Meeting Packet — Tourism, Infrastructure & Energy Subcommittee, The Florida House of Representatives (January 27, 2021)
Summary
Meeting Packet for the Florida House of Representatives Commerce Committee Tourism, Infrastructure & Energy Subcommittee, Wednesday, January 27, 2021, 4:00 PM to 5:00 PM, Sumner Hall (404 HOB), with Brad Drake as Chair. The agenda lists an overview of broadband internet service deployment in Florida and an overview of tourism impacts from COVID-19 and outlook. The packet includes a presentation from the Florida Legislature Office of Economic and Demographic Research, which reports 65,832,000 visitors in 2000 and 131,423,000 visitors in 2019 and says tourism category sales tax collections were down cumulatively by -31.5% over ten months. It also includes a Florida Office of Broadband section on workshops, a feasibility study and a Florida Strategic Plan for Broadband.
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“Meeting Packet — Tourism, Infrastructure & Energy Subcommittee, The Florida House of Representatives (January 27, 2021).”
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Tourism, Infrastructure & Energy
Subcommittee
Wednesday, January 27, 2021
4:00 PM – 5:00 PM
Sumner Hall (404 HOB)
Meeting Packet
Chris Sprowls Brad Drake
Speaker Chair
The Florida House of Representatives
Commerce Committee
Tourism, Infrastructure & Energy Subcommittee
Chris Sprowls Brad Drake
Speaker Chair
AGENDA
Wednesday, January 27, 2021
Sumner Hall (404 HOB)
4:00 PM – 5:00 PM
I. Call to Order & Roll Call
II. Welcoming Remarks
III. Overview of Broadband Internet Service Deployment in Florida
IV. Overview of Tourism Impacts from COVID-19 and Outlook
V. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4873 Fax: (850) 413-0419
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Tourism, Infrastructure & Energy Subcommittee
Start Date and Time: Wednesday, January 27, 2021 04:00 pm
End Date and Time: Wednesday, January 27, 2021 05:00 pm
Location: Sumner Hall (404 HOB)
Duration: 1.00 hrs
Overview of Broadband Internet Service Deployment in Florida
Overview of Tourism Impacts from COVID-19 and Outlook
This meeting will be live-streamed on https://thefloridachannel.org/. As no filed bills or draft legislation will
be considered at this meeting, public testimony will not be solicited and seating will be limited to the
Members, invited presenters, and the press. As always, you may contact any Representative prior to the
start of the meeting. Contact information may be found at
https://www.myfloridahouse.gov/Representatives
NOTICE FINALIZED on 01/20/2021 4:02PM by Rigas.Amanda
01/20/2021 04:02:29PM Leagis ® Page 1 of 1
Tourism
Florida:
An Update on Tourism
January 27, 2021 Presented by:
The Florida Legislature
Office of Economic and
Demographic Research
850.487.1402
http://edr.state.fl.us
Florida Tourism Pre-Pandemic…
Annual Florida Visitors (2000-2019)
140,000,000
120,000,000
Great Recession:
100,000,000 December 2007 -June 2009
Dot-Com Recession & 9/11:
80,000,000
March 2001 -November 2001
60,000,000
40,000,000
20,000,000
0
Total Visitors Domestic Visitors Overseas Visitors Canadian Visitors
• In the 2000 calendar year, Florida had 65,832,000 visitors.
• In the 2019 calendar year, Florida had nearly double that amount with 131,423,000
visitors. Since the beginning of Florida’s recovery from the Great Recession in 2010,
tourism has grown each year. 1
Florida’s Tourism Sensitivity…
The Legislative Office of Economic and Demographic Research has just updated and refined an
empirical analysis of the various sources of the state’s sales tax collections. In FY 2018-19, sales
tax collections provided nearly $25.4 billion dollars or 76.0% of Florida’s total General Revenue
collections. Of this amount, an estimated 15.0% (over $3.8 billion) was directly attributable to
purchases made by tourists.
2
Pandemic…
First currently known cases were reported in China in December 2019,
but evidence exists that the first case was at least a month earlier.
Near the end of Florida’s 2020 Regular Session, the World Health
Organization declared a Global Pandemic (March 11, 2020).
Global and national recessions have since been called.
The US economy declined in the first quarter (January, February and March) by its
fastest rate since the Great Recession. According to the US Commerce
Department, Bureau of Economic Analysis, GDP shrank at a 5.0 percent annualized
rate. The National Bureau of Economic Research (NBER) had previously dated the
business cycle peak to February 2020 after 128 months of expansion, marking that
month as the official turning point which began the recession.
During the second quarter (April, May and June), the US economy further
contracted—this time, at its greatest rate in postwar history. According to the US
Commerce Department, Bureau of Economic Analysis, GDP shrank at an
annualized rate of 31.4 percent.
In the third quarter (July, August and September), the US economy gained at a 33.4
percent annual rate according to the just released “third” estimate that was only
slightly higher than the “second” estimate. Year over year, the real level is 2.8
percent lower than the third quarter of 2019. [Next Release: January 28, 2021]
3
Pandemic’s Immediate Impact…
Historical Quarter 2 Florida Visitors Historical Quarter 3 Florida Visitors
35,000,000 35,000,000
30,000,000 30,000,000
25,000,000 25,000,000
20,000,000 20,000,000
Air Travel Air Travel
15,000,000 Auto Travel 15,000,000 Auto Travel
10,000,000 10,000,000
5,000,000 5,000,000
0 0
2017Q2 2018Q2 2019Q2 2020Q2 2017Q3 2018Q3 2019Q3 2020Q3
2020:Q1
• Total Visitors…31,387,000 (93.7% of PY) Recent Historical Quarterly Visitors
• Air…86.5% of PY 40,000,000
• Auto…88.6% of PY 35,000,000
30,000,000
2020:Q2 25,000,000
• Total Visitors…12,859,000 (38.0% of PY) 20,000,000
Air Travel
• Air…14.6% of PY 15,000,000
Auto Travel
• Auto…57.2% of PY 10,000,000
5,000,000
2020:Q3 0
Total Visitors…22,112,500 (64.8% of PY)
• Air…34.2% of PY
• Auto…86.8% of PY
4
Florida-Based Vulnerability
Florida’s tourism-sensitive economy is particularly vulnerable to the longer-term effects of the
pandemic. Previous economic studies of disease outbreaks have shown that it can take as much as
12 to 15 months after the outbreak ends for tourism to return to pre-disease levels. The
magnitude of this event is greater. Several industry groups have already predicted that it will take
at least two years to reach recovery from this pandemic. Current expectations are that leisure
driving vacations will recover first, and then—in order—business travel, domestic air travel, and
international travel. The new tourism forecast generally follows this pattern with recovery in 2024.
Florida Annual Visitor Forecast Comparison
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
FEEC Dec 2019 FEEC Nov 2020
5
Sales Tax Impact…
Average fiscal year
growth over most recent
five years: 6.1% from
FY 2014-15 through FY
2018-19.
Mar-20 4.6%
Apr-20 -41.3%
May-20 -63.7%
Jun-20 -51.0%
Jul-20 -33.5%
Aug-20 -33.3%
Sep-20 -28.1%
Oct-20 -17.4%
Nov-20 -20.2%
Dec-20 -25.5%
Cumulative -31.5%
In the ten months that sales tax collections have been reported since Florida’s first two
cases were officially confirmed by the Department of Health on March 2nd, the tourism
category collections have been down cumulatively by -31.5%. Even though a significant
part of the loss arises from a reduction in the number of out-of-state tourists, this category
also includes sales to Florida residents at restaurants, local attractions and other leisure-
based activities which have likewise been negatively affected by the pandemic.
6
Recent Research…
A recent report from Skift Research and McKinsey & Company on the status of the
travel industry offered insights and proposals, many of which are applicable to State
DMOs. The report noted that “travelers are keen to travel but are restrained in the
leisure space by the inability to do anything meaningful at the destination, due to
necessary public health measures and safety precautions, such as quarantines,
closures, and other restrictions.” Business travelers may be further limited by
corporate travel policies developed in response to the pandemic that reflect the
company’s focus on its duty-of-care obligations to employees.
Until the travel economy recovers, the report suggests the industry pursue emerging
opportunities in tourism. For example, in-state, drive-to “nearby vacations” in out-
door venues are a substitute for out-of-state and international travel. Additionally,
“the working-from-anywhere trend has the potential to blur permanently the lines
between leisure and business travel.” These digital nomads and “bleisure” travelers
are a growth market opportunity for facilities designed for or adapted to extended-
stays, provided the traveler’s health safety concerns are addressed.
Finally, the report recommends that marketers understand customers as
microsegments, not monoliths, especially in an environment of diminished demand.
The report suggests that micro-segmentation has value in forecasting and stimulating
demand, as well as informing commercial and marketing strategies.
7
Broadband
Florida Office of Broadband
Department of Economic Opportunity
Executive Director Dane Eagle
January 27, 2021
Florida Office of Broadband Creation
• Governor DeSantis signed HB 969 into law, establishing the Florida
Office of Broadband, effective July 1, 2020.
• The Florida Office of Broadband, within the Department of
Economic Opportunity, was created for the purposes of developing,
marketing, and promoting broadband Internet service in the state.
2
Florida Office of Broadband Responsibilities
• Create a strategic plan to increase the use of broadband internet
services in the state.
• Build and facilitate local technology planning teams, especially with
community members from the areas of education, healthcare,
business, tourism, agriculture, economic development, and local
government.
• Encourage the use of broadband Internet service, especially in rural,
unserved, and underserved areas of the state through grant
programs.
• Participate in the Federal Communications Commission proceedings
that are related to the geographic availability and deployment of
broadband internet in Florida.
3
Florida Office of Broadband Actions
• Worked with the National Telecommunications and Information
Administration (NTIA) of the U.S. Department of Commerce for
information on mapping projects in other states.
• Worked with the Broadband USA team to identify resources and best
practices in other states and to learn from their experiences.
• Attended NTIA and Broadband USA tele-meetings.
• Continual review of Federal Communications Commission meeting
agendas for broadband topics.
4
Florida Office of Broadband Regional Workshops
• The Florida Office of Broadband has partnered with the Florida
Regional Councils Association to host 10 virtual workshops where
participants will discuss broadband internet accessibility.
• These industry sectors include education, healthcare, private
business, community organizations, agriculture, tourism, parks and
recreation, economic development, local governments, and internet
service providers.
• All virtual workshops will be from January 27, 2021 to February 12,
2021.
5
Florida Office of Broadband Regional Workshops
Regional Planning Council (RPC)
T reasure Coast Indian River, St. Lucie, Martin, Palm Beaoh January 27 from 2:00 - 4:00 p.m.
Jackson, Calhoun, Gulf, Gadsden, Liberty,
Apalachee January 28 from 10:00 - 12:00 p.m.
Fra11klin, Leon , Wakulla, Jefferson
Escambia, Santa Rosa, Okaloosa, Walton ,
Emerald Coast February 1 from 2:00 - 4 :00 p.m.
Holmes, Washington , Bay
Sarasota, Charlotte, Glades, Lee,
Southwest Florida February 2 from 10:00 - 12:00 p.m .
Hendry, Collier
Polk, Hardee, DeSoto,
Central Florida February 3 from 10:00 -12:iOO p.m.
Highlands, Okeechobee
Baker, Nassau, Duval, Clay, Putnam,
Northeast Florida February 4 from 2:00 - 4 :00 p.m
St. Johns, Flagler
South Florida Monroe, Broward, Dade February 9 from 10:30 - 12:30 p.m .
Madison, Taylor, Hamilton, Suwanee,
North Central Florida Lafayette, Dixie, Levy, Gilchrist, Columbia, Union, Febrnary 10 from 10:00 - 12:00 p .m .
Bradford, Alachua
Marion, Sumter, Lake, Volusia , Seminole,
East Central Florida February 11 from 10:00 - 12:00 p .m .
Orange, Osceola, Brevard
Citrus, Hernando , Pasco, Pinellas,
T ampa Bay Febmary 12 from 10:00 - 12:00 p .m .
Hillsborough, Manatee
6
FLORIDA DEPARTMENT ef ECONOMIC OPPORTIJNITY
Florida Office of Broadband Study
The Office of Broadband is currently working on securing funding to
establish a three-phase approach for the implementation of broadband
expansion.
Phase 1: Feasibility Study to Specify the Nature of the Connectivity Gap
and Why It Exists
Phase 2: Strategic Plan: Assessing Strategies
Phase 3: Implementation
7
Florida Office of Broadband Looking Forward
• Host virtual workshops with various with industry and community
leaders where participants will discuss broadband internet
accessibility.
• Conduct a feasibility study to identify the status of broadband
internet availability, access, and affordability in the state.
• Create a Florida Strategic Plan for Broadband to review internet
availability, accessibility, and transmission speeds in Florida.
• Design state programs and resources for broadband adoption,
deployment, expansion, and resiliency.
8
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