Invest: Orlando 2020 J ECONOMY ■ ■ ECONOMY OVERVIEW'' ECONOMY OVERVIEW ■ ■

■ • TOURISM, ARTS & CULTURE OVERVIEW TOURISM, ARTS & CULTURE INTERVIEW ■ ■

Overall, Orlando's hospitality industry had a strong of $10 million in a new Orlando Museum of Art if year in 2019 but due to the impact of headwinds that his donation could be matched with $30 million in included a later Easter, which affected Spring Break, fundraising for a $40 million building in Lake Nona. and adverse weather around Hurricane Dorian, Additionally, January saw the opening of the Harriett's occupancy rates actually dropped by 2.1% on the year Orlando Ballet Centre, a $12.5 million, 38,000-square Primary driver to '76.1%. However, the losses were mitigated by the fact foot facility that will serve as a venue for various that rates increased by 1.1% to reach $126.95 per night. events. Orange County Convention Center delivers economic value in a Despite the drop in occupancy rates almost across While social distancing measures have all but variety of ways the board in the metro Orlando area, Orlando North canceled social events, Orlando's arts scene is adapting and Central bucked the trend, increasing by 0.1% and by taking its product offering online. In May, the 1.6%, respectively. Leisure occupancy contracted more Playwrights' Round Table showed Connected Voices than business occupancy in 2019 and Orange County II, a collection of short plays, on its Facebook page. Mark Tester suffered slightly more than the Florida or national Cinematique Theater in Daytona Beach is streaming .ExecutiveDirector -Orange County Convention Center averages, which is mainly a result of high hotel room its content online and the Orlando Fringe will share penetration. That being said, convention rates surged either live or prerecorded performances in a virtual to $188.70, up 2.2% on the year and Orange County's format. How does the Orange County Convention Center help rates were up over the national average, reaching to drive the region's economy? $134.52. ■ Events and festivals One of our primary missions is to drive jobs and In mid-October of this year, Downtown Orlando income to this region, and support as many-economic ■ Arts and culture was expected to be taken over by the 2020 edition sectors as possible. The strength of our medical Orlando is a hub for creativity, with the single most of Immerse, a collection of 1,000 artists from 140 market and our strong health partnerships in the area common associate's degree awarded in the region institutions that perform interactive shows. But it go hand and glove with our ability to host medical in the liberal arts, accounting for over 80% of these is unclear whether the event will go ahead amid meetings. Those brands, known at the national degrees in 2017. Over 19% of postsecondary certificates COVID-19 concerns, a predicament that many events and international levels, help foster innovation awarded in Orlando are in restaurant and food findthemselves in. and research efforts while placing us on the map services management and hotel administration and Given social distancing, events and festivals in as a great destination for medical conventions and management. Other common postsecondary degrees Orlando are unlikely to experience the same buzz as meetings. The average attendee spends $2,567 locally include culinary arts, baking and cinematography, they have in previous years. 2019 saw a host of high when visiting. It shows we are an economic driver, meaning the region lends itself to being an arts, culture profile events at the Orange County Convention supporting 1,200 businesses and over 29,000 people and gastronomy hub. Center, including the International Association of working in our industry. Orlando's arts have philanthropic fans. The current Amusement Theme Parks and Attractions (IAAPA) 50,000-square-foot Orlando Museum of Art sits in expo, which attracted more than 1,100 companies How is the center bolstering its value offer to cater to Loch Haven Park and was built in 1974 but in early from around the world. population interests? 2019, billionaire Joe Lewis pledged an investment Amid the COVID-19 outbreak, the Convention 1 ••• ) We are making a point of looking at our capital improvement projects to ensure our ballrooms, common areas and renovated meeting space look their the abilityto welcome extremely large general sessions, best. With the pandemic's impact on our business, we plenary sessions ofl0,000 to 20,000 people in one place. have all hands on deck to hit the gas pedal on cleanliness and disinfection protocols. We are also looking to How is the pandemic shifting the landscape for implement our North-South Building expansion plan, conventions and events? a $605-billion project that is close to hitting 30-percent Sanitation measures in convention centers will change design. The project is divided into two parts. The and will remain forthe foreseeable future. We are one Convention Way Grand Concourse expansion includes of the first and largest convention centers to commit an additional 60,000 square feet of meeting space to participation in the Global Biorisk Advisory Council and an 80,000-square-footballroom along with a new (GBAC) STAR accreditation process. There will be a entry to the North-South Building along Convention series of rigorous guidelines on both the sanitation Way. It will provide the capacity to cater to different and social distancing fronts, among others, and we are markets that the buildings cannot accommodate now. moving forward on that. The GBAC STAR was created The Multipurpose Venue brings an additional 200,000 by the International Sanitary Supply Association, the square feet of contiguous exhibit space in the South premier sanitation association in the world. Experts Building. It will incorporate connectivity between the in those fieldsare developing these guidelines, which North and South concourses. This venue will grant us will evolve as the world changes. ■

www.capitalanalyticsassociates.com I 105 • ECONOMY INTERVIEW • Innovation

Tourism will always be a key to Orange County!s economy but the goal is also to n1al

Jerry Demings Mayor Orange County

What are some business opportunities unique to Orange County? My vision is for Orange County to become the center of innovation for the universe. W;e have made impressive strides in this regard. A critical factor to achieving this goal is investments in our highly specialized modeling, simulation and training (MS&T) industry. Orange County is a leader in MS&T with partnerships including the University of Central Florida Institute for Simulation and Training, Full Sail University's bachelor's degree program in simulation and visualization and Embry Riddle Aeronautical University's simulation, science, games and animation program. On an annual basis, $6 billion in MS&T contracts flow through the region - many commissioned for the Army, Air Force and Navy simulation command centers stationed in Orlando. Secondly, Orange County is the No. 1 tourist destination in the United States, with 75 million visitors in 2018, and it has the second largest convention center in North America. Coupled together, this makes Orange County a unique and We have a challenge in managing growth, housing attractive meeting and convention space. affordability and developing a multimodal mass transit system that would reduce trafficcongestion and What are your strategies for attracting businesses and more efficiently move people throughout the region. residents to Orange County? We are challenged with a lack of dedicated funding To continue attracting strong growth, the county must to expand and improve the county's transportation be perceived as a place that is socially, culturally and system, including infrastructure, commuter rail, business friendly. Our strategy focuses on executing bus transit and the integration of transit technology plans that ensure quality housing, education, healthcare, across the region. To address these challenges, one of arts, jobs and public safetyremain high priorities forthe my primary goals is to advance a sales tax initiative region. I am committed to working across the state and on the general election ballot in November 2020 that region to position Orange County as the "Experimental would fund a transformative transportation system. Prototype Community of Tomorrow." Additionally, we will look to leverage public-private partnerships such as the Virgin Trains commuter Besides COVID-19, what are the biggest challenges rail project that will connect Miami and Orlando and facing economic development in Orange County? eventually Tampa. ■

www.capitalanalyticsassociates.com j 7 Speedy recovery?: Diversification could be the key to a quick rebound once the specter of COVID-19 passes

Population and capital inflows, whether from retired However, there is more to Orlando than just tourism, Americans looldng to spend their golden years on including robust healthcare, tech and retail sectors, warmer weather, young professionals enticed by a lack and international trade, with many signs of growth of income tax, or foreign investors looking to cash in and opportunity apparent over the course of the past on a booming economy bolstered by the safety and year. On top of that, once the COVID-19 pandemic stability of the United States' framework for foreign abates and the lockdown and travel restrictions end, direct investment, kept the Central Florida economy the tourists will no doubt be back, too. growing at an accelerated rate in 2019 and indeed, for most of the last decade. When examining the factors ■ Location and history that generally contribute to a region's economic The Orlando region actually consists of three cities: prospects, it is reasonable to conclude that Central Orlando, Kissimmee, and Sanford. Orlando itself Florida, and Orlando in particular, have the potential is the seat of Orange County. Nicknamed "the City for sustained economic growth. Beautiful," which was the winnning entry in a 1908 In the short term, the travel restrictions and the contest to replace "The Phenomenal City," it is the general quarantine imposed on individuals and non fourth-largest city in Florida, and the state's single essential businesses in an effortto mitigate the spread largest inland city. Other counties situated in the of COVID-19 is expected to disrupt national, state and Orlando-Kissimmee-Sanford Metro Area include local economies for the duration of 2020, and even Seminole, Volusia, Brevard, Osceola, Polk and Lake well into 2021. Orlando could be particularly impacted counties. From October to May, the weather in by the economic fallout of COVID-19, as its natural Orlando typically ranges from the low 70s to the mid- scenery and world-renowned theme parks make it a 80s, with nighttime lows from the low sos to the mid- destination for national and international travelers, 60s. Summertime temperatures trend warmer, with linking its economy inextricably with its tourism highs in the upper 80s to mid-90s. This beautiful industry. weather makes Orlando extremely popular (•· )

6 J Invest: Orlando 2020 J ECONOMY ■ ■ ECONOMY OVERVIEW'' ECONOMY OVERVIEW ■ ■

and the Creative Village in Downtown Orlando is an innovation district for high-tech, digital media and Orlando creative companies providing new opportunities. Tourists and visitor numbers continue to increase, attracted providing plenty of opportunities for businesses to arecord thrive. It's exciting to know that businesses that are here and those relocating here have opportunities to 75 · ·on grow and expand their footprint here in Orlando." In addition to its impressive population growth, visitorsin 2018 the Orlando metro area was setting the pace for job creation, pre-COVID-19. Orlando outpaced Florida as a whole in terms of employment, holding a 2.5% unemployment rate in December 2019, below Florida's (• • •) with vacationers and snowbirds, with a record 75 2.9% and the nation's 3.5%, with most new jobs million visitors in 2018, according to the latest figures created in the high-paying Professional and Business available, and has helped to foster thriving tourism Services category ($67,340 annual mean salary), and hospitality industries. Conference-goers also followed by Leisure and Entertainment ($26,440) flock to Orlando, as evidenced by the Orange County and Manufacturing ($34,180). By March 2020, the Convention Center's status as the second-largest in unemployment rate for Orlando had climbed to 4.2% the country. The city's status as a tourist mecca also due to the pandemic's impact. That was still below helps to make Orlando International Airport the 13th the state (4.3%) and the national rate (4.4%), and busiest in the United States and the 29th busiest in the will likely improve as the pandemic passes and the world. The climate has also facilitated the cultivation economy regains its previous steam. of a robust network of citrus growers around the city, Overall, Orlando led the Stateof Florida in year-over and oranges are a major Orlando export. year job creation in 2019, with 36,700 new positions, As is characteristic of many large Sun Belt cities, according to a report in BizJournals. Alongside the Orlando experienced rapid and considerable growth explosive growth of the above sectors, there are also beginning in the 1980s that continued into the 2000s some major, established markets that remain Orlando's and up through today. An important facet of Orlando's top employers. The city's leading employment sources growth during this period is its establishment as an are its medical and social assistance industry (12.4% of amusement park capital, home to both the Walt Disney the total 1.27 million-person workforce), followed by World Resort (opened in 1971) and the Universal retail (12%) and the hospitality and food industry (10.1%). Orlando Resort (opened in 1990). These parks are by It is important to note that, while it is certainly far Orlando's two most popular attractions, but other promising that the December 2019 unemployment ( • • •) tourist draws lie along International Drive, such as the Wheel at ICON Park Orlando. Another draw to Orlando services firm CBRE Research's 2019 Southeast U.S. is the University of Central Florida, which is one of the Real Estate Market Outlook. Orlando is also second largest universities in the United States in terms of in the Southeast for international migration at about total enrollment. 22,200 people," a report by the Orlando Sentinel said. "We're anticipating having almost 2 million WORl(CAN ■ Landscape people in Orange County by 2030. I think that speaks The Orlando-Kissimmee-Sanford Metro-politanArea volumes, and we're preparing for that population is home to 2.6 million people, with a median age of 37.3 growth," Andrew Cole, president and CEO of the East GET YOU PLACES. years, slightly below the country's 38.5, and a median Orlando Chamber of Commerce, told Invest:. "Our household income of $58,610, according to data from transportation infrastructureis being enhanced, Virgin LIKE HOME statistics website Data USA. A report by WalletHub Trains is making its way into Orlando, the Orlando t , wn l'an•1u ranked Orlando 28th out of 515 urban areas around International Airport is building a new terminal, Orlando Office the country in terms of population growth in 2019, and our local governments are looking at additional and expectations of continued expansion were high transportation solutions and housing affordability last year. "The metro area ranks third in the Southeast issues. Businesses are expanding, creating new jobs, for its five-year projected growth at 10.1 percent, such as Universal Studios' new Epic Universe theme Dedicated to helping people solve their immigration issues. according to international real estate consulting park and, Disney's continued growth of their parks, We bring deep knowledge of immigration law's complexities, making BROWN th€'process as simple and painless as possible. To s<>ehow we ca 1 IMMIGRATION LAW help you visit E.'rownlmmlaw cc111 Where you want to@ r ,wnlmmla .c fT1 J11.? 08.7324 8 I Invest: Orlando 2020 I ECONOMY ■ TOURISM, ARTS & CULTURE OVERVIEW ■

Orlando Solar Bears East Coast Hockey team. The city Gabriel Preisser also has a whole list of sporting events in the pipeline Executive & Artistic Director - Opera Orlando for the next few years, including the 2022 Special Olympics USA Games and Monster Jam World Finals. The city is working toward hosting one of the 2026 '' As part of our strategic plan, we do what we call our FIFA World Cup games, which could generate up to Salon Series, which are private in-home concerts throughout $1 billion in economic impact for the region. It is no Orlando's satellite communities. These satellite communities, wonder then that the city commissioners approved such as Windermere, Winter Park, Apopka, Celebration and Winter raising the county's sports incentive fund to $4 Garden, are among the unique elements of the city of Orlando, million from $2 million to invest in these initiatives. Since it is hard to get everybody to come to Downtown to see ■ Cruises our productions, we reach out to these communities as much as No mention of tourism in South and Central Florida possible. '' is complete without a nod to the cruise industry. Port Canaveral in neighboring Brevard County is one of Central Florida's greatest generators of cruise _. • ) Center has undoubtedly suffered. In the face of But alongside huge gains are huge losses, as industry tourism revenues. It is ranked as the world's the highly contagious virus, large public events were theme parks became one of the largest casualties �econd-busiest cruise port and is working to become the firstcasualties. As of March, 13 major conventions of COVID-19 measures. As the theme parks across the busiest with an ambitious expansionproject. This had rescheduled, including the MegaCon Orlando Orlando shuttered, some came under harsh criticism includes a $260-million investment in two new cruise show that was originally scheduled for April. for their actions. Disney, for example, came under terminals and an $85-million renovation plan for fire for furloughing staff to save costs while retaining three existing terminals. The upgrades will allow the ■ Theme parks executive bonus schemes. port to accommodate mega cruise ships and will be According to the TEA Global Attractions Attendance By June, many of the theme parks were already home to Carnival's new Mardi Gras cruise ship, which Report, Disney's Orlando theme parks welcomed over getting ready to reopen, a good sign forthe industry. carries up to 6,500 passengers. 62.5 million visitors in 2019 - almost 66% of Orlando's But just like life changed after the 9/11 terrorist attacks, The Mardi Gras was scheduled to begin sailing in market share. But competition has emerged in the certain health and safety protocols introduced 2020, now an unlikely possibility. Even prior to the form of Universal Orlando, with NBCUniversal CEO during this crisis are unlikely to go away. In March, COVID-19 outbreak, there were construction delays Steve Burke commenting that Disney has been given Wynn Resorts announced it was introducing thermal on the vessel, and in March the global cruise industry "a free ride" in terms of a lack of competition prior to cameras at all its entrances and Disney will phase came to a standstill. Like all industries after the the arrival of its competitor. out fingerprint scanners to be replaced by facial pandemic, the face of the cruise indus try is likely to be With this in mind, 2019 was a year of expansion recognition technology. There is likely to be a new, dramatically altered, especially given fatal outbreaks for both parks in an attempt to take advantage of more stringent approach to hygiene and automation of the virus on board ships on several occasions. It is the untapped market potential. At the end of 2018, will become ever more common. possible that further cruises for 2020 may be canceled Universal announced an ambitious investment and the delivery of many new ships will be delayed. program that could total as much as $23.4 billion. As ■ Sports part of the plan, in 2019, Universal Orlando opened The Greater Orlando Sports Commission (GO Sports) ■ Looking ahead Universal Epic J]niverse. Universal also announced has hosted over 1,200 sporting events with a total Anchored on its privileged location and friendly at the end of 2019 that it would build a new world economic impact of over $1.4 billion. GO Sports has climate, the tourism industry has been a lucrative headquarters for its creative department in Orlando, a primary role in attracting events such as WWE one for Orlando. But the COVID-19 pandemic creating 150 jobs with average salaries of $95,000. Wrestlemania, Monster Jam and the FIFA World Cup demonstrated how vulnerable the region's economy Not to be outdone, Disney's Hollywood Studios to the area. In one week of January alone, Central is. While a complete recovery is unlikely in 2020, launched its Star Wars: Galaxy's Edge theme park. Florida hosted three major sporting events - the tourism leaders in Orlando are already taking steps Epic Universe is to be expanded further, with a NFL Pro Bowl, the PGA Merchandise Show and the to adapt to the new normality and make preparations Nintendo theme park to open in 2023. That project will Racquet & Paddle Sports Show - which generated for an increase in demand after the pandemic is create an economic impact of $11 billion in the region. an estimated $160 million in local economic impact. brought under control. Tourism is likely to become Other Disney additions in 2019 included Mickey and After the success of the Pro Bowl, Orange County more regional, with flights canceled in favor of road Minnie's Runaway Railway, Disney Skyliner, Lightning leaders approved the use of $2.7 million in tourist trips. McQueen's Racing Academy and The NBA Experience. funding to bid on the 2021 event. There is no doubt that Orlando will recover from In 2019, Seaworld launched Sesame Street Land and Orlando is home to a host of major league sports, the economic shock of the COVID-19 outbreak. But it Aquatic Orlando launched the KareKare Curl thrill including the Orlando City Major League Soccer is yet unclear how long the recovery will take and how water slide. team, the Orlando Magic NBA basketball team and the the industry will look in the aftermath. ■

106 I Invest: Orlando 2020 I TOURISM, ARTS & CULTURE