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Pinellas tourism hits a high in 2005

But growth was not as high as anticipated, as weather and the loss of hotel rooms is making it harder to draw.

By STEVE HUETTEL
Published February 9, 2006

It was a record-breaking year for Pinellas County's tourism business in 2005, but hardly an easy one.

Despite persistent hurricane threats, Red Tide outbreaks and a shrinking inventory of hotel rooms, the county hosted a record 5.2-million visitors, according to year-end figures released Wednesday.

The 2.7-percent annual increase was about half what Pinellas tourism officials expected going into the year. Still, it was a respectable performance, they said.

"It's still a record and considering the things we had to overcome, it was very strong," said Carole Ketterhagen, director of the St. Petersburg/Clearwater Area Convention & Visitors Bureau.

Visitor numbers are projected to grow 7.5 percent this year, she said, thanks to beefed up advertising in key feeder markets in the Midwest and Northeast. A 1-percentage point increase in the county's hotel bed tax, which went into effect in December, is paying for the extra advertising.

Last year began with a bang during the peak winter months. About two-thirds of the 135,000 annual visitor growth took place in March and April.

But the effects of Red Tide caused a slight dip in tourist visits in July, the first of four consecutive year-to-year monthly declines. The slump bottomed out in October as Hurricane Wilma, the last of six storms to affect Florida, threatened the Tampa Bay area before cutting across South Florida.

The area's drive market took the biggest hit, with the number of Florida tourists down 3.2 percent and visitors from the Southeast off 1.8 percent for the year.

But there was healthy growth in the county's three largest feeder markets: the Midwest (3 percent), Northeast (5.5 percent) and Europe (4.7 percent).

Estimated visitor spending hit a record at just more than $3-billion, up 6 percent for the year.

One big reason: hotel, motel and condo room prices that increased about 8 percent on average. The average daily rate for a room during the peak winter season was $94.73 per day, nearly $7 more than in 2004.

The county's supply of hotel and motel rooms, especially in beach communities, continues to shrink as owners sell to developers of new condo towers. That's undoubtedly held down tourist numbers, Ketterhagen said.

Over the past two years, Clearwater Beach has lost between 1,800 and 2,000 rooms, officials said, and the number countywide could be as high as 5,000.

At its peak, the county had nearly 35,000 rooms, said Walter Klages, president of Research Data Services, which conducts monthly tourism surveys for the county.

Bookings for the winter season this year are "building strongly," he said. Focus groups of repeat travelers, however, are wary about taking trips during the late summer after two years of heavy hurricane activity.

"It's what now is referred to as "the windy season' " he said.

Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384.

[Last modified February 9, 2006, 01:29:11]