After several years of slow business, the local lodging and tourism industries have recovered.
In 2009, many Duval County hotels had occupancy rates in the mid-50s. Recent data shows July’s occupancy rate at 73.6 percent for Duval County hotels.
“Overall, we’re very close to where we were when the recession started,” said Katie Mitura, Visit Jacksonville director of marketing and product development.
The organization is the convention and visitor’s bureau for Jacksonville and the Beaches and analyzes statistics related to hotel occupancy and room rates paid by guests.
In addition to occupancy, the average daily rate charged per room also has risen to $84.29. Last year, the rate was $76.44.
That has led to an increase in a third statistic — revenue per available room — which is $62.03, up from $52.86 last year.
Mitura said it’s the most important statistic because it reveals the profitability of the hotel business when revenue is considered with overhead expenses. July was the 22nd consecutive for growth in that area.
“It costs about the same to run a full hotel as it does a half-empty hotel,” she said. “Even if occupancy remains flat, when revenue per room goes up, hoteliers are making more money.”
A major component of the local tourism business surviving the national economic downturn was an increase in marketing funds allotted to Visit Jacksonville.
At the lowest point of occupancy in 2009, Dan King, then general manager of the Hyatt Regency Jacksonville Riverfront, said his hotel and others were facing a crisis.
Occupancy at the Hyatt was only about 56 percent, down from 70.6 percent in 2007 before the recession began.
King and his colleagues in the business asked the Duval County Tourist Development Council to approve additional funds for marketing Jacksonville as a destination.
“We feel we are in an emergency,” King, who also was president of the North Florida Hotel and Lodging Association, said at the time.
The tourism council approved an additional $875,000, which was used to promote Jacksonville on a national basis as a summer and fall destination,
That put the Marketing Initiative Grant to be used by Visit Jacksonville in 2009-10 at $1 million, more than doubling the average spent to attract business and leisure travelers from 2007-15.
In addition to having more money to spend for marketing, the recession also forced a change in strategy.
The focus was placed more on attracting guests from the Southeast rather than the entire U.S. It also incorporated more Internet advertising and social media is part of the current mix.
“The average consumer searches 31 websites before they book their vacation. We had to be there to compete,” said Mitura.
Brian Kinkade is vice president of account services at The Dalton Agency, which works with Visit Jacksonville.
He said the recession hit the tourism industry harder than other types of businesses. Vendors of alcoholic beverages, tobacco products and fast food “did really well” during the recession, Kinkade said.
Looking to the future, Kinkade is “conservatively optimistic” about the local tourism industry.
“Jacksonville is a value destination compared to other Florida markets. Your dollar buys more in Jacksonville than in Orlando or Miami or Tampa,” he said.
While industry professionals hope the recession is over, much of what was found to be successful during the downturn will remain the new game plan.
“The recession changed tourism marketing forever,” Mitura said. “We know now how to make a dollar stretch farther. It was a learning experience for the entire industry.”
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