2018-2019 ANNUAL REPORT Greetings,

This is a time of great transformation for the Orange County Center. As we continue to build our community together, we are pleased to report this year’s accomplishments and share more about The Center of Hospitality’s future expansion and its continued economic impact in Central Florida.

Through the support of our stakeholders and by strengthening relationships with our partners and clients, the Convention Center is embarking on a phenomenal $605 million expansion to provide additional space for our clients’ growing needs and to further enhance our offerings at this world-class campus.

The convention and trade show industry is extremely competitive and our unparalleled customer service and additional space will position the OCCC as North America’s most competitive convention center.

Year after year, industry leaders and trade publications have ranked the OCCC as one of the most sought after convention centers in North America. We continue to see exciting synergy between our facility, our connected and nearby businesses and destinations. Our world famous theme parks, lodging, dining, retail and Orange County Mayor, Jerry L. Demings entertainment offerings have pushed the Convention Center district to a new level of excellence.

We have the right team at the convention center, the support of our Board of County Commissioners, stakeholders and community partners to keep the convention center as one of the greatest global destinations for conventions.

Together, we are ushering in a new era of prosperity as we continue Building for the Future.

Sincerely, Jerry L. Demings Orange County Mayor AFFECTING GROWTH THROUGH LEADERSHIP

Orange County Government The Orange County Convention Center (OCCC) is owned and operated by Orange County Government, led by Orange County Mayor Jerry L. Demings. Additionally, the Board of County Commissioners oversees the management of the OCCC. With strategic leadership through Orange County, the OCCC has evolved into a state-of-the-art, world-class convention facility—a leader in the industry.

Commissioner Commissioner Commissioner Betsy VanderLey Christine Moore Mayra Uribe DISTRICT 1 DISTRICT 2 DISTRICT 3

Commissioner Commissioner Commissioner Maribel Gomez-Cordero Emily Bonilla Victoria P. Siplin DISTRICT 4 DISTRICT 5 DISTRICT 6 Orlando, Orange County Convention Center “Center of Hospitality”

Annual Report 2018-2019

On behalf of the Orange County Convention Center, we are pleased to present the 2018- 2019 Annual Report, which showcases our milestones and accomplishments. It has been an exceptional year for the OCCC, International Drive and our surrounding Convention Center District. With new and improved transportation, entertainment and accommodation options changing our dynamic landscape, the Central Florida area is experiencing tremendous growth and innovation.

The OCCC continues to Build for the Future, as we embark on a massive expansion project that will elevate the North-South Building and provide even more space and flexibility for our clients. The expansion keeps our campus competitive and on the cutting edge of the trade show and convention industry.

Join us as we continue to elevate Orlando as the number one destination in the country for conventions, trade shows, exhibitions and meetings.

Sincerely,

David Ingram Acting Executive Director TABLE OF CONTENTS 05 11-12 18 WELCOME TO THE CONVENTIONS AND TOURIST DEVELOPMENT ORANGE COUNTY TRADE SHOWS MEAN TAX DOLLARS WORK CONVENTION CENTER BIG BUSINESS FOR ORLANDO LOCALS 06 13 19 ORANGE COUNTY EVENT CATEGORIES TRADE SHOWS DONATE CONVENTION CENTER MEASURED BY MISSION STATEMENT NUMBER OF EVENTS 07 14 20 WHAT OUR CUSTOMERS MARKET MIX ORANGE COUNTY HAVE TO SAY CONVENTION CENTER INDUSTRY OUTLOOK 08 15 21 ORANGE COUNTY HISTORY OF CENTER ORANGE COUNTY CONVENTION CENTER ATTENDANCE CONVENTION CENTER FUTURE PLANS LEADERSHIP TEAM 09 16 THE ECONOMIC BENEFIT ORANGE COUNTY OF 2.1 MILLION SQUARE CONVENTION CENTER FEET OF EXHIBIT SPACE ECONOMIC IMPACT 10 17 ORANGE COUNTY KNOWING THE OPERATING REVENUE CONVENTION/GROUP AND EXPENSES MEETING ATTENDEE At the OCCC we are proud to be known as WELCOME TO The Center of Hospitality. This symbolizes outstanding service to our clients and THE ORANGE community, motivating their desire to return and enhancing the community’s reputation for COUNTY excellence. CONVENTION As a world-class convention facility, we host some of the most dynamic regional, national CENTER and international conventions, meetings and trade shows. This allows the OCCC to fulfill its mission of economic development, ultimately benefitting the Central Florida region.

5 MISSION STATEMENT The mission of the OCCC is economic development. By hosting regional, national and international conventions, meetings and trade shows, the Center infuses the local economy with new money and expanding business opportunities. The mission of our staff is to provide outstanding service to the clients and users of the Center to stimulate their desire to return and to enhance the community’s reputation for excellence.

GOALS AND STRATEGIES By infusing the local economy with new money and expanding business opportunities, the OCCC remains focused on the following goals to accomplish this mission:

To maximize economic impact by maintaining the OCCC’s position as a top convention destination.

To provide clients with a positive experience, ensuring repeat business while enhancing the community’s reputation for excellence.

To develop new business to maximize space at the OCCC, while securing continued convention group bookings well into the future.

To maintain a highly visible presence in the convention industry and within Orange County.

To work together with community partners in educating national, regional and local stakeholders on the benefits of marketing Orlando as the complete destination package.

6 WHAT OUR CUSTOMERS HAVE TO SAY...

VIVIAN EICKHOFF Event Director, Microsoft “It is no small feat to successfully welcome 30,000 attendees to our annual Microsoft Ignite conference, but we have been lucky to find a true partner with the Orange County Convention Center. Employees of the Center of Hospitality are true professionals when it comes to working with larger shows and events. They are a natural extension to our own staff and help ensure we plan the ultimate tech conference each year.”

CHRIS STRONG, Senior Vice President, Conventions and Membership National Business Aviation Association (NBAA) “When exhibitors and show attendees first enter the NBAA Business Aviation Convention & Exhibition show floor, they see elaborate booths and staged helicopters and airplanes. What they don’t see is the number of hours it took to coordinate moving all of the aircraft into the Orange County Convention Center. Thanks to the superior staff at the Center of Hospitality, planning such a feat is never an issue.”

NICOLE NOONAN, Vice President, Supplier Programs & Events, Director, Grainger “In its 14th year, the Grainger Show brought together more than 12,000 people for three full days at the Orange County Convention Center. At any other location that could have felt like a monumental task. At the Center of Hospitality, it was just another chance for them to showcase why they are the No. 1 meeting destination in the country.”

7 BUILDING FOR THE FUTURE

The OCCC has embarked on a $605 million Capital Venue will also incorporate connectivity Improvement Plan for two Campus Master Plan between the North and South concourses. projects. The Convention Way Grand Concourse and The area around the OCCC also demonstrates the Multipurpose Venue expansion will bring total an exciting synergy between the facility and exhibit space at the OCCC to 2.3 million square feet. nearby businesses. A new pedestrian bridge across International Drive to the Hyatt Regency The Convention Way Grand Concourse expansion , transportation improvements, lodging, includes an additional 60,000 square feet of dining, retail and entertainment offerings have meeting space and an 80,000 square foot ballroom also helped the destination reach a new level of along with a new entry to the North-South Building excellence. along Convention Way. While competition for events is increasing, we The Multipurpose Venue brings an additional feel confident about our competitive position in 200,000 square feet of contiguous exhibit space in Orlando. Today’s meeting planner desires more the South Building. Overall, the South Building will than just a big box and looks to other factors, have a total of 675,141 square feet of exhibit space including amenities, accessibility, aesthetics and for a grand total of 1.15 million square feet of exhibit the destination as a whole when selecting a space in the North-South Building. The Multipurpose facility to host their event.

8 The Economic Benefit of 2.1 Million Square Feet of Exhibit Space

As the economic development engine of the The OCCC calculates economic impact on convention industry in Orlando, it is critical to citywide delegates per research provided by understand the value of events held at the OCCC. We PFM Group Consulting LLC (formerly Fishkind determine this through economic impact, which is the & Associates) specialists in real estate, fiscal measurement of total direct and indirect spending impact assessments, and the Florida economy. in Central Florida by events held at the OCCC. This Citywide events (conventions, tradeshows and calculation includes induced impact from job creation conferences) have been shown to drive significant and gains in resident income levels attributed to event- economic impact in the form of multiple hotel related activity. nights, dining, transportation, and retail and entertainment spending.

$3 BILLION IN ESTIMATED ECONOMIC CENTER’S MORE THAN ACTIVITY YIELDS IMPACT TAX SAVINGS OF 29,300 FISCAL YEAR INDIVIDUALS ARE 2018–2019 $121 EMPLOYED BY THE ACTIVITY PER ORANGE COUNTY GENERATED AT HOUSEHOLD THE OCCC

MORE THAN $2,229 AVERAGE 1,200 ECONOMIC IMPACT BUSINESSES PER DELEGATE IMPACTED BY OCCC ACTIVITY

Source: PFM Group Consulting 9 Knowing the Convention/Group Meeting Attendee

As a top convention facility, the OCCC strives to better understand the demographics and behaviors of the convention and group meeting attendee. Knowing this allows the OCCC to enhance and tailor the attendee experience when he/she visits. $ 1.4 2.2 2,229 PEOPLE NIGHTS SPEND

AVERAGE AVERAGE LENGTH OF APPROXIMATE CONVENTION/GROUP STAY FOR CONVENTION ECONOMIC IMPACT MEETING ATTENDEE MEETING ATTENDEE PER ATTENDEE

8% BEACH OR WATERFRONT 2% 10% 23% NIGHTLIFE DINING ARRIVE BY OTHER MEANS 36% 62% ARRIVE BY ARRIVE BY AIR AUTOMOBILE

17% 18% SHOPPING THEME OR AMUSEMENT PARKS

MODES OF TRANSPORTATION BY TOP ACTIVITIES FOR CONVENTION/ CONVENTION CENTER VISITORS GROUP MEETING VISITORS

Source: Visit Orlando Market Research 2019; PFM Group Consulting 10 Conventions and Trade Shows Mean Big Business

The OCCC is home to some of the largest events in the industry. These phenomenal events generate significant amounts of economic impact to the Central Florida region, ultimately benefitting the local residents. Listed below are some of the top conventions and trade shows the Center had the honor of hosting during fiscal year 2018-2019.

AAU NATIONAL PREMIERE VOLLEYBALL NATIONALS ORLANDO 2019 HIMSS

ATTENDANCE ATTENDANCE ATTENDANCE 110,000 57,000 46,480

ECONOMIC IMPACT ECONOMIC IMPACT ECONOMIC IMPACT $141.2 MILLION $146.3 MILLION $119.3 MILLION

PGA MERCHANDISE SHOW 2019 MEGACON ORLANDO

ATTENDANCE ATTENDANCE 43,000 68,000

ECONOMIC IMPACT ECONOMIC IMPACT $110.4 MILLION $87.3 MILLION

11 SHOWS MEAN BIG BUSINESS

“Thanks to the tremendous relationships we have built throughout Central Florida, including the Orange County Convention Center, Walt Disney World and Visit Orlando, this experience has become one of the best events in the world, at the best destination in the world. We are thrilled to welcome thousands of athletes and their families each year to take part in this opportunity of a lifetime, not only for just the athlete but their families as well.”

Dr. Roger J. Goudy President/CEO Amateur Athletic Union (AAU)

12 FISCAL YEAR 2018-2019 EVENT CATEGORIES MEASURED BY NUMBER OF EVENTS 119 CONVENTION/TRADE SHOWS AND CONFERENCES

29 MEETINGS AND BANQUETS

22 CONSUMER AND PUBLIC TICKETED EVENTS

170 TOTAL EVENTS

1313 Trade Shows and Associations Dominate the Mix

In 1983, the Orange County Convention and Civic Center opened its doors welcoming an array of concerts and consumer events. As a new player, the Center strived to make its mark in the industry. More than two decades later, growth in the meetings and convention industry spawned continued expansion of facilities across the country. The OCCC was no exception and expanded in 2003.

With the opening of the North-South Building, the Center ushered in a new era as a world-class, state-of- the-art facility. Today, with the ability to host events of all sizes, the mix of business has also evolved and is now dominated by national and international trade shows and association convention and conferences, all of which foster significant economic impact to our local community. Since opening, we have welcomed more than 35 million guests, including more than 26 million citywide delegates. Below is a breakdown of the events from fiscal year 2018-2019 by market and by category.

EVENT CATEGORIES 125,017 (9%) FISCAL YEAR 2018-2019 MARKET MIX MEASURED BY ATTENDANCE:

205,531 1,453,507 attendees (14%) 501,520 (34%) Association (34%)

SMERF Market (23%) 290,563 (20%) Consumer (20%)

330,876 Corporate (14%) (23%) Trade Show (9%)

Source: Orange County Convention Center Market Research 14 HISTORY OF CENTER ATTENDANCE

1.5 M 1.48 M 1.45 M 1.4 M 1.4 M 136,417 231,023 218,836 217,598 261,842

1,152,379 1,198,314 1,369,098 1,255,813 1,234,671

FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19

CONVENTIONS/TRADE SHOWS AND CONFERENCES OTHER ATTENDEES*

*Other attendee figures include those attending a consumer event, banquet event, public ticketed event or a meeting for the fiscal year. Delegate attendance figures include those in attendance at a convention, conference or trade show during the fiscal year. Attendance numbers are provided by the client.

15 Economic Impact Makes an Impression

Delegates attending conventions, trade shows and conferences at the OCCC spent about $3 billion in the community during fiscal year 2018-2019.

Economic impact is the measurement of direct, event-related spending within Central Florida that would not otherwise occur within the market. This is considered new money that is injected into the community as a result of event activity. The average convention delegate generated an average economic impact of $2,229 through accommodations, retail, dining, entertainment and transportation per stay in Orlando.

ECONOMIC IMPACT: Since 1983, OCCC attendees have supported Central Florida with economic impact of approximately $45 BILLION

Source: OCCC Market Research 2019; PFM Group Consulting; Visit Orlando, 2019 Convention/Group Meeting Visitor Profile 16 Operating Revenues and Expenses for Fiscal Year 2018–2019

The OCCC’s revenues and expenditures from operations for fiscal year 2018-2019 were $75.3 million and $74.6 million, respectively. Approximately half of the Center’s revenue was derived from facility rental and event services such as electrical and plumbing. More than sixty percent of the Center’s expenses consisted of wages, benefits and facility utilities. The Center experienced yet another great year, covering all operating costs with revenue generated from operations when adjusting for capital expenditures and incentives.

The percentage of each revenue and expense line item is detailed below.

REVENUES FROM OPERATION

EXPENDITURES FROM OPERATIONS

Source: Figures are unaudited - These figures have been adjusted to remove capital expenditures and to add surcharge revenues. 17 TOURIST DEVELOPMENT TAX DOLLARS WORK FOR ORLANDO LOCALS

Tourist Development Tax (TDT) dollars are not paid by Orange County residents, but instead by the overnight business and leisure travelers to the Orlando area. Yet, these dollars work for Orlando locals. Key to the continued growth and success of the business and leisure industry is the ability to promote and advertise business and leisure . Revenues from this tax allow the promotion of business and leisure travel to the destination.

Fiscal year 2018-2019 was a record year for Tourist Development Tax collection, totaling $284 million.

$284 MILLION IN COLLECTIONS

SUPPORTING THE TOURISM IN OUR COMMUNITY

Source: OCCC Market Research 2019; PFM Group Consulting; Visit Orlando, 2019; Convention/Group Meeting Visitor Profile 18 Building a Better Tomorrow for Our Community

While the OCCC is known for providing an economic boost to the Central Florida community, it has also become a major source of donations for several of the region’s charitable organizations. In fiscal year “Many of our clients want to join 2018-2019, more than $2.3 million in funds, goods us in our mission of improving and and services, were donated to local organizations contributing to our community. by visiting conventions and tradeshows, and their Our unique range of green meeting exhibitors and attendees. initiatives allows our clients and Conventions and trade shows also made significant their attendees to donate at the donations to local pantries throughout the year. It is end of an event, providing them estimated that approximately 449,165 pounds of food with the opportunity to impact was donated to local pantries, such as Second Harvest the lives of people they may never Food Bank of Central Florida. meet.”

Other beneficiaries include Clean the World, United — Yulita Osuba, Way, A Gift for Teaching, Central Florida Children’s Deputy Director Home, Feeding Children Everywhere, The Pet Alliance of Greater Orlando, Ronald McDonald House, Boys and Girls Club, One Blood and Habitat for Humanity.

Since 2013, approximately $13.4 million has been donated to local charities.

19 Industry Outlook

The U.S. economy accelerated in 2018, rising from 2.2% growth in 2017 to 2.9% in 2018, representing nine consecutive years of growth. GDP expansion in the next few years will be driven by moderate growth in personal consumption expenditures and private investment spending; higher spending levels of both are helped by recent tax cuts. Personal and business spending growth will soften as the impact of tax cuts diminishes, and a widening trade gap will limit potential overall expansion. According to the Center for Exhibition Industry Research (CEIR) 2019 Index Report, real GDP growth will ebb to around 2.5% in 2019 before decelerating further to 2.0% in 2020 and 1.8% in 2021.

STATE OF THE INDUSTRY In 2018, the exhibition industry’s performance surpassed its last peak and is now forecasted to break new ground performance-wise through 2021. The Total Index, a measure of overall exhibition industry performance, increased by 1.9%, slightly lower than the 2.0% growth reported in 2017.

Exhibition developments in 2018 varied largely by industry. The leading sector was Government (GV), surging 7.8%. Food (FD) and Discretionary Consumer Goods and Services (CS) also reported strong showings, rising by 5.4% and 3.6%, respectively. On the other end of the spectrum, the sector most challenged was Financial, Legal and Real Estate (FN), for which the index declined by 2.6%. Consumer Goods and Retail Trade (CG) was the second most challenged sector, dropping 1.8%.

CEIR has indicated that moderate economic, job and personal disposable income growth should continue to drive exhibitions. With that being said, the decline in FN, CG and Education (ED) will impact the overall performance of the exhibition industry. CEIR anticipates the Total Index growth to slow to 1.4%, 0.5% lower than the 2018 rate and 1.0% behind real GDP growth. Exhibition performance is expected to slow further to 1.1% in 2020 and 0.8% in 2021 as the economy settles into a slower but more sustainable growth path.

Source: 2019 CEIR Index Report

20 Orange County Convention Center Management The OCCC’s Executive Management team consists of the Executive Director, a , a Chief Financial Officer, two Deputy Directors and an Assistant Director. This team is responsible for the management of day-to-day operations at the OCCC, adminstered through the following divisions:

Sales, Marketing & Event Management | Event Utilities and Setup Facility Operations | Business | Security | Strategic Planning | Capital Planning

David Ingram Yulita Osuba Terry Devitt Acting Executive Director Deputy Director Acting Deputy Director

Ray Walls Rodney Gutierrez Michelle Neely Carla Bell Johnson Chief Financial Officer Director of Sales Acting Event Services Manager Acting Assistant Director

21 THANK YOU for your business and continued support. The Orange County Convention Center Leadership Team

22 P.O. Box 691509 Orlando, Florida 32869-1509 (407) 685-9800 occc.net