space Center Visitor Complex (4.48) and Beach Activities (4.42), followed by The Cove at Port Canaveral (4.36) and Brevard Zoo/Treetop Trek (4.35). The latter two attractions, however, appear to be somewhat underutilized by Space Coast visitors, in particular the Brevard Zoo, which has the lowest participation rate (21%) on the list.

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Respondents were also asked to rate their satisfaction with several infrastructure related amenities such as accessibility, safety, cleanliness, transportation, etc. Using a scale of (1) = very poor to (5) = excellent, several items accumulated an average score below 4.0. Three items that were particularly relevant to visitors - personal safety, beach accessibility and beach cleanliness - had the highest satisfaction ratings in the list. The lowest rated items were public transportation, public restrooms and beach restrooms. The response rate for public transportation was quite small (16%), but the two restroom categories each had a response rate near 50%.

Household Income & Visitor Spending More than 50% of respondents reported a household income of $75,000 or more. This is a substantially larger figure than the $59,000 median household income in the United States that was reported by the Census Bureau for 2016.

The benefit of a high level of income is that it also generates relatively large spending by visiting parties. This is certainly borne out in the data: average expenditures by DTAB visitors in 2017 was about $1,488 per party or $481 per person.

These figures are marginally smaller than what was reported in the last issue of this publication. There are two explanations for the lower figures. First, the sample size is about 40 percent larger than before; larger sample sizes produce more precise estimates. Second, the additional surveys that were collected include people who have visited the Space Coast between September and December, a period when there are fewer visitors and lower room rates per night (average spending on

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lodging was $30 per party lower than the estimate shown in the previous report.)

Further analysis of the data revealed that the distribution of spending per party did not follow the pattern of a normal distribution and was highly skewed. The data shows that two out of three parties spent less than $1,500 during their visit to the Space Coast; about 11% of the parties spent $3,000 or more. The median spending per party was $955, which is more than $500 less than the reported average. Such findings are not uncommon; other researchers have reported on the non-normal distribution associated with spending totals in tourism and economic impact reports. Future issues will more closely monitor the spending distribution and the impact that party size and length of stay has on total spending estimates.

Cruise Market vs. Non-Cruise Market The overall DTAB market can be subdivided by parties that went on a cruise originating on the Space Coast, and parties that did not. About 21% of the overall DTAB market embarked on a cruise while visiting the Space Coast. The number of individuals per party was virtually the same (3.1 individuals each), but with slightly more adults and fewer kids in the cruise market. Parties in both groups rent about 1.3 rooms per visit; however, the number of nights acquired by visitors in the cruise market is about 1.2 nights fewer. We do not include nights spent on the cruise because this is additional spending that does not directly affect the Space Coast economy. Most of the spending on cruise lines is a leakage outside of the intended study area.

Using the reported figures for party size, number of rooms, and number of nights, we calculated two additional statistics for each party: room nights (number of rooms x number of nights) and people nights (party size x number of nights).

These steps are necessary to calculate a weighted average estimate for each variable. One consequence associated with a short length of stay in the cruise market is that visitors in this market procured about 1.7 fewer “room nights” and 4.6 fewer “people nights” than parties in the non-cruise market. A second consequence of a shorter length of stay is that spending will be substantially smaller in the cruise cohort. This is borne out by a comparison of average expenditures, which is more than $300 less per party and about $100 less per person in the cruise market. This analysis highlights the impact that party size and number of nights (length of stay) has on total spending estimates.

Return Visitor Market We asked respondents how likely they would be to refer a friend for a visit to the Space Coast, and additionally how likely they would be to return to the Space Coast themselves. On a 5-point Likert scale, with 5 being highly likely, respondents overwhelmingly indicate that they would both refer a friend (scores of 4 or higher) or make a return visit (scores of 4 or higher). Table 2 shows the expected timeframe for a return visit by those respondents who had the highest likelihood of returning to the Space Coast for a visit. The cumulative percentage of respondents who would return to the Space Coast within the next 12 months is about (81%); close to 50% indicate a timeframe of “within 3 months” or “within 6 months”.

TABLE 2: EXPECTED TIMEFRAME FOR A RETURN VISIT Expected Timeframe for a Return Visit

Number of Respondents

Percent of Total

Cumulative Percent

Within the next 3 months

187

26.75%

26.75%

Within the next 6 months

156

22.32%

49.07%

Within the next 12 months

223

31.90%

80.97%

Within the next 24 months

90

12.88%

93.85%

More than 24 month

43

6.15%

100%

Total

699

100%

100%

To get a better sense of the makeup of the return visit market, we decided to compare the profiles and spending of visitors who report an expected time frame of “within the next 3 months” and “within the next 12 months”, the two groups with the largest number of respondents.

Our analysis shows that both average party size and length of stay are significantly smaller for the population that expects to return “within the next 3 months”. In contrast, visitors who have a longer time horizon, “within the next 12 months”, tend to have larger parties (0.5 individuals) and longer stays (1.2 nights); this combination generates more “room nights”, more “people nights” and more “spending per party” for those in the 12-month return market. Average spending is more than $350 higher per party in the 12-month return cohort; however, because party size is larger, average spending per person is only $50 higher. We again see the impact that party size and length of stay has on spending totals.

The figures that follow provide a visualization of the information described above along with short summary captions.

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Survey Results FIGURE 2. PARTY SIZE BY MARKET SEGMENT

FIGURE 1. ACCOMMODATION TYPE OTHER 12%

Overall 3 2 1 0

SHORT-TERM RENTAL 12%

2.4

Non-Cruise 2.4

2.5 0.7

Adults

RV/CAMPGROUND 4%

Cruise

3-Month Return

2.5

2.1 0.7

0.5

12-Month Return

0.7

0.6

Kids

A typical DTAB party consists of about 3.1 individuals, including 2.4 adults and 0.7 kids. The makeup is very similar in both the cruise and non-cruise markets, as well as the 12-month return market. However, in the 3-month return market, a typical party contains both fewer adults and fewer kids, which together produce an average party size of only 2.7 individuals.

Hotel/Motel accommodations are the overwhelming choice of lodging of overnight visitors to Florida’s Space Coast (about 72% overall).

Together, short-term rentals and other lodging types (bed & breakfast, cottages, etc.) account for about 24% of the market; the remaining 4% is attributable to stays at RV/Campgrounds.

About 21% of the overall DTAB market embarked on a cruise while visiting the Space Coast.

FIGURE 3. LODGING PROFILE BY MARKET SEGMENT 14

13.4

12.6

11.6 10.5

8.6

8.0 7.0 3.6 4.6

3.5

2.7 1.3

0

3.3

Rooms

Cruise Nights

Room Nights

5.5

5.0 3.1

1.3

1.3 Overall

3.9

3.7

1.2 Non-Cruise

4.1

3-Month Return

1.3 12-Month Return

People Nights

The lodging profile of visitors to the Space Coast shows that they rent 1.3 rooms overall and between 1.2 and 1.3 rooms in each sub-market. The number of nights procured by a typical party, however, is significantly lower in both the cruise market and the 3-month return visitor market, and is the primary reason for the differences observed in “room nights” and “people nights” across markets. The latter two variables are weighted average estimates.

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FIGURE 4. PRIMARY PURPOSE OF TRIP, DTAB MARKET

FIGURE 5. PRIMARY PURPOSE OF TRIP, CRUISE MARKET

Business......................................................................... 7.5%

Business...............................................................................3.7%

Convenient Stop for Drive Travel...........................................1.4%

Convenient Stop for Drive Travel............................................ 0.6%

Job Interview......................................................................... 0.9%

Job Interview.......................................................................... 1.2%

Private Occasion (wedding, reunion, etc)........................ 7.0%

Private Occasion (wedding, reunion, etc)........................... 4.3%

Public Event, Show or Festival............................................ 4.1%

Public Event, Show or Festival..............................................2.5%

Vacation/Holiday...64.5%

Vacation/ Holiday ...77.8%

Visiting Family & Friends............................................ 11.2%

Visiting Family and Friends.................................................7.4%

Other....................................................................................3.4%

Other....................................................................................... 2.5%

Respondents were asked about the primary purpose of their trip. 64.5% of DTAB parties were vacationing while another 11% were visiting with family and friends; 7.5% were on business; 11% came to attend a public event, show or festival or to attend a private occasion (weddings, reunions, etc.); and the final 6% was divided up amongst convenient stop for drive travel, job interview and other motivations.

Vacation/Holiday travel is the primary motivation for close to 78% of the cruise market, a figure that is more than 13 percentage points higher than the estimate for the overall DTAB market (64.5%.) As a consequence, almost every other category (except job interview) shows a smaller proportion than its corresponding DTAB value, with the largest decreases coming from business travel (a drop from 7.5% to 3.7%) and those visiting family and friends (a drop from 11.2% to 7.4%).

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Survey Results continued FIGURE 7. WHAT TYPE OF MARKETING HAVE YOU SEEN?

FIGURE 6. CRUISE COHORT BY SELECTED CRUISE LINE OTHER 7.4% NORWEGIAN 2.5%

Airport Display..................................................... 13.4% DISNEY 17.3%

Billboard................................. 37.6% Florida’s Space Coast Vacation Planner..........18.9% CARNIVAL 38.3%

Magazine Print Ad.......................................23.8% News Stories.............................................. 23.4%

ROYAL CARIBBEAN 34.6%

Radio....................................................................... 10.9% Social Media Video.......47.6% Social Media Other............................................... 16.0%

A total of 162 parties (21% of the overall sample) embarked on a cruise from Port Canaveral, with the vast majority of lodging occurring prior to the cruise (about 7 out of every 8 parties). Close to 73% chose Carnival or Royal Caribbean for their cruising activity; another 17% selected Disney; the remaining 10% was divided between Norwegian and other cruise lines.

The primary reason given for visiting the Space Coast was overwhelmingly vacation/ holiday, which accounted for 64.5% of visiting parties.

TV........................................................... 24.6% Website.............................................. 29.3% YouTube.................................................................................3.3% None of the above............................................ 17.7% The strongest marketing platforms observed by the DTAB market are videos on social media (47.6%), billboards (37.6%) and websites (29.3%). Magazine print ads, news stories and television are also seen by about one in four individuals. Surprisingly, almost 18% of the DTAB market indicate that they had not seen any of the marketing types listed. We suspect that many of these individuals know about the Space Coast through word-of-mouth or from past experience.

FIGURE 8. HOUSEHOLD INCOME 30% 24.6%

25% 20%

19.2%

17.1%

14.6%

15% 10% 0%

7.4%

7.1%

Less than $25,000

$25,000 $49,999

$50,000 $74,999

$75,000 $99,999

$100,000 $124,999

$125,000 $149,999

10.1%

$150,000 or more

The distribution of household income is skewed towards upper end income brackets, with almost one in three respondents reporting a household income of $100,000 or more. The median household income in the overall sample, and also in the cruise and non-cruise markets, falls within the $75,000-$99,999 income bracket. In comparison, data from the U.S. Census Bureau shows that median household income rose to just over $59,000 in 2016.

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FIGURE 9. AVERAGE TRIP EXPENDITURE BY MARKET Overall $1600 $1200 $800 $400 0

$1,488

Cruise

$402

Spending Per Party

3-Month Return

12-Month Return $1,565

$1,555

$1,239

$481

Non-Cruise

FIGURE 10. BREAKDOWN OF SPENDING, OVERALL

$1,202 $502

$437

$487

Spending Per Person

$700 $538 $500 $274 $300 $174 $89 $100 Spending Per Party

$208 $129 $67 $42 $58 $19

Transportation Other

$25 $8

Gas

$236 $158 $76 $51 $76$25

Transportation Other

$15 $5

$8 $3

Spending Per Person

Overall, the average trip expenditure in the overall DTAB market is about $1,488 per party. Roughly two-thirds of the total spending goes to lodging & restaurants, while slightly more than one quarter is spent on recreation and retail purchases.

FIGURE 12. BREAKDOWN OF SPENDING, NON-CRUISE MARKET

FIGURE 11. BREAKDOWN OF SPENDING, CRUISE MARKET Gas

$700 $656 $500 $339 $300 $212 $109 $100 Spending Per Party

Visitors to the Space Coast spend an average of $1,488 per party or $481 per person. Average trip expenditure is highest in the non-cruise and 12-month return markets, and is lowest in the cruise and 3-month return markets. The variation in spending observed in these sub-markets is explained by the differences in the number of “room nights” and “people nights” that were procured by visitors in each market.

Lodging Restaurants Recreation Retail

Lodging Restaurants Recreation Retail

$8 $3

Spending Per Person

The average trip expenditure in the cruise market is just over $1,239 per party (or about $402 per person.) In comparison to the overall market, dollar expenditures are significantly lower in each spending category; however, when dollar values are converted to proportions, spending patterns in the two markets are generally similar.

Lodging Restaurants Recreation Retail

$700 $688 $500 $356 $300 $222 115 $100 Spending Per Party

Gas

$243 $166 $79 $54 $81 $26

Transportation Other

$13 $4

$8 $3

Spending Per Person

The average trip expenditure in the non-cruise market is about $1,555 per party (or about $502 per person.) Individuals in this market procured more “room nights” and “people nights” than in the cruise market, which accounts for the higher amount of spending. The composition of expenditures shown in the chart closely follows the pattern for the cruise market but with a slightly higher proportion spent on lodging and restaurants.

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Survey Results continued FIGURE 13. SATISFACTION WITH SELECT ACTIVITIES

FIGURE 14. PARTICIPATION IN SELECT ACTIVITIES

Beach Activities....................................... 4.42

Beach Activities....... 82.8%

Bicycling................................................... 4.02

Bicycling............................................................. 24.4%

Brevard Zoo/Treetop Trek.........................4.35

Brevard Zoo/Treetop Trek.......................................20.9%

Eau Gallie Arts District.................................. 3.93

Eau Gallie Arts District..........................................21.2%

Historic Cocoa Village............................... 4.26

Historic Cocoa Village........................... 46.3%

Historic Downtown Melbourne.................. 4.17

Historic Downtown Melbourne.....................35.1%

Kennedy Space Center Visitor Complex....4.48

Kennedy Space Center Visitor Complex......46.0%

Orlando Theme Parks................................ 4.27

Orlando Theme Parks....................................33.1%

Public Event, Show or Festival..................4.23

Public Event, Show or Festival.......................31.3%

Ron Jon’s/Cocoa Beach Surf Company.....4.26

Ron Jon’s/Cocoa Beach Surf Co...59.0%

The Cove at Port Canaveral......................4.36

The Cove at Port Canaveral.............................31.8%

Westgate Cocoa Beach Pier......................4.17

Westgate Cocoa Beach Pier................ 48.5%

Respondents were asked to rate their experiences with several Space Coast destinations and activities. On a scale of (1) very unsatisfied to (5) very satisfied, the average rating exceeded 4.2 for most of the activities listed. The Kennedy Space Center Visitor Complex drew the highest satisfaction rating, followed closely by Beach Activities, The Cove at Port Canaveral, and Brevard Zoo/Treetop Trek.

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To provide context to the satisfaction ratings, this chart shows the proportion of respondents who participated in the activities listed. Most of the destinations and attractions drew participation rates in excess of 30%. Beach activity was, by a wide margin, the most popular activity (83%), followed by Ron Jon’s/Cocoa Beach Surf Company (59%), Westgate Cocoa Beach Pier (46.3%) and the Kennedy Space Center Visitor Complex (46%).

FIGURE 15. SATISFACTION WITH SELECT AMENITIES

FIGURE 16. RELEVANCY OF SELECT AMENITIES

Airport Convenience................................. 4.12

Airport Convenience...................................... 37.6%

Beach Accessibility.............................. 4.58

Beach Accessibility.....89.6%

Beach Cleanliness..................................4.37

Beach Cleanliness....... 88.7%

Beach Restrooms...........................................3.67

Beach Restrooms.............................. 51.5%

Personal Safety..................................... 4.42

Personal Safety...... 94.6%

Public Parks.............................................4.30

Public Parks..................................... 54.3%

Public Restrooms........................................3.73

Public Restrooms.............................. 53.2%

Public Transportation.....................................3.56

Public Transportation...................................................16.3%

Sidewalks & Walking Areas..................... 4.27

Sidewalks & Walking Areas....................... 85.0%

Traffic: General..............................................3.77 Traffic: Port Canaveral.................................3.88

Traffic: General..... 96.1% Traffic: Port Canaveral............... 65.4%

Respondents were asked to rate their satisfaction with several amenities.

Using a scale of (1) very poor to (5) excellent, several of the items listed had an average score below 4.0. The three highest ranked items were beach accessibility, personal safety, and beach cleanliness; the three lowest ranked items were public transportation, beach restrooms, and public restrooms.

OF THOSE POLLED

91.4% would return to visit 91.9% the Space Coast

would refer a friend to visit the Space Coast

This figure shows the percentage of respondents who provided satisfaction ratings for the amenities listed. The most relevant amenities include general traffic, personal safety, and beach accessibility and cleanliness; the least relevant factors were public transportation and airport convenience.

FIGURE 17. TIMEFRAME FOR RETURN VISITS MORE THAN 24 MONTHS 5.7%

WITHIN THE NEXT 3 MONTHS 24.6%

WITHIN THE NEXT 24 MONTHS 11.8%

WITHIN THE NEXT 12 MONTHS 29.3%

WITHIN THE NEXT 6 MONTHS 20.5%

For those individuals who responded with a score of 4 or 5 to the question about the likelihood of a return visit to the Space Coast, about three in four individuals expect to return within a timeframe of 12 months or less. Since we are reporting this metric with respect to the overall sample, the percentages shown in the figure do not add up to 100%. n

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The Value of Tourism ON FLORIDA'S SPACE COAST

The Tourist Development Tax is a 5% local-option sales tax applied to short-term lodging rentals of less than six months.

Tourist Development Taxes are paid by overnight visitors to Brevard County and are restricted by Florida state law and local county ordinance to certain tourism development-related purposes.

2016/2017

$2.1 billion *

in Tourist Spending 9% of the Brevard County GDP

$535 million spent on Lodging $475 million spent in Restaurants**

$344 million spent on Recreation** $233 million spent in Retail Shops** *A “Tourist” is a visitor who spends at least one night in short-term lodging.

25%

Hotel/ Motel

78%

22% 16%

2% 5% 6%

11%

Campground/RV Condo

9%

Vacation Rental

Mngt.

Companies includes Airbnb

**98.9% of restaurants, shops, outfitters and fishing charter captains are small businesses.

TAXES PAID BY VISITORS TO THE SPACE COAST Local Tax revenue from tourists State Sales Taxes

$129.8 million CONTRIBUTES TOWARD NO STATE INCOME TAX

Destination Marketing

$10.8 million to Save the Indian River Lagoon

$10.8 million

Brevard County Public School Infrastructure

Beaches

Florida's Space Coast Office of Tourism:

$5.3 million Promotion/Advertising Expenditures

41%

of Tourist Development Tax Collections

24 | VisitSpaceCoast.com

$3.1 million Fuel Tax for road improvements

Leisure & Hospitality

JOBS From 2000 – 2017

$18.3 million

of Tourist Development Tax was used as leverage to secure

$144.8 million in beach improvements for Florida’s Space Coast

26,137 Leisure & Hospitality jobs which is 13% of all jobs on Florida’s Space Coast

$13.6 million Tourist Development Tax

Capital Projects

$39 million

to be invested in community projects to improve beachfront parks, expand the Brevard Zoo, build sports arenas, nature centers and new IRL aquarium

FLORIDA PRO When Caroline Marks qualified for the 2018 Championship Tour, she also became the youngest rookie in WSL history, and the only brand-new women’s rookie on the roster. Since arriving on the professional scene just over three years ago, she has won the Vans U.S. Open of Surfing Pro Junior twice, as well as competed at the elite level as a wildcard, at the 2015 Swatch Women’s Pro at Trestles. She went from amateur to threat practically in a matter of minutes -- and it doesn’t look like she’ll be slowing down. In January, she kicked off her year with a win at the Ron Jon Florida Pro Surf Competition, a WSL qualifying series event at her home break of Sebastian Inlet.

Caroline honed her explosive attack in Melbourne Beach, Florida, while trying hard to keep up with her mildly abusive older brothers. They treated her like one of the boys, ribbing her to surf harder, faster, stronger, and as tough as it was at times, she credits them for her grittiness, determination and the diversity of her repertoire. Raised in free-range fashion by parents who wanted their tribe of six kids to play outside, Caroline, the middle child, thrived. Their big backyard had a moto track, halfpipe, and a surf break right across the street. But when her older brother launched a successful social network specifically designed for kids, the family moved to California to scale it. Caroline became a regular in the San Clemente lineups near her new home.

Immersed in a bigger pool of talent, she progressed at a faster clip, notching national NSSA titles in the girls and women’s divisions, two Vans US Open Pro Junior titles and the ISA World Title before setting out on the Qualifying Series in 2017. Because of her age, she’ll be traveling the tour with one of her parents always in tow, and strategically guided by her longtime coach Mike Parsons, a former Tour pro. Caroline may be young, but she’s intelligent, witty, and confident. Her only goal for this year is to learn and have fun while blitzing the best waves in the world with her high-powered attack.

SOURCE: WSL website VisitSpaceCoast.com |

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WSL Pro Surfer Caroline Marks Winner of 2018 Florida Pro at Sebastian Inlet

2 6 | V I S I T S PA C E C O A S T. C O M

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Cocoa Beach Half M

Marathon

THE ECONOMIC IMPACT COCOA BEACH HALF MARATHON WRITTEN BY DR. MIKE SLOTKIN When people think about tourism on Florida’s Space Coast, the images of visitors gathering in the surf, gazing at a rocket clearing the horizon, and shopping at Ron Jon Surf Shop with kids in tow are some of the first things that come to mind. One dimension of Space Coast Tourism that isn’t as well known is sports competition tourism, where the visitor is engaged as an active participant rather than an observer or casual recreationist. On October 29, 2017, on an idyllic strip of coastline spanning northward from Hangar’s Beach opposite the Patrick Air Force Base runway to Shepard Park, the Ron Jon Cocoa Beach Half Marathon (CBHM) was held. The race transpired at low tide with the starter’s gun unleashing more than 2,300 runners – most solo but some in teams – along a 13.2 mile course which ended at the finish line along “I Dream Jeannie Lane” in Lori Wilson Park. As a Space Coast Office of Tourism Signature Event, the CBHM is the embodiment of tourist as competitor, a niche expected to flourish on the Space Coast in the coming years.

With the relocation of the United States Specialty Sports Association (USSSA) to the renamed USSSA Space Coast Stadium in Viera, Brevard County will soon be hosting families in the tens of thousands, as youth sporting activities take root in the former spring training home of the Washington Nationals. The CBHM, and other endurance races held in Brevard County (e.g., triathlons, marathons, mudders), are a precursor to the types of family and multi-generational visitation anticipated to unfold on a larger scale with the proliferation of USSSA activities. If CBHM overnighters – racing tourists – are any indication, it’s a market not to be made light of.

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CBHM runners hailed from 36 states and 4 countries, with participants ranging in age from 6 years to 84; however, it’s the economic fundamentals that are even more eye opening. The average overnight party was comprised of 2.75 people, and during their visit spent just under $519.

Those guests who paid for lodging stayed 1.67 nights, and in total, procured 1.88 room nights. All told, the average per person expenditure for members of an overnight party was just over $188, putting to rest the notion that endurance racers compete on the cheap. While the centerpiece of the visit was a half marathon competition, the weekend itself was a tourist outing with family and beach activities, dining, shopping, and fun. If the future looks more and more like this, destination stakeholders have plenty to look forward to, and revenues to count.

Race Background Like many of the metro areas throughout the United States, the Space Coast hosts a plethora of 5 and 10K races, and it probably wouldn’t be a stretch to say that a discerning runner could find an event to compete in on almost any weekend. Distance races – half marathons, marathons, and triathlons – are a different animal, with a much lower level of accessibility. Organizing these events is a more difficult undertaking, and issues like handling lane closures over a 30 | VisitSpaceCoast.com

course map that potentially straddles different municipalities is just one of the tasks that the race organizer has to troubleshoot. The flipside to these promotional hurdles is that the race itself, precisely because it is more difficult to conduct and thus less frequently available, becomes a runners’ destination, a magnet for competitors throughout Florida and the United States. In the words of race promoter Mitch Varnes, “The half-marathon represents something of a sweet spot” – just long enough to be a tourist draw, but short enough that runners can anticipate doing tourist activities in the time period surrounding the race, which allows them to bring their families.

The CBHM, which had its inaugural run in 2015, has one terrific brand. In fact, if one were to try to brainstorm a race concept which combined an area’s incredible scenic vistas with its rich cultural legacy, it’s hard to believe you’d beat the CBHM.

First, start your runners with the Atlantic Ocean

breaking over their right-shoulder – check.

Second, lope through historic Cocoa Beach and iconic retail outlets like Ron Jon Surf Shop – check.

Third, weave through Shepard Park, named for the first

American in space, and proceed down to the shoreline at low tide – check.

Fourth, stride on the hard-packed sands of Cocoa

Beach, inching closer to finish line at “I Dream of Jeannie Lane,” commemorating the 1960s television show which was thematically situated on the Space Coast – check.

Fifth, have actress Barbara Eden (Jeannie), resplendent

still in her 80s, greet the runners at the finish line, many of who are actually dressed in Jeannie costumes – check .

And yes, the latter actually did happen, in the CBHM’s initial 2015 run.

When Varnes conceived the race, he brought the “I Dream of Jeannie” brand to the forefront. All told, seven different variants of the Jeannie bottle were used during the course of the TV show and subsequent movies. In kindred spirit with the series, the CBHM has created seven Jeannie bottle collectibles, which are issued to participants. So those runners who compete from 2015 through 2021 will have amassed all

seven keepsakes. In addition, those participants who complete the 7 year circuit will be issued a Saturn 5 Rocket Medal, in simpatico with Major Tony Nelson’s (Larry Hagman on the series) spaceship.

It probably goes without saying that with the Jeannie brand, costumes, and celebrity personalities like Barbara Eden (2015) and Dawn Wells (Mary Ann from Gilligan’s Island – 2016), the CBHM is a female centric event. Mothers and daughters, grandmothers and granddaughters, and female friends convening for a runners’ reunion comprise a vast segment of the CBHM field. The race also includes a half-marathon relay, where teammates complete 6.55 mile legs that both end at or near “I Dream of Jeannie Lane.” The relay is popular with running couples, and adds another element of camaraderie which permeates the event.

In the balance of this report, demographic, marketing, and economic data are reviewed, highlighting the impacts derived from this Space Coast Tourism Signature Event. An interview with the top female finisher, Terri Rejimbal, is also included, providing a more personal view of the sporting tourists who make their way to Brevard County to compete, but nonetheless, still partake of area beaches, restaurants, and cultural draws.

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Data Collection Because the CBHM is by definition a registration based event, and due to the fact that the majority of CBHM observers are themselves members of the runners’ parties, capturing survey data was much less complicated than sampling a mass attendance, observational draw like an offshore speedboat race. For the CBHM, two distinct data sets were made available. First, registrant data consisting of the runner’s age, geographic origin, and gender was downloaded from the registration database, and provided by the CBHM organizer. Second, an Internet-based survey instrument was created under the facilitation of the Space

Coast Office of Tourism’s research director and implemented through the Survey Gizmo™ web portal. Utilizing email distribution and Facebook posts, the race organizer sent notification to the CBHM runners about the survey with a request for participation. An inducement of prizes was made available by the Space Coast Office of Tourism via raffle entry for completed surveys.

The purpose of the Survey Gizmo™ questionnaire was to explore beyond the basic demographics contained in the race registration data and ascertain party size, lodging and accommodations, expenditures made on the Space Coast,

FIGURE 1A. RACING PARTICIPANTS BY PARTY TYPE (N = 416) 0% Overnight Visitor - First Timer Overnight Visitor - Returner Day Trip Visitor - First Timer Day Trip Visitor - Returner Local - First Timer Local - Returner

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4%

8%

12 %

16%

20%

24% 21.4%

28%

32% 29.3%

6.7% 9.6% 12.0% 20.9%

Barbara Eden, the original Jeannie, and her posse.

and key marketing related inputs. In total, 419 usable surveys were submitted, representing about 18% of the race population. A detailed review of the survey results is contained in the section that follows.

Demographic Results Figures 1A and 1B combine to provide a breakdown and context for the local versus non-local split of CBHM participants. Figure 1A reveals that an estimated 32.9% of surveyed runners were Space Coast locals, while another 50.7% classified themselves as overnight tourists. The remainder, a little over 16%, were daytrip visitors, whose Brevard County excursion was limited to race day. Respondents also tabbed whether they were returning participants of the CBHM or first-timers; in total, about 60% signaled that they were previous competitors in the CBHM, highlighting a strong affiliation with the event.

FIGURE 1B. RACER ORIGIN

BY REGISTRATION (N = 2114) 0% Florida Space Coast United States

27.5%

55%

82.5 %

110% 89.5%

32.8% 99.8%

Figure 1B is constructed from actual registration data, and of the 2,314 race participants, geographic origin data was available for 2,114 of the runners. All told, 99.8% of the CBHM participants were from the U.S., and just under 90% were from the state of Florida. Runners registering with a Brevard County address amounted to 32.8%, almost identical to the average gleaned from the survey data. This result supports the notion that the survey sample presents an accurate reflection of the CBHM population.

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race, while the registrant data strictly contains runners, the former distribution has a distinguishing bump for the under 20 category. Nevertheless, whether the discussion centers on racers, or racing party members, the core of the CBHM population resides in the 30-60 age range.

Figure 3 examines the gender distribution of registered participants and surveyed runners who were required to list the total numbers in their party by age and gender. The registration data showcases a 74-26 female-male split, reemphasizing the female-centric aspect of this event. Once again, since the survey-based distribution contains the guests of runners participating in the race, it should serve to smooth down this split due to the fact that children will be more evenly divided between males and females. Nevertheless, the strong female presence in the CBHM is self-evident. Whoever these participants are, and what motivates their love of running and affinity for the Space Coast, can’t be explained by a simple demographic chart. Space Coast Tourism interviewed the top female finisher, Terri Rejimbal, to provide those insights (see pages 36-37).

Lodging and Accommodations Figure

2 examines the age distribution of registered participants (n = 2,055) and surveyed runners who were required to list the total numbers in their party by age and gender. In total, the 419 survey respondents classified a total of 1,039 party members, for an overall average party size of about 2.5 individuals. Since the survey-based distribution contains the children of runners participating in the

Turning the discussion back to lodging choice, if survey respondents indicated they were overnight tourists, they were asked whether they paid for lodging during their visit. If so, they were then asked what type of lodging they had procured (see Figure 4). Of the 211 overnight tourists sampled, about 77% stayed in a hotel or motel, and another 6.6% rented an al-

FIGURE 3. GENDER DISTRIBUTION BY SURVEYED PARTIES & REGISTRATION

FIGURE 2. AGE DISTRIBUTION BY SURVEYED PARTIES & REGISTRATION 0% Under 20

6% 12% 18% 24% 30% 36% 2.9%

13.5%

60%

80% 100% 67.7% 73.9%

Females 32.3% 26.1%

Survey Data

29.7% 30.1%

40-49 25%

50-59 7.2% 7.3%

60-69

Survey Data

40%

Registrant Data

16.3% 20.8%

30-39

70 & Above

20%

Males

6.3% 8.4%

20-29

0%

2% 1.1% Registrant Data

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29.5%

FIGURE 4. OVERNIGHTERS LODGING CHOICE (N = 211) Airbnb/VRBO/Homeaway Condo/Campground/Other Did Not Pay for Lodging Hotel/Motel

0% 25% 50% 75% 100% 3.8% 2.8% 16.1% 77.3%

ternative form of lodging (Airbnb, VRBO, condo, campground, etc.). The remainder, 16.1%, did not pay for lodging, presumably staying with friends or family. To place this in context, that implies that about 38.9% of the overall sample stayed in hotel or motel, while about 3.3% rented an alternative. Collectively, about 42% of the CBHM field purchased accommodations on the Space Coast, renting, on average, about 1.88 room nights per party.

Survey respondents who had selected hotel and motel as their accommodation were further asked to identify by name their lodging choice (see Figure 5). Of the 163 who utilized a hotel or hotel, 155 identified their accommodations by name.

The modal response, at 34.8%, was the Hilton Cocoa Beach, which makes perfect sense considering it was the race hotel. Runner/lodgers were required to stay a minimum of two nights at the Hilton, and the average number of room nights procured for parties staying at the Hilton was about 2.06. In aggregate, about 61% of hotel/motel guests stayed at the

Hilton or International Palms, the two venues which are adjacent to Lori Wilson Park, where the CBHM finished.

Party Expenditures In terms of the spending behavior of CBHM parties, survey respondents were asked about the dollar amount of purchases they made within Brevard County in seven categories of expenditure: restaurants, lodging, recreation, retail purchases, gasoline, local transportation, and any miscellaneous service purchases. For overnight visitors, dining and accommodations represent about 73% of overall expenditures, which collectively sum to $519 per party (see Figure 6). Daytrip parties carry a much lower spending threshold due to the absence of lodging expenditure and reduced restaurant purchases. The latter is attributable to smaller party size versus overnighters, and shorter length of stays (1.68 days for overnighters versus 1 day for day trippers). Overall, daytrip parties spent about $131 during their Space Coast visit, while local parties expended $108 during their race day.

With the relocation of the United States Specialty Sports Association (USSSA) to the renamed USSSA Space Coast Stadium in Viera, Brevard County will soon be hosting families in the tens of thousands.

FIGURE 5. HOTELS UTILIZED BY RACING PARTIES (N = 155) 0%

3%

6%

9%

12%

15%

18%

21%

24%

27%

30%

33%

36%

Comfort Inn & Suites Courtyard Marriott Days Inn Cocoa Beach Doubletree Extended Stay Fawlty Towers Motel Four Points Sheraton Hampton Inn Hilton Cocoa Beach Holiday Inn Express International Palms La Quinta Motel 6 Ocean Landings Resort Radisson Oceanfront Resort at Cocoa Beach Sea Aire The Inn at Cocoa Beach Tradewinds Tropical Isle

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WITH TERRI REJIMBAL,

TOP FEMALE FINISHER AT THE 2017 COCOA BEACH HALF MARATHON Mike Slotkin (MS): Hi Terri - thanks for talking with us today, and congrats on your placement as the Top Female Finisher at the Cocoa Beach Half Marathon. Can you tell us a bit about your running background?

Terri Rejimbal (TR): I started running in the late 80’s, but I was more like a “hobby jogger,” and running was a way to deal with some life issues. Back then I was really into teaching aerobics – Kathy Smith was my idol – and I just decided to enter my first 5K race in Orlando at Hard Rock Café. I think it must have been about 1992. I didn’t even place in my age group that first time out, but one year later, I managed a 3rd place finish in my age group, and I was off. Over the next decade or so I lived in California, Germany, and North Carolina, but running was my one constant. I remember running the Carlsbad 5000 in San Diego where I was so excited to get a free PowerBar & T-shirt. Catherine Ndereba, Fatuma Roba, and Colleen De Rueck were my inspirations … so tiny, mighty & tough, intimidating, but yet so humble and genuinely down to earth. In Germany I ran my first marathon in Cologne, and I have a lot of fond memories of running there, just being able to go out my back door and run through the forest and farmers’ fields and seeing the seasons change. When I relocated to North Carolina I made friends with other local area star runners who taught me the “ropes” about preparing a race resume, submitting for elite/seeded entries to race directors, sponsorship, and being in on the “know” with what races to run and perks for faster runners. I ran quite a few PR’s (personal records) over those years before returning back to Florida in 2004 to complete my degree at UCF. 36 | VisitSpaceCoast.com

Terri Rejimbal at low tide.

even setting new PR’s faster than when I was younger. This year I ran about 12 races. I ran the Kona Marathon in June, and I swore I wasn’t going to run another marathon. But I was invited to run the St. George Marathon 3 weeks before the Cocoa Beach Half Marathon. I usually run the USATF (USA Track & Field) Masters 15K event that takes place at the end of October. But I had to choose – the Jeannie Bottle or Master Championship cash. I chose the Jeannie Bottle.

(MS): I suspect that the typical reader of this magazine has no idea that you actually ran and won this race while dressed in a Jeannie costume. Rather than viewing this as a hindrance, you actually celebrate this aspect of the race. Can you tell us what it’s like to race while channeling your inner Barbara Eden?

(MS): What’s your typical training & racing calendar look like? How often do you compete, and at what distances?

(TR): I coach myself – always have – and I am RRCA (Road Runners Club of America) certified. About 2-3 years ago my typical mileage was 80-85 miles per week. For marathons, I’d get up to 90-100 miles per week. As I have gotten older, I find it harder to reach those thresholds. And after turning 40, I thought my running would be going downhill. Boy was I wrong. The first 7 years of my forties, I was on a “roll,”

(TR): A hand-painted I Dream of Jeannie Bottle and a surfboard – the awards for the Cocoa Beach HalfMarathon – are the most unique and my most coveted. When I saw that Mitch was going to have Barbara Eden at the inaugural Cocoa Beach Half Marathon in 2015, I knew I had to be there.

I wasn’t in shape to run as an overall, but I entered the Jeannie Division. I’d never run a race in a costume, but I’m so glad I did! For $6 I picked up a curtain sheer and lingerie. Mom helped me construct the costume. To hear “go Jeannie” or “run Jeannie”, it’s so motivating … better than being in the

Ursa greets the winner.

go back and take my niece and nephew. I grew up in Mt. Dora, and one of my fondest memories as a child was going to the beach. When given a choice, that’s what I wanted to do for my birthday. It was always the beach –whether it’s boogie boarding in the waves, laying in the sand, listening to the waves crash the shore, searching for shells, or walking the beach.

Brian, Terri, and Ursa.

lead. This year, we constructed a new costume (green) to match the Evil Twin theme.

(MS): You’re quite familiar with Brevard County competitions – when did you first race here?

(TR): My first race in Brevard County was the Space Coast Half Marathon in 2008. I had run a four-miler 3 days prior and won a trip to Bahamas, departing from Cape Canaveral, so I went into the race not expecting much. The next race was in 2009, the USATF Masters Half Marathon championship, and actually, Mitch’s Melbourne Half Marathon was hosting the event, in conjunction with the half and full. It was a first time event, and I always enjoy first time events. I was “in”. I ran 1:23:44 that year for 3rd in the USATF Master classification and 1st in the FL USATF Master classification. Inspired, except for an injury season, I have returned every year since.

(MS): On race weekend you’re one of the leading participants, but you’re also

a sports tourist. Describe for us your weekend visit to the Space Coast.

(TR): Usually we drive over on Saturday and hit the expo at Ron Jon’s. Collect my bib, stroll thru the vendors, and snap a picture in the Jeanne/Ron Jon’s cut out. We then head down the road to La Quinta because they allow pets and it’s a hop, skip and jump from the finish line at I Dream of Jeannie Blvd. We like to eat at Barrier Jacks, Long Doggers and Pig & Whistle – all within a few miles of the hotel. My husband Brian, and Ursa, our dog, hopscotch around the course during the race so they can see me at various mile markers. I enjoy the beach running; it’s a challenge, and I like seeing all the beach combers out in search of shells, enjoying the sunrise. This year, we did make a special trip to Kennedy Space Center. I hadn’t been to KSC since I was 8 or 10. It was so much more than I expected and what I remembered. So many exhibits to see, variety of tour options, and the highlight was the Apollo complex. We spent all day and closed the place down. I certainly want to

(MS): Terri, one last question. There’s a very special connection between Space Coast racing competitions and your beloved retriever Ursa. Can you share with our readers how Ursa came to be part of your family?

(TR): Well, it was early 2011, and I had been looking for a puppy. She was 8 weeks old, and I had contacted the foster parents to see if I could view her. They actually held her for me until I was able to see her the Sunday evening after I returned from Melbourne Half Marathon.

So that was another incentive to run fast! I used my prize money from the race to adopt her from Florida All Retriever’s Rescue in Tampa.

Ever since, she always comes to all my races, and gives wags, licks and barks when I finish. She’s just a good-natured happy-go-lucky dog that just loves all the commotion and excitement around races and travel.

(MS): Thanks Terri! n VisitSpaceCoast.com |

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FIGURE 6. RACING PARTIES SPENDING BY TYPE $0 Gasoline Local Transportation

$100 $200 $300 $400 $500 $600 $38 $22 $3 $1 $229

Lodging

Recreation

Restaurants

Retail

3-time Space Shuttle astronaut Andy Allen at the 2017 CBHM. Other

For economic impact estimation purposes, the spending behavior of CBHM parties was determined on a per person basis (see Figure 7). With respect to day trippers and locals, this would also represent a daily spend. For overnight visitors, this is best interpreted as per visit metric. In sum, overnight visitors spent about $188 per trip, while day trip visitors and locals expended $62 and $47, respectively.

While not needed for economic impact estimation, dividing $188 by an average stay of 1.675 days yields an average daily spend for overnight tourists of about $112. The values in Figure 7 inform the economic impact analysis presented in the ensuing section.

38 | VisitSpaceCoast.com

$16 $7 $151 $85 $47

Overnight Visitors Day Trip Visitors

$69 $34 $27

Locals

$13 $3 $34

TOTAL

$519 $131 $108

Economic Impact The economic impact of the 2017 CBHM is an estimate of the flows of spending associated with the event and their identified changes in sales, income, and employment within Brevard County. Impacts are estimated via input-output

FIGURE 7. RACING PARTIES, PER PERSON SPENDING, BY TYPE $0 Gasoline Local Transportation

$40

$80

$120

$160

$200

$14 $10 $1

$83

Lodging

Recreation

$6 $3

Restaurants

$31 $20

Day Trip Visitors

$25 $16 $12

Retail

Other

Overnight Visitors

$55

Locals

$5 $1 $15 $188

TOTAL

$62 $47

modeling, where an input-output model describes the flows of economic activity between production sectors, capturing what industries must purchase from one another in order to produce goods and services.

An input-output model for the economy of Brevard County was constructed using IMPLAN (www.implan.com), an integrated software and data package used by more than 1,300 academic institutions, federal and state government agencies, and private consulting firms. Expenditures associated with the CBHM were then applied to IMPLAN’s social accounting model which factors in commuting, tax, and saving behavior by households in establishing multiplier effects. IMPLAN also affords the analyst the ability to index prices to the appropriate study year.

FIGURE 8. AVERAGE PARTY SIZE

BY TYPE (N = 416) 0 Day Trip Party Local Party Overnight Party

.75

1.50

2.25 2.13

3.0 2.28 2.75

Due to forward and backward linkages within an economy, a multiplier process unfolds whereby an initial round of spending (the direct effect) generates indirect and induced effects (collectively referred to as secondary effects), the magnitude of which depends upon spending leakages. Indirect effects are changes in production that occur as backward-linked industries respond to changes in final demand in directly affected industries. For example, an increase in restaurant meal purchases triggers production responses from food and beverage vendors which supply eating and drinking establishments. In contrast, induced effects represent changes in economic activity resulting from income changes accruing directly or indirectly through changes in aggregate spending. In other words, workers supported by CBHM related activities expend their earnings on an array of consumer goods and services, much of which occurs locally.

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Sara Trane wins the 2016 CBHM.

Leakages out of the local economy occur in the form of taxes, savings, profits to out-of-area residents, and payments for goods and services from outside the study region (i.e., imports). These leakages are the foundational reason why the multiplier process, rather than working in perpetuity, exhausts itself and terminates. The total effect sums both the direct and secondary effects and represents the aggregate economic impact of CBHM activities in Brevard County, stated in terms of sales, income, and employment.

Income or value-added describes the payments made by industry to wages, interest, profits, and indirect business taxes. It is analogous to the gross domestic product estimates

FIGURE 9. POPULATION COUNTS

BY TYPE 0 Day Trip Visitors

800

1,600 2,400 3,200

4,000

807 645

Locals

1,741 1,393

Overnight Visitors Estimated Visitors

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2,585 Adjusted Counts

3,232

ubiquitously cited in business/macroeconomic reports. The ratio of the total effect divided by the direct effect is the commonly cited “multiplier” concept.

The process of calculating economic impact is facilitated by the estimation of a spending profile - per person spending (see Figure 7 again) - which can then be extrapolated to an actual or estimated aggregate attendance, apportioned by type. By utilizing: 1) the total registration figure provided by the race organizers (i.e., 2,314); 2) Figure 1A’s estimated distribution of party types (i.e., overnighters, day trippers, locals); and, 3) the estimated average party size by type (see Figure 8), an estimated population count, by type, can be determined (see Figure 9). These population counts, combined with the per person spending by type levels, inform the IMPLAN model.

In Figure 9, two sets of population counts are presented, one of which represents the estimated value, the second, which is used in the IMPLAN analysis, is a corrected or adjusted value. It is highly likely that a portion of the race registrants, rather than representing independent, stand-alone travel parties, actually are coupled with other racers for visitation purposes. They could be couples, family members, racing friends, etc., but if this reality is not accounted for,

TABLE 1. 2017 COCOA BEACH HALF MARATHON ECONOMIC IMPACT Economic Impact 2017 CBHM

the actual number of visit parties, as reflected in the estimated population counts, would be an overstatement.

In consultation with the race promoter, the most plausible benchmark for registration party overlap was 30%. In other words, 30% of registrants were traveling/rooming with another registrant, while the remaining 70% were either traveling solo (20%) or traveling with friends and family but representing independent visitation units with respect to other registrants (50%). This implies that 30% of the parties really represent 15% (i.e., they are double-counted), and the estimated population counts must be adjusted downwards. In actuality, the adjustment utilized is 20% (the estimated population counts are accordingly multiplied by 0.8), to reflect the 15% overage cited above as well as the fact that just under 5% of respondents were non-primaries. They participated in the CBHM, but they indicated on their surveys that the primary purpose for their visit to the Space Coast was NOT the race.

Using the spending profiles and adjusted population counts, and factoring in the CBHM’s operating budget, the economic impact of the 2017 CBHM was estimated (see Table 1). Collectively, the expenditure flows associated with the CBHM generated a total sales effect of about $1.15 million, and a total income effect of about $0.553 million. Because some sales are actually inputs in the product of other final goods, income created is always a subset of the sales impact.

Direct Effect

Indirect Effect

Induced Effect

Total Effect

The Multiplier

Employment

9.9

2.8

1.6

14.4

1.45

Labor Income

$203,993

$80,162

$60,313

$344,468

1.69

Value Added

$317,154 $127,215 $108,554 $552,922

1.74

Output

$703,387 $257,826 $190,680 $1,151,893

1.64

Income includes both labor and non-labor compensation (i.e., dividends, interest, and rents); for convenience, the subset of total income generated that would accrue solely to labor is also provided (i.e., $0.344 million). Finally, the level of sales activity produced by the 2017 CBHM would support 14.4 full and part-time jobs.

Earlier in this report, a discussion of the multiplier process was provided which explained what the secondary effects (i.e., indirect and induced) were and how they led to a final effect (i.e., the total effect) that was a factor greater than the initial change in expenditure (i.e., the direct effect). The last column in Table 1 presents the employment, income, and sales multipliers for this study, which are based on the composition of spending by industrial category. Focusing on sales, in aggregate, each dollar of expenditure precipitated by the CBHM generated an additional 64¢ of sales.

Table 2 peaks under the hood to highlight the top 10 industries impacted by the 2017 CBHM. Not unexpectedly, restaurants, lodging, and event promotion head the list. Utilizing an average meal cost of $25, the event supported about 7,936 restaurant meals (i.e., $198,408/$25). Other results can be derived from examining the lodging sector impact. From the survey data, the average room rate paid amounted to $144.87 per night (about $129 pre-tax). By dividing hotel/motel expenditure (i.e., $216,476) by the average room rate, it is estimated that in total, about 1,494 room nights were procured from the various lodging options.

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TABLE 2. 2017 COCOA BEACH HALF MARATHON ECONOMIC IMPACT – TOP 10 INDUSTRIES AFFECTED IMPLAN Sector

Sector Description

Sector Employment

Labor Income

Value Added

Total Output

491

Promoters of performing arts and sports

2.1

$17,639

$52,475

$219,709

499

Hotels and motels, including casino hotels

2.2

$54, 567

$121,665

$216,746

501

Full-service restaurants

4.1

$90,041

$100,986

$198,408

440

Real estate

0.4

$4,023

$25,250

$45,917

512

Other personal services

1.1

$26,197

$20,746

$35,750

441

Owner-occupied dwellings

0

$0

$19,594

$30,206

405

Retail - General merchandise stores

0.4

$11,698

$18,638

$29,663

438

Insurance agencies, brokerages

0.2

$7,388

$10,662

$25,692

492

Independent artists, writer and performers

0.8

$4,552

$4,872

$19,051

493

Museums, historical sites, zoos and parks

0.2

$6,996

$7,646

$17,565

In terms of recreational opportunities, IMPLAN sector 493 – museums, zoos, parks, etc. – carries an output (sales) impact of about $17.5k. To provide a comparative example, using an average price for admission to the Kennedy Space Centers Visitors Complex ($45) and Brevard Zoo ($17.45), this would be equivalent to a combination of about 195 admits to the Visitors Complex and 503 entries to the Zoo. One final caveat is in order. A common point of issue with any economic impact assessment involves the role of substitution effects. For example, conventional wisdom amongst tourism officials is that local spending is irrelevant, as within the context of a local economy, it would have circulated (been spent) anyway. In fact, absent spending opportunities within an area, local dollars can “leak” away by outward migration, as residents find non-local draws for their leisure spending.

As a case in point, CBHM survey respondents were asked where else in Florida they routinely ran half-marathon races or longer. Of the local respondents (n = 137), about, 68% itemized areas outside of Brevard County, with 26% identifying two or more areas. Given the paucity of distance racing opportunities, the fact that local options are available can serve to capture local dollars that might otherwise escape. From an economic impact perspective, local dollars deterred from migration (i.e., leakage) are congruent with non-local dollars attracted inward.

In any event, the local impact amounted to about $90k, which if excluded would establish an adjusted sales impact of $1.065 million. The discerning reader can decide 42 | VisitSpaceCoast.com

for themselves whether or not to include any of the locals.

Accounting for this factor, a total economic impact ranging from $1.065-$1.15 million is estimated, which addresses the issue of potential substitution effects.

Marketing & Discussion The CBHM Economic Impact Report closes with a few marketing related items. Survey respondents who indicated they were first timers were asked how they heard about the event (see Figure 10). Possible pathways included News 13, newspaper, radio, social media, the CBHM website, and word of mouth, and respondents could choose more than one response. A total of 167 primary attendees were first timers, and Figure 10 details the distribution of responses. The modal response was social media (53.9%), and 29.3% indicated the CBHM website was the vehicle by which they gained familiarity. The importance of 21st century information pathways (i.e., social media, internet) versus 20th century outlets (radio, newspapers) is perfectly illustrated.

FIGURE 10. HOW DID FIRST TIMERS HEAR ABOUT THE EVENT? (N = 167) 0 Cocoa Beach Half Marathon Website News 13/News/Radio

25%

50% 29.3%

0.6% 53.9%

Social Media Some Other Way Word of Mouth

75% 100%

15.0% 32.3%

FIGURE 11. INTEREST IN FUTURE SPACE COAST RACE (N = 416) 0 Not Very Intersted A Little Interested Perhaps

12% 24% 36% 48% 60% 3.1% 4.1% 13.5%

Somewhat Interested Very Interested

30.8% 48.6%

Finally, in order to gauge the potential for further development in the Space Coast distance race market, survey participants were asked to respond to the following statement.

Consideration is being given to producing a new half-marathon race at an iconic beachside location within Brevard County. The event would take place either in December or March. On a scale of 1 to 5, with “1” being “not very interested” and “5” being “very interested,” please rate your interest in this prospective race.

In total, about half of the surveyed runners indicated they were very interested in such a race (see Figure 11), supporting the notion that for Space Coast distance races, the market is definitely not saturated. n PHOTOS BY RICHARD THOMSON

The 2018 Ron Jon Cocoa Beach Half Marathon is scheduled for Sunday, October 14.

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Sea_turtle_final.pdf

1

4/4/18

8:49 AM

Please remember a few simple things to help protect these magnificent creatures and their habitat:

DO NOT DISTURB NESTING SEA TURTLES, HATCHLINGS, OR THEIR NESTS. C

M

Y

Sea turtles are protected by both the Federal Endangered Species Act and the Florida Marine Protection Act.

CM

MY

CY

CMY

Tear Down Your Castles.

Do Not Dig Holes.

K

Sea turtles can easily get stuck in man-made holes on the beach.

If you dig a hole, please ďŹ ll it back in.

Sea turtles can get trapped behind sand castles and other obstacles on the sand.

If you see an injured or dead sea turtle,

call the Florida Fish and Wildlife Conservation Commission 1-888-404-FWCC (3922) or FWC from your cell phone.

Keep the Beach Dark.

If you must go to the beach at night, only use amber colored lights.

Bright white lights are harmful to nesting mothers and hatchlings.

use designated cross overs and walk ways.

HEY-DON'T TOUCH ME EITHER!

Do not climb over the dunes or disturb the dune vegetation.

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Passenger Cruising

PASSENGER CRUISING AT PORT CANAVERAL: PAST, PRESENT AND FUTURE

at the

Port

A day at Jetty Park is quite exciting! The park offers visitors not only a day of fun in the Florida sun, but also a prime viewing location to see cargo and cruise ships coming and going from Port Canaveral. In fact, 4.2 million revenue passengers and 5.5 million tons of cargo navigated Port Canaveral waters in 2016. Port Canaveral may have once been a sleepy little port, but it has grown far beyond cargo of oranges, shrimp, and oil. What was a $53,500 budget in 1953 has now grown to expected annual revenue exceeding $100 million, and of those dollars, 80% are sourced from passenger cruising. Passenger cruising has truly had a transformative impact on Port Canaveral and the Space Coast economy. As Captain John W. Murray, Port Director and CEO, states in the 2017/2018 Port Canaveral Directory: “Our once small man-made port is now the world’s second busiest cruise port; the world’s top cruise homeport in North America by growth; and, a vital gateway for commerce by sea, land, air, and space, generating a $2.2 billion impact for the local and regional economy.”

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In 1520,

the locale was named Capo de Canaveral, Place of the Cane Bearers, in reference to the Native Americans who welded arrows made of cane when confronted with Spanish explorers. Fast forward to the mid-twentieth century and the citizens of east central Florida can be thanked for creating Port Canaveral and the potential for passenger cruising. It was in November 1947 that voters in the Port District, including many eager fishermen, took to the polls and approved a bond issue to fund the creation of Port Canaveral. Following the issuance of a $1.37 million bond in December 1947, the construction of the port began in 1950. Three years later on November 4, 1953 Port Canaveral was dedicated by U.S. Senator Spessard Holland who aptly called it “Our nation’s port for inner and outer space.” Amidst flying flags and jubilant bands, the inaugural celebration began with a feast featuring five thousand pounds of fried mullet and “all the fixings” and ended with two formal balls hosted by the Indian River Hotel and the American Legion Hall. One might parallel this celebration to the festivities that take place today on the cruise ships that sail from Port Canaveral.

Queen Elizabeth II docked at Port Canaveral in December 1980.

Ten years after the Port’s dedication, the S/S Yarmouth with its 402 passengers was the first cruise ship to set sail from Port Canaveral. The sold-out cruise visited Nassau over Labor Day weekend. However, it wasn’t until 1972 that the construction of a passenger terminal was authorized, signaling to the industry that Port Canaveral was in pursuit of cruise business.

After 25 years of growth, the Port had no intention of slowing down. In 1978, “A growing Port for a growth market—Port Canaveral, the entrance to Central Florida” became the new marketing slogan for the Port, and the 1980s ushered in a new focus on tourism and passenger cruising. Charles “Chuck” Rowland assumed management of the Port in 1980, and Mac McLouth, Port Authority Board member, credited Rowland with the vision that led to the early success of the cruise industry at Port Canaveral.

Rowland pursued Disney’s Mickey Mouse to help publicize the Port Canaveral market but found that Disney was reluctant to release their trademark character. It was the December 1980 visit of the Queen Elizabeth II that persuaded Disney to permit not Mickey but his friend Goofy to visit the Port and so began the relationship between Port 48 | VisitSpaceCoast.com

Canaveral and Disney. Their goal was to pursue tourists who desired Walt Disney World, the beaches, and cruises.

As a result of Rowland’s efforts, a three-to-two vote by the Board called for the construction of Port’s first cruise terminal at the cost of $80,000. The completion of Cruise Terminal 1 in February 1982 created quarters for the Scandinavian Sea, the first ship to call Port Canaveral home for its daylong “cruises to nowhere.” Cruise Terminals 2 and 3 were later approved by unanimous vote and completed in 1983. At the same time, Bjornar Hermansen, a native of Norway who had worked to expand Norwegian Cruise Line’s presence in the Caribbean and European markets, leveraged his expertise and equity funding from Dial Corporation to found Premier Cruise Lines with partner Bruce Nierenberg. Premier opened its Port Canaveral headquarters in 1983 and in the ensuing years brought a total of four ships to Port Canaveral. At the core of their business plan was to give the American family a package vacation, a trip to Disney for the kids and a cruise for mom and dad, said Tom Hermansen, son of Bjornar. While this dual vacation was previously difficult for families to manage, Premier

packaged an easy get-away, including the airline flight, Disney tickets and accommodations, and transportation.

Adding to its popularity, was the Big Red Boat’s status as the official cruise line of Walt Disney World, situated less than 70 miles from Port Canaveral. Premier also incorporated the ever-popular “kid’s deck,” a place for children to play amongst Disney characters and cast members away from relaxing parents. At Port Canaveral, Hermansen and Nierenberg effectively laid the foundation for family cruising that is today’s industry standard.

By 1984 completion of Terminal 4 quadrupled the Port cruise ship capacity in less than 3 years, and Premier’s Starship Royale was the first homeported ship to set sail for multi-day cruises to the Bahamas. The StarShip Oceanic joined her less than two years later. The events of 1986 made Port Canaveral home to dozens of other vessels to aid in the recovery missions that followed the tragic loss of the Space Shuttle Challenger.

Throughout the 1980s, industry and cargo also experienced significant growth. By 1986, the Port achieved economic independence and the ad valorem taxes were abol-

ished. The Port’s ability to generate its own internal revenue for operations and expansion was now well established. Ships continued to recognize the attractiveness of Port Canaveral as a homeport. In 1989, Premier’s StarShip Majestic united with its sister ships, and in 1990, Carnival Cruise Lines made Port Canaveral the homeport for the S/S Carnivale whose speedy success meant she was joined by the S/S Mardi Gras shortly thereafter. Cruise Terminal 5, at five times the size of terminals 2, 3, and 4, was completed and dedicated in 1991.

Port Canaveral adopted the prophetic slogan “Cruise Port of the 21st Century” when it entered its fifth decade. The 1990s brought further expansions, seven-day cruises, and new ships, including Disney Cruise Line’s first luxury Liner, Disney Magic. This culminated Rowland’s pursuit of Disney, which had begun over a decade prior. Terminal 8 was the first of its kind in the United States; the new terminal was designed and built exclusively for Disney Cruise Line. Mickey Mouse, dressed in his captain’s uniform, attended the signing ceremony in 1995, and later returned with Minnie in 1998 aboard a Disney yacht as a part of the monumental arrival of the Disney Magic to its new homeport.

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Mega-ship Royal Caribbean International’s Oasis of the Seas has docked at Port Canaveral since November 2016.

The arrival of mega-ships marked the year 2000 at the Port. To commemorate the 50th anniversary of Port Canaveral in 2003, then governor Jeb Bush commended the Port for its status as “one of the world’s premier cruise destinations” and “the first quadra modal port in the world, interchanging cargo among sea, land, air and space.”

Growth at the Port continued through the 2000s, and today passenger cruising at Port Canaveral offers a rich selection of cruises from four home-ported cruise lines, Carnival Cruise Line, Disney Cruise Line, Norwegian Cruise Line, and Royal Caribbean International, and daily excursions by Victory Casino Cruises. From youth to seniors, single travelers to multi-generational families, budget vacationers to luxury seekers, Port Canaveral is the ideal location to embark to more than 20 Caribbean destinations. As the Port Canaveral 2018 Cruise Guide states: “No matter where you’re coming from, there’s an easy way to get here.”

Longtime local resident, Raymond Nau has served as past chair of Brevard’s Tourism Development Council and a past member of the Governor’s Tourism Council, and still plays a role at the Port today greeting cruise passengers. “Every cruise is a great cruise,” says Nau to those embarking on cruises.

Nau is quick to tell visitors that their inaugural cruise is likely the “the first of many, not the first of firsts.”

And as noted by Captain Murray, Port Director and CEO, it is the ease of navigating Port Canaveral that makes it ideal for first time cruisers and keeps them coming back. In fact, customer satisfaction has fueled the growth of Port Canaveral. The rave reviews of passengers have earned the Port its status as an industry leader, including the distinction of “Best North American Homeport” by CruiseCritic.com in 2015.

Cruise lines closely monitor passenger satisfaction as they select homeports and build ship itineraries.

“The confidence that these cruise lines have in Port Canaveral is based on the comments and reports that they get back from their passengers,” says Diane Luensmann, Senior Director of Government and Strategic Communications at Port Canaveral. Captain Murray is quick to add that Port Canaveral offers a “fantastic” product and emphasize that the cruise lines have “entrusted” the Port to host the largest, most sophisticated and modern cruise ships in the world. The Port takes its commitment to its customers, cruise lines and their passengers alike, seriously: it is honored to have the

industry “endearing us with the biggest and nicest ships,” says Captain Murray.

With Port Canaveral’s #2 status, behind only the Port of Miami, it is no surprise that Cruise Lines International Association, Inc.’s 2016 Economic Impact Analysis identifies Florida as “the center for cruising from the United States.”

In 2016, passengers boarding cruise ships at a Florida port accounted for 61% of all U.S. embarkations. However, Floridians are not just facilitating cruises for others. Many Floridians are passenger cruisers themselves: 25% of all U.S.-sourced cruise passengers in 2016 called Florida home.

Passenger cruising is the dominant source of the Port’s projected $100 million in revenue with cruise ships and cruise-related parking accounting for 80 percent of the dollars coming into the Port. The economic impact of Port Canaveral on the local and regional economy is substantial at an estimated $2.2 billion. In the words of Nau, the impact of passenger cruising has “snowballed” (yes, even in Florida); the growth of passenger cruising has led to subsequent growth in tourism sectors in Brevard and Central Florida and the increase in economic benefits continues to grow in tandem with the growth of passengers.

Multiday passenger cruisers at Port Canaveral have grown from 2.7 million in 2007 to near 4.2 million today, a remarkable increase of 55% over 10 years.

These passengers travel to the Space Coast, approximately half by air and half by car, to board their ships. Excursions to Kennedy Space Center and the theme parks of Orlando, along with airboat rides and a taste of gator, Ron Jon Surf Shop, and the beach, lure in port-of-call passengers. Do not forget the ships’ crew; they, too, frequent landside establishments. Hotels, transportation providers, tour operators, restaurants and shops of the Space Coast welcome passenger cruisers, port-of-call visitors, crews and their dollars with strong hospitality. Martin Associates’ draft report, “The 2016 Economic Impact of Port Canaveral,” estimates that $1.6 billion in business revenue and 14,333 jobs can be attributed to passenger cruising at the Port.

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Martin Associates’

assessment of Port Canaveral’s economic impact reveals that about half of passenger cruisers stay at least one night in a Space Coast hotel before or after a cruise, and Deborah Knight, COO/CFO of Baugher Hospitality Group, reports that on average 15-20% of hotels guests in Cocoa Beach are passenger cruisers. This affirms the Fall 2017 Tourism Report survey data, which revealed that about 20% of tourists who stayed at Space Coast accommodations were also enjoying a cruise. Further, these guests represent an opportunity for future growth, and new hotels will soon arrive in the Port Canaveral area. Recent increases in ship passenger capacity, as well as changes to the ships’ sailing schedules, have provided the potential for hotels to increase occupancy rates. Both individual establishment and industry marketing efforts hope to persuade even more cruisers to “start their vacation on the beach” before setting sail.

When reflecting upon the expansion of Port Canaveral, Captain Murray reports that “The passenger cruise business has grown and we have grown with it.” However, the Port has not resigned itself to a reactionary approach. “We have stayed abreast of their growth with our investments in cruise terminals to make sure that our terminals are capable of handling the larger ships that the cruise lines are designing and bringing to the US market… We’ve made a sincere and dedicated effort to ensure our facilities are ready.” Nau also cites this proactive approach and applauded the foresight of previous Port Canaveral planners that positioned the Port to meet the demands of the cruise industry. Nau shared that George King, the first director of the Port, held plans in 1973 that projected the appearance of the Port in the 2000s and he “had it pretty close to the mark.” Nau cred-

52 | VisitSpaceCoast.com

its today’s success as the product of future Port planning by each and every port director past and present. Captain Murray echoes Nau’s sentiment: “Preparing for the future, and being ready when our customers are ready, has always been part of our success.”

Cruise Lines International Association (CLIA), Inc. in its 2018 Industry Outlook notes that the near future will place increasing emphasis on sustainable tourism practices. And once again, Port Canaveral is posed to be ready when its customers are ready. Restrictions in sulfur discharge are leading to use of alternative fuels. In anticipation of hosting ships operating on liquefied natural gas (LNG), the Port is taking action to be ready to serve its customers by having an ability to distribute LNG, not only to the marine industry but the space industry as well, said Captain Murray.

Port Canaveral isn’t all play; the Port keeps cruise passengers happy all while performing day-to-day functions that enhance the lives of Central Floridians. Travelers pumping gas from Jacksonville to Fort Pierce to westward of Orlando are consuming fuel that likely passed through the Port. And if their vehicle was purchased in Florida, it, too, may have originated from Port Canaveral. A current influx of European-sourced lumber arriving through the Port, as well as granite, lime, and slag, is enabling Brevard and Central Florida building projects. In addition, Morton Salt, one of the longest Port tenants, may be on local kitchen tables or purifying swimming pools. The Port aided Floridians’ recent escape from Hurricane Irma and helped facilitate their return home by closely communicating with the governor’s office to ensure fuel was available in the time of crisis. Disaster relief continues as supplies are routed to Puerto Rico from Port Canaveral.

CLIA, Inc.’s “2018 Cruise Industry Outlook” emphasizes the continued positive trajectory of the industry’s global economic impact. Global demand for cruising increased a remarkable 20.5% over the five years from 2011 to 2016; locally, passenger cruisers increased 27% over this same time period.

Around the globe, 27.2 million passengers are projected to cruise in 2018, and Port Canaveral has a clear vision for the future in which passenger cruising continues to grow. On January 24, 2018, the Port Canaveral 30-year master strategic plan, containing $2.34 billion in capital improvements, was approved by Port Commissioners. The master plan projects some 7 million cruise passengers a year by 2030 and the construction of three new cruise terminals and a ground transportation center to serve them. A fourth terminal is slated for 2045. The vision of the master plan is not limited to passenger cruising but extends to all the functions of the Port: passenger cruising, cargo, spacesport, commercial fishing, parks and recreation, marinas, and commercial development.

Consistent with the Port’s focus on valuing customers and serving the public, prior to approval the plan was presented to the community and commentary encouraged. Florida Today reported that citizens provided wide-ranging responses to the plan, but the addition of an Indian River Lagoon-themed aquarium to Port was the most common request. And, yes, designated space for a potential aquarium is one of the many enhancements that appears in the approved plan. Tom Hermansen, President of Ocean Partners Hospitality, praises the current leadership of the Port at all levels, the commission and the staff alike. He applauds them for their “good stewardship” and the creation of a master plan that “balances the

concerns of the local population with the important role that the Port plays, not just for the local economy but the regional economy.”

“This is a long term plan but an important blueprint for the Port’s future. Our principal focus is to ensure we have the facilities and capabilities to support our growth going forward,” explained Captain Murray in an official statement following the approval of the master plan. “Going forward, it’s important that we continue to protect the foundations of success, while we look ahead to what the future may hold.” Port Canaveral will certainly extend its legacy of being ready when its customers are ready, and the Space Coast will continue to welcome passenger cruisers, and their contribution to the local economy, with strong hospitality. n WRITTEN BY DR. SHERRY JENSEN Dr. Sherry Jensen is an assistant professor of economics in the College of Business at the Florida Institute of Technology. She earned her Ph.D. from Clemson University. Prior to her doctoral studies, she worked in the banking and automotive industries. Her research interests are focused on applied microeconomics, including labor economics, industrial organization, and the economics of education.

I would like to express my appreciation to Tom Hermansen, George Kistner, Deborah Knight, Diane Luensmann, Captain John Murray, and Raymond Nau for their valuable contributions to this article.

Historical content was largely derived from “Staying the Course: Port Canaveral – The First 50 Years,” published by Wolf Jessee Paquin Communications, 2003.

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COCOA BEACH | MELBOURNE & THE BEACHES CANAVERAL NATIONAL SEASHORE

Florida's Space Coast

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Florida’s Space Coast Office of Tourism VisitSpaceCoast.com Florida’s Space Coast