A Compelling Opportunity for Hospitality & Tourism Product Development
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Growing The Tourism Economy New Hospitality and Tourism Investment Opportunities
Discover The Palm Beaches is the Official Tourism Marketing Corporation for Palm Beach County. Our focus is on increasing visitation to the destination and growing the tourism economy. We partner with the Tourist Development Council and its agencies, including the Sports Commission, Cultural Council and Film & Television Commission, to support new investments in hotels, attractions and other tourism-related businesses. We collaborate with the County’s Economic Development Department to review any potential incentives or other services they can provide. To advance this mission, Destination Development cultivates relationships with the Business Development Board, hotel brands, management companies, developers and investors on a county, state, national and international level.
Our goal is to act as the “matchmaker” between developers and investors for cities and towns within the County that result in successful and profitable projects.
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Don Kolodz SVP, Destination Development Discover The Palm Beaches 2195 Southern Blvd., Suite 400 West Palm Beach, FL 33406 T - 561.233.3090 C - 561.866.2021 dkolodz@ThePalmBeaches.com
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CONTACT INFORMATION
Published by Passport Publications & Media Corporation
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We also work closely with municipalities, community redevelopment agencies (CRAs), downtown development authorities (DDAs) and government leaders to advocate for tourism’s integration into the city’s economic and strategic plans. We partner with the cities’ planning and zoning departments to identify appropriate parcels for tourism product development opportunities.
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Best Way To Experience Florida GEOGRAPHY Palm Beach County, also referred to as “The Palm Beaches”, is a collection of 39 distinctive cities and towns spanning 2,383 square miles. It is the largest county southeast of the Mississippi River, and is bigger than two U.S. states—Delaware and Rhode Island.
PGA National Resort & Spa, Palm Beach Gardens
ECONOMIC IMPACT Tourism is the second-largest economic driver of Palm Beach County, with an annual impact of over $7.7 billion to the local economy. $54 million from bed tax revenue is invested in tourism promotion and infrastructure.
There are 12 tourism districts consisting of various cities and towns within the County that include Boca Raton, Boynton Beach, Juno Beach, Jupiter, Lake Okeechobee/Glades, Lake Worth Beach, Palm Beach, Palm Beach Gardens, Riviera Beach/Singer Island, Wellington and West Palm Beach. Palm Beach County is approximately 60 miles north of Miami and 150 miles southeast of Orlando.
$ 12%
$7.7B
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Total Economic I M P A C T of Palm Beach County’s economy
V I S I T O R S G E N E R AT E
$5.1B in direct spending
POPULATION Palm Beach County is the third most populous in the state of Florida with 1,450,000 people. The County is one of three that make up the Miami metropolitan area, which is home to an estimated 6,012,000 people. There are 906 people moving into the State of Florida each day, or an estimated 330,000 annually.
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FLORIDA ORLANDO 142 mi
TAMPA
1 in10 retailers
PALM BEACH COUNTY FT. LAUDERDALE MIAMI
4 10
in restaurants
25 mi 47 mi
60,000 households
ALL RELY ON TRAVEL
Supports the livelihoods of
70,000
hardworking people
Tourists Pay
$100
MILLION
in local sales tax
Boynton Harbor Marina, Boynton Beach
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•• •• •• •• •• •• •• •• •• •Transportation • •• •• •• •• •• •• ••
Easy To Get To/From & Around
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BY AIR Palm Beach International Airport (PBI) is ranked as one of the most convenient, stress-free airports in the country. Ten domestic and international airlines serve the airport with more than 200 flights arriving and departing daily. The Fort Lauderdale/Hollywood (FLL) and Miami International Airports (MIA) are within an hour’s drive time of the destination. These three airports represent 47 percent of all airline enplaning and deplaning passengers in the State of Florida.
BY RAIL Brightline/Virgin Trains USA is a new highspeed rail service that runs between Miami, Fort Lauderdale and West Palm Beach, with an extension to Orlando currently under construction. Future service also includes Boca Raton, Aventura and the Port of Miami. In addition, Amtrak and Tri-Rail offer services throughout the County.
BY ROAD Travelers can easily reach Palm Beach County via Interstate 95 or Florida’s Turnpike, both of which run the length of the County and feature multiple exits at, or near, essential cities, towns and connecting roads.
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The Demand Factor Visitor Generators
Jupiter
Worth Avenue, Palm Beach
Due to the size and diversity of the destination, there are a significant number of tourism demandgenerators based upon the time of year and city within the County. The destination features more than 47 miles of beaches, 100 family-friendly attractions, world-class luxury and antique shopping experiences, 125 miles of waterways, more than 150 artificial reefs that line the Atlantic Ocean’s Gulf Stream, 170 golf courses, the Spring Training home for four MLB teams including two recent World Series winners, the largest equestrian and polo facility in North America, award-winning restaurants and a thriving entertainment scene boasting more than 200 arts and culture organizations. There is also $250 million that is being invested in enhancing more than 30 cultural assets. This diverse collection of assets - coupled with Palm Beach County’s rich history - has earned the destination the following designations: America's First Resort Destination, Florida's Cultural Capital and Florida's Golf Capital -- all of which bolster Discover The Palm Beaches’ brand promise: The Palm Beaches are The Best Way to Experience Florida.
Roger Dean Chevrolet Stadium, Jupiter
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FAU Stadium, Boca Raton
VISITOR PARTICIPATION ACTIVITIES Professional Sporting Events Amateur Sporting Events Festival/Events Business Adventure Sports Nature/Outdoor Activities Art & Culture Beach/Waterfront Sports & Recreation Entertainment/Amusement
International Polo Club — Palm Beach, Wellington
0%
20%
40%
60%
80%
Boca Museum of Art, Boca Raton
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A Proven Track Record Key Performance Indicators
RECORD-BREAKING VISITATION IN ORS
SIT
MILLIONS
8 7 6 5 4 3 2 1 0
N VI O I L L I
R8M
OVE 4.43
4.90
6.00
7.35
6.30
7.89
8.22
OUTPACING FLORIDA SINCE 2009
6.95
100%
5.47
INCREASE VS.
2010
2011
2012
2013
2014
2015
YEARS
2016
2017
GROUP NIGHTS ON
2018
2019
200000 150000
FLORIDA 56%
THE RISE 223,000
250000
ROOM NIGHTS
8.02
2019
606%
Increase in Convention Center Room Nights since 2014
116,000
100000
7,500 TO
50000 0
2014
2019
53,000
GROWING HOTELPRODUCTION RevPAR $300
100
$200
60 40 20
$185
$150
$133
$100 $50
0
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$250
72%
ADR/RevPAR
OCCUPANCY
80
$2019
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ADR
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OCCUPANCY
2019 HOTEL COMPRESSION HIGH/LOW
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ROOM NIGHT DEMAND DAYS
28%
30%
Occ <65%
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Occ 65-79% 42%
Occ>80%
BOLDBRAND
AWARENESS
50
PERCENTAGE
2018
2019 49%
40 42% 30
36%
32% 26%
25%
20 10 LEISURE BRAND AWARENESS
The Seagate Hotel & Spa, Delray Beach
INTEREST IN VISITING
MILLENNIAL INTEREST
INCREASING VISITOR $5,000
MILLIONS
$4,000 $3,000 $2,000 $1,000
$4.66B $1,138
SPEND
$4.87B $1,165
$5.06B $1,214
$877
$911
$1,136
$1,201
$1,270
$1,559
$1,629
$1,662
$823
$0 2017 Q1 : (Jan–Mar)
Palm Beach County Convention Center
2018 Q2 : (Apr–Jun)
SOARING CUSTOMER
2019 Q3 : (Jul–Sep)
Q4 : (Oct–Dec)
SATISFACTION
YEARS
2018
4.6
2015
4.4 4.3
2012
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Harbourside Place, Jupiter
4.1
4.2
4.3 4.4 RATING (1-5)
4.5
4.6
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Opportunities Abound The Lodging Market
Boca Raton Resort & Club, Boca Raton
HOTEL ROOMS
WE NEED MORE
18,500
PLAYING CATCHUP From historic resorts to boutique inns, Palm Beach County is home to more than 145 hotels representing over 17,000 hotel rooms. However, this hotel room inventory is just coming back to the level it was in 2000. The largest county in South Florida has less than half of the hotel inventory in Fort Lauderdale/Broward County and onethird of Miami-Dade.
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18,000 17,500 17,000
11%
16,500 16,000
Increase in Hotel Rooms since 2006
15,500 15,000
TO
14,500 14,000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 YEAR
17,000
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ROOMS
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KEY DRIVERS ANALYZED
Historical performance by hotel property
New hotel/rooms supply
Demand and Unaccommodated Demand
New transportation channels being deployed
Office space statistics
Convention Center activity and lost business
Population and Employment Forecasts
County wide Macro Data and Trends
Airport traffic
Major Development initiatives
New tourism generators planned
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Existing hotel/rooms supply
LIMITED SUPPLY Hotel Valuation Systems (HVS) was engaged to conduct hotel room supply/demand studies for several key markets within the County, and confirmed a need for significant new hotel supply in several key strategic markets, creating opportunities for investment.
Hilton West Palm Beach, West Palm Beach
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Legendary Hospitality The Palm Beaches’ Advantages
MARKETING & SALES Overall the County annually invests over $30 million in marketing power to drive demand. These funds are derived from a local Tourist Development Tax (Bed Tax). Anyone who offers accommodations for short term rental (six months or less) is required to collect this tax, which is 6% of total taxable rental receipts. The following is an overview by Tourist Development Council:
Discover The Palm Beaches has a budget of $18 million, primarily invested as follows:
$9 million in media and other marketing components
$2.5 million in professional group sales organization
$500,000 for international sales representation offices in key markets
The Cultural Council has a budget of $7 million and provides grants to many of the tourism assets in the County
The Sports Commission has a budget of $3 million and provides grants to sports rights holders and event organizations
The Film & TV Commission has a budget of $1.6 million that is used to support filming and productions within the County and The Palm Beaches TV
FINANCIAL
For investors and developers, the County, municipalities, community redevelopment agencies and downtown development authorities offer potential financial and tax incentives for job-creating new ventures.
The destination has several Opportunity Zones providing significant capital tax gain benefits.
The County is also a magnet for private-equity funds, hedge-fund management companies, venture-capital groups and other financial firms that can be leveraged to finance projects.
SITE IDENTIFICATION
We will work closely with the investor and developer to identify potential sites for hotels, attractions or tourismrelated venues by leveraging our relationships with the County, city planning and zoning departments, the Business Development Board and commercial real estate organizations.
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• • • • • • • Seamless Project Development •• • • • • • Discover will work closely with developers • and investors to ensure a “one-stop shop” • • process that includes: • • • • FACILITATION PROCESS • Business intelligence including historical ADR, • • occupancy and RevPAR data • Market research related to the needs and trends of • • existing and future travelers
Destination Development Services
Identification of potential financial incentives and building sites
Introductions to civic and business stakeholders including chambers of commerce, county/city leadership, CRAs, and DDAs
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CLIENT ONBOARDING
Destination marketing plans available for operators to leverage in creating their leisure and groups sales strategies, including cooperative advertising opportunities
PR and social media support, including press releases touting the estimated annual, economic impact of new hotel properties.
Introduction to tourism development agencies, including Sports Commission, Cultural Council, Film & TV, tourism partners and other County stakeholders that all create demand and support visitation growth
HOSPITALITY WORKFORCE NEEDS Discover partners with CareerSource, the largest placement agency in the County to assist with recruitment and selection of staffing new market entrants at no cost, including:
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Providing labor market information and assisting in job fairs
Recruitment of line level and managerial staffing
Building awareness of post-opening career path development and training programs
Connecting with five major colleges and universities for full- and part-time employees
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