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Panama City Beach

2016 Travel Market Economic Impact Report

Prepared for:• Panama City Beach Convention & Visitors Bureau

Study Conducted: December, 2015 – January, 2017Presentation of Research & Findings & 2016 Economic Impact: April 10, 2017

Presented by:Berkeley Young, PresidentYoung Strategies, Inc.

Data Analysis: Larry D. Gustke, PhDSteve Morse, PhD

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PCB is an extremely large, diverse destination

Year-end economic impact data is typically reported 9 -16 months after

year-end close of books

Fact – Tourist Development Tax Revenue

Fact – STR hotel data

Fact – VisaVue data from domestic travel expenditures in PCB

Survey – Young Strategies online surveys with visitors to PCB

Survey – Young Strategies intercept interviews with visitors to PCB

Trends and Data Used to Calculate Economic Impact

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PANAMA CITY BEACH

Tourist Development Tax 3-Year Trend

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PCB Tourist Development Tax Trend

$475,427 $662,198

$1,193,280

$1,445,763

$1,876,251

$3,491,951

$4,362,155

$1,671,868

$1,422,161

$1,312,781

$523,191

$393,263

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2014 2015 2016

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PANAMA CITY BEACH

HOTEL/MOTEL STR DATA

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PCB Lodging Properties Reporting to STR

Beachbreak By The Sea Upper Midscale Class 100

Beachcomber By The Sea Upscale Class 96

Comfort Suites Panama City Beach Upper Midscale Class 74

Country Inn & Suites Panama City Beach Upper Midscale Class 82

Days Inn Panama City Beach Ocean Front Economy Class 188

Hampton Inn & Suites Panama City Beach Pier Park Area Upper Midscale Class 95

Hampton Inn Panama City Beach Upper Midscale Class 89

Hawthorn Suites by Wyndham Panama City Beach Midscale Class 80

Holiday Inn Resort Panama City Beach Upper Midscale Class 340

La Quinta Inns & Suites Panama City Beach Midscale Class 86

La Quinta Inns & Suites Panama City Beach Commerce Park Midscale Class 90

Legacy By The Sea Upscale Class 139

Sleep Inn & Suites Panama City Beach Midscale Class 90

The Beachside Resort Upscale Class 147

6,146 Hotel/Motel Rooms in PCB STR Total Rooms Reporting (28%) 1,696

Lodging Analysis

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Lodging Analysis

2016 Comparative STR Data – USA & PCB

Source: STR 6-YR Trend – PCB 2016 STR-Participating Properties

USA PCB

OCC 65.5% (+0.1%)

66.9%(-0.6%)

ADR $124.00 (+3.1%)

$143.98(+3.0%)

REVPAR $81.17(+3.2%)

$96.34(+2.3%)

SUPPLY (change) 1.6% 0.0%

DEMAND (change) 1.7% -0.6%

REVENUE (change) 4.8% 2.3%

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Lodging Analysis

Hotel Annual Occupancy 6-YR Trend - PCB vs. National


56.5%

57.8%

60.8%

64.4%67.3% 66.9%

59.9%

61.4%62.3%

64.4%

65.6% 65.5%

50.0%

55.0%

60.0%

65.0%

70.0%

2011 2012 2013 2014 2015 2016

PCB National

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Lodging Analysis

Hotel Annual Occupancy 3-YR Monthly Occupancy Trend


41.3%

58.0%60.9%

70.8%

77.8%

91.4%94.8%

70.4%

74.7% 73.2%

50.0%

41.0%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016

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Lodging Analysis

STR Lodging Room Revenue Trend 2014 – 2016

$1,602,077

$2,255,749

$5,007,157

$5,295,707$6,249,777

$9,168,093

$11,299,233

$5,505,315

$4,724,280$4,529,836

$2,329,195

$1,773,144

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2014

2015

2016

STR Hotels – 2016 vs 2015Overall 2.3% revenue growth

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Season 2012 2013 2014 2015 2016

Winter (Dec – Feb) 567 400 195 175 309

Spring (Mar – May) 787 564 441 407 475

Summer (Jun - Aug) 477 761 1,236 991 869

Fall (Sep – Nov) 225 195 449 449 378

Total Responses 2,056 1,920 2,321 1,917 2,031

ONLINE VISITOR SURVEY RESPONDENTS

Young Surveys - 2016 Visitor Profile

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2016 Visitor Profile

2016 Visitor Survey Respondents Map

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Average Party Size

0 1 2 3 4 5

Winter(14+)

Winter (-13)

Spring

Summer

Fall

2.2

2.8

3.4

4.1

3.4

2012 2013 2014 2015 2016

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Average Length of Stay 2012 - 2016

0 10 20 30 40 50 60 70 80

Winter (14+)

Winter (-13)

Spring

Summer

Fall

73.3

5.7

5.4

5.9

6.1

2012 2013 2014 2015 2016

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PCB VISITOR

SPENDING DATA

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$2,205

$1,676

$1,349 $1,312

$2,463

$2,227

$1,454 $1,607

$2,483

$2,046

$1,444

$1,598

$2,491

$2,063

$1,430

$1,880

$0

$1,000

$2,000

$3,000

Summer Spring Winter Fall

2013 2014 2015 2016


Total Spending per Party 2013 - 2016

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2016 Visitor Economic Impact

PANAMA CITY BEACH

2016 ECONOMIC IMPACT

FROM VISITORS

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PCB ResidentialProperty Tax Category

Property Tax Inventory

TDTInventory

Clerk of CourtTDT Inventory

SINGLE FAMILY 8,674 627 Single Family HomeSINGLE FAMILY/CONDO 302MOBILE HOME 1,219MOBILE HOME/CONDO 523MULTI-FAMILY 10+ UTS 29CONDOMINIUM 16,843 9,575 Condo/TownhomeMULTI-FAMILY 10 LESS 549

1,230 MiscellaneousTotal 28,139 11,432 (40.6%)

4,664 Hotel MotelTotal Housing Units 28,139 16,096 Lodging/Rent Inv.

PCB Residential & Lodging/Rental Inventory (June 2016)

U.S. Census Data (2015):

Households 5,241

Population 12,624


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2016

Lodging Tax

Revenue

2016

Lodging Revenue

Person

Days/Nights

Average

Spending

Per Person/

Per Day

Total Overnight

Renter Spending

$18,932,139 $378,642,780 11,133,875 $109.70 $1,221,428,322

2016 Paid Rental Overnight Visitors

Rental Inventory

(Rental Units

only)

Owner Occupied

Nights(9% occupancy)

Person

Days/Nights(avg. party of 5)

Average

Spending

Per Person/

Per Day

Total Overnight

Rental Owner

Spending

11,572 380,140 1,900,700 $66 (+3%) $125,446,200

2016 Owner Occupied Rental Units


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Non-Rental Vacation

Inventory

(Units)

Owner Occupied

Nights(38% occupancy)

Person


Average

Spending

Per Person/

Per Day

Total Vacation

Owner Spending

5,217 723,597 2,894,392 $66 (+3%) $191,029,872

2016 Vacation Home Usage – non-resident owners who do not rent

Year-round

Households in PCB

(US Census)

Number of

Houseguests(10 guests per house)(5.5 avg. length of stay)

Houseguests

Person


Average

Spending

Per Person/

Per Day

Total VFR

Spending

5,146 51,460 283, 030 $36 (+3%) $10,755,080

2016 Visiting Friends & Relatives (VFR) - Staying With Year-Round Residents

Total 2016 Overnight Visitor Spending in PCB $1,548,659,474.

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Day-Tripper Spending – $77,432,974Day-trippers to PCB from outside of Bay County are estimated to account for 5% of the

overall overnight visitor spending therefore totals $77,432,974. The majority of this day-trip

spending in PCB is realized at large scale retail, unique PCB attractions, unique dining

experiences, festivals/events and Northwest Florida Beaches International airport and rental

car operations. The growth in large scale retail and dining has increased the number of day-

trippers that come into PCB for day-trips.

Total 2016 Overnight & Daytrip Visitor Spending in PCB $1,626,092,448.

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Economic IndicatorDirect

Impacts

Indirect

Impacts

Induced

Impacts

Total Impacts

(Direct + Indirect +

Induced)

Visitor Spending

2015

$1,526,348,664

($1.52 billion)

$451,346,786

($451.34 million)

$453,660,923

($453.66 million)

$2,431,356,374

($2.43 billion)

2016$1,626,092,448

($1.62 Billion)

$480,841,381

($480.84 million)

$483,306,742

($483.30 million)

$2,590,240,572

($2.59 billion)

Worker Income &

Paychecks

2015

$495,773,102

($495.77 million)

$132,3023,684

($132.30 million)

$138,825,095

($138.82 million)

$766,900,881

($766.90 million)

2016$528,170,868

($528.17 million)

$140,949,461

($140.94 million)

$147,897,033

($147.89 million)

$817,017,363

($817.01 million)

Employment/Jobs

201522,290 4,160 4,383 30,833

2016 23,747 4,432 4,669 32,848

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DEFINITION OF DIRECT AND SECONDARY ECONOMIC EFFECTS

Economists distinguish direct, indirect and induced economic effects. The total economic impact of tourism is the sum of

direct, indirect and induced effects within a region. Indirect and induced effects are sometimes collectively called

secondary effects. These impacts or effects may be measured in terms of gross output, sales, income, employment, or

value added. Although they are often used somewhat loosely by non-economists, these terms have precise definitions

that are important when interpreting economic impact study results.

Direct effects are production changes associated with the immediate effects of changes in tourism expenditures. For

example, an increase in the number of tourists staying overnight in hotels would directly increase room sales in the hotel

sector. The additional hotel sales and associated changes in hotel payments for wages, salaries, taxes, supplies and

services are direct effects of the tourist spending.

Indirect effects are the production changes resulting from various rounds of re-spending of the tourism industry's receipts

in backward-linked industries (e.g. industries supplying products and services to hotels). Changes in sales, jobs and income

in the linen supply industry, for example, represent indirect effects of changes in hotel sales. Businesses supplying

products and services to the linen supply industry represent another round of indirect effects, eventually linking hotels by

varying degrees to most other economic sectors in the region.

Induced effects are the changes in economic activity resulting from household spending of income earned directly or indirectly as a result of tourism spending. For example, hotel and linen supply employees, supported directly or indirectly by tourism, spend their income in the local region for housing, food, transportation, and the usual array of household product and service needs. The sales, income, and jobs that result from household spending of added wage, salary, or proprietor’s income are induced effects.

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Berkeley Young

Young Strategies, Inc

[email protected]

(704) 677-4018

(704) 770-3333

www.facebook/berkeleyyoung

www.linkedin.com/berkeleyyoung

Contact Information

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Young Strategies Research Team Experience

Destination research and strategic planning

Development and management of conference centers

Research for 100+ destinations in 26 states

Communities, regions and states

Travel industry focused

National research data and trends analysis

Writing and speaking

Board workshops & planning sessions

Listening to travelers

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