- 0 -

Panama City Beach CVB

2017 Travel Market Preliminary Report

Prepared for:• Panama City Beach Convention & Visitors Bureau

Study Conducted: December, 2016 – January, 2018Preliminary Presentation of Research & FindingsJanuary 9, 2018

Presented by:

Berkeley Young, PresidentYoung Strategies, Inc. Larry D. Gustke, PhD

- 1 -

PCB is an extremely large, diverse destination

Year-end economic impact data is typically reported 9 -16 months after

year-end close of books

Fact – Tourist Development Tax Revenue

Fact – STR hotel data

Fact – VisaVue data from domestic travel expenditures in PCB

Fact – Destimetrics/Inntopia & AirDNA data for Rentals market

Survey – Young Strategies online surveys with visitors to PCB

Survey – Young Strategies intercept interviews with visitors to PCB

Trends and Data – Summary & Overview

- 2 -

PANAMA CITY BEACH

Tourist Development Tax 4-Year Trend

- 3 -

PCB Tourist Development 4-YR Tax Trend

$495,113

$728,369

$1,421,784 $1,625,318

$2,148,364

$3,855,439

$4,947,031

$1,900,446

$1,620,578

$1,289,221

$591,967

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

2014 2015 2016 2017

Source: Bay County Tax Collection

- 4 -

PANAMA CITY BEACH

HOTEL/MOTEL STR DATA

- 5 -

PCB HOTEL Properties Reporting to STR Beachbreak By The Sea Upper Midscale Class 97

Beachcomber By The Sea Upscale Class 96

Comfort Suites Panama City Beach Upper Midscale Class 74

Country Inn & Suites Panama City Beach Upper Midscale Class 82

Days Inn Panama City Beach Ocean Front Economy Class 188

Fairfield Inn & Suites Panama City Beach Upper Midscale Class 109

Hampton Inn & Suites Panama City Beach Beachfront Upper Midscale Class 182

Hampton Inn & Suites Panama City Beach Pier Park Area Upper Midscale Class 95

Hampton Inn Panama City Beach Upper Midscale Class 89

Hawthorn Suites by Wyndham Panama City Beach Midscale Class 78

Holiday Inn Express & Suites Panama City Beach Beachfront Upper Midscale Class 147

Holiday Inn Resort Panama City Beach Upper Midscale Class 340

La Quinta Inns & Suites Panama City Beach Midscale Class 86

La Quinta Inns & Suites Panama City Beach Pier Park Area Midscale Class 90

Legacy By The Sea Upscale Class 139

Sheraton Bay Point Resort Upper Midscale Class 319

Sleep Inn & Suites Panama City Beach Midscale Class 90

The Beachside Resort Upscale Class 147

6,337 Hotel/Motel Rooms in PCB STR Total Rooms Reporting (38% compared to 28% in 2016) 2,448

Lodging Analysis

Observations:• The Hampton Inn and Suites Beachfront opened in June 2017 adding 182 new rooms.

This was the first beachfront hotel development in PCB since the 1970’s.• Holiday Inn Express & Suites opened in May, 2017 adding 147 rooms.• Fairfield Inn & Suites opened in July, 2016 adding 102 rooms.

- 6 -

PCB HOTEL SUPPLY 3-YR TREND

Lodging Analysis

50,000

55,000

60,000

65,000

70,000

75,000

80,000

PCB SUPPLY 3-YR TREND

2015 2016 2017

July 2016 -Fairfield Inn & Suites opened

May 2017 -Holiday Inn & Suites Beachfront opened

June 2017 -Hampton Inn & Suites Beachfront opened

- 7 -

PCB HOTEL DEMAND 3-YR TREND

Lodging Analysis

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

PCB DEMAND 3-YR TREND

2015 2016 2017

- 8 -

PCB HOTEL 2017 SUPPLY VS DEMAND

Lodging Analysis

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000Supply'17 Demand'17

- 9 -

PCB HOTEL ADR 3-YR TREND

Lodging Analysis

$50.00

$100.00

$150.00

$200.00

$250.00

2015 2016 2017

- 10 -

PCB HOTEL REVPAR 3-YR TREND

Lodging Analysis

$-

$50.00

$100.00

$150.00

$200.00

$250.002015 2016 2017

- 11 -

PCB HOTEL 2017 ADR vs REVPAR

Lodging Analysis

$-

$50.00

$100.00

$150.00

$200.00

$250.00ADR RevPAR

- 12 -

Lodging Analysis

PCB HOTEL Annual Occupancy 4-YR Monthly Occupancy Trend

Source: STR Multi-Segment Report – PCB STR-Participating Properties

38.0

60.4

70.5 73.1 73.0

83.3

91.7

71.0 72.1

66.6

53.7

30

40

50

60

70

80

90

100

(%)

2014 2015 2016 2017

- 13 -

Lodging Analysis

PCB Hotel Annual Occupancy 6-YR Trend - PCB vs. National

Source: STR 6-YR Trend – PCB STR-Participating Properties

57.5%

59.9%

61.4%62.3%

64.4%

65.6% 65.5%

53.5%

56.5%

57.8%

60.8%

64.4%

67.3%

52%

54%

56%

58%

60%

62%

64%

66%

68%

2010 2011 2012 2013 2014 2015 2016

National PCB

- 14 -

Lodging Analysis

PCB Lodging Room Revenue STR Trend 2014 – 2017

Source: STR Multi-Segment Report – PCB STR-Participating Properties

1,887,496

3,200,737

6,433,779

6,489,666

7,979,391

12,408,395

16,546,859

8,125,379

6,979,352

6,074,356

3,866,902

0.00

3,000,000.00

6,000,000.00

9,000,000.00

12,000,000.00

15,000,000.00

18,000,000.00

2014 2015 2016 2017

Overall +32.9% revenue growth

- 15 -

Lodging Analysis

2017 January – November YTD Comparative STR Data – USA & PCB

Source: STR Multi-segment Report – PCB STR-Participating Properties

USA PCB

OCC 67.1%(+0.8%)

68.5%(+14.0%)

ADR $127.07(+2.1%)

$150.93(+4.0%)

REVPAR $85.22(+2.9%)

$103.36(+18.6%)

SUPPLY (change) 1.8% 12.1%

DEMAND (change) 2.6% 27.8%

REVENUE (change) 4.8% 32.9%

- 16 -

2017 Visitor Profile

PCB 2017 VISITOR

SURVEY RESPONSE

- 17 -

Season 2014 2015 2016 2017

Winter (Dec – Feb) 195 175 309 260

Spring (Mar – May) 441 407 475 410

Summer (Jun - Aug) 1,236 991 869 773

Fall (Sep – Nov) 449 449 378 549

Total Responses 2,321 1,917 2,031 1,992

ONLINE VISITOR SURVEY RESPONDENTS (THROUGH JAN, 4, 2018)

Young Surveys - 2017 Visitor Profile

Source: YSI online surveys with visitors to PCB

- 18 -

2017 Visitor Profile

2014 Visitor Survey Respondents Map

Source: YSI online surveys with visitors to PCB

- 19 -

2017 Visitor Profile

2015 Visitor Survey Respondents Map

Source: YSI online surveys with visitors to PCB

- 20 -

2017 Visitor Profile

2016 Visitor Survey Respondents Map

Source: YSI online surveys with visitors to PCB

- 21 -

2017 Visitor Profile

2017 Visitor Survey Respondents Maps

Fall

Winter Spring

Summer

Source: YSI online surveys with visitors to PCB

- 22 -

2017 Visitor Profile

PCB VISITOR

TRAVEL PATTERNS

- 23 -

2017 Visitor Profile

PCB Average Length of Stay 2013 - 2017

0 10 20 30 40 50 60 70 80

Winter (14+)

Winter (-13)

Spring

Summer

Fall

59.4

6.2

5.5

5.8

5.4

2017 2016 2015 2014

Source: YSI online surveys with visitors to PCB

- 24 -

2017 Visitor Profile

PCB Average Party Size

0 1 2 3 4 5

Winter (14+)

Winter (-13)

Spring

Summer

Fall

2

3.2

3.6

4.4

3.1

2017 2016 2015 2014

Source: YSI online surveys with visitors to PCB

- 25 -

2017 Visitor Profile

PCB VISITOR

SPENDING DATA

- 26 -

2017 Visitor Profile

PCB Total Spending per Party 2014 – 2017

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Winter short Winter long Spring Summer Fall

$1,462

$5,008

$1,977

$2,628

$1,773

2014 2015 2016 2017

- 27 -

2017 Visitor Economic Impact

Preliminary Observations of 2017 Data

Study period of December, 2016 – November, 2017

• PCB 2016/17TDT was up 13.5% to $20.97M

• PCB 2017/18 TDT is up 2.5% YTD (Oct &Nov)

• Total travel parties/visitors increased 8% - 10%

• Total Overnight visitor spending increased 8% - 10%

• Lodging/Rental ADR increased 4 – 7%

• Lodging/rental occupancy 4 – 8%

• March, May, September, August experienced the highest growth %

• Full Visitor profile and spending with total Impact from the IMPLAN model will be reported in March

- 28 -

Berkeley Young

Young Strategies, Inc

byoung@youngstrategies.com

(704) 677-4018

(704) 770-3333

www.facebook/berkeleyyoung

www.linkedin.com/berkeleyyoung

Contact Information

- 29 -

Young Strategies Research Team Experience

Destination research and strategic planning

Development and management of conference centers

Research for 150+ destinations in 32 states

Communities, regions and states

Travel industry focused

National research data and trends analysis

Writing and speaking

Board workshops & planning sessions

Listening to travelers