Study details how tourism brings Brevard County $4.6 billion annually

A new study finds that tourism pumps about $4.6 billion into the Space Coast’s economy annually, through things like visitor spending and wages of tourism workers.

Peter Cranis, executive director of the Space Coast Office of Tourism, said it’s a big jump from pre-COVID-19 numbers and reflects the strength of the industry. The figures also reflect price increases since then for things like accommodation and restaurant meals.

The data comes from a survey of about 2,500 visitors to Brevard County, the most comprehensive survey of its kind in recent years, Cranis said.

Here are some details of the study and related data:

How much did visitors spend on the Space Coast?

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Visitor spending reached $2.95 billion in 2023, with overnight visitors accounting for nearly 3 million nights in hotels, motels, vacation rentals and other accommodations.

On average, each tour group spends $2,762, which works out to $197 per person per day, or $891 per person per trip.

What do visitors spend their money on when they are here?

On average, about 25% goes to food and drinks; 22% to recreation and entertainment; 20% for shopping; and 17% for accommodation; while the rest goes to gas, local transportation and other services.

Visitors stay here on average 4.5 nights and are in travel groups of an average of 3.1 people.

How many jobs does tourism create?

The Space Coast tourism industry supports nearly 46,000 direct and spin-off jobs, with wages approaching $1.5 billion annually. Tourism is the fourth largest employer in the area, after healthcare, retail and manufacturing.

Where do visitors come from?

About 37% are from Florida; 17% compared to other states in the Southeast; 17% from the Midwest; 12% from the northeast; 12% from the West; and 5% from international markets, mainly Canada, the United Kingdom and Germany.

What were the top out-of-state markets for visitors?

Visitors from the New York City area ranked No. 1, followed by Atlanta, Washington, Philadelphia, Boston, Minneapolis-St. Paul, Chicago, Detroit, Charlotte and Indianapolis.

What are the visitor demographics?

Visitors have an average household income of $97,000 per year. Their average age is 46 years and approximately 47% have children in their traveling companions.

Cranis said the Tourism Board tries to target its marketing campaigns at relatively affluent households because “they’re going to spend more money and stay longer when they come here.”

What do visitors to the Space Coast do when they’re here?

Many things. While here, many engage in beach activities (68%); go shopping (61%); sightseeing (48%); watching a rocket launch (41%); undertaking some form of outdoor activity such as walking, cycling or birdwatching (40%); go to the Kennedy Space Center Visitor Complex (29%); take a multi-day cruise (25%); or participating in water sports such as surfing, boating, kayaking or water skiing (22%).

Other things that some tourists do include going to a museum, going to the Brevard Zoo, fishing, golfing, participating in a sporting event or attending a business activity.

Where do they stay?

About 36% stay in a hotel or motel; 28% stay with friends or family; and 26% stay in a holiday home. Some stay in a bed-and-breakfast, a recreation park or a campsite.

What are some economic trends for local hotels?

Cranis said average room rates in Brevard County have generally increased from $110 to $120 per night several years ago to $150 or more now.

He expects the average room rate to rise even more when the luxurious 502-room, six-story Westin Cocoa Beach Resort & Spa opens in 2027. It will be built on the site of the former 502-room, two-story International Palms. Resort, which was demolished to make way for the Westin.

Cranis expects room rates at the Westin to reach $400 or more per night, which will also likely lead to an increase in rates at other hotels in the Cocoa Beach area.

Additionally, Cranis said room occupancy at local hotels has been steadily increasing in recent years.

What was the main reason people visited the Space Coast?

About 60% came for a holiday; 32% to visit family or friends; and 5% for companies.

What was a big surprise about the research?

Cranis said he was surprised that a majority (54%) flew into the area while he drove in (46%). He said in the past the Space Coast was largely considered a tourist destination.

What about cruise passengers?

Another surprise for Cranis was how many people who took a cruise from Port Canaveral stayed overnight in the area, both before and after their cruise. That figure was 91%, with 27% saying they stayed both before and after.

He said an Office of Tourism promotional campaign aimed at cruise passengers likely helped boost those numbers.

What are some other characteristics of cruise passengers?

The study found that compared to other tourists, cruise passengers who stayed on the Space Coast before or after their cruise were younger, wealthier, and spent more per person per day. For cruise passengers, the average traveling party is 3.6 people; the average age is 38 years; the median household income is $115,000; and the expenditure per party is $3,072.

What are some benefits of tourism for locals who are not in the tourism industry?

Tourists pay about 30% of the sales tax and 20% of the gas tax collected on the Space Coast. If tourism did not exist, each Florida household would have to spend an additional $1,840 in taxes to maintain current state and local tax revenues. Cranis said tourism is cited by some as a contributing factor to Florida having no income tax.

How much is the tourist tax collected locally?

For the 2022-2023 budget year, which ended Sept. 30, approximately $25.54 million was collected through Brevard County’s 5% occupancy tax on hotel and motel rooms, vacation rentals and short-term rentals. In the current 2023-2024 budget year, Cranis expects that amount to increase to somewhere between $26 million and $27 million.

The funds will be used to promote the area to tourists, beach renovations and Brevard Zoo projects, as well as grants to support tourism capital projects, sporting events and arts and cultural organizations and events.

Dave Berman is business editor at FLORIDA TODAY. Contact Berman at [email protected], at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54