Tourism remains slow in Collier County.
In April, the number of visitors – including international ones – fell for a third month in a row, over the year.
The county saw a total of 227,200 visitors, down 5.3% from last year, according to the latest report by Downs & St. Germain Research.
The report was shared at a Collier County Tourist Development Council meeting June 17.
The slowdown in tourism has been attributed to several factors, including a noticeable drop in “day trippers,” or visitors who don’t stay overnight.
The county has also seen a big drop in international visitors — more specifically Canadian visitors.
In April, international visitation fell by 7.9% over the year, driven by a 19.4% drop in Canadian visitation, said Jay Tusa, the county’s tourism director.
All of the other international markets “posted year-over-year gains,” he said.
Canadian visitation began to slow in February, amid political and economic turmoil. The downturn has been blamed on the uncertainty around tariffs, increased border scrutiny, and ongoing economic concerns, including a weak Canadian dollar.
When it comes to international visitation, Tusa said “everything else is relatively flat.”
“So, I’ll take flat as opposed to, you know, down,” he said.
A significant drop in Canadian tourism has been seen across the United States.
The latest statistics for Lee County show visitation fell by 5.6% in the first quarter over the year. That’s in part due to a drop in international visitation, including from Canada.
Drop in Canadian visitation a “bummer”
In a more detailed presentation, James Brendle, a project director of Downs & St. Germain Research, characterized the decreases in Canadian visitation seen over the past few months in Collier County as “a bummer,” but he highlighted increases “from the likes of Europe and Central and South America, and other places around the world.”
He pointed to a few other concerns based on the latest statistics: Group demand fell in March and April, and 42% of visitors reported they’d considered other destinations before booking for April, “an all-time high for the month” in Collier County, reflecting “some intensifying competition” in Florida, and beyond.
In Southwest Florida, April traditionally marks the end of the busy season that starts in November. It’s when the region sees the largest influx of visitors and part-time residents, often fleeing the colder weather up north. The season was noticeably slower this year.
Here’s a look at some of the key tourism metrics for April, compared to last year:
Although visitation has slowed in Collier County, other metrics show promise, such as the 3.1% year-over-year increase in both the number of visitor days, and the number of room nights booked in April.
In general, visitors are staying in the destination longer, Brendle said, which can result in higher spending, not just at hotels, but on dining, shopping and entertainment.
Another bright note: Occupancy increased by 4.2% over the year in April, although the daily rate remained relatively flat.
The slight increase in the daily rate was attributed primarily to Easter falling in April this year, which helped drive more demand. Last year, the holiday was in March.
Daily rates down for the year, but still strong
Year-to-date, the average daily rate in the county is down 5.3% (based on the fiscal year that began in October).
While the supply of hotel rooms is up “massively” this year, with the addition of so many new hotel rooms, the county still maintains one of the highest average daily rates “in all of Florida,” Brendle said. For the year, he said, it stands at $386.29, which is “not anything really to scoff at.”
In April, the supply of hotel rooms increased by 7.7% over the year in the county, but room demand rose by 11.3%, putting the county first among its competitors in Florida, which was “awesome to see,” Brendle said.
After hearing the latest statistics, Clark Hill, manager of Hilton Naples and a long-time member of the tourist council, said: “It’s becoming more and more obvious, at least to me, how important marketing is … to influencing these numbers.”
Having the highest increase in demand, he said, is “pretty incredible,” and it demonstrates that increased marketing is paying off.
“I’m proud of that,” Hill said. “I supported the increase in the marketing funds, and I’m just thrilled with the results.”
Collier County is spending nearly twice as much to lure tourists this year. The county upped its marketing and advertising budget to $11.45 million, to remain competitive with other markets.
All of the money comes from the county’s 5% tourist tax, charged on overnight stays at hotels and other vacation rentals.
Early on, the extra dollars funded an emergency campaign to spread the word that Collier County was ready and eager for tourists to return, following back-to-back hurricanes that hit Florida in September and October.
Tourism industry facing a “tough summer”
The county’s tourism bureau, along with Paradise Advertising and other marketing partners, have spent the additional marketing dollars “very well,” and “they need to continue to do this,” Hill said.
“We’re going to have a tough summer,” he said. “I think everybody knows that, and not just the hotels.”
It’s going to take everything “we can do” to not only keep the county’s share of visitors, but to increase the number of visitors, to fill more rooms, at more properties, across the county, Hill said.
Kristen Murphy, a vice president for partner development and client services with Paradise Advertising, agreed.
She shared there has been a 30 to 1 return on “ad spend across the board,” just with the supplemental funds. She emphasized the extra dollars for marketing should continue boosting demand, as more of them are spent in ways that drive visitation.
The usual advertising campaigns are also showing results, she said, with more people booking trips based on the ads, and visitation still up for the year.
From October to April, the county saw more than 1.69 million visitors, up slightly from the same months last year. Spending and total economic impact are still ahead of last year, too, but now it’s by less than 1%.
Visitation from the Midwest remains strong, growing by nearly 9% over the year.
“Your top visitor of origin is still the Midwest for fiscal year to date, followed by the Northeast, Florida, and then the Southeast,” Brendle said. “And then you’ve got the West and international.”
This article originally appeared on Marco Eagle: The tourism blues: April’s 5.3% decline includes loss of international visitors
Reporting by Laura Layden, Naples Daily News / Marco Eagle
USA TODAY Network via Reuters Connect
