2005′s Numbers Robust, but 2006 Growth a Concern for South Florida

By Douglas Hanks III, The Miami Herald

Feb. 28–Hotel rates continued to rise in January, despite some signs of softness in South Florida’s vacation industry.

Travelers throughout the region paid between 8 and 14 percent more for rooms than they did last January. But occupancy levels stayed flat in Miami-Dade and dropped in the Florida Keys, leaving hoteliers to wonder if tourists still worry about last year’s hurricanes.

"I think there’s the perception that there could still be lingering damage," said Ronnie Harris, an owner of Key Largo’s Kona Kai hotel.

Broward and Miami-Dade officials embraced the monthly numbers from Smith Travel Research as signaling another strong year for the region’s No. 1 industry. Broward saw the average room rate increase 14 percent to $132, and occupancy notch up 4 points to 82 percent.

HURRICANES NO WORRY

"It tells us we have absolutely no need for any concerns that hurricanes will hurt our strong-season business," said Broward tourism chief Nicki Grossman.

Hurricanes remain the top tourism concern throughout Florida as the June-through-November storm season approaches.

Florida on Monday announced a record 86 million visitors for 2005, a 7.6 percent increase over 2004. But for 2006, state analysts predict growth of only 3.2 percent as storm jitters and high gas prices cut into Sunshine State vacations.

In Miami-Dade, the average room rate grew to $158, the third-highest in the country. But of the top 25 hotel markets, only six grew at a slower rate. And Miami-Dade’s 8 percent January increase marked a slowdown from 2005′s breakneck pace, which saw room rates grew between 11 and 16 percent in all but two months.

‘STABILIZATION’

"We’re seeing stabilization," said Scott Berman, a hospitality analyst with PricewaterhouseCoopers in Miami. He sees the 8 percent gain as a strong showing by the hotel industry.

"I would be quite pleased with that number," he said.

But January did not please all hoteliers.

Business from vacationers was "definitely down" in January for Tecton Hospitality’s Miami beach hotels, said company president Raul Leal. He blamed part of the slowdown on the rotating schedule for the national college football championship, which came to Miami’s Orange Bowl in 2005.

"Last year, for the first 10 days of January, the beach was sold out the entire time," he said.

POPULAR DESTINATION

David Whitaker, marketing chief for the Greater Miami Convention and Visitors Bureau, touted the fact that Miami-Dade could beat 2005′s rate without hosting the big game this year.

"This just shows the resiliency of the destination," he said.

Leal said bookings at Tecton are beating 2005′s pace through April, helped in part by a late Easter. The Christian holiday signals the unofficial start of spring for many vacationers.

"It’s fantastic," Laul said of Easter, which falls on April 16 this year. "It will extend the winter further."

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Copyright (c) 2006, The Miami Herald

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