Florida's Space Coast Tourism Report | Summer 2018 by Florida's Space Coast

S U M M E R

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Centrally located 45-minutes east of Orlando, Florida’s Space Coast is a place where sandy beaches meet oceanfront happy hours and where nature provides a landscape for visitors to enjoy idyllic year-round temperatures.

Plus, it’s where cruise ships, rocket launches and natural wonders delight year-round. Gathering with friends and family doesn’t get any more special than what you’ll experience on Florida’s Space Coast. From the Harry T. Moore Memorial Park to the Valiant Warbird Museum and oceanfront hotels in Cocoa Beach, many offer special rates for group getaways – perfect for family reunions and weddings. /Florida’s Space Coast

So what are you waiting for? Plan your next family gathering at VisitSpaceCoast.com

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TABLE OF CONTENTS Letter from the Executive Director

Meet the Team

Research 11

Visitation Report

2018 Florida Pro Surf

Melbourne Air & Space Show

Kennedy Space Center Visitor Complex

Floridaâ&#x20AC;&#x2122;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 |

A LETTER FROM THE EXECUTIVE DIRECTOR The John F. Kennedy Space Center has had a tremendous influence and impact on Brevard County. More than anything else I can think of, the community’s brand – Florida’s Space Coast – is directly related. Same with our area code 321, as in the countdown 3-2-1-liftoff! More than 15,000 people work at the Space Center which covers over 140,000 acres. The space mission activity is ever-present; and the frequent rocket launches interrupt our regular activities – including sleep – to observe, in fascination, these tremendous feats. Many families relocated to the area during the space race of the 1960s; and now space is in their family genes. Nearly 2 million guests visit the Kennedy Space Center Visitor Complex (KSCVC), professionally managed by Delaware North. I hope you enjoy the article about KSCVC. If you have not been to this historical attraction in a while, you will be amazed at all the new activities, exhibits and hands-on opportunities. This is where you will experience the wonders of space like nowhere else in the universe. We focus our economic impact studies on the numbers, which of course is extremely important. If you don’t know the numbers, you do know the business. But our analysis can’t stop there. I enjoy thinking about the greater good which goes beyond the numbers; those benefits which cannot be measured and only observed sometime in the future.

I will be leaving Florida’s Space Coast Office of Tourism and making way for new leadership. I am very proud of our accomplishments over the past 3 ½ years. Our project pipeline is full with many projects which will generate positive economic impact and add value to the community. The team is prepared to deliver; and I encourage community leaders to support their implementation. As I depart, I want to express my profound appreciation to those that have supported our work. The nine members of the Brevard County Tourist Development Council have provided incredible leadership; I extend my grateful thanks to each. There are others, and I trust you know who you are, who have also dedicated their time and incredible talent to help us be successful in our pursuits. And finally, my office team has embraced change, pushed for excellence and with positive attitudes are boldly moving our work forward. I bid the Space Coast community a farewell, and will be nearby to lend a hand, plant a tree and enjoy the shade! 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, and his scholarly activity surrounds the application of economics to the environment and to regional economies and industries. He regularly consults through FIT Consulting, and to date, has co-authored more than thirty economic impact or contribution studies. Born and raised in Miami, Florida, Mike resides in the town of Grant-Valkaria with his life partner Karen and their three cats: Zippy, Curry, and Luna. He is a life-long supporter of his hometown Miami Dolphins.

DR. ALEX VAMOSI is an Associate Professor in the Nathan M. Bisk College of Business at the Florida Institute of Technology where he has been a faculty member since 2001. He also served as the Associate Dean of Academics at the College from 2007 to 2015. Alex completed his Ph.D. at the University of North Carolina – Chapel Hill and his undergraduate and master’s studies at the University of Alberta, Canada. His research interests involve statistical and quantitative analysis in the areas of environmental and regional economics, sustainability and ecotourism. Alex has collaborated actively on over thirty economic impact studies, and has presented papers on these topics both locally and internationally. He is an avid EPL fan and enjoys reading historical fiction, mystery and fantasy novels.

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, 15 and Charlotte, 13 and lives in the Eau Gallie Arts District area.

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Contributors

Sources

Heidi Hatfield Edwards, Ph.D. is professor of communication, and chair of communication programs in the School of Arts and Communication at Florida Institute of Technology. Her research focuses on the cultural and societal implications of communication regarding social issues, particularly in regard to health, science and technology. Dr. Edwards earned her bachelor’s degree in telecommunication from the University of Florida, and her master’s and Ph.D. in journalism and mass communication at the University of Wisconsin-Madison and University of Georgia, respectively. Pages 54–61.

Anthony Soland, Artist and Owner of the Standard Collective located in the Eau Gallie Artist District. Mr. Soland created a permanent memorial ribbon marker in memory of Thunderbird fallen pilot Maj. Del Bagno. The marker is in the exact spot where the #4 jet was parked during the Melbourne Air & Space Show. www.TheStandardCollective.com. Page 62.

Flickr.com www.Flickr.com/photos/spacex, page 15.

Pring Photography www.Facebook.com/MTPringPhotography/. Photo credit for pages 46–48 and 52–53.

Tiffany Minton is Marketing Director of Florida’s Space Coast Office of Tourism. Photo credit for pages 8 & 9.

United States Air Force Thunderbirds Photo credit for pages 35–37, 40–41, 43, 45 and 50.

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RESEARCH UPDATES, PROJECTS & RESULTS WRITTEN BY DEBORAH WEBSTER Data has become an increasingly necessary part of marketing and business operations, and this is especially true in the tourism sector. Attracting and retaining visitors is essential to the Space Coast Office of Tourism’s (SCOT) fundamental mission, and the reinforcing pillars of data and visual media must work hand in hand to successfully grow tourism and increase bed tax revenue. In this new addition to the Tourism Report entitled Research, you will find three interesting pieces of data: 1) Stats from the historic February 6 SpaceX launch; 2) Hotel metrics from STR; and, 3) A brand new Tourism Performance Scorecard developed explicitly for Brevard County. Please look for the Scorecard in each upcoming issue of the Tourism Report for features indicating trends in the tourism sector.

February 6, 2018 was a thrilling day on Florida’s Space Coast. On this memorable afternoon, the Falcon Heavy rocket was launched by the private space flight company SpaceX. The Falcon Heavy is billed as the most powerful, operational rocket in the world by a factor of two. This historic maiden rocket launch, signified by its power and importance, naturally attracted many visitors to the Space Coast. It was an unforgettable day; perfect blue skies with wispy clouds; a pleasant temperature; and lots of waiting. After several hours of delays, the Falcon Heavy blasted off at the very end of its launch window, gifting plenty of time for visitors who may have been initially hesitant to travel or were stuck in traffic. Viewing sites were ever-present; basically, anywhere that you could look up, but the best vantage points were on bridges, boats, beaches and the Kennedy Space Center Visitors Center (KSCVC) grounds.

flocked to the highlighted sections, particularly in the north county, with Titusville seeing the largest growth due to its proximity to the launch pads. In addition, the area was also flooded by the thousands of SpaceX guests and employees who were in attendance for the launch. Not only was this an important milestone for this rocket, but the payload was also unique and a conversation topic for weeks and months to come. The payload was reported to be one of Elon Musk’s personal Tesla vehicles, a cherry red Roadster, and was driven by a mannequin in a space suit called “Starman.” As Starman continues his journey through outer space, he is not alone. A disk carrying a digital copy of the Isaac Asimov science fiction book series, Foundation, and an engraved plaque with 6,000 SpaceX employees’ names, are also onboard. But exactly how many guests were present in Brevard County to see the launch? The analysis from AirSage and Intermx showed a projected increase of 114,543 visitors on this historic launch day. The SpaceX Falcon Heavy was designed and built to carry humans into space, and restores the possibility of flying missions with crew to the Moon and Mars. February 6, 2018 will stand as a day to remember, and foretells of future impacts for the Space Coast as a new wave of rocket launches lift-off from here. n

SCOT contacted the team at AirSage and Intermx and asked them to provide a count of how many visitors were in Brevard County on launch day. Page 12 reveals their findings. This hotspot map reflects the percentage change in visitors on February 6, 2018, compared to the non-launch day of February 1, 2018. For the purposes of this project, a visitor is defined as having a home location 50 miles or greater from Brevard County. The map clearly shows the enormous influx of visitors to the Space Coast on launch day. The vast majority VisitSpaceCoast.com |

SpaceX Falcon Heavy • Location: Kennedy Space Center • Date: February 6, 2018 • Visitor percentage change on launch day vs. non-launch day

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FLORIDA’S SPACE COAST HOTEL OVERVIEW At the March Tourist Development meeting, Jennifer Foster of STR presented the Florida’s Space Coast Overview. Here are a few slides from her presentation. Please email Deborah at Deborah.Webster@VisitSpaceCoast.com for a copy of the entire deck.

2017: A Record Year! … again! YTD December 2017, Florida Results

% Change

Room Supply Room Demand Occupancy ADR RevPAR Room Revenue

1.4% 4.6% 3.2% 2.6% 5.9% 7.4%

73.9% $138 $101

RevPAR Growth Roaring Since 2014! 18

RevPAR % Change

14 12

10.3%

10 8

6 4 2 0

-2

2013

2014

2015

Brevard County, RevPAR % Change, 12 MMA 1/2013 – 2/2018

2016

2017

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TOURISM PERFORMANCE

SCORECARD FLORIDAâ&#x20AC;&#x2122;S SPACE COAST OFFICE OF TOURISM

Tourist Tax Collection Revenue BUDGETED

LAST YEAR

ACTUAL

$2M $1.75M $1.5M $1.25M $1M $750K $500K

O16

N16

D16

J17

F17

M17

A17

M17

J17

A17

S17

O17

N17

D17

M18

A18

M18

J18

BIKESHARE

& TREE TOP TREK 60,000 50,000 40,000 30,000 20,000 10,000 0

F18

Total Trips

Total Admissions

ZOO

J18

TOTAL

TTT

400 300 200 100 MARCH

APRIL

MAY

MARCH

JUNE

Total Guests Served

APRIL

MAY

JUNE

MAY

JUNE

Total Surfboards Sold

Includes Grills Seafood Restaurants Port Canaveral & Melbourne, Florida

90,000 80,000 70,000 60,000 50,000

MARCH

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APRIL

MAY

JUNE

60 50 40 30 20 10

MARCH

APRIL

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Tourism 16 | VisitSpaceCoast.com

on the

Space

VISITATION REPORT MAY 2017 – APRIL 2018 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 domestic visitors to the Space Coast. These visitors purchased lodging in a hotel/ motel or other accommodations, and by statute are required to pay Brevard County a 5 percent Tourism Development Tax. This domestic tourism accommodations-based (DTAB) market is a large, economically vital component of the overall tourism market. In this issue we expand our analysis by presenting a breakdown of the DTAB market based on household income, a variable that is considered by many to be the most important non-price determinant of demand and consumption behavior. We split the sample into higher income ($75,000 or more) and lower income (less than $75,000) categories. A total of the 766 useable surveys were collected for the period May 2017 – April 2018. Of these surveys, 350 are included in the lower income group; the remaining 416 reside in the higher income category.

Coast

The following bulleted items summarize the main findings in this report. • Higher income households have a similar party size (3.0 per party) and adult/child composition but they rent accommodations for about three-quarters of a night longer than lower income households. • Higher income households spend more than lower income households in each of the four largest spending categories: lodging, eating and drinking, recreation and entertainment, and retail purchases. In total, average expenditures by higher income households are about $1,624 per party, while lower income households spend approximately $391 dollars less per travel party. VisitSpaceCoast.com |

•

Higher income households are more likely to stay

in condos, vacation rentals and other short-term rentals such as Airbnb, HomeAway and VRBO; they also display a greater likelihood of using air travel, and are more likely to visit the Space Coast for business related purposes. • For the overall DTAB market, the participation rate and satisfaction score associated with native wildlife viewing is slightly above corresponding values for the highly popular Kennedy Space Center Visitor Complex. • In the overall DTAB market, about 30 percent of respondents report that they are first-time visitors; within the last two years about 36 percent of respondents visited two or three times, while the remaining 34 percent visited the Space Coast four or more times.

SURVEY BACKGROUND AND DATABASE MANAGEMENT The Visitation Report that is included in each issue of this publication is designed to provide quality information to Brevard County tourism officials and its key stakeholders about spending patterns, trip profiles, and other information about visitors to the Space Coast. These reports focus on domestic visitors to Brevard County who rent accommodations at area hotels, motels, and other lodging options and are required to pay the counties 5 percent Tourism

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Development Tax (commonly known as the bed tax). This sub-group of the tourism market, dubbed DTAB (domestic tourism, accommodations-based), is perhaps the most significant driver of economic impact in the Space Coast’s tourism market. For more information about the Tourism Development Tax, including who must pay the tax, who is exempt from the tax, and the responsibilities of managers and/or owners of rental property, go to: www.brevardtaxcollector.com/business-services/touristdevelopment-tax/. The results presented in the Visitation Report come from a 12-month rolling database that compiles information from an extensive survey that was developed by members of the FIT-SCOT research team. At the inception, the research team decided that periodic assessments of the survey instrument and the data collection process would be made at least once each year. As part of this process of continuous improvement, a series of meetings were held in fall 2017, and several modifications were made to enhance survey clarity and user friendliness. Included in these adjustments were efforts to gather additional information about repeat visits to the Space Coast and participation rates associated with native wildlife viewing and the newly named USSSA Space Coast Complex. The survey was also modified to more easily identify data that may, for several reasons, be unreliable or misreported.

In late fall it also became clear that there was a significant drop-off in the flow of completed surveys that were being collected. As a consequence, a new survey collection process was designed by 321 the agency and implemented in spring 2018. The original process relied heavily on Facebook ads that were sent to users who had made a Visa card purchase in a Brevard County hotel within the last six months. The new process greatly expands the pool of individuals who receive the ad by targeting all Facebook users who visited the Space Coast but are not from the local area. It also produces more timely and more accurate data because the ads are sent only to people within seven days of their visit to the Space Coast. The one drawback of the new strategy is that it excludes people who live within a 100 mile radius of the Space Coast, and subsequently diminishes the impact of the “local” drive market. Since the launch of the new collection strategy, there has been a noticeable uptick of completed surveys.

Analysis of Outliers An outlier is an observation that has an unusually large (or small) value in comparison to other observations in the sample. The concern with outliers is that one or two cases can significantly affect sample estimates of the average, especially those in small samples. For example, in a sample of 750 observations with expenditures totaling $1.125 million (or an average of $1,500 per party), the removal of a single outlier that has a value of $24,000 reduces the sample average by $30. Some observations that appear to be outliers are likely data entry errors made by the respondent. Entry errors can occur when someone inadvertently adds a zero to a value: a true value of $2,400 becomes an incorrect value of $24,000. This type of outlier contaminates the data and should be omitted. Other outliers result from unusually large purchases of a durable good. Durable goods are items that provide a service over several periods and are not fully consumed during a person’s visit to the Space Coast. As a consequence, including such expenditures will overestimate the amount of spending that is attributable to the visit. For example, one respondent reported purchasing a house in the area. This is a large durable goods purchase that should be omitted. An observation that is a distance of more than three or four standard deviations from the mean is usually considered an outlier; however, we have found that this approach tends to yield too many outliers in the surveys that have been collected. As a consequence, we have adopted an approach that identifies any value for spending that is more than six stan-

dard deviations larger than the sample mean for that spending category. We then review each of these, case-by-case, and delete those observations that likely are entry errors or reflect an unusual type of purchase.

Survey Results and Figures In past issues the presentation of the survey results has focused primarily on the overall DTAB market, and to a lesser extent on various sub-groups, such as cruise, non-cruise and return visitor markets. The charts and figures that summarize these markets have been updated and conveniently compiled in a section immediately following this report. In order to gain further insights about visitors to Florida’s Space Coast we thought it would be interesting to present an analysis based on household income, a variable that is widely regarded by economists to be the most important non-price determinant of demand and consumption behavior. To keep the analysis straightforward the sample was split into two groups, those reporting a household income of less than $75,000 and those making $75,000 or more. The cutoff of $75,000 was chosen since the median household income of respondent’s falls near the lower end of the $75,000 $99,999 classification. The sample size for the two income segments are summarized in Table 1 below. Since the number of observations in the two groups are not identical, many of the subsequent tables report percent values rather than count (or frequency) data. We also applied appropriate statistical tests to determine whether there is a statistically significant difference between the observed outcomes in the two groups. The results conform to economic predictions and show that higher income households spend more than lower income households do when visiting the Space Coast. Higher income households are also more likely to stay in short-term rentals, condos or vacation rentals. Additionally, they also have a greater likelihood of using air travel, and are more likely to visit the Space Coast for business related purposes.

TABLE 1: HOUSEHOLD INCOME MARKET SEGMENTS Sample Size

Percent of Total

Less than $75,000

350

45.7%

$75,000 or more

416

54.3%

Total

766

100%

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Accommodation Type and Location

TABLE 3. LOCATION OF HOTEL/MOTEL & OTHER ACCOMMODATIONS

In our current sample of Space Coast visitors, about 69 percent of survey respondents reported having stayed in Space Coast hotels/motels, while another 18.4 percent stayed in short-term rentals such as Airbnb, HomeAway and VRBO, condos and vacation rentals. Table 2 shows a breakdown of accommodation types based on household income. Statistical tests confirmed our suspicion that respondents from higher income households were more likely to stay in short term rentals, condos, and vacation rentals than visitors from lower income households. The differences reported for hotel/motel and campground/RV parks are not statistically significant.

Hotel/Motel

TABLE 2. ACCOMMODATION TYPE BY HOUSEHOLD INCOME Less than $75,000

$75,000 or more

Difference

Hotel/Motel

71.1%

67.3%

(3.8) pts

Short-Term Rental, Condo, Vacation Rental

15.4%

20.9%

5.5 pts

Campground/RV Park

5.7%

3.4%

(2.3) pts

Other Unspecified Accommodations

7.7%

8.4%

(0.7) pts

Sample Size

N=350

N=416

Indicates that the difference between the groups is statistically significant at standard probability values.

With respect to the location of accommodations, overall about 64 percent of visitors to the Space Coast secured lodging in Cocoa Beach/Cape Canaveral. Within the hotel/motel sub-sample the proportion staying in Cocoa Beach/Cape Canaveral is about 65 percent; for those staying in other accommodation types the figure is around 61.5 percent. Table 3 highlights the breakdown of each of the major locations on the Space Coast based on income and accommodation type. In almost all cases the statistical tests were unable to pick up any significant differences in location based on income, primarily because the number of observations at most locations was too small. The one notable exception was Cocoa Beach/Cape Canaveral, where the proportion of visitors who stayed in other accommodation types was significantly higher (12 points) in the $75,000 or more category.

Trip Profile by Household Income In this section we analyze the trip profile of respondents from the two income groups, including the types of accommodation that were procured, party-size and length of stay, 20 | VisitSpaceCoast.com

Other Accommodations 1

Less than $75,000

$75,000 or more

Less than $75,000

$75,000 or more

Cocoa Beach/ Cape Canaveral

64.3%

65.3%

54.4%

66.4%

Cocoa/Merritt Island

2.2%

1.5%

6.7%

2.3%

Indialantic/Indian Harbour Beach/ Satellite Beach

2.7%

5.3%

7.8%

10.2%

Melbourne Beach

10.7%

9.2%

8.9%

3.9%

Melbourne/ Palm Bay

11.6%

13.4%

5.6%

3.9%

Titusville

7.1%

3.8%

11.1%

5.5%

Viera/Suntree/ Rockledge

1.3%

1.5%

0.0%

Unspecified

5.6%

7.8%

Sample Size

224

262

128

Other accommodations include short-term rentals, condos, vacation rentals, and other unspecified accommodations.

air travel, and trip purpose. For the most recent sample period, the average size of a typical DTAB party was about 3.0, including 2.3 adults and 0.7 children. As shown in Table 4, the mix of adults and kids were very similar in the two income groups; the two groups also rented about the same number rooms per visit. The length of stay (as measured by the number of nights that lodging was procured), however, was about three-quarters of a day longer for parties classified in the $75,000 or more income category. The difference in length of stay also translates to a significantly greater number of people nights in the higher income category. The 0.54 point difference shown for room nights, however, is not statistically significant; the lengthier stay by high income parties is tempered with a slightly smaller number of rooms that they rented.

TABLE 4. PARTY SIZE & LENGTH OF STAY BY HOUSEHOLD INCOME Adults

Children

Rooms

Nights

Room Nights

People Nights

Less than $75,000

2.36

0.67

1.25

3.51

4.37

10.82

$75,000 or more

2.32

0.74

1.17

4.28

4.92

13.14

(0.04)

0.07

(0.08)

0.77a

0.54

2.32a

Difference

Indicates that the difference between the groups is statistically significant at standard probability values.

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Table 5 summarizes the respective travel party groupings primary purpose of visits to the Space Coast. Overall, vacation/holiday was by far the most important reason offered, but there was no significant difference between the two income groups. Interestingly, tourists in the $75,000 or more income bracket are much more likely to have visited for business related reasons or to watch a rocket launch, but they were also less likely to visit for a private occasion (such as a wedding.) No significant differences were found in the remaining categories listed.

Orlando International Airport but there was also a significantly higher proportion of higher income visitors flying into Melbourne (more than twice the rate than visitors from the lower income group).

TABLE 6. AIR TRAVEL TO REGIONAL AIRPORTS BY HOUSEHOLD INCOME Regional Airports

TABLE 5. PRIMARY PURPOSE OF VISIT TO THE SPACE COAST Less than $75,000

$75,000 or more

Difference

Vacation/Holiday

62.3%

61.8%

(0.5) pts

Visiting Family & Friends

10.0%

11.3%

1.3 pts

Rocket Launch

5.9%

13.2%

7.3 pts

Business

6.0%

10.8%

4.8 ptsa

Private Occasion (wedding, reunion, etc.)

7.7%

3.8%

(3.9) ptsa

Other

4.9%

3.4%

(1.5) pts

Public Event, Show or Festival

4.9%

3.1%

(1.8) pts

Convenient Stop for Drive Travel

1.7%

1.0%

(0.7) pts

Job Interview

1.1%

1.0%

(0.1) pts

Sample Size

350

416

Overall DTAB 30.0%

Less than $75,000 or Difference $75,000 more 22.3% 36.5% 14.2 ptsa

Orlando

23.6%

16.9%

29.3%

12.4 ptsa

Melbourne

3.3%

2.0%

4.3%

2.3 ptsa

Sanford

3.1 %

3.4 %

2.9%

(0.5) pts

Indicates that the difference between the groups is statistically significant at standard probability values. a

Visitor Spending

Indicates that the difference between the groups is statistically significant at standard probability values. b Rocket Launch had a sample size of 85 for less than $75,000; 121 for $75,000 or more; and 206 overall. a

Although the Space Coast is primarily a drive-market, it is certainly not the only mode of transportation used by visitors. A significant portion of respondents, approximately 30 percent, used air travel to the Space Coast. Table 6 shows the proportion of respondents who flew into one the area’s three major airports, for the overall DTAB market and by household income. Respondent’s from the higher income group utilized air travel at a much higher rate (36.5 percent) than those from lower income households (22.3 percent). Most of this difference was concentrated at the

Household income is perhaps the most important nonprice determinant of spending and consumption behavior. Both the composition of spending (what people purchase), and the demand for goods and services depend on income. The significant difference in the proportion of visitors who flew into one the area’s three major airports is an excellent example of differences in the composition of spending. The positive relationship that typically characterizes income and spending behavior is apparent in Table 7, which makes transparent the greater spending totals in the higher income group for each of the four largest spending categories. Overall, average expenditures per party was about $391 higher in the $75,000 or more classification. The $160 per party difference observed for expenditures on lodging is partially explained by the additional ½ room night procured by higher income parties; however, some of this difference is likely attributable to the renting of more expensive rooms.

Marketing Exposure We asked respondents about which type of marketing or advertising they had specifically seen about the Space Coast in the past six months. Table 8 lists by rank order of exposure the different marketing types observed by DTAB parties. The statistical tests that were applied to the data

TABLE 7. AVERAGE EXPENDITURES PER PARTY BY HOUSEHOLD INCOME Lodging

Dining & Beverages

Recreation & Entertainment

Retail Purchases

All Other Purchases

Total

Less than $75,000

$535

$277

$200

$130

$92

$1,233

$75,000 or more

$698

$383

$258

$183

$103

$1,624

Difference

$163

$106

$58

$53

$391a

Indicates that the difference between the groups is statistically significant at standard probability values.

22 | VisitSpaceCoast.com

Native Wildlife Viewing and USSSA Space Coast Complex are new items that were added to the list of attractions at the start of 2018. show mixed results. When viewed collectively, at a macro level, marketing exposure differs significantly between income groups, with respondents in the higher income group reporting larger percentages for billboard, website, magazine print ads, social media other and airport displays, and lower percentages for more traditional advertising outlets such as television and radio, as well as social media video and Floridaâ&#x20AC;&#x2122;s Space Coast vacation planner. Separate tests on each category, however, reveal a significant difference in only two of the categories listed: airport displays and television. The higher rate of exposure to airport displays found in the upper income category is consistent with the greater rate of air travel in this group; interestingly, exposure via television is much lower for this cohort.

TABLE 8. MARKETING EXPOSURE RATES BY INCOME MARKETING TYPE

Less than $75,000

$75,000 or more

Difference

Social Media Video

47.7%

47.1%

(0.6) pts

Billboard

33.4%

38.0%

4.6 pts

Website

28.9%

30.0%

1.1 pts

Television

27.7%

18.8%

(8.9) ptsa

News Stories

21.4%

20.2%

(1.2) pts

Magazine Print Ad

18.9%

21.4%

2.5 pts

Social Media Other

16.9%

19.7%

2.8 pts

None of the above

16.3%

18.5%

2.3 pts

Floridaâ&#x20AC;&#x2122;s Space Coast Vacation Planner

18.6%

16.1%

(2.5) pts

Airport Display

10.3%

17.8%

7.5 ptsa

Radio

11.7%

9.4%

(2.3) pts

YouTube

5.1%

3.4%

(1.7) pts

Sample Size

350

416

Indicates that the difference between the groups is statistically significant at standard probability values a

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Activities/Attractions and Return Visits The Space Coast offers a broad menu of attractions and activities to attract and engage its visitors. Survey respondents were asked to rate their satisfaction (on a scale of 1 to 5) with the activities they experienced during their visit to the Space Coast. We refer readers to Figures 13 and 14 on page 29 which summarize satisfaction scores and participation rates, respectively. For the overall DTAB market, every activity listed had an average score of more than 4.0, which together yields a composite (weighted average) score of 4.35. There are no significant differences in ratings based on household income. Participation rates provide information about the popularity or relevance of an activity/attraction to travel parties visiting the Space Coast. Given the history of surfing in the area it is not surprising that the vast majority of respondents (82 percent) experienced some form of beach activity during their visit to the Space Coast. Other popular venues or activities include Ron Jonâ&#x20AC;&#x2122;s/Cocoa Beach Surf Company, Kennedy Space Center Visitor Complex, and native wildlife viewing. Westgate Cocoa Beach Pier was the only attraction that had a significantly different participation rate based on income; respondents in the Less than $75,000 category had a 9.5 percentage point higher rate of participation than respondents in the $75,000 or more income group. Native Wildlife Viewing and USSSA Space Coast Complex are new items that were added to the list of attractions at the start of 2018. Based on a sample of 206 respondents, Native Wildlife Viewing had a participation rate of 51 per-

24 | VisitSpaceCoast.com

cent and an average rating of 4.58 (the highest satisfaction score in the sample.) Both scores are just above those found for the highly popular Kennedy Space Center Visitor Complex. In contrast, the USSSA Space Coast Complex attracted relatively few visitors (12.6 percent) and had the lowest overall rating (just under 4.08 percent). USSSA activities are expected to accelerate during the latter part of 2018. Data from past issues highlighted the importance of repeat visitation to the Space Coast tourism market. To better understand this segment, respondents were asked to report how many times they had visited the Space Coast in the past two years. Since this question had not been previously asked the sample size is much smaller (206 respondents) than for other survey items. Despite the relatively small sample size, it is clear that a large percentage of respondents are repeat visitors. Just over 30 percent of the respondents report that they are first time visitors, while another 36 percent report that they had visited the Space Coast two or three times in the past two years. Amazingly, almost 20 percent visited four to six times, with the remaining 14 percent reporting seven or more past visits within in the past two years. Because of the small sample size, statistical tests were unable to detect any meaningful differences in repeat visits based on income. The following pages present updated charts and figures for the overall DTAB market and for cruise/non-cruise and return visitor sub-markets.

Survey Results FIGURE 2. PARTY SIZE BY MARKET SEGMENT

FIGURE 1: ACCOMMODATION TYPE RV Park/ Campground 4.4%

Other 8.1%

Condo/ Vacation Rental 6.0%

Overall

Cruise

2.3

2.6

Non-Cruise

7.0 3.5

Hotel/Motel 69.1%

0.7

0.5

2.3

0.8

3-Month Return

12-Month Return

2.1

2.4

0.6

0 Adults

Short-Term Rental: AirBnB, VRBO, Homeaway, etc. 12.4%

Kids

A typical party consists of just over 3.0 individuals, including 2.3 adults and 0.7 kids. The mix of kids and adults varies across sub-markets with the largest divergence occurring in the cruise market, which typically includes more adults (2.6) but fewer kids (0.5). A comparison of the 3-month and 12-month return visitor sub-markets shows that party size tends to be a bit larger for those reporting a 12-month horizon.

Hotel/Motel accommodations remain the overwhelming choice of lodging of overnight visitors to Florida’s Space Coast (69% overall). Together, condos, vacation rentals, and short-term rentals such as Airbnb, VRBO, and HomeAway, account for 18.4% of the market; RV/Campgrounds and other unspecified accommodations account for the remainder.

FIGURE 3. LODGING PROFILE BY MARKET SEGMENT 17.5 14.3

13.1

12.1 10.5

9.3

7.3 7.0 3.9

4.7

3.5

2.7 1.2

3.1

Rooms

Cruise Nights

Room Nights

5.6

5.0 3.2

1.2

1.3 Overall

4.2

3.6

1.1 Non-Cruise

4.8

3-Month Return

1.2 12-Month Return

People Nights

Visitors to the Space Coast rent about 1.2 rooms overall and between 1.1 and 1.3 rooms in each of the sub-markets shown. The lodging profile also shows that overall the number of nights procured is about 3.9 but with sizeable variation across sub-markets; visitors from the non-cruise and 12-month return cohorts procure 1.5 and 1.6 more nights than visitors from the cruise and 3-month return sub-markets respectively. The number of room nights is the primary driver of the variation in weighted average estimates shown for both “room nights” and “people nights.”

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Survey Results continued FIGURE 4. PRIMARY PURPOSE OF TRIP, DTAB MARKET

FIGURE 5. PRIMARY PURPOSE OF TRIP, CRUISE MARKET

Business.................................................................................... 8.6%

Business...........................................................................................4.4%

Convenient Stop for Drive Travel............................................1.3%

Convenient Stop for Drive Travel......................................................0.0%

Job Interview...........................................................................1.0%

Job Interview.....................................................................................1.5%

Private Occasion (wedding, reunion, etc.).......................5.6%

Private Occasion (wedding, reunion, etc.)...................................2.9%

Public Event, Show or Festival............................................3.9%

Public Event, Show or Festival.......................................................2.9%

Rocket Launch......................................................................2.7%

Rocket Launch...................................................................................1.5%

Vacation/Holiday...... 62.0% Visiting Family and Friends..................................... 10.7%

Vacation/ Holiday............. 77.4%

Other................................................................................ 4.0%

Visiting Family & Friends......................................................... 8.0%

Respondents were asked about the primary purpose of their trip. About 62% of visiting parties were vacationing while another 10.7% were visiting with family and friends; 8.6% were on business; 12.3% came to attend a public event, show, festival or rocket launch, or to attend a private occasion; and the final 6.4% was divided up amongst convenient stop for drive travel, job interview and other motivations.

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

Other....................................................................................................1.5% Vacation/Holiday travel is the primary motivation for about 77.4% of the cruise market, a figure that is about 18.7 percentage points higher than the estimate found in the non-cruise market. Conversely, in every other category (except job interview) the proportion reported in the cruise market is smaller than its corresponding value in the non-cruise market. Note: figures for the non-cruise market are not shown but are available on request. Please contact avamosi@fit.edu

FIGURE 6. CRUISE COHORT BY SELECTED CRUISE LINE Other 7.3%

FIGURE 7. WHAT TYPE OF MARKETING HAVE YOU SEEN?

Carnival 37.2%

Airport Display............................................................ 14.4% Billboard.............................................. 35.9% Floridaâ&#x20AC;&#x2122;s Space Coast Vacation Planner............ 17.2% Magazine Print Ad.............................................. 20.2%

Royal Caribbean 34.3%

News Stories ...................................................... 20.8% Radio................................................................................ 10.4% Social Media Video ............. 47.4% Social Media Other ............................................. 18.4%

Norwegian 3.6%

Disney 17.5%

A total of 137 parties embarked on a cruise from Port Canaveral. This figure translates to a 17.9% share of the overall sample, which is about 3 percentage points lower than previously reported estimates. About 71.5% chose Carnival or Royal Caribbean for their cruising activity; another 17.5% selected Disney; the remaining 10% was divided between Norwegian and other cruise lines.

TV......................................................................... 22.8% Website....................................................... 29.5% YouTube........................................................................................4.2% None of the above................................................. 17.5% The strongest marketing platforms observed by the overall market continues to be videos on social media (47.4%), billboards (35.9%) and websites (29.5%). In comparison to figures reported in the Spring 2018 issue, viewership of magazine print ads, news stories and television dropped from one in four individuals to close to one in five individuals. These losses, however, were partially offset by increased shares related to non-video forms of social media, YouTube, and airport displays.

FIGURE 8. HOUSEHOLD INCOME 30% 25%

23.5% 20.4%

20% 16.4%

14.0%

15%

12.0% 10% 0%

8.0%

5.7% Less than $25,000

$25,000 $49,999

$50,000 $74,999

$75,000 $99,999

$100,000 $124,999

$125,000 $149,999

$150,000 or more

The distribution of household income is skewed towards upper end income brackets, with more than one in three respondents reporting a household income of $100,000 or more. As previously reported, the median household income remains 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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Survey Results continued FIGURE 10. BREAKDOWN OF SPENDING, OVERALL

FIGURE 9. AVERAGE TRIP EXPENDITURE BY MARKET Overall $1600 $1,445 $1200 $800 $400 0

Cruise

Non-Cruise

$362

12-Month Return $1,517

$1,519

$1,191

$1,107

$475

3-Month Return

$500

$392

$480

Spending Per Person

Spending Per Party

FIGURE 11. BREAKDOWN OF SPENDING, NON-CRUISE MARKET

$700 $661 $500 $349 $300 $217 $115 $100

Gas

$240 $170 $79 $56 $79$26

Spending Per Party

$8 $3

Spending Per Person

The average trip expenditure in the non-cruise market is about $1,519 per party or $500 per person. In comparison to the overall market, dollar expenditures are somewhat higher in each spending category; however, when dollar values are converted to proportions, spending patterns in the two markets are generally similar.

28 | VisitSpaceCoast.com

Gas

$231 $158 $76 $52 $74$24

Transportation Other

$15 $5

$9 $3

Spending Per Person

The average trip expenditure in the overall DTAB market is about $1,445 per party. Roughly two-thirds of the total spending goes to lodging & restaurants, while slightly more than 27 percent is spent on recreation and retail purchases.

FIGURE 12. BREAKDOWN OF SPENDING, CRUISE MARKET Lodging Restaurants Recreation Retail

Transportation Other

$12 $4

$700 $623 $500 $334 $300 $205 $110 $100 Spending Per Party

Visitors to the Space Coast spent an average of $1,445 per party or $475 per person. Average trip expenditure in the cruise market is $412 per party and $138 per person lower than expenditures in the noncruise market; similarly, average spending in the 3-month return market is $326 per party and $89 per person lower than in the 12-month return market. The variation in spending observed in these sub-markets is explained by the large differences in the number of “room nights” and “people nights” that were procured by visitors in these markets.

Lodging Restaurants Recreation Retail

$700 $500 $452 $265 $300 $148 $87 $100

Gas

$193 $105 $63 $34 $34 $18

Spending Per Party

Transportation Other

$29 $9

$9 $3

Spending Per Person

The average trip expenditure in the cruise market is $1,107 per party or $362 per person. Visitors in the cruise market procure accommodations for about 1.5 fewer nights than those in the non-cruise market. As a consequence, dollar expenditures in the cruise market are significantly lower in the top four spending categories: lodging, restaurants, recreation, and retail purchases. In terms of percentages, spending on lodging in the cruise market is about 3 percentage points lower than in the non-cruise market.

FIGURE 13. SATISFACTION WITH SELECT ACTIVITIES

FIGURE 14. PARTICIPATION IN SELECT ACTIVITIES

Beach Activities.................................4.47

Beach Activities.......82.2%

Bicycling .............................................4.23

Bicycling ...........................................................28.2%

Brevard Zoo/Treetop Trek ................... 4.38

Brevard Zoo/Treetop Trek ...................................... 23.0%

Eau Gallie Arts District .........................4.08

Eau Gallie Arts District ..........................................23.4%

Historic Cocoa Village .........................4.28

Historic Cocoa Village .......................... 45.0%

Historic Downtown Melbourne .......... 4.25

Historic Downtown Melbourne ....................36.8%

Kennedy Space Center Visitor

Complex........................................... 4.55

Complex........................................... 49.5%

Native Wildlife Viewing ....................4.58

Native Wildlife Viewing ...................51.0%

Orlando Theme Parks ........................4.40

Orlando Theme Parks .................................... 32.4%

Ron Jon’s/Cocoa Beach Surf Company ... 4.31

Ron Jon’s/Cocoa Beach Surf

USSSA Space Coast Complex ...............4.08

Company .................................... 56.1%

The Cove at Port Canaveral ............... 4.39

USSSA Space Coast Complex ....................................... 12.6%

Westgate Cocoa Beach Pier ................. 4.20

The Cove at Port Canaveral ........................... 33.3%

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. Two activities were added to the survey list: Native Wildlife Viewing and USSSA Space Coast Complex. Native Wildlife Viewing had the highest satisfaction rating (4.58), followed closely by the Kennedy Space Center Visitor Complex (4.55); Beach Activities, Orlando Theme Parks, The Cove at Port Canaveral, and Brevard Zoo/ Treetop Trek had average scores at or just under 4.40.

Westgate Cocoa Beach Pier .................. 47.1% Beach Activities are by far the most popular activity on the Space Coast with a reported participation rate of about 82%. Several other activities/ venues had rates near or just above 50% including Ron Jon’s/Cocoa Beach Surf Company, Native Wildlife Viewing and the Kennedy Space Center Visitor Complex. The USSSA Space Coast Complex was the least frequented destination, but it is also the newest attraction on the Space Coast and participation rates are expected to grow. Overall, respondents participated in about 4.35 activities while visiting the Space Coast (this is a weighted average.)

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Survey Results continued FIGURE 15. PAST VISITS TO THE SPACE COAST (SAMPLE SIZE = 206) More than 10 visits 8.7%

First time visitor 30.1%

7 to 10 visits 5.3%

4 to 6 visits 19.9% 2 or 3 visits 35.9% In our latest survey, respondents were asked to report the number of times they had visited the Space Coast in the past 24 months. Based on a sample size of 206 respondents, just over 30% reported that they were first-time visitors; about one in every three individuals report that they had visited the Space Coast four or more times; and the remaining 36% visited two or three times. These numbers clearly illustrate the importance of return visitors to the Space Coastâ&#x20AC;&#x2122;s tourism market. n

30 | VisitSpaceCoast.com

91.6%

Of those polled, would

Refer a Friend to Visit the Space Coast

92.2% Return to Visit the Space Coast to the Space Coast Within a 74.4% Return Year of their Last Visit Of those polled, would

Of those polled, expect to

FLORIDA PRO EVAN GEISELMAN

“….in this photo there was a lot going through my head. I thought it was really cool having CJ Hobgood on the mic the whole final heat. I remember being on the beach watching him win this contest 12+ years ago so that was really cool to me since he is someone I looked up to when I was growing up. Then having my family, friends and all the Florida support on the beach was awesome! Overall, it was an unbelievable event and one that needs to keep happening on the East Coast.” – EVAN GEISELMAN

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32 | VisitSpaceCoast.com

WSL Pro Surfer Evan Geiselman Winner of the 2018 Florida Pro at Sebastian Inlet

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34 | VisitSpaceCoast.com

THE ECONOMIC IMPACT MELBOURNE AIR & SPACE SHOW WRITTEN BY DR. MIKE SLOTKIN In the world of tourism development, where destination branding is paramount, “media buys,” “impressions,” and “clicks,” dominate the conversation. However, one of Brevard County’s secret pillars of tourism success involves infrastructure, a subject matter that when first introduced leaves many readers feeling less than scintillated. This is too bad, for admittedly, while marketing professionals probably don’t consider infrastructure to be the sexiest of topics, when one considers the endowment of physical capital along the Space Coast, it’s hard not to conclude that a great deal of the county’s recent tourism upsurge is attributable to these building blocks. A spaceport, cruiseport, and airport – that rarity of infrastructural trifectas – blesses the Space Coast in a manner unknown to just about every other locale on this Earth. For the Summer 2018 edition, Space Coast Tourism focuses its lens on a signature tourism event that utilizes the Orlando-Melbourne International Airport (OMIA) as its venue: the highly regarded Melbourne Air & Space Show. To say that the Melbourne Air & Space Show is a natural for the Space Coast is an understatement. An international airport and Patrick Air Force Base lie within ten miles of one another in its southern zone. The Kennedy Space Center, with its history of lunar and orbital travel, permeates the northern zone. And throughout Brevard County, the backbone of defense, aerospace, and avionics employers stamps the Space Coast with a legacy of flight. Airshows, in one form or another and produced by one group or another, have for many years been present in Brevard County. The Melbourne Air & Space Show, orchestrated by a 501-c3 non-profit foundation headed by Bryan Lilley and title-sponsored by Northrop Grumman, just completed a 5-year run at the OMIA after moving from beachside (first Cocoa Beach, then Indialantic). The 2018 event, held during the weekend of March 24-25, was a tourism bonanza, drawing attendees numbering in the tens of thousands. This latest edition of the Melbourne Air &

Melbourne

Space Show – its people, talent, and expenditure flows generated – is the subject of this economic impact profile. VisitSpaceCoast.com |

Air 36 | VisitSpaceCoast.com

Space Show

Air Show Background The Melbourne Air & Space Show in its current form em-

But make no mistake about it; scheduling these military jet headliners represents the X-factor in continuance of the Melbourne Air & Space Show’s upward arc.

anates out of a strategic decision by Lilley back in 2013 to move the locale from Indialantic’s Paradise Beach to OMIA, and to transition from a “ticket-optional” to “ticket-mandatory” model. The beach is a destination, with all its associated

The 2018 Event For the 2018 Melbourne Air & Space Show, Lilley secured

tourism benefits, but the beachfront also enables seemingly

an appearance by the Thunderbirds, the United States Air

open-access viewing, which renders ticketing problematic.

Force’s Air Demonstration Squadron. Based out of Nellis Air

While beachside premium seating with VIP perks (tents, park-

Force Base in Nevada, the Thunderbirds were established

ing, etc.) does afford for optional ticketing opportunities, gen-

in 1953 and are assigned to the 57th Wing. Flying in F-16C

eral viewership is mostly free, which necessitates sufficient

Fighting Falcons, the squadron performs daring aerial maneu-

non-admission revenue sources (e.g., sponsorships, tourism

vers showcasing the power and precision of the aircraft, and

development dollars, etc.) to ensure the event’s solvency.

the deft skill of the pilots. Since its inception, the team has performed in front of more than 300 million spectators, and on the

Moving to OMIA and enacting a ticket-mandatory model monetizes viewership and thus reduces the fiscal reliance on

first weekend of spring, the Thunderbirds’ appearance at the Melbourne Air & Space Show inaugurated their 2018 season.

non-admission revenues. In addition, with the history of the event on the beachfront and with the causeway in relatively

The Thunderbirds commander and lead pilot (known as

close proximity, the Melbourne Air & Space Show still retains

No. 1) is Lt. Col. Kevin Walsh, who assumed the helm in late

its destination feel. The 2018 edition culminated a five year ti-

December 2017 and guided the training and assimilation of

tle sponsorship by Northrop Grumman marked by regular ap-

new pilots for the 2018 campaign. On the morning of March

pearances of elite military demonstration teams (i.e., Thunder-

24, just prior to his first show as Thunderbird #1, Space Coast

birds, Blue Angels, Patrouille de France). These squadrons are

Tourism sat for a breakfast conversation with Lt. Col. Walsh

spectator favorites, and with only about 32-35 available dates

(who goes by the nickname “Boss”), and an edited transcript

per year, competition in securing these teams is immense.

of that interview can be found later in this report. VisitSpaceCoast.com |

While

the Melbourne Air & Space Show audience

available by the Space Coast Office of Tourism; simply put,

was thrilled by the flying prowess of the Thunderbirds, by

for completed surveys, respondents were entered into a

no means were they the only pilots, or planes, to make an

raffle. The purpose of the Survey Gizmo™ questionnaire

appearance at the event. The cupboard was full. Flight

was to explore the basic demographics of event attendees

appearances by the B-2 Spirit Stealth Bomber (built by

as well as party size, lodging and accommodations, expen-

Northrop Grumman), the B-17 Flying Fortress (seen in the

ditures made on the Space Coast, and key marketing relat-

movie Memphis Belle), and B-25 Mitchell Bomber were

ed inputs. All told, approximately 437 usable surveys were

part of the event itinerary. In addition, static aircraft dis-

submitted, representing about 2 percent of the ticketed

plays including the T-38 Talon and E-2D Hawkeye (also

population.

built by Northrop Grumman) graced the OMIA Exhibit Area. And for those looking for a further adrenaline rush,

Before a detailed review of the survey results is present-

the Shockwave Jet Truck, powered with three J34-48 Pratt

ed, which is contained in the ensuing section, two points of

& Whitney jet engines, made its first appearance at the

clarity are brought forward to provide perspective on this

Melbourne Air & Space Show.

study. First, the one quotient of known registrant data provided by the Air Show Director involved the overall number

These were just a subset of the aerial activities on display,

of ticketed guests (i.e., 21,200) and their distribution (i.e.,

and from a marketing perspective, the 2018 Melbourne Air

94.3 percent General Admission, 5.7 percent VIP Flight-

& Space Show excelled. According to Chris Dirato, Publicity

Line). While generally revealing a similar breakdown, the

Director for the event, the number of impressions (i.e., men-

survey data showed an overall distribution of General Ad-

tions of the show) was over 111 million, with an estimated

mission vs. VIPs at a 79.4 percent vs. 20.6 percent split. As a

"ad value" totaling more than $341,000. The balance of

result, in the figures that follow, and in the spirit of anchor-

this report provides the study background and economic

ing metrics to known corroborative data, sample means are

impact of the event.

provided for both the General Admission (in lime) and VIP

Data, Limitations, and Scope of Study

Segments (in navy), along with an Overall - Weighted Average (in turquoise) that utilizes the actual registrant split.

While the Melbourne Air & Space Show is characterized

Given the tremendous weighting towards General Admis-

as a ticket-mandatory event, strictly speaking, the show is,

sion, this typically manifests that the Overall - Weighted

in fact, viewable to attendees who do not procure admis-

Average closely tracks with General Admission.

sion tickets. The events’ nautical zone does allow for observation outside the ticketed airport-venue, with potentially unknown thousands of spectators enjoying the festivities at or along peripheral arteries surrounding the OMIA. Unfortunately, resource constraints negated the possibility of sampling for the entirety of the attendee population. What was possible was sampling the ticketed-population of 21,200 (i.e., 20,000 General Admission spectators along with 1,200 VIP Flight Line guests), where registration allowed for the capture of email addresses by the event coordinator.

The second point of clarity involves the overall economic impact study. Due to resource limitations, the ability to sample peripheral, non-ticketed attendees was a non-start-

An internet-based survey instrument was created un-

er, and on-site, non-ticketed attendees such as private

der the facilitation of the Space Coast Office of Tourism’s

corporate invited guests (using chalets), photographers,

Research Director and implemented through the Survey

and event staff and volunteers were likewise excluded.

Gizmo™ web portal. Utilizing email distribution and Face-

Accordingly, this economic impact study should be viewed

book posts, the race organizer sent notification to the tick-

as an assessment of ticketed guests at the event, and thus,

eted event attendees about the survey with a request for

represents a conservative, lower-bound estimate of the

participation. An inducement of select prizes was made

Melbourne Air & Space Show’s total economic impact.

38 | VisitSpaceCoast.com

FIGURE 1: AGE DISTRIBUTION BY VISITOR TYPE 18.1%

0-17

FIGURE 2: MALE VS. FEMALE DISTRIBUTION BY TICKET TYPE 42.3% 43.5% 42.4%

Females

6.9% 17.5%

18-24

25-34

2.0% 1.4% 2.0% 8.5%

General Admission

3.4% 8.3%

35-44

VIP Segment

Overall Weighted Average

12.6% 6.9% 12.2%

art, nature, and cultural festivals typically showcase a fe18.1% 17.2% 18.0%

45-54

male ascendant distribution, the male-dominant proportion revealed in this study is not unexpected for an air show. Quite

21.1%

the contrary, many readers may be surprised at the relative 31.7%

55-64

21.7% 15.6% 25.5%

65-74

75 & Over

57.7% 56.5% 57.6%

Males

16.1%

As for party size, Figure 3 provides estimates by ticket type and overall weighted. Generally speaking, the VIP Segment party tends to be smaller (2.49 individuals) while the General

4.0% 6.9% 4.2% General Admission

strength of the female share.

Admission party is larger (3.16 individuals). This is consistent with earlier demographics showing fewer children in the VIP VIP Segment

Overall Weighted Average

Demographic Results

Segment, combined with the greater ticket cost. The Overall â&#x20AC;&#x201C; Weighted Average amounted to approximately 3.12 persons. One final demographic note is offered before turning to a review of attendee party expenditures. About 35 percent of

Figure 1 examines the age distribution of survey respon-

ticketed guests were returning spectators, having indicated

dents by ticket type and overall weighted. In total, the 437

that they attended the show in prior years. Here, the VIP Seg-

survey respondents reveal a core Melbourne Air & Space

ment (42.6 percent) revealed a slightly stronger history with

Show population residing in the 45-74 age range, comprising

the event than the General Admission crowd (34.7 percent).

about 56 percent of ticketed attendees. In terms of impression, the VIP Segment skews older, the General Admission crowd tends to be younger (i.e., 0-17), with the overall median-aged respondent found in the 45-54 age category. About one in five ticketed attendees were under the age of 25; likewise, about one in five guests were aged 65 and over.

FIGURE 3: AVERAGE PARTY SIZE GENERAL ADMISSION 3.60 ................................................................................................. 3.12 3.16 2.49 2.40 .................................................................................................

Figure 2 examines the gender distribution of survey re-

1.20 .................................................................................................

spondents by ticket type and overall weighted. The General

0.00 .................................................................................................

Admission and VIP Segments as well as the Overall â&#x20AC;&#x201C; Weighted Average reflect a population with an approximate 57.5

General Admission

VIP Segment

Overall Weighted Average

percent vs 42.5 percent split, male vs female. And while many VisitSpaceCoast.com |

LT. COL. KEVIN “BOSS” WALSH, THUNDERBIRD #1 Interviewers - Mike Slotkin (MS) and Deborah Webster (DW) Mike Slotkin (MS): Boss, it’s just a few short hours before your first show as the leader of the Thunderbirds. It must be an amazing feeling right now. What’s going through your mind at this very moment? Lt. Col. Kevin Walsh (BOSS): You’re right; it is an amazing feeling, that’s for sure. And there is a lot of excitement going into today as well as an immense amount of work among the entire squadron. One-hundred and thirty people really came together in the last 2.5 to 3 months for essentially today. So to finally get to the point where we’re able to showcase what we’ve worked so hard on is really special. (MS): What does it mean both personally and professionally to become a Thunderbirds pilot? 40 | VisitSpaceCoast.com

(BOSS): It’s an honor! Being on the team is not about us as individuals, it’s about what we represent. And that is really six-hundred and sixty-thousand total force airmen, all over the country, with over twenty-thousand being deployed at this very moment away from their families. So being tasked with representing them in an appropriate way is a huge honor. (MS): What’s the best part of your job? (BOSS): I would say meeting different types of folks on the road, and going to new places. I’m a New York guy, and rarely do we go to New York ironically enough, but getting to meet people from not only around the country but all over the world is very fun. To be able to showcase what we can do with airplanes, and what we can do when teamwork reaches its highest level, is pretty cool.

(MS): What do you like least about your job? (BOSS): Time away from home; it’s incredibly challenging on families. This being my third year on the team, the new car smell of the Thunderbird job has long since worn off. I am married with two kids … it’s tough leaving them. They know it’s an important job, and they love when they get to come out on trips, but it is sure difficult on them. (MS): How much of your job is technique, and how much is trust? (BOSS): That’s a tough one. I would say it varies per maneuver that we execute. I can tell you that it is a lot of trust, and that takes time and repetition, which is also why our syllabus is so long. When we are accepted to the team, you have to learn to fly your specific position. To give some examples, the left wing has a syllabus for the left

wing pilot. The slot, which is right underneath number one (me), has a slot specific syllabus. It’s all scripted and approved at higher headquarter level. When we complete that syllabus, we are certified Thunderbird pilots. So, for the wingman and the leader, our syllabus is about 75 rides long, and some of that is to work on the technique, but a lot of that is to build trust and know that the guy in front of you is not going to abruptly maneuver the airplane. Getting back to technique vs. trust, I’d say maybe 50-50 in most cases, but it ebbs and flows per maneuver. (MS): What’s the most difficult maneuver for you to perform? (BOSS): I would say, collectively, the most difficult maneuver is probably the Delta Roll. That’s when all six pilots together are both climbing and rotating, and it is just a lot of maneuvering and a lot of trust. Both the technique and trust really come into play there. (MS): What is the most dangerous maneuver to perform?

(BOSS): You name it! It’s Type-A personalities across the board, which: 1. makes it tough to manage, but 2. makes it extra fun. So everyone has fun hobbies, whether it’s working out, sight-seeing, enjoying the museums in the local area, or just getting out to see the sights of where we’re at. You name it, and folks are interested in it. (MS): Is this the crowning achievement of your flying career, or just a launching pad?

(BOSS): Probably The High Bomb Burst. So, the four ship, which is known as the Diamond, we’ll all go straight up and split out into four different directions, and then the idea is that we all hit the same point in space right in front of the crowd, essentially appearing as if we were going to hit one another. While we don’t hit one another, we do come pretty close, so I would say that is the most dangerous.

(BOSS): Honestly, I don’t see it as either one. The way I’ve kind of approached things is that I’ve always done jobs that I found personally interesting. So if this happens to be a launching pad, great! If it’s the crowning achievement of my career, then I might be a little bit disappointed because I am always looking for new and exciting things to do. While certainly a career highlight, there’s lots of stuff on the horizon that I’m looking forward to.

(MS): What’s the hairiest situation you’ve ever faced?

(MS): What’s the process by which pilots rotate in and out of the Thunderbirds?

(BOSS): It would be a combat situation. I have four combat deployments, two to Iraq and two to Afghanistan. Anytime you’re dropping live munitions in close proximity to friendlies out there, that’s going to be pretty hairy. So it would be any number of situations where we are deploying actual ordinance.

(BOSS): It’s a two year job. Every year, half of the six pilots will swap out, and that way half of the guys are on their second year, and half of the other guys are new. So there’s corporate knowledge that gets passed down. Each year we’ll have three new pilots that we would have to spin up using the syllabi that I described earlier. We utilize a training season from the months of mid-November to mid-March, and during that time,

(MS): What does the team do when it’s not flying or training?

we don’t travel or put on shows, we purely focus on spinning up those three new pilots so that on days like today, we can go put on our first show. Deborah Webster (DW): How do you become Thunderbird Number One? (BOSS): It’s a selective process. We report to the 57th wing, which is a 1-Star General. She reports to the 2-Star General at the warfare center. So, everyone who applies, and subsequently makes the team, has been vetted through a series of interviews with the existing team members, and then interviews with the 1 and 2-Star Generals. Our selection goes all the way up to the Chief of Staff of the Air Force. When you look at it, we are the most public team in the Air Force, so obviously because of that the higher ups show great interest. (DW): And your training venue is out in Las Vegas, is that correct? (BOSS): Yes, it sure is. Our normal battle rhythm is we will depart from our home station (Las Vegas) on Thursday, practice on-site Friday, with shows on Saturday and Sunday. We return home on Monday. Tuesday is a practice day at home, Wednesday is our weekend, and we depart for the next station Thursday. And that’s every weekend, except for two, for the next eight and half months! (DW): Thanks Boss! This interview has been edited for brevity and clarity. n VisitSpaceCoast.com |

Party Expenditures In terms of the spending behavior of Melbourne Air & Space Show parties, survey respondents were asked about the dollar amount of purchases they made within Brevard County in seven categories of expenditure: restaurants,

per party vs. 1.75), which combined with their smaller party size, leads to noticeably larger per party and per person lodging expenditures. While not needed for economic impact estimation, dividing $131 by an average stay of 1.77 days yields an average daily spend for overnight tourists of about $74.

lodging, recreation, retail purchases, gasoline, local transportation, and any miscellaneous service purchases. Figures

Daytrip visitors (see Figures 6-7) carry a much lower

4 â&#x20AC;&#x201C; 9 detail per party and per person expenditures by ticket

spending threshold due to the absence of lodging expen-

type, segmented by whether the respondent party was an

diture and reduced restaurant purchases. Overall, daytrip

overnighter, daytripper, or local guest. For non-locals, only

parties spent about $91 during their Space Coast visit,

primary attendees were tabulated, those that indicated that

which on a per person basis translated into about $30. It is

the air show was the primary reason for their visit.

interesting to note that while General Admission parties,

With overnight visitors (see Figures 4-5), dining and accommodations represent about 74 percent of overall expenditures, which collectively sum to $448 per party and about $131 per person. Generally speaking, VIPs procure more expensive rooms and tend to stay longer (2.14 nights

FIGURE 4: AVERAGE SPENDING PER PARTY BY TICKET TYPE - OVERNIGHTERS $0 Gas

$165

$330

$495

due to their superior size, spent more on dining than their VIP counterparts, when prorated to a per person basis, that differential effectively closes. For other categories of perperson spending, however, the VIP Segment clearly reveals higher levels of expenditure.

FIGURE 5: AVERAGE SPENDING PER PERSON BY TICKET TYPE - OVERNIGHTERS $0

$660

$48.86 $42.50 $48.50

Local Transportation

Recreation

Retail

$30.45 $10.63 $29.33 $164.55 $154.69 $163.99

42 | VisitSpaceCoast.com

Recreation

$5.13 $1.47 $4.92

Retail

$8.59 $5.00 $8.39

Other Expenses

$446.14 $475.31 $447.79 VIP Segment

$49.50

$46.41 $72.79 $47.90

Restaurants

$15.45 Other $0.00 Expenses $14.58

General Admission

$124.41

Lodging

$18.18 $3.13 $17.33

TOTAL

$300

$45.00

$264.38 $165.48

Restaurants

$225

$2.56 $0.00 $2.42

$159.55 Lodging

$150

$13.78 $20.00 $14.13

Gas

$9.09 Local $0.00 Transportation $8.58

$75

Overall Weighted Average

$4.36 $0.00 $4.11 $125.83 $223.68 $131.37

TOTAL

General Admission

VIP Segment

Overall Weighted Average

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FIGURE 6: AVERAGE SPENDING PER PARTY BY TICKET TYPE - DAYTRIPPERS $0

$35

$70

$105

$140

$15

$0.00 Lodging $0.00 $0.00

$0.00 Lodging $0.00 $0.00 $1.13

Recreation

$3.50 $21.05 $4.49

Recreation

Retail

$16.50 $20.26 $16.71

Retail

$44.15 $30.26 $43.36

$8.70 $1.56 $5.34 $8.37 $5.51 $14.28 $12.50 $14.18

Restaurants

$6.38 $21.58 $7.24

Other Expenses

$2.06 $8.91 $2.45 $28.96

$89.53 $113.55

TOTAL

General Admission

$90.89 VIP Segment

Overall Weighted Average

Local attendees (see Figures 8-9) carry the lowest spending threshold due to the absence of lodging expenditure, reduced restaurant purchases, and the elimination of non-applicable categories. Overall, local parties spent about $71 during their Space Coast visit, which on a per person basis translated into about $23. On a per person basis, effectively no difference exists between daytrippers and locals in terms of dining expenditures, retail purchases, and other expenses. For locals, however, the categories of gas and recreational purchases are not applicable, yielding the overall differential between locals and daytrippers. In summary, overnight visitors spent about $131 per trip, while day trip visitors and locals expended $30 and $23, re-

44 | VisitSpaceCoast.com

$60

$1.56

$0.08 Local $0.00 Transportation $0.07

Other Expenses

$45

$8.70

Gas

$0.24 Local $0.00 Transportation $0.23

Restaurants

$30

$1.13

$18.76 $20.39 $18.85

Gas

FIGURE 7: AVERAGE SPENDING PER PERSON BY TICKET TYPE - DAYTRIPPERS

$46.90

TOTAL

General Admission

$29.98 VIP Segment

Overall Weighted Average

spectively. These values inform the economic impact analysis presented in the next section.

Economic Impact The economic impact of the 2018 Melbourne Air & Space Show 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 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

resent changes in economic activity resulting from income

County was constructed using IMPLAN™ (www.implan.com),

changes accruing directly or indirectly through changes in

an integrated software and data package used by more than

aggregate spending. In other words, workers supported by

1,300 academic institutions, federal and state government

Melbourne Air & Space Show related activities expend their

agencies, and private consulting firms. Expenditures associ-

earnings on an array of consumer goods and services, much of

ated with the Melbourne Air & Space Show were then applied

which occurs locally.

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.

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

Due to forward and backward linkages within an econo-

the multiplier process, rather than working in perpetuity, ex-

my, a multiplier process unfolds whereby an initial round of

hausts itself and terminates. The total effect sums both the

spending (the direct effect) generates indirect and induced

direct and secondary effects, and represents the aggregate

effects (collectively referred to as secondary effects), the

economic impact of Melbourne Air & Space Show activities

magnitude of which depends upon spending leakages. In-

in Brevard County, stated in terms of sales, income, and em-

direct effects are changes in production that occur as back-

ployment. Income or value-added describes the payments

ward-linked industries respond to changes in final demand

made by industry to wages, interest, profits, and indirect

in directly affected industries. For example, an increase in

business taxes. It is analogous to the gross domestic product

restaurant meal purchases triggers production respons-

estimates frequently cited in business/macroeconomic re-

es from food and beverage vendors that supply eating and

ports. The ratio of the total effect divided by the direct effect

drinking establishments. In contrast, induced effects rep-

is the commonly cited “multiplier” concept.

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FIGURE 8: AVERAGE SPENDING PER PARTY BY TICKET TYPE - LOCALS $0 Local Transportation

$25

$50

$75

FIGURE 9: AVERAGE SPENDING PER PERSON BY TICKET TYPE - LOCALS

$100

$3.08 $2.45 $3.04

$0 Local Transportation

$14.28 Retail

Other Expenses

General Admission

Retail

$15.02 $48.29 $35.71 $47.58

Other Expenses

$22.39 $5.40 $70.03 $88.00 $71.05

VIP Segment

46 | VisitSpaceCoast.com

$30

$40

$0.97 $0.91 $0.96 $10.22 $4.81 $15.16 $13.29 $15.06

Restaurants

$4.38

TOTAL

$20

$4.48

$27.45

Restaurants

$10

Overall Weighted Average

$1.38 $8.34 $1.77 $21.99 $32.76

TOTAL

General Admission

$22.60

VIP Segment

Overall Weighted Average

The process of calculating economic impact is facilitated by the estimation of a spending profile (i.e., per person spending - sees Figures 5, 7, and 9), which can then be extrapolated to an actual or estimated aggregate attendance, apportioned by type. By utilizing: 1) the total ticketed event figure provided by the race organizer (i.e., 21,200); 2) the survey data’s estimated distribution of party types (i.e., overnighters, daytrippers, locals); and, 3) the survey data’s estimate for primary attendance (i.e., those individuals who indicated that they were visiting the area due to the show), an estimated population count, by type, can be determined (see Table 1). These population counts, combined with per person spending averages, inform the IMPLAN™ model. So using the spending profiles and economic impact counts, and factoring in the Melbourne Air & Space Show’s operating budget as well as spending by the event talent (i.e., civilian and military pilots), the economic impact of the 2018 event was estimated (see Table 2). All told, the expenditure flows associated with the Melbourne Air & Space Show generated a total sales effect of about $1.27 million, and a total income effect (i.e., value-added) of about $0.621 million. Because

TABLE 1: ECONOMIC IMPACT POPULATION COUNTS 2018 MELBOURNE AIR & SPACE SHOW Total Ticketed Admission= 21,200

Overnighters

Daytrippers

Locals

Percentage by Category

11.7%

66.6%

21.7%

Population Total by Category

2,491

14,110

4,600

Percentage Primary Attendees

66.1%

94.7%

N/A

Economic Impact Count

1,647

13,356

4,600

some sales are actually inputs in the product of other final goods, income created is always a subset of the sales impact. 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., $0.426 million). Finally, the level of sales activity produced by the 2018 Melbourne Air & Space Show would support 17.5 full and part-time jobs.

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TABLE 2: THE ECONOMIC IMPACT OF THE 2018 MELBOURNE AIR & SPACE SHOW Economic Impact 2018 Event

Direct Effect

Indirect Effect

Induced Effect

Total Effect

The Multiplier

Employment

12.8

2.7

2.0

17.5

1.37

Labor Income

$270,901

$80,485

$74,584

$425,970

1.57

Value Added

$356,012

$130,955

$134,237

$621,204

1.74

Output

$773,376

$261,552

$235,796

$1,270,724

1.64

Earlier in this report, a discussion of the multiplier pro-

composition of spending by industrial category. Focusing on

cess was provided which explained what the secondary ef-

sales, in aggregate, each dollar of expenditure precipitated

fects (i.e., indirect and induced) were and how they led to

by the Melbourne Air & Space Show generated an additional

a final effect (i.e., the total effect) that was a factor greater

64Â˘ of sales.

than the initial change in expenditure (i.e., the direct effect). The last column in Table 2 presents the employment, income,

Table 3 peaks under the hood to highlight the top 10

and sales multipliers for this study, which are based on the

industries impacted by the 2018 Melbourne Air & Space

48 | VisitSpaceCoast.com

TABLE 3: THE TOP TEN INDUSTRY SECTORS IMPACTED IMPLAN Sector

Sector Description

Sector Employment

Labor Income

Value Added

Total Output

501

Full-service restaurants

7.5

$164,312

$184,285

$362,065

491

Promoters of performing arts and sports

1.8

$15,136

$45,028

$188,532

499

Hotels and motels, including casino hotels

1.1

$26,938

$60,063

$106,869

440

Real estate

0.4

$4,771

$29,945

$54,456

512

Other personal services

1.5

$36,356

$28,791

$49,614

441

Owner-occupied dwellings

$24,226

$37,348

405

Retail - General merchandise stores

0.5

$14,262

$22,722

$36,163

493

Museums, historical sites, zoos, and parks

0.4

$11,745

$12,832

$29,477

438

Insurance agencies, brokerages

0.1

$6,883

$9,933

$23,936

461

Management of companies and enterprises

0.1

$9,566

$12,059

$21,597

Show. Not unexpectedly, restaurants, event promotion, and lodging head the list. Utilizing an average meal cost of $25, the event supported about 14,483 restaurant meals (i.e., $362,065/$25). Other results can be derived from examining the lodging sector impact. From the survey data it can be deduced that about 1,156 room nights, mostly in motel/ hotels, were procured as lodging amenity. With $106,869 representing the gross sales output for accommodations, this implies an average room rate paid of $92.45 per night (i.e.,

to the extent that an event deflects locals (and their $) from

$106,869/1,156). This is reasonably close to the government

leaving the home community, it can generate a “locals-based”

per diem rate paid for by the military performers.

economic impact.

In terms of recreational opportunities, IMPLAN™ sector

With respect to the Melbourne Air & Space Show, other

493 – museums, zoos, parks, etc. – carries an output (sales)

local and regional air show options exist, although the quality

impact of about $29.5k. To provide a comparative example,

of the headliners is not always identical. Given the paucity of

using an average price for admission to the Kennedy Space

information available, positing a baseline for deflected pur-

Centers Visitors Complex ($45) and Brevard Zoo ($17.45), this would be equivalent to a combination of about 400 admits to the Visitors Complex and 658 entries to the Zoo. One final caveat is in order. A commonality with any economic impact assessment involves the role of substitution effects. For example, conventional wisdom amongst tourism

chases for the Melbourne Air & Space Show is problematic, and thus avoided. Accordingly, it is simply noted that the local contribution to economic impact amounted to about $140k in output, which if excluded from the results detailed in Table 2 would establish an adjusted total sales impact of $1.13 million. The discerning reader can decide for themselves

officials is that local spending is irrelevant, as within the con-

whether or not to include any of the impact from locals. Ac-

text of a local economy, it would have circulated (been spent)

counting for this factor, a total economic impact ranging from

anyway. In fact, absent spending opportunities within an

$1.13-$1.27 million is estimated, which addresses the issue

area, local dollars can “leak” away by outward migration, as

of potential substitution effects. In terms of total income, the

residents find non-local draws for their leisure spending. So

relevant range would be $0.546-$0.621 million. VisitSpaceCoast.com |

Marketing Items The Melbourne Air & Space Show Economic Impact Report did pursue a few marketing related queries; forex-

FIGURE 11: WHAT IS THE LIKELIHOOD THAT YOU WILL ATTEND THE MELBOURNE AIR & SPACE SHOW AGAIN IN THE NEXT 2 YEARS?

ample, survey respondents were asked how they heard Not likely at all 10.1%

about the event (see Figure 10). Possible pathways included: “I Have Attended the Event Before”; “Saw a Sign”; “News 13”; “Newspaper”; “Social Media”; “Melbourne Air & Space Show Website”; “Word of Mouth”; and, “VisitSpaceCoast.com.” Respondents could choose more than one re-

I will be back for the 2019 show 28.0%

Somewhat likely 17%

sponse. Figure 10 details the distribution of responses, with the top three consisting of Social Media (33.7 percent), I Have Attended the Event Before (31.7 percent), and the Melbourne Air & Space Show Website (24 percent). While the importance of social media (e.g., Facebook) cannot be understated, recurring visitation and word of mouth contact is still a valu-

A good chance 22.7% Most likely 22.2%

able contributor to the event’s support. Overall - Weighted Averages of Survey Results

FIGURE 10: HOW DID YOU HEAR ABOUT THE MELBOURNE AIR & SPACE SHOW? 0%

15%

30%

43.5%

Saw a Sign

FIGURE 12: WHAT IS THE LIKELIHOOD THAT YOU WILL ENCOURAGE A FRIEND TO ATTEND THE MELBOURNE AIR & SPACE SHOW IN THE NEXT 2 YEARS?

31.7% 24.0% 24.1% 24.0%

Melbourne Air & Space Show Website

Newspaper

60%

31.0%

I Have Attended the Event Before

News 13

45%

8.5% 2.8% 8.2%

Not likely at all 8.2%

Already have done it! 24.0%

Somewhat likely 15.7%

7.6% 6.5% 7.5% 4.9% 2.8% 4.7% 34.3% 22.2% 33.7%

Social Media

Most likely 27.4%

A good chance 24.7%

Overall - Weighted Averages of Survey Results

13.7% 18.5% 14.0%

Word of Mouth

VisitSpaceCoast.com

2.1% 0.9% 2.1%

General Admission

VIP Segment

Overall Weighted Average

VisitSpaceCoast.com |

Somewhat related to this latter point, Figures 11 and

As far as respondent’s willingness to endorse the event

12 explore the idea of return visitation as well as the re-

by encouraging friends to attend the Melbourne Air &

spondent’s willingness to endorse the event by encouraging

Space Show, survey respondents once again indicated a

friends to attend. When asked: “What is the likelihood that

strong affinity for the event with more that 50 percent re-

you will attend the Melbourne Air & Space Show again in the

porting that they were “most likely” to or “already have”

next 2 years?,” survey respondents clearly indicated a strong

encouraged their friends’ participation. While the mod-

likelihood of return, with more that 50 percent reporting that

al response (i.e., 27.4 percent) was “most likely to,” the

they were “most likely” to or definitely coming back. In fact,

overall distribution of responses was quite favorable,

the modal response (i.e., 28 percent) was “I will be back for

and Melbourne Air & Space Show stakeholders should

the 2019 show!”

be pleased.

52 | VisitSpaceCoast.com

Closing Discussion

www.AirAndSpaceShow.com for more information. See you

According to Melbourne Air & Space Show Director Bryan Lilley: “Running an event is high risk, high reward - you have to be able to weather the downturns.” Sustaining an event is

Postscript

difficult, and requires effective leadership, sound planning, ability to adapt, and an element of luck. The current era has been a successful one for the Melbourne Air & Space Show, and with Lilley’s ability to draw military headliners and the event’s ubiquitous social media presence (e.g., 38,000 Facebook Followers), blue skies are ahead. The show will return in 2019, please visit

at the airport!

On April 4, 2018, only 10 days after piloting the Thunderbird slot position at the Melbourne Air & Space Show, Maj. Stephen Del Bagno died during routine training when his jet crashed at the Nevada Test and Training Range. Space Coast Tourism extends its condolences to the Del Bagno and Thunderbird Families, and offers a Memoriam for Maj. Del Bagno on p. 62. n

Throughout Brevard County, the backbone of defense, aerospace, and avionics employers stamps the Space Coast with a legacy of flight.

VisitSpaceCoast.com |

Offering Tourists Not Fantasy 54 | VisitSpaceCoast.com

antastic,

KENNEDY SPACE CENTER VISITOR COMPLEX – OFFERING TOURISTS THE FANTASTIC, NOT FANTASY WRITTEN BY DR. HEIDI HATFIELD EDWARDS

Fascination with the space program and abounding curiosity about the science and technology surrounding space flight makes Kennedy Space Center Visitor Complex (KSCVC) a natural draw for tourists to Florida’s Space Coast. While Florida’s beaches bring visitors all along the state’s coastline, the majesty of NASA, rocket launches, and a rich history of transcendent storylines inspire and capture our innate sense of adventure and exploration, creating a natural gravitational pull to northern Brevard County. In theme park-centric Central Florida, real-life heroes and adventure compete with the fairy tales of Disney and the movie lore of Universal Studios. Therrin Protze, Kennedy Space Center Visitor Complex chief operating officer, reflects: “What we do here is real. What NASA and all the other space companies do here is real science.” Protze refers to KSCVC as the “broccoli” of the vacation, but he is quick to add, “We try to say we’re fantastic, not fantasy. We’re here to inspire minds through memorable space experiences.” Protze and his team are clearly working to increase vacationers’ awareness of the exciting, engaging and differentiating activities available at the visitor complex. He shies from the idea that KSCVC is a competitor with the Orlando attractions, but says that they are trying to draw from those who do visit the major theme parks and give them a reason to make that extra drive beyond Orlando. Protze alludes to a “next big big project” coming in three to five years that “will make us that destination stop” as opposed to a side trip from Orlando theme parks. VisitSpaceCoast.com |

on increasing numbers of projects on behalf of NASA. Per-

One of the challenges to being a destination stop is KSCVC’s location – Kennedy Space Center sits in the middle of the Merritt Island National Wildlife Refuge, with the closest hotel about 15 minutes away. Nevertheless, Rebecca Shireman, Kennedy Space Center Visitor Complex’s public relations and communications manager, is optimistic that the natural allure of the proximity to Kennedy Space

haps the most notable project the company has already overseen is the $100 million Space Shuttle Atlantis® attraction. After a competitive bidding process in 2010, Delaware North won a 10-year contract as the venue’s official concessionaire. Last year, NASA announced it would extend the company’s contract to operate KSCVC an additional

Center, and KSCVC’s impressive conference facilities, will

ten years, to 2028. Delaware North began implementing

appeal to groups hosting conferences. “We’re overcoming

its new, aggressive master plan in 2015, opening a new As-

that and becoming more and more popular as a conference

tronaut Training Experience® Center and breaking ground

or event venue.”

on other new projects, while still others are in development.

Delaware North, the management company in charge of the visitor complex’s operations since 1995, is in the midst of a multi-year strategic plan to modernize the complex and give it both a new look and feel. Over time, the company has taken

Protze believes one of the biggest challenges in implementing the plan is having the time to get everything done to maximize the rapid technological advances in the space industry that are invigorating the public’s interest.

We are a live multi-user spaceport. The work here is real and ongoing, and we want to capture all of that.

56 | VisitSpaceCoast.com

The sticky-note-covered diagram of KSCVC propped on

ic sectors in Brevard County – including tourism and general

an easel in Protze’s office is a visual indication of the dynam-

interest in space that made Kennedy Space Center a major

ic process of plan implementation. “We did a lot of research

attraction. The number of visitors to KSCVC dwindled, and

that showed that guests want to feel space, not just read

for a time, international visitors to KSCVC outnumbered do-

plaques,” Protze notes. “We have the most amazing space

mestic tourists. Nevertheless, Protze claims attendance has

vehicles here and we want to make sure it feels the most im-

now surpassed the shuttle heydays, as excitement for space

mersive and interactive.”

travel has returned to Florida’s Space Coast.

When you tour the visitor complex, new facades, exhibits, experiences, and signs of future construction are clearly visible. In addition to updating exhibits and modernizing facilities, Protze promises visitors can “expect two [new] major attractions in the next five years. This year, as we get ready for crewed launches next year, we’re in major project mode and major construction mode as we transform the whole complex to be better than it ever has been before and ready for the new growth.”

Actual numbers of visitors to KSCVC are not shared by Delaware North. However, estimates of the annual number of guests range from 1 to 1.5 million. Dionne Wallington, senior manager of marketing operations, events and education states that 2017 saw a 2 percent increase in visitors to KSCVC as compared to 2016, even with a seven-day shutdown due to Hurricane Irma. According to Wallington, nearly half of KSCVC visitors are international. In 2017, vacationers from the United Kingdom led the international market, while in the domestic market, Californians are most

That growth in terms of visitor numbers has also already

prevalent, followed closely by guests from New York. Protze

begun, even though human space flight has yet to resume.

reveals that the goal is to increase annual visitor numbers to

The end of the shuttle program was a blow to many econom-

two million within the next five years.

VisitSpaceCoast.com |

External evidence of rising KSCVC popularity can also be seen in social media. “In 2014 we were number three in our social media reviews. Now we’re number one, and we have been since 2014, when we made a concerted effort to improve,” says Protze. The two-way communication unique to social media marketing efforts provides avenues for engagement among followers. For example, Shireman reveals they are encouraging social media followers to look for the latest information about rocket launches on KSCVC social media. Likewise, visitors are asked to use the hashtag #KennedySpaceCenter to post their photos, which may be featured on the website home page.

The park is open 365 days a year (with the exception of recent hurricane-related closures). Special events that mark anniversaries of milestones, and memorialize or honor astronauts (like additions to the U.S. Astronaut Hall of Fame TRADEMARK draw large crowds, as do new exhib-

As an example of the visitor complex’s popularity, the

it openings, and ever-increasing rocket launches. For ex-

destination is averaging 4.5 out of 5 stars from more than

ample, the 2017 solar eclipse was especially popular, with

17,000 Trip Advisor raters, and is the top ranked of “things

visitors donning the special glasses provided to view the

to do in Titusville” by the social network site. More than

phenomenon. The launch of SpaceX’s Falcon Heavy in ear-

14,000 photos related to KSCVC have been uploaded to

ly 2018 also drew record crowds. KSCVC offered special

Trip Advisor by users. Many of the Trip Advisor ratings

viewing packages, with the closest viewing opportunities

come with comments, to which KSCVC consistently re-

selling out quickly. The “Feel the Heat” package included

sponds. “We’re just always looking at the guest experience

a champagne toast, food, and a visit to the Shuttle Landing

through their eyes and seeing how we can improve and

Facility. “The opportunity to be surrounded by the artifacts

make changes as needed,” says Shireman.

and exhibits that provide context to these historic events

58 | VisitSpaceCoast.com

is really appealing, “said Shireman. “And the ability to listen to

sulted in the need to add a second entrance to the park which

live, expert commentary throughout the event heightens the

will be completed early next year.

experience.”

We never want to be in a position where we don’t have

Florida’s Space Coast Office of Tourism partnered with

enough space for our guests. That’s something we strive not

tech companies AirSage & Intermx to collect data of visitors

to have happen,” says Protze. Improving the infrastructure

counts launch day, see page 11.

also means increasing jobs. Protze notes that in 2014 the complex had 544 associates, and now has almost 1,000, add-

Next year promises to be particularly busy, with increasing

ing staff in hourly, management, and executive positions. He

numbers of rocket launches and plans underway to celebrate

expects the number of employees will increase with the rest

the 50th anniversary of the 1969 moon landing. Specifics are

of the park’s growth in the next five years.

still being finalized, but plans to commemorate the historic event are in progress. “It’s an exciting time, and we definitely

Shireman acknowledges she occasionally hears concerns

want the guests to feel that this is an all new exciting place as

about how these improvements are funded, but is quick to

they come to visit,” proclaims Protze.

point out that funding comes exclusively from visitor-generated revenue, such as entrance fees and concessions, not

He notes that adding the Atlantis exhibit, the Shuttle

from taxpayers. The undiscounted daily admission is $40

Launch Experience, and Heroes and Legends, among others

for children aged 3-11, and $50 for adults. Military, senior,

in the last few years, were huge steps, “But there’s now just a

and multi-day discounts are available, as are annual passes

full integration and modernization as we get to the bigger and

that allow for unlimited admissions throughout the year. As

better attractions to drive more and more visitors here.” Such

the park grows, add-on experiences like Lunch With An As-

an increase means some major investments in infrastructure.

tronaut, specialty bus tours, and the new Astronaut Training

Increased attendance, especially during special events, re-

Experience (ATX) provide additional revenue.

VisitSpaceCoast.com |

Astronaut

Training Experience (ATX) is part of the

new Education Center, which had a soft opening in February but will have a grand opening in August. Geared toward groups of up to 24 participants, ATX is open to anyone aged

in the Launch Mission option split into groups that simulate ground control or are in the capsule that goes to Mars. For those wanting a longer, even more immersive expe-

10 and older, and offers a variety of experiential options.

rience, the seven-hour Mars Base 1 is an opportunity to be

The news release announcing the ATX opening boasts, “The

“transported” to Mars and work in one of the facility’s labs.

all-new Astronaut Training Experience will use immersive

The press release states, “participants will be assigned re-

simulation technology to transport participants to Mars,

al-life challenges that require analytical thinking, communi-

train them to live and work in the harshest environment,

cation and collaboration.” From botany to engineering labs,

and teach them what it’s like to travel to the Red Planet, us-

the experience is designed for guests to learn about the

ing real NASA science to address engineering challenges.”

challenges of life on Mars by solving problems like powering their habitat and growing food. It is an opportunity to

For example, in the Spacewalk Training simulation guests sit in a chair that replicates the micro-gravity feel. They must complete a task on a truss as if they were working outside

engage with real NASA scientists who are tackling the problems of long-term deep space travel.

the International Space Station. Other ATX options include

“It’s the most technologically advanced attraction that

several hours in which guests train for walking, or landing

we’ve ever had. It really simulates what it will be like to go

and driving on Mars. With the Walk-on-Mars experience,

to deep space and eventually Mars,” explains Shireman. “It’s

visitors don virtual reality headsets for their “walk,” while

the closest you can get to actual astronaut training, which

teammates give directions on where to gather their samples

is just a fantastic experience for people that live here and

from the planet’s surface. In the Land-and-Drive-on-Mars

visit here, to get an idea of what the future of space explo-

full motion simulator, participants experience landing and

ration will be like.” As a whole, KSCVC offers visitors the

driving a rover on Mars’ surface while they take direction

opportunity to celebrate space history and experience his-

from their counterparts on Earth. Meanwhile, participants

tory-in-the-making. “You can’t get any closer to NASA than

60 | VisitSpaceCoast.com

coming to KSCVC,” says Shireman. “You can really see it, feel

cal advancements and highlight the importance of teamwork.

it, and understand it when you’re here.”

GTRI has developed a tile that captures energy when people

Just how close guests get to Kennedy Space Center facilities comes as a surprise to some visitors. Dr. Robert Taylor,

walk on it. The Piezoelectric (PZ) tile harvests human energy and generates electricity. The entrance to KSCVC has a pro-

head of the School of Arts and Communication at Florida In-

totype PZ walkway, and eventually, PZ tiled walkways will be

stitute of Technology, noted how incredulous a group of visit-

featured throughout the complex.

ing Chinese students was that they could see the launch pads when they went on the bus tour during a side trip to KSCVC. It is truly a unique perspective to most tourists. The bus tour of Kennedy Space Center, which is included in the park’s en-

“Guests can actually walk on these tiles and they’ll create energy,” says Protze, who describes plans for an interactive, educational activity designed to engage guests and teach

trance fee, provides a view of several launch pads. Buses stop

them about sustainability and renewable energy. Protze

at the Apollo/Saturn V Center, where guests can view the

notes that sustainability is a recurring theme in continued

massive Saturn V rocket inside a 100,000-square-foot facility

KSCVC development. As an example, he states: “We look to

that also houses Apollo memorabilia, two theaters, and a café.

be on battery [powered] buses in the next couple of years.”

KSCVC embodies the past, present and future of the space

Protze credits KSCVC’s relationship with its NASA part-

industry. However, Protze doesn’t want the park’s historical

ners, and innovations by SpaceX, Blue Origin, United Launch

perspective and exhibits celebrating NASA accomplishments

Alliance, Boeing, and Lockheed Martin, for making space “hot

to give anyone the impression it is a museum. “One of the

again.” One of the goals of Kennedy Space Center Visitor

things we do not want to be is a museum. I say that with all

Complex is to motivate young people to join the ranks of en-

due respect to other museums,” Protze elaborates. “We are

gineers and scientists who are making inroads in space travel.

a live multi-user spaceport. There are rockets launching on a continual basis. The work here is real and ongoing, and we want to capture all of that.” A new collaboration with Georgia Tech Research Institute (GTRI) will further showcase real-world ongoing technologi-

“As guests come here, we’re also hoping to inspire a dream in those children to be our next astronauts.” n The author wishes to thank Therrin Protze, Rebecca Shireman, and Dionne Wallington for taking the time to help with this article. VisitSpaceCoast.com |

Major Stephen “CAJUN” Del Bagno April 30, 1983 – April 4, 2018 Maj. Del Bagno joined the United States Air Force Thunderbirds in June 2017, the Melbourne Air & Space Show was the only show where he got to perform with the team. Wayne Mansfield of Clear Sky says, “….an officer, gentleman and fantastic pilot, Stephen earned everything he’s gotten through hard work, discipline and focus. A great example for others to follow.”

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WITH MORE LAUNCHES NOW THAN EVER BEFORE you can see, hear and feel one of the most dramatic events on earth right on Florida's Space Coast! Before you arrive, download the LAUNCH CONSOLE app and get real time launch info!

SpaceCoastLaunches.com

/ Florida's Space Coast

COCOA BEACH | MELBOURNE & THE BEACHES | CANAVERAL NATIONAL SEASHORE

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Florida’s Space Coast Office of Tourism VisitSpaceCoast.com

Florida’s Space Coast