Chamber Chowder© 510 Greene Street ~ 1st Floor, Key West www.keywestchamber.org NORCROSS PROVIDES SAGE Message from HURRICANE ADVICE President Greg Sullivan by Scott Atwell per hour tropical storm three days before it obliterated the middle Keys f someone has a crystal ball, now is the time and Flagler’s railroad. Even Hurricane to share with everyone what the future has in Andrew in 1994 was blowing at only I store for not only Key West but the world. In 50 miles per hour three days before our little corner, the three cruise ship referendums it hit South and was not on the November ballot will be one of the most showing circulation four days out. important votes to ensure the economic survival “This is the most important for most of our Chamber members. Our plan is to hurricane planning fact,” Norcross be more thoughtful and accurate while gathering emphasized, “that we’re not always information and then sharing it with our members, going to have the 4-5 days of the press, and the public. The Directors of the Board met with Arlo knowing how strong a storm is going Haskell at our July meeting to hear the Safer, Cleaner to be. So we have to have plans that Cruise Ship group’s presentation and ask questions. Bryan Norcross spoke to the membership allow for fast developing storms. By the way, the group is led by five people, which he of the Key West Chamber of commerce via A regular plan, and a sped-up noted frequently. The following day Arlo provided Zoom for their July Virtual Meeting. plan.” He concedes these dramatic quotes to The Key West Citizen with his take on n the 1980s and 1990s Bryan increases do not happen often, but the details of our meeting highlighting we were Norcross spent so much time when they do it is in the vicinity of joining his group on one of the referendums (the in Key West the television the Keys because of the warm water easy one—we all want the most environmentally meteorologist says he was practically surrounding the island chain. friendly vessels) and that his group will work on getting the Chamber on board to back the other Ia resident. After he famously talked two referendums. South Florida through Hurricane With that said, I would like to share the FACTS Andrew and his career went for everyone to make their own informed decision on international, Norcross returned as each of the three referendums. Chamber leadership Grand Marshal of the Fantasy Fest has concerns over the first two referendums that Parade. The weatherman’s fondness limit disembarkations and passenger loads. We have for the island was evident during researched port calls with two industry sources and his appearance at the Chamber’s Bryan Norcross covering weather early in have the following facts to share of what the future July General Membership Meeting his career. would look like. continued on page 3 4 via Zoom, as if he were providing sage advice normally reserved for Norcross acknowledges above Table of Contents family members. normal predictions for the current hurricane season and public concern Layoff Aversion Funds Still Available ...... 2 Norcross plainly underscored Be A Star! ...... 2. . his most important lesson: Of the about early activity that has already produced seven named storms. “It Members to Elect (4) Directors ...... 4-5 . four Category 5 hurricanes that Business Trends ...... 6-7 have hit the U.S in recorded history, has nothing to do with what’s going to happen in August, September or Impact of Cruise Ships ...... 8 . . all four were mere tropical storms Business After Hours ...... 9 just three days prior to making October. They’re just kind of freak events that goof with estimates and tend Welcome New Members! ...... 10 landfall. Norcross said the Labor Day Committee Reports ...... 10. . hurricane of 1935 was only a 40 mile to push up prediction numbers, which continued on page 3 4 Chamber Calendar of Events ...... 11

Page 1 Chamber Chowder August 2020 Vol. 23, No. 6 Layoff Aversion Funds Still Available. Apply today. BE A STAR!

e are seeking contributions to the Greater Key West Chamber of Commerce Teacher Recognition program, where you can be awarded a star in our Tom Sawyer Five Star Program for Wthe school year 2020/2021 By recognizing teachers who are performing highly, it encourages other teachers in our community to provide superior education to our students, which paves the way for How can it help you? the future of our economy. If you purchased remote equipment or software that allowed Your donation of 22 gifts with a value of $25.00 each (a employees to work from home (e.g. computers, printers, total of $550) or a donation of $550, allows this program to telephones, headsets, video conferencing software etc. flourish and demonstrates your support of our teachers that we honor throughout the school year. Paying for services or tools for restaurant or retail establishments to convert to online sales or delivery during shelter in Place orders. Please contact any of our members below from the Education Committee to discuss the details or contact Purchasing cleaning/sanitation supplies and/or services that will Dorothy at the chamber offices at 305-294-2587/ allow an essential small business to maintain an on-site workforce [email protected]. by reducing exposure to COVID-19. Thanks, so much for being a STAR! Other creative approaches and strategies to reduce or eliminate the need for layoffs. COMMITTEE MEMBERS Chair: Brittany Snyder Chuck Licis You could receive up to $10,000 Florida Keys Take Stock in Children Community College Yvette Talbot 3-10 full time employees up to $5,000 Vice-Chair: Angie Walterson Appraisers of the Keys 11—25 full time employees up to $7,500 First State Bank Don Whitehead 26—50 full time employees up to $10,000 of the Florida Keys Wicker Guesthouse **Please note this grant does not cover wages or bonuses. Jennifer Barrios Kay Miller Monroe County Honorary Member For more information on the above-mentioned program School District Andrew Morawski please contact Dorothy Schmida at 305-294-2587 or at Julie Cuneo Hemingway Home [email protected] Volunteer & Museum

The Chamber Chowder Heartily Thanks These Businesses for Their Generous Support of this Issue of the Newsletter Ernest Hemingway La Concha Horan Law House Museum Crowne Plaza 608 Whitehead St 907 Whitehead St 430 Duval St Key West, FL 33040 Key West, FL 33040 Key West, FL 33040 305-294-4585 305-294-1136 305-296-2991 Porter Allen Old Town Key West Insurance Company Development 513 Southard St 201 Front St, Suite 301 Key West, FL 33040 Key West, FL 33040 305-294-2542 305-294-3225

Page 2 Chamber Chowder August 2020 Vol. 23, No. 6 “Scott Atwell” cont. from page 1 4 President’s Message cont. from page 1 4 are now getting into the 20’s.” However, These numbers are based on pre-Covid Norcross points out the Atlantic Ocean is business levels, which is where the crystal ball warmer than average this year and over a comes in handy as even the cruise industry does wider area, in the heart of where stronger not have a firm start date. Under the referenda’s size mandates, the 2021 schedule would be hurricanes form. limited to only 27 port calls for the entire year. Some other pearls of weather wisdom Of those 27 calls, two of the ships are new, 11 included: are over 20 years old and six are over 30 years  “If you lived through Hurricane Irma old. The newest ship on the planet from Virgin don’t think you’re invincible. Irma was with a passenger count of 2700 would not be barely a Category 4 when it hit the allowed to dock in Key West, as well as the Lower Keys and is not a good example “safer and cleaner” Disney Ships. of Cat 4 storm. Category doesn’t have We did further research and learned that much of the cruise industry is projecting to everything to do with how severe a put mid-sized vessels of 2200-2500 passengers storm will be. Remember that Betsy in their fleets by year 2023 and 2024. in 1965 was a Cat 3 and she broke the Bryan Norcross coverage of . Unfortunately, this is still more passengers Overseas Highway in three places.” and crew than the first or second referendum  “If you see a forecast that predicts that much more, worse. Moving will allow. interaction with land prior to getting The biggest FACT that can truthfully be forward, consensus of projections and to the Keys, be concerned about disputed is the group’s calculation that only simulations in a warmer world is that the accuracy of the predicted track. 8% ($90 Million) of the total tourism dollars hurricanes will be stronger because the Land mass will make a hurricane come from cruise ship passengers. The group oceans on average will be warmer. But failed to first recognize that over $600 million more likely to deviate track and alter because the jet stream will also change of the $1.1 billion comes from overnight visitors intensity. Irma would have been and be more vigorous, the thinking is staying in hotels, motels, guest houses, marinas a much different storm had it not there may be fewer storms. Fewer but and vacation rentals, which goes directly to interacted with Cuba.” lodging industry properties. If that number stronger is the general consensus, but  “Don’t try and out-forecast the was truthfully deducted from the one billion National Hurricane Center. Go with that’s not detectable yet.” spent, it would increase the impact of cruise ship the NHC forecast and understand Finally, Norcross closed with some passengers spending to 24% (same $90 million) the uncertainty that’s built into that.” relatively good news. Of the 66 hurricanes of the adjusted visitor spending.  “Forecast intensity is not improving interacting with the Keys since record- So where are we going with this? Now is not the time to rule out anything. We have lost small dramatically. If the forecast is for a keeping began, most all of them spared Key West a direct hit. Sure there have businesses all over town, and the city and county Category 1, plan for a Category” 2. are struggling with a budget deficit this year and been impacts, notably the 1919 storm  “Most people who visit the National will be faced with some tough decisions going Hurricane Center website look at the and later Hurricanes George and Wilma. forward. Now is the time to act in true Key West cone and then go away. While storms But you have to go all the way back to fashion as I have witnessed post-Hurricanes, stay inside those lines 60-70% of the 1846 Havana Hurricane to find a where everyone came together. We are not the time, the cone has limitations. direct hit. That one resulted in the deaths telling anyone how to feel or vote but we do Because improved accuracy has of all 16 people at Sand Key Light and want you to have accurate information, making good decisions that will shape our future. Don’t shrunk the size of the cone, it doesn’t 14 at the Key West Lighthouse, including seven children of lightkeeper Barbara sit on the sidelines, stay informed. Be part of the have a lot to do with telling us where future. the bad weather is going to be. Mabrity, who managed to survive a five Just a reminder, your e-ballot will be sent Warnings go well outside the cone foot storm surge. to the contact individual we have on file August and we should all look more broadly.” That hurricane, like most in October, 1st. We have 18 members running for the board,  “We cannot yet measure how global came from the south. look for your ballot be part of the future. warming impacts the severity of “The odds of any relatively small As your president I am always available hurricanes. Sea level is higher as a island getting the bad part of the storm,” to answer any of your questions or hear result so therefore storm surge is Norcross said, “are relatively small.” your concerns. Page 3 Chamber Chowder August 2020 Vol. 23, No. 6 CAST YOUR VOTE IN CHAMBER BOARD ELECTION - MEMBERS TO ELECT FOUR (4) DIRECTORS ighteen community- and business-minded his career he held numerous senior legal and Cinema, Tennessee Williams Founders Society people are running for four open seats on executive positions including Chief Legal and Lieutenant of the Mystick Krewe Key West. E the 2020 Greater Key West Chamber of Officer and Chairman of Capital’s Federal  Cara Higgins of Cara Higgins Law is dedicated Commerce board. Some candidates are up for re- Bank. After retiring, Mike and his wife Jessica a to protecting her clients, their businesses, and our election to the board, while others are hoping to board certificated family physician who grew up business community. In 2007 Cara was elected serve their first three-year term, which will begin in Key West relocated to the Southernmost City to the Chamber’s Board of Directors, President on January 1, 2021. to be closer to family and opened their business in 20011 and an Executive Committee Member All candidates have expressed a commitment Key West Fine Wines and joined the Key west in 2009, 2010, and 2015-2020. In 2017 she to the business community and a willingness to Chamber of Commerce. was awarded the William “Billy” Appelrouth act as its eyes and ears. The Key West Chamber  Theresa Faber is the Commercial Loan Officer Award by the Chamber for her extensive service of Commerce depends on them to help the Vice President of Centennial Bank and moved to the Chamber and the Community. In 2018 organization serve local businesses in the island’s to the Keys in 2010 from a small town near she was awarded the Athena Award for business ever-changing economic environment. Philadelphia, PA. Theresa states her favorite success, community service and encouragement The chamber board consists of 12 elected past employment was with a small non-profit of other woman. Cara us on the Board directors and 9 others who are appointed by the that supported older adults and care givers with of Directors of the Florida Keys Aqueduct Nominating Committee for a total of 21 members. various programs and services. Theresa joined Authority (FKAA) and the Military Affairs Electronic voting for all eligible members will begin Centennial Bank in 2012 and quickly got Committee (MAC). Prior service includes the on August 1st and will end at 5:00p.m. August 18, involved by attending the Chambers monthly Florida Board of Governors, Young Lawyers 2020. On August 1st all primary contacts (main General Membership meetings, attending Division, President for the Monroe County Bar contacts) will receive and electronic ballot via email Business After Hours and other events Association, the Lower Keys Hospital District, from Simply Voting ([email protected].) throughout the year. As a lender she recognized President and various board position for area All members will be asked to vote for four of the burdensome insurance premiums and in schools, Board of Directors Big Brothers Big the following 18 candidates, introduced below in 2014 was invited to apply for the Board of Fair Sisters, mentor for Take Stock in Children, and alphabetical order: Insurance Rates of Monroe (FIRM) and served a Five Star participant.  Annie Briening is the Senior Marketing as their Secretary from 2016-2020. She also  Darren M. Horan was born in Key West Strategist at Two Oceans Digital managing the serves on the Key West Chamber of Commerce on Friday, July 13, 1979 and is a sixth (6) digital presence of her clients to identify and Economic Affairs Committee. generation “Conch”. He is a partner in Horan customize solutions suited for each business.  Darla Frye-Guevremont is the CEO of the Law, LLLP and co-owner (along with Bill Before joining the Keys’ digital marketing Key West Association of Realtors and has over Lay) of La Trattoria, Virgillio’s, Catered Affairs agency in 2016, Annie’s previous 9 years were 20 years of nonprofit and for-profit experience. of Key West and Benihana Key West. He with First State Bank’s marketing department. Early in her career Darla joined the disaster presently serves on the Board of Directors for Having the opportunity to work with the assistance team with the Federal Emergency the Key West Chamber of Commerce and is Chamber through co-hosting Business After Management Agency (FEMA) where she active on the Chamber Golf Committee, as well Hours and Luncheons for nearly a decade. counseled and facilitated federal aid to disaster as the co-chair of the newly formed Restaurant Originally from Philadelphia with a BA from victims. She later began her sales and marketing and Bar Committee. He is the immediate East Stroudsburg University, former Take Stock focus in the insurance industry where she past president of the Key West Military Affairs in Children mentor, served on the American maintained and generated both commercial and Committee (MAC) and the Vice-President of Cancer Society’s Relay for Life Committee, individual accounts. Darla also owned a catering the Southernmost Seminoles Club. Darren and a current Key West Attractions Association and DJ businesses, a marketing firm and for 15 states it would be his honor to continue to serve Board Member. years owned and operated Executive Protections on the Board of Directors.  Travis Doll is the Executive Director of the Systems an award winning all hazards emergency  Melissa Kendrick has been with the Mel Fisher A&B Marina Complex which encompasses the preparedness firm. Darla received her Bachelor Maritime Museum since 1991, where she is the historic A&B Lobster House, Alonzo’s Oyster of Arts in Communications and Psychology President/CEO leading the only Accredited Bar, A&B Marina, and the soon to be new from Shepherd College. museum in the area. A prolific grant writer, White Tarpon going into the old Boathouse.  George L. Fernandez is the Chief Operating Melissa has brought more than $9 million in Travis also serves as the property manager and Officer for the Key West Butterfly & Nature funding to the museum. Melissa has bettered landlord for their various tenants. Collectively, Conservatory. In 1992, along with business the community through service on the Chamber Travis and the businesses have been a member partner, Sam Trophia, opened Wings of Board since 1993, serving 3 years in VP since 2012. Travis currently serves on the newly Imagination at the 1108 Duval St., the Butterfly roles, and in both 2001and 2006 as Chamber formed Restaurant and Bar Committee of Boutique in 1995, and The Key West Butterfly President. She currently chairs the Chamber’s the Chamber and is an active member of the & Nature Conservatory in 2003. George joined tourism committee and serves on the finance, Key West Business Guild. His redevelopment the Chamber in 1992 and has served on the image/marketing, and nominating committees. of Alonzo’s Oyster Bar won the restaurant Tourism Committee. He has actively served She was elected to three-terms as President of the Key West Chamber of Commerce Business his community as Vice President of the San Key West Attractions Association. Melissa has For Beauty award in 2019. Travis states his Carlos Institute, Vice President of Key West Art served on the Tourist Development Council’s experiences operating bars, restaurants, and & Historical Society, Secretary of the Trophia DAC I board for 9 years, three of those as hospitality in Key West has given him a unique Foundation, and presently as Vice Chairman its Chairman. Melissa served three terms as perspective of local business, commerce, and of the Monroe County Tourist Development the Chairman of the Florida Association of the community. Council. He has been honored by the Chamber Museums and is the long-time chairperson  Michael J. Downer and his wife Jessica are the with the Venture Award and a Piece of the Rock of Historic Florida Keys Preservation Board. owners of Key West Fine Wines located at 700 and received community awards such as the Melissa’s serves as the museum professional Eaton Street. In June of 2018 Mike retired from Lodging Association Margo Golan Community on the Harry S Truman Little White House Capital Group/American Funds, a large global Service award and the American Red Cross Foundation board. Melissa is a tireless worker investment management firm headquartered Humanitarian of the Year to name a few. He for the community and has served on many in Los Angeles with nearly forty years. During is also a founding board member of the Tropic committees including the City of Key West’s continued next page 4 Page 4 Chamber Chowder August 2020 Vol. 23, No. 6 “Members to Elect 4 Directors” can remain current in an ever changing and not just bricks and mortar; it is the people who challenging community.” As a realtor Moore make a property hum, who create a pleasant, infamous Tour Bus Committee and in 2004 has been involved in the real estate community memorable stay for every guest.” For the last served as the District 1 (Old Town) member for the past thirteen years. Moore works with four years Andrew has been part of the Key of the City’s Resident/Visitor Committee. Her the Klaus Murphy Foundation as a trustee for West community and he regularly attends the work has been recognized as Melissa is a two- the past twelve years, and has worked with over monthly meetings and after hours and is also a time winner of the Chamber’s Piece of the Rock fifteen local non-profits organizations including member of the Key West Rotary Club. Award; has been awarded the Applerouth Award the SOS Foundation, Samuel House, Wesley  Karen M. Sharp has been a fulltime resident of for her service to the Chamber; was awarded House, MARC House, American Red Cross, Monroe County since 1981. Employed by First in January 2005 the internationally coveted AIDS Help, Children’s Shelter, Lighthouse State Bank of the Florida Keys since 1988, she Athena Award and in 2018 inducted into the Academy, Boys and Girls Club, Sister Season serves as President & CEO providing leadership KW Chamber Hall of Fame. Before coming to Fund, and many more. to the community-driven commitment of its Key West, Melissa owned her own retail business  Andrew Morawski has been involved with the Board and employees. The bank has been a and was a banking officer at Citibank in NYC Key west Chamber of Commerce for one year. member of the Chamber since 1982. Karen where her career spanned 14 years. Melissa has His family has deep roots in the community joined the Key West Chamber of Commerce lived in Old Town Key West since 1991. from the 1930’s, with Bernice Dixon and the Board in July, 2016 and has previously been a  Camden Kitchen is the Office Manager with Beachcomber Jewelry Store on Duval Street to member of the Budget Committee. As such, Broadwave in Key West. Camden came from the Hemingway Home and Museum that his she is a strong supporter of local businesses and a strong business accounting background with family currently operates. Recently Andrew nonprofits. She is a Certified Public Accountant, a lobe for science. She honed her professional got involved with the Education Committee, has served on the Community Foundation skills in Michigan before deciding it was possible Workforce Housing, and Economic Affairs to of the Florida Keys’ Board, Executive and to pursue a career in paradise, here in Key West. better understand the needs of current Key West Finance Committees, and the Florida Bankers Camden’s list of skills and interests include residents, the future of Key West, and the guests Association’s Board of Directors. She is a accounting, leadership, business, organization, of Key west. Andrew feels his work experience graduate of Leadership Monroe County Class project management, human resources, and within different industries in Key West such XII. She was the Event Lead for the American customer service skills. When she is not as restaurants, downtown bars, and attractions Cancer’s Society’s Relay For Life in 2015 and planning for what is next, she is enjoying time gives him a diverse view on how the island 2016, previously served on their Board and with her cats or being in the ocean with the operates on a business level and what the guests has been a volunteer for over 35 years. She is sharks and parrot fish. of the island are looking for and need. also a member of the Bank CEO Network  Yvette Mira-Talbott is the co-owner of  Mark Rossi has been active in the business and has been recognized by the FBA with Appraisers of the Keys and AOK Realty. As community since 1984 when he opened the their Chairman’s Award as well as the Florida a former executive for a larger corporation Rick’s/Durty Harry’s Entertainment Complex Diversity Council’s Glass Ceiling Award. and local business owner for 29 years Yvette on Duval Street. Mark has been a member of  John Toppino has had the pleasure of serving on has learned many valuable skills that would be the Chamber since 1995 and has served on our the Board of Directors of the Key West Chamber beneficial to the Chamber including working Board since 2009. He previously served on the of Commerce since 2016. He currently serves well with others, cultivating relationships, City Commission as a Commissioner for the on the Executive Committee and has been past communication skills, problem solving and District 2 seat and was their representative for Treasurer twice. John is a member of the “Tiger the importance of fiscal responsibility. She is the cruise ship and Fantasy Fest industry. He in the Woods” Golf committee, and has served currently involved with the American Cancer also serves on the Military Affairs Committee, on the Election Committee, Workforce Housing Society, 1993-present, a Chamber member since and is involved with the Key West Rotary Club, Committee, and the Charley P. and Orsolina 1991 and currently serves on the Education Navy League, Sons of Italy, Elks Club and the Toppino Scholarship selection Committee. He Committee, 2017-present a member of the Historic Military Memorial Committee. is currently the Treasurer and Office Manager of Rotary Club of Key West, A member of the  Andrew Rosuck, Complex Director of Sales Charley Toppino & Sons and Monroe Concrete FSU Alumni Association since 1985, a member & Marketing for Casa Marina and The Reach Products, a multi-generational local family of the Southernmost Seminole Club since 1991, resorts has devoted his career to hospitality owned construction family. a Wesley House Board Member 1999 to present, sales & marketing with a solid background in  James Wilson and his wife Maria have called a founding board member with the Key West the Florida, Caribbean, and Hawaii markets. Key West home since 1993. They have raised Symphony and a former mentor with Take He began his career as Director of Sales at two Conch sons and owned a real estate Stock In Children. Hyatt Hotels and was on the opening team appraisal business (Appraisal Co. of Key West)  Suzanne Moore is a top producing realtor for prominent resorts in Hawaii and then through a number of economic cycles, numerous in Key West and in 2019 moved to Keller moved into the Caribbean division during hurricanes, and now COVID. Jim has had the Williams where she established her own team a 12-year period. Andrew also was on the pleasure of being the Past President of: Key West the “Suzanne Moore Group.” Suzanne is a opening team for the Royal Towers expansion Gator Club, Sunset Key West Rotary Club, and current board member reappointed after a as Vice President of Sales and Marketing for the the Key West Chamber of Commerce in 2012. brief break to care for her husband who she is Atlantis, Paradise Island in the Bahamas. In Jim was a member of Class VII Leadership happy to report is in recovery and doing well. addition, he held senior positions with Seminole Monroe, plus served on the Chamber Board of Suzanne as served the chamber board for over Hard Rock Hotels & Casino, GEP Destination Directors for a decade from 2008-2018. Jim five years, and was President in 2018, and ci Management, and Pyramid Hotel Group before currently serves on the Economic Affairs and Co-Chair of the Education Committee in 2017 joining Casa Marina and The Reach as Director Workforce Housing Committee. Jim believes & 2018. Moore says, “I have gained valuable of Sales and Marketing in July 2016. Andrew he can be an asset to the Board and membership insight as to the great benefits that the Chamber brings a passion for the hospitality industry by in these challenging times. brings to the community and members and I enhancing the guest experience in everything If you did not receive your ballot or have any would like to continue working with our local he does and, as a leader, teaches his team to do questions please contact Kerry Baker at membership@ business owners and professionals so that we the same. In his own words, “A great resort is keywestchamber.org or 305-294-2587. Page 5 Chamber Chowder August 2020 Vol. 23, No. 6 Passenger arrivals to the Key West International Airport in Key West International Airport Arrivals June totaled 15,342, representing a decrease of 58.1% January 2015 - June 2020 when compared to 36,619 deplanements from June 60,000 of 2019. The total number of arrivals in June represents a Airport closed 9/8-19/2017 for Hurricane Irma large increase over the 2,400 passengers in May. Airport closed 9/8-19/2017 for Hurricane Irma 50,000 Thus far in 2020, the 161,905 deplanements are 38.7% less than the 264,153 passengers who arrived in Key West for the year 2019. There were just 320 landings in Key 40,000 West in June of this year compared to the 611 landings in June of 2019. Traffic into Key West International Airport was down 47.6% for the month and 24.5% for the year to 30,000 date.

Key West Airport currently offers nonstop flights to Atlanta Deplanements 20,000 by Delta. Flights to , Charlotte, Dallas, Chicago, Philadelphia, and Washington DC by American Airlines. 10,000 Silver Airways services Tampa, Orlando, and Fort Lauderdale daily and Southern Airways Express offers daily flights to and from West Palm Beach. - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec There is still a lot of uncertainty within the airline industry and the airlines themselves will add and cut flights to 2015 2016 2017 2018 2019 2020 locations based on demand. Source: Key West International Airport The State of Florida's unemployment rate dropped in June Florida Unemployment Rates to 10.7% from the multi-year high of 13.5% in May. June 2019 - June 2020 Locally, the Monroe County unemployment rate 16.0% was 17.7% in both April and May, while the Key West rate was listed at 22% for the same two months. The total 14.0% 13.5% 13.5% documented Key West labor force which is never reported at more than 17,000 workers reached 18,192 in May. The speculated reason for this increase is that contract 12.0% 10.7% workers and self-employed people who have non payroll incomes have applied for unemployment for the first time. 10.0% The National unemployment rate of 11.2% is the highest since February, 1983. 8.0% It's too early to tell what lasting impact the Covid-19 crisis 6.0% will have on the local employment landscape. In the latest 4.3% KWCC Business Environment Survey, 15% of Unemployment Rate respondents claimed they plan to cut employee levels in 4.0% 3.3% 3.4% 3.3% 3.0% 2.9% 3.0% 2.7% 2.5% 2.8% the third quarter of 2020 while 23.7% said they planned on hiring more employees in the third quarter. In the 2.0% same survey 55% of the respondents claimed they had already brought back more than 85% of their workforce. 0.0% When asked about former staff being available to come Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun back to work, 23.9% of respondents stated that less than Florida Labor Force Data - Not Seasonally Adjusted half of their workers were available while 57.7% of the respondents said at least 85% of their workers were Source: U.S. Department of Labor, Bureau of Labor Statistics available to return to work in the second quarter. The reported Bed Tax Collections for Key West in Key West Bed Tax Collections May, 2020 were $129,086 which was 92.7% lower than the same period in 2019. Bed Tax Collections increased in all January 2015 - May 2020 but three months of 2019. The Bed Tax Collections have $3,000,000 increased every year since 2009 with the lone exception of 2017. $2,500,000 Hurricane Irma 9/10/2017 The average daily rate (ADR) was reported at $408.44 for February of 2020, representing an 8.8% increase from the $2,000,000 ADR of $375.33 posted in February, 2019. Never before February 2020 had Key West seen a ADR above the $400 $1,500,000 mark. According to the Smith Travel Report the ADR for May was $186.62, a 30.6% decrease from the $268.85 ADR in May of 2019. $1,000,000 The occupancy rate for Key West hotels was just 14.7% in

Bed Tax CollectionsDollarsin Bed Tax May, representing a 86.5% decrease from May, 2019. In $500,000 June of 2020 the county checkpoint ceased operations and many hotels resumed limited operations. $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Through the first two months of 2020 Key West hotels were reporting all time highs in occupancy rates, average daily 2015 2016 2017 2018 2019 2020 rates, and revenue per available room. The closing of most hotel operations at the end of March and extending into June is going to represent the longest period of Source: Monroe County Tax Collector inactivity Key West has experienced in modern times.

Page 6 Chamber Chowder August 2020 Vol. 23, No. 6 Quarterly Economic Environment & Outlook The Key West Chamber of Commerce continuously monitors, compiles, and analyzes economic data; generating local economic data through surveys of its members.

www.KeyWestChamber.org Key West Business Environment Responses from KWCC BES conducted July 1 - July 27, 2020 Over 35 million people visited florida in the first quarter of 2019, and the early part of 2020 looked to be even better. Travel industry jobs increased by 56,800 in the first quarter of 2019. All of which seems like a distant memory by the time the second quarter began in 2020. The national unemployment rate of 11.2% in June was the highest it has been since February of 1983. In Key West the unemployment rate started the quarter as high as 22% before settling down to 12.4% in June. Many businesses in Key West had ceased operations for at least some part of the second quarter. There might be nothing more incompatible with tourism as the concept of social distancing.

Tourism was Booming Key West Business Outlook In 2019 there were 417 port of calls by cruise ships which Key West expectations are mixed as the community looks ahead brought 1,344,592 passengers and crew to Key West. The industry which contributes over $90 million per year to the 30% of local economy stopped sailing in March of 2019. Cruise ships Respondents claimed aren't expected to visit Key West before October. 29.2% of to be either respondents claimed "Confidently 47% of the respondents to be either indicated that they feel as Negative" or "Optimistic" or though "The Cruise ship "Pessimistic" about "Confidently industry is vital to the local the Key West Positive" about the economy. business outlook for Key West business the next 12 months. outlook for the next 12 months.

Compensation & Wages Labor Down 8% Up 36% The Key West labor force typically hovers between 15 and 16 reported reported thousand workers. The Department of Labor reported more than an a 18,000 in May when unemployment numbers were peaking. increase decrease The numbers within the workforce are shrinking even as people Second Quarter wages balance return to work. We know many people fled the Key West market, but how many is unknown at this point.

Only 15% of respondents claimed they plan to cutback on the number of employees they have on staff, and 23% stated they plan to hire more staff in the third quarter of 2020. More than 24% of respondents claimed that less than 50% of their staff is available to return to work while 45% said that more than 85% of their staff is available. The second quarter Business Environment Survey received 93 responses from member businesses. Many of the businesses were closed for a varying length of time during the quarter. A mere 4% of businesses reported an increase in revenue in April of 2020 when compared to 2019, but that number rose to 8% in May and 16% in June. Business Services was the only goup who had some respondents claim an increase in revenue all three months.

Full results of the Second Quarter Business Environment Survey can be found at keywestchamber.org

Sources: NABE, Outlook/Business Conditions survey; City of Key West; MC TDC; Bureau of Economic Analysis; Florida Chamber, Florida Small Business Index; Department of Labor, Bureau of Labor Statistics.

Page 7 Chamber Chowder August 2020 Vol. 23, No. 6 IMPACT OF CRUISE SHIPS KEY KEY WEST

PASSENGERS CREW FEES TAXES $63,601,996 $11,796,098 $15,577,089 $1,513,819

906,907 cruise passengers Cruise lines pay fees** to Of the estimated 151,918 crew members disembarked in Key West in dock in Key West. These $75,398,094 in spending by disembarked in Key West in 2019. Per-passenger fees remain in Key West, cruise passengers and 2019. Per-crew spending is spending is estimated at supporting private and crew, the county, city and estimated at $77.65.* $70.13* public jobs and school board receive this infrastructure. portion of sales tax.

$90,975,183 Economic impact of cruise ships on the community of Key West in a given year.

600 138 94 833 DIRECT INDIRECT INDUCED TOTAL JOBS JOBS JOBS JOBS These are your friends, One full-time job is directly One full-time job is indirectly One full-time, Key West job family and neighbors who created in Key West for created in Key West for is induced by every will lose their jobs if the every $125,654 spent by every $545,455 spent by $800,000 spent by visitors. cruise industry is banned visitors.+ visitors. from Key West.

*BREA, 2006, adjusted for inflation; **Self-reporting City of Key West Ports, Caribe Nautical and Harbor Pilots Association; +Rockport Analytics, 2019

Page 8 Chamber Chowder August 2020 Vol. 23, No. 6 business after hours | Tuesday, JuNE 30, 2020 Sponsored by: Four Marlins Oceanfront Dining - 1435 Simonton Street

Page 9 Chamber Chowder August 2020 Vol. 23, No. 6 Welcome New Members! ECONOMIC AFFAIRS COMMITTEE Chair, Joe Caso e are reviewing budgets of Amedisys various entities, most recently 11400 Overseas Highway Suite 111 W the Monroe County Sheriff. Marathon, FL 33050 Community Health of Total budget for the coming year is projected 786-329-4035 https://www.amedisys.com/ South Florida, Inc. to be $54,198,548, an increase of 4.6% Contact: Lauren Pazo, [email protected] 10300 SW 216st Street from the prior year. The budget includes $1 Amedisys is a hospice provider now serving the Florida Miami, FL 33190 Keys. They provide hospice services to patients that are 305-252-4820 million in salary increases for law enforcement reaching their end of life and their staff includes nurses, home health aide, a social worker and a chaplain. https://chisouthfl.org/ and corrections officers, but the Sheriff Since 1971, Community Health of South does not expect it to be approved by the Florida (CHI) has been a beacon of hope by BOCC. At the end of the budget year the providing access to high quality healthcare for all regardless of insurance status, income level or Sheriff routinely returns $1-$1.5 million to background. The non-profit federally qualified commission but given the cost of financing health center offers comprehensive healthcare services including primary care, pediatrics, OB/ the roadblock it is unlikely this year. Trauma GYN, dental, urgent care, behavioral health, Star continues to pay for itself and generate vision, radiology, pharmacy, transportation and more. CHI has 11 health centers and 35 a small profit. Members are welcome to Michelle Bachtel, M.D., F.A.C.C. school-based sites. In the Florida Keys, CHI has listen in on our upcoming budget reviews Keys Medical Group Cardiology a center in Marathon and one in Tavernier, with 1111 12th Street, Suite 210 plans in process to open a new center in Key (list below) by contacting Ed Dawicki at Key West, FL 33040 West in 2021. CHI is a recipient of the Florida [email protected]. The meetings 305-294-5727 Governor’s Sterling Award, accredited by the https://www.keysmedicalgroup.com/doctors- Joint Commission and designated as a Patient begin at 8:30 a.m. providers/bachtel-michelle-d-md-facc-7360 Centered Medical Home by the National Dr. Michelle Bachtel has joined the Lower Keys Medical Group where she treats cardiac conditions Committee for Quality Assurance. CHI is also BUDGET REVIEWS: including hypertension, lipid disorders, coronary designated as a Behavioral Health Medical artery disease, valvular heart disease, congestive heart Home. In addition, CHI is home to the Brodes failure, and arrhythmia. H. Hartley Jr., Teaching Health Center, training July 28 Mosquito Control the next generation of doctors in family medicine Aug. 4 Monroe County and psychiatry. CHI recently broke ground on Aug. 14 Keys Energy the first Children’s Crisis Center in southern Aug. 18 Aqueduct Miami-Dade County, which will service kids with severe behavioral health problems from Aug. 25 City of Key West Monroe and Miami-Dade Counties.

Marathon Health Center 2805 Overseas Hwy, Marathon, FL 33050 Restaurant and Bar Committee 305-743-4000 Michelle Cates Deal, PA Chair, Bill Lay 201 Front Street, Suite 333 Tavernier Health Center Key West, FL 33040 91200 Overseas Hwy, Tavernier, FL 33070 estaurant occupancy continues to 305-453-6270 305-743-0383 be at 50%. Catering earned a small www.michellecates.com victory when the City Commission Michelle Cates Deal is an Attorney based Key West Health Center: R out of Key West Florida. She graduated from Coming 2021 allowed the bride and groom to conduct their , and Stetson University ceremony without a mask. For businesses that College of Law. Her practice includes real estate law, business law, real estate transactions, city provide live music, entertainers will need to and county land use matters, and any litigation perform behind a plexiglass front that is also related thereto. Cates is dedicated to providing quality representation to both businesses and ten feet from patrons. Gatherings remain at individuals in the Florida Keys and Key West. the state recommended number of 50 people Regardless of how complicated your case might seem; we are here to guide and assist you outdoors, as long as patrons wear masks and through the legal process step by step. practice social distancing.

Page 10 Chamber Chowder August 2020 Vol. 23, No. 6 M ark Your Calendar! EXECUTIVE COMMITTEE August - October 2020 Greg Sullivan, President Waste Management/305-434-9140 General Membership Meeting – Virtual Meeting Melissa Kendrick, First Vice President Date: Wednesday, August 26, 2020 Mel Fisher Maritime Museum/305- 294-2633 Time: Noon – via Zoom Cara Higgins, Second Vice President Location: Zoom Cara Higgins Law /305-294-6030 Candidates Forum for Candidates for Florida House of Representatives District 120 and Joe Caso, Treasurer Candidates for Florida State Senate District 39 Caso & Company/305-453-6378 Diane Schmidt, Secretary General Membership Meeting – Virtual Meeting Margaritaville Key West Resort Date: Wednesday, September 23, 2020 & Marina/305-292-4350 Time: Noon – via Zoom Michael Morawski, Past President Location: Zoom Hemingway Home/305-294-1136 5 Candidates Forum for Candidates for Monroe County Board of County Commission David Clay, Appointee Lower Keys Medical Center/305-294-9200 General Membership Meeting – Virtual Meeting John Toppino, Appointee Date: Wednesday, October 28, 2020 Charley Toppino & Sons/305- 296-5606 Time: Noon – via Zoom Mark Rossi, Appointee Location: Zoom Candidates Forum for Candidates for Key West City Commission Rick’s/Durty Harry’s Entertainment Complex/305-296-5513 For more information contact the Key West Chamber of Commerce at 305-294-2587. Scott Atwell Executive Vice President Key West Chamber of Commerce 305-294-2587 CHAMBER STAFF Scott Atwell Executive Vice President Kerry Baker Associate Executive Vice President Edward Dawicki, III Director of Research Dorothy Schmida Administrative Assistant Gladys Clarks, Lily Williamson Tourist Information Receptionists Scott Atwell Newsletter Editor Cindy Jefferson Art Director Click to connect with the Chamber on Karrie Bond Facebook, Twitter, Social Media Director Pinterest, or Instagram

Page 11 Chamber Chowder August 2020 Vol. 23, No. 6