Indicators Point to Fall Growth

As our industry turns our attention toward the second half of 2016, there are some bright spots on the horizon. Tourist tax collections, convention center attendance and airport passenger traffic are all higher than last year. In addition, several indicators are suggesting improved performance in the fall that will continue throughout 2017. For example, Orlando's advanced bookings for the remainder of the year are pacing ahead of where we found ourselves at this same time last year, and the latest lodging forecasts for 2017 predict room-night demand will grow 3 percent and ADR will rise by 3.6 percent.

While the remainder of the year is strong on the convention side, Orlando's convention commitments for 2017 are also pacing ahead of last year.

After an unprecedented period of six straight years of growth, it is true that our industry has seen occupancy levels and room-night demand slow in 2016. However, while these levels may appear soft, it is only when they're compared to 2015's remarkably high levels. In fact, beyond that one stellar year, this year's occupancies are the highest since 1998 when we had substantially less hotel rooms in the region.

So while market conditions appear to have softened a bit, our industry remains quite healthy and the outlook for the destination is positive. With pleasant fall temps on the way, a host of new attractions and event venues plus a robust convention calendar, Orlando continues to be the gold standard for hospitality and a destination of choice for leisure and convention travelers.

 

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