The OBJ adds their 2 cents on the current state of tourism in Orlando, particularly at WDW. The silver lining seems to be the Cruise Line, where guest counts have actually increased over last years' number. Here's the article:
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The bad news? A sluggish economy is taking a bite out of Central Florida's big cheese.
The good news? Despite a slump in local theme park attendance, Disney World is showing surprising strength.
"I'm not surprised they are down, but I am surprised at the relatively small decline," says Abraham Pizam, dean of the Rosen School of Hospitality Management at the University of Central Florida.
Local tourism-based industries across the board are reporting a downturn in business. Several hoteliers say it is the worst year in a decade -- and August is expected to be the worst month of the year.
Just last week, the Orlando/Orange County Convention & Visitors Bureau reported the percentage of all occupied Central Florida hotel rooms has slipped 10 percent.
Orange County resort tax collections -- levied on temporary lodgers such as hotel guests -- dropped 8 percent compared to May of last year.
The slump is widely attributed to a combination of rising gas prices and a jittery stock market.
The six-month slump
Disney, which does not discuss specific attendance figures, is not immune. A new report by Merrill Lynch says attendance at Walt Disney World dropped by 8 percent during the last quarter. Hotels also suffered: Occupancy rates at Disney hotels dropped by up to 3 percent.
"We have seen some softness, both in our attendance and our resorts, but it is below what we expected," acknowledges Al Weiss, president of Walt Disney World.
Weiss also says Disney historically has fared better than most during a slowdown.
"Most people still go on vacation, but they spend less and prioritize more," he says.
The slump is particularly painful because 2000 brought upswings in attendance to the local theme parks owned and operated by Disney. According to the trade magazine Amusement Business, attendance at the Magic Kingdom grew by 1 percent to 15.4 million visitors. Epcot attendance was up by 5 percent with 10.6 million visitors. Disney-MGM Studios grew attendance by 2 percent to 8.9 million.
Only Animal Kingdom reported a decrease, 3 percent.
The overall 8 percent slump in this last quarter effectively takes Disney attendance to pre-2000 levels.
Steaming ahead
However, another Disney attraction -- its relatively new cruise lines -- is gathering steam. The ships are still under their capacity of 2,700; even so, an upswing in passengers appears to fly in the face of a broader tourism trend to spend vacations close to home this year.
According to passenger counts recorded by customs and immigration officials, Disney's Port Canaveral line averages 2,582 people on its Bahama cruises through the first six months of this year. By contrast, the ship averages 2,215 passengers last year.
Disney's Eastern Caribbean cruise is drawing an average of 2,395 people.
The result: Disney's Cruise Line is 17 percent ahead of last year's pace for its three- and four-day cruises and 8 percent ahead of last year for seven-day cruises.
"The fact is, we have more demand than our current fleet will hold," says Mark Jaronski, spokesman for the cruise line.
All aboard
One key reason for the growing passenger count is the fact that more extended families are booking reservations. Instead of just mom, dad and the kids, grandma and grandpa, cousins and uncles are all boarding. "The large family groups are booking multiple staterooms," Jaronski says.
Another factor may be the long lead time involved in booking a cruise. Typically, cruises are reserved as far as a year in advance -- thus, some cruises already were booked and paid for before the economic downturn hit.
Even so, the upswing is a surprise. For one thing, other cruise lines sailing from Port Canaveral have not recorded similar increases. Carnival Cruise Lines Fantasy is up by 30 passengers per cruise from 2000. The Royal Caribbean's Sovereign of the Seas is down 40 passengers.
"The Disney boat is a surprise," says UCF's Pizam. "The cruise lines seem to suffer in an economic slowdown as well."
Back at the mother ship -- Walt Disney World -- there's less certainty about the immediate economic future.
"Certainly we believe it will last through the duration of the summer," Weiss says. Also, he points out that such dips typically are "short-lived," ranging from four months to 16 months, and that over the 30-year history of the resort, Disney always has come out of the slump at the same levels as before, if not larger attendance numbers.
Plus, Weiss adds that Disney begins a special event in October -- the 100 Years of Magic -- and that similar events, such as the 25th anniversary of Walt Disney World and the Millennium Celebration at Epcot, provided strong increases in attendance.
But there are some questions when it comes to how the 100 Years of Magic will be affected.
"We hope it's as successful," Weiss says.
Still, he says: "No one can predict what the economy will do."
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The bad news? A sluggish economy is taking a bite out of Central Florida's big cheese.
The good news? Despite a slump in local theme park attendance, Disney World is showing surprising strength.
"I'm not surprised they are down, but I am surprised at the relatively small decline," says Abraham Pizam, dean of the Rosen School of Hospitality Management at the University of Central Florida.
Local tourism-based industries across the board are reporting a downturn in business. Several hoteliers say it is the worst year in a decade -- and August is expected to be the worst month of the year.
Just last week, the Orlando/Orange County Convention & Visitors Bureau reported the percentage of all occupied Central Florida hotel rooms has slipped 10 percent.
Orange County resort tax collections -- levied on temporary lodgers such as hotel guests -- dropped 8 percent compared to May of last year.
The slump is widely attributed to a combination of rising gas prices and a jittery stock market.
The six-month slump
Disney, which does not discuss specific attendance figures, is not immune. A new report by Merrill Lynch says attendance at Walt Disney World dropped by 8 percent during the last quarter. Hotels also suffered: Occupancy rates at Disney hotels dropped by up to 3 percent.
"We have seen some softness, both in our attendance and our resorts, but it is below what we expected," acknowledges Al Weiss, president of Walt Disney World.
Weiss also says Disney historically has fared better than most during a slowdown.
"Most people still go on vacation, but they spend less and prioritize more," he says.
The slump is particularly painful because 2000 brought upswings in attendance to the local theme parks owned and operated by Disney. According to the trade magazine Amusement Business, attendance at the Magic Kingdom grew by 1 percent to 15.4 million visitors. Epcot attendance was up by 5 percent with 10.6 million visitors. Disney-MGM Studios grew attendance by 2 percent to 8.9 million.
Only Animal Kingdom reported a decrease, 3 percent.
The overall 8 percent slump in this last quarter effectively takes Disney attendance to pre-2000 levels.
Steaming ahead
However, another Disney attraction -- its relatively new cruise lines -- is gathering steam. The ships are still under their capacity of 2,700; even so, an upswing in passengers appears to fly in the face of a broader tourism trend to spend vacations close to home this year.
According to passenger counts recorded by customs and immigration officials, Disney's Port Canaveral line averages 2,582 people on its Bahama cruises through the first six months of this year. By contrast, the ship averages 2,215 passengers last year.
Disney's Eastern Caribbean cruise is drawing an average of 2,395 people.
The result: Disney's Cruise Line is 17 percent ahead of last year's pace for its three- and four-day cruises and 8 percent ahead of last year for seven-day cruises.
"The fact is, we have more demand than our current fleet will hold," says Mark Jaronski, spokesman for the cruise line.
All aboard
One key reason for the growing passenger count is the fact that more extended families are booking reservations. Instead of just mom, dad and the kids, grandma and grandpa, cousins and uncles are all boarding. "The large family groups are booking multiple staterooms," Jaronski says.
Another factor may be the long lead time involved in booking a cruise. Typically, cruises are reserved as far as a year in advance -- thus, some cruises already were booked and paid for before the economic downturn hit.
Even so, the upswing is a surprise. For one thing, other cruise lines sailing from Port Canaveral have not recorded similar increases. Carnival Cruise Lines Fantasy is up by 30 passengers per cruise from 2000. The Royal Caribbean's Sovereign of the Seas is down 40 passengers.
"The Disney boat is a surprise," says UCF's Pizam. "The cruise lines seem to suffer in an economic slowdown as well."
Back at the mother ship -- Walt Disney World -- there's less certainty about the immediate economic future.
"Certainly we believe it will last through the duration of the summer," Weiss says. Also, he points out that such dips typically are "short-lived," ranging from four months to 16 months, and that over the 30-year history of the resort, Disney always has come out of the slump at the same levels as before, if not larger attendance numbers.
Plus, Weiss adds that Disney begins a special event in October -- the 100 Years of Magic -- and that similar events, such as the 25th anniversary of Walt Disney World and the Millennium Celebration at Epcot, provided strong increases in attendance.
But there are some questions when it comes to how the 100 Years of Magic will be affected.
"We hope it's as successful," Weiss says.
Still, he says: "No one can predict what the economy will do."
