Corridor In The News

2011 forecast
Tourism, sports business, tech expect better 2011

by Richard Bilbao
Friday, December 31, 2010

Hotel stats for the year remained relatively strong and have hoteliers optimistic for 2011.

Year-to-date through November 2010, occupancy and revenue per available room — an indicator of the hotel industry’s health — both showed signs of life throughout 2010, with the exception of room rates, which saw a slight decrease compared to the same period a year ago, said Smith Travel Research.

The forecast for 2011 is for further improvements, such as a 4 percent increase in room rates, a 2.6 percent increase in Orlando room demand and at least a 1.8 percent increase in occupancy, according to PKF Hospitality Research.

“The Central Florida hospitality industry is optimistic for modest and continued growth as the economy continues to see international and domestic improvements. Americans believe in vacations and get-away weekends, with Orlando being the ideal choice for recreation, shopping, entertainment and lodging options,” said Rich Maladecki, president of the Central Florida Hotel & Lodging Association.

Mark McHugh, president and CEO of Gatorland, agreed 2011 will be an active year for the tourism industry. “We’ve seen growing strength in visitation the last half of 2010 and expect growth to continue through 2011,” he said.

Technology
Pressure to shrink the federal budget deficit could benefit Orlando’s modeling and simulation industry in 2011.

“As the overall defense budget declines, our military services will need to find alternatives to training with actual weapon systems and equipment. Simulation offers a cost-effective alternative to retaining combat effectiveness at a much lower cost and is part of the solution,” said Tom Baptiste, president and executive director of the National Center for Simulation.

That potential growth, coupled with the recession shrinking the state’s real estate and construction industries, could open up an avenue for Florida’s technology industry to gain an even greater market share among leading industries, according to the research division of TD Bank Financial Group.

“Our state and business leaders recognize that the technology industry needs to have a hand in pulling us out of this recession. [The coming year] will see the kinds of advances in high-tech that will move Florida forward into establishing a sustainable innovation-based economy,” said Randy Berridge, president of the Florida High Tech Corridor Council in Heathrow.

Sports business
It may be hard to duplicate the 2010 feats of the Central Florida sports industry, but that’s what industry insiders expect for 2011.

With the opening of the Amway Center, the home of the NBA’s Orlando Magic; news of a move to land a new minor-league baseball team, the Tampa Yankees; establishing a soccer franchise, Orlando City Soccer Club; and increased following for the United Football League’s Florida Tuskers and Arena Football League’s Orlando Predators, the bar has been set high.

In addition, the year brought national recognition to the University of Central Florida, which had its football and basketball team both ranked in the top 25 of the Associated Press polls.

“Our feedback shows us that companies are budgeting at pre-2009 levels for sports marketing and corporate hospitality, so based on those factors, 2011 should prove to be a good year for Orlando’s sports industry,” said Phil Rawlins, president of Orlando City Soccer.

“This year was our best year in terms of heads in beds, and we expect 2011 to be just as successful,” said Sam Stark, president and CEO of the Central Florida Sports Commission.
And with that growth, it makes marketing Orlando’s top-25 Nielsen TV demographics all the more important, he said.