FISCAL YEAR 2014–2015 ANNUAL REPORT
MESSAGE FROM THE EXECUTIVE DIRECTOR On behalf of the Orange County Convention Center, we are delighted to present the 2015 Annual Report showcasing our accomplishments. The past year has been one of transformative change, as the Convention Center’s largest capital improvement program in more than a decade is coming to life. In addition to the renovations planned through 2018, we are exploring possibilities both on campus and throughout the district. We look forward to seeing our vision take a life of its own in the years to come. Join us as we continue to elevate Orlando as the number one destination in the country for doing business. Thank you for choosing the OCCC in the past and for considering us for your future events.
Kathie Canning Executive Director
CONTENTS
Welcome to the Orange County Convention Center
12
History of Center Attendance
2
Orange County Convention Center Mission
13
Delegates Make an Impact
5
Affecting Growth Through Leadership
14
Operating Revenues and Expenses for Fiscal Year 2014–2015
6
What Our Customers Have to Say
15
Tourist Development Tax Dollars Work for Orlando Locals
8
The Economic Benefit of 2.2 Million Square Feet of Exhibit Space
16
OCCC is Committed to Green Initiatives
9
Understanding the Convention/ Group Meeting Visitor
18
Trade Shows Donate $2.3 Million Locally in 2015
10
Conventions and Trade Shows Mean Big Business
19
Industry Outlook
11
Trade Shows and Associations Dominate the Mix
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WELCOME TO THE ORANGE COUNTY CONVENTION CENTER At the Orange County Convention Center (OCCC) we are proud to be known as “The Center of Hospitality” (COH). This symbolizes outstanding service to our clients and community, motivating their desire to return and enhancing the community’s reputation for excellence. As a world-class convention facility, we host some of the most dynamic regional, national and international conventions, meetings and trade shows. This allows the Center to fulfill its mission of economic development, ultimately benefitting the Central Florida region. By infusing the local economy with new money and expanding business opportunities, the OCCC remains focused on the following goals to accomplish this mission:
WEST BUILDING
NORTH/SOUTH BUILDING
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MISSION 01 02 03 04 05 To maximize economic impact by maintaining the OCCC’s position as a top convention
To provide clients with a positive experience, ensuring repeat business while enhancing the community’s reputation for excellence
To develop new business to maximize space utilization at the OCCC while securing continued convention group bookings well into the future
To maintain a highly visible presence in the convention industry and Orange County
To work together with community partners in educating national, regional, and local stakeholders on the benefits of marketing Orlando as the complete destination package
and trade show destination
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ORANGE COUNTY CONVENTION CENTER MISSION Mission Statement The mission of the Orange County Convention Center is economic development. By hosting regional, national and international conventions, meetings and trade shows, the Center infuses the local economy with new money and expanding business opportunities. The mission of our staff is to provide outstanding service to the clients and users of the Center, to stimulate their desire to return and to enhance the community’s reputation for excellence.
Upon coming into office, Orange County Mayor Teresa Jacobs envisioned a vibrant International Drive corridor that would be a dynamic gathering place for visitors and residents alike. “We’re committed to creating a dazzling International Drive entertainment district that will be the envy of the world—not only for our visitors, but for our young millennials, local families and children, entrepreneurs, artists and more. We’re creating a vision for the future, where tourists from around the world will want to come back again and again, and where local citizens, families and young people will enjoy a ‘uniquely local’ lifestyle, in walkable, livable districts that are filled with entertainment, dining, the arts and so much more.” — Orange County Mayor Teresa Jacobs
Orange County Mayor, Teresa Jacobs
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ORANGE COUNTY CONVENTION CENTER MISSION Recognizing the importance of creating a shared vision for the International Drive area, Mayor Jacobs appointed a Steering Review Group (SRG). The SRG is composed of I-Drive-area stakeholders and landowners, who are committed to maintaining I-Drive as the world’s premier global destination for tourism and family entertainment. The SRG was tasked with crafting a comprehensive and cohesive plan for the Study Area along with implementation strategies and tools for consideration by the Board of County Commissioners (BCC). It is anticipated that the SRG will present the final I-Drive 2040 Strategic Vision to the BCC for review and approval in 2016. With hundreds of world famous retailers and restaurants, thousands of stunning hotel rooms and contemporary resorts, dozens of family-oriented attractions and entertainment complexes, I-Drive accounts for a significant portion of Orange County’s robust travel, tourism and hospitality sectors. The proposed plan for the Convention Plaza District will create a vibrant, dynamic and safe pedestrian-centered environment, with dedicated transit lanes and sidewalk enhancements for local residents, conventioneers and visitors alike.
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AFFECTING GROWTH THROUGH LEADERSHIP Orange County Government
Orange County Convention Center Management
The OCCC is owned and operated by Orange County Government, led by Orange County Mayor Teresa Jacobs.
The OCCC’s Executive Management Team consists
Additionally, the Board of County Commissioners oversees
of the Executive Director, two Deputy Directors
the management of the OCCC. With strategic leadership
and two Assistant Directors. Collectively, they are
through Orange County, the OCCC has evolved into a
responsible for the day-to-day operations of the
state-of the art, world-class convention facility—a leader
OCCC, administered through the following divisions:
in our industry. Left to Right: Commissioner S. Scott Boyd, District 1, Commissioner Bryon Nelson, District 2, Commissioner Pete Clarke, District 3, Mayor Teresa Jacobs, Commissioner Jennifer Thompson, District 4, Commissioner Ted Edwards, District 5, Commissioner Victoria Siplin, District 6
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• • • • • • •
Business Capital Planning Event Operations Facility Operations Guest and Community Relations Sales, Marketing, Event Management and Exhibitor Services Security
WHAT OUR CUSTOMERS HAVE TO SAY
“ICAST is the largest sportsfishing trade show in the world. Holding our event in Orlando each year delivers consistency for those loyal to the entire world of fishing. The OCCC’s facilities and outstanding customer service provides our members a closer look at the industry for customers and potential customers. This helps manufacturers and retailers identify growth opportunities and see the latest trends and innovation.”
KENNETH G. ANDRES Trade Show Director American Sportfishing Association
“We see Orlando as an ideal destination to maintain and expand our show. Our clients look forward to visiting the OCCC and are always impressed with the size of the facility along with the hospitality they receive during the event, particularly from the OCCC staff and service partners.”
SUE SEARLS Conference Director Athletic Business 6
CAPITAL IMPROVEMENT PROJECT Our capital improvement plan is well underway and consists of two primary objectives: 1. A facelift for the West building: refurbishing and capital replacement projects 2. To define a vision for the future, through the creation of a campus master plan, including the capital improvement requirements While competition for events is increasing and stories abound regarding an abundance of space, we feel confident about our competitive position in Orlando. Today’s meeting planner desires more than just a big box and looks to other factors, including amenities, accessibility, aesthetics, and the destination as a whole when selecting a facility to host their event.
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THE ECONOMIC BENEFIT OF 2.1 MILLION SQUARE FEET OF EXHIBIT SPACE As the economic development engine of the convention
impact on citywide delegates per research provided by
industry in Orlando, it is critical to understand the value
Fishkind & Associates, specialists in real estate, fiscal impact
of events held at the OCCC. We determine this through
assessments, and the Florida economy. Citywide events
economic impact, which is the measurement of total direct
(conventions, trade shows and conferences) have been
and indirect spending in Central Florida by events held at
shown to drive significant economic impact in the form of
the OCCC. This calculation includes induced impact from
multiple hotel nights, restaurant dining, transportation, retail
job creation and gains in resident income levels attributed
and entertainment spending.
to event-related activity. The OCCC calculates economic CENTER’S ACTIVITY YIELDS TAX SAVINGS OF
$1,970 MORE THAN
$117.80 PER ORANGE COUNTY HOUSEHOLD
PER DELEGATE
1,000
$2.2 BILLION
BUSINESSES IMPACTED BY OCCC ACTIVITY
MORE THAN
IN TOTAL ECONOMIC IMPACT
EMPLOYEES IMPACTED BY OCCC ACTIVITY
Fiscal Year 2014–2015
25,600 Sources: The Fiscal and Economic Impact of the OCCC 2015, Fishkind & Associates; Convention/Group Meeting Visitor Profile, Visit Orlando
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UNDERSTANDING THE CONVENTION/GROUP MEETING VISITOR As a top convention facility, the OCCC strives to better understand the demographics and behaviors of the convention and group meeting visitor. Knowing this allows the OCCC to enhance and tailor the delegate experience when he/she visits.
1.4
TOP FIVE VISITOR ACTIVITIES
HOW VISITORS ARRIVE IN ORLANDO
24%
PEOPLE AVERAGE PARTY SIZE
2.8
NIGHTS AVERAGE STAY
DINING
47% BY AIR
3% OTHE
R
50%
BY AUTOMOBILE
18%
THEME/ AMUSEMENT PARK
15% SHOPPING
$1,970 APPROXIMATE ECONOMIC IMPACT PER VISITOR PER TRIP
87%
STAY IN A HOTEL
10%
VISITING FRIENDS/RELATIVES
9%
NIGHTLIFE
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CONVENTIONS AND TRADE SHOWS MEAN BIG BUSINESS The OCCC is home to some of the largest events in the industry. These
NPE National Plastics Exposition Attendance: 65,810
Economic Impact: $129.6 million
phenomenal events generate significant amounts of economic impact to the Central Florida region, ultimately benefitting the local residents. Listed below are some of the top conventions and trade shows the Center had the honor of hosting during fiscal year 2014-2015.
PGA Merchandise Show Attendance: 42,000
Economic Impact: $82.7 million
InfoComm Attendance: 39,105
Economic Impact: $77.1 million International Association of Amusement Parks & Attractions Attendance: 30,500
Economic Impact: $60.1 million National Business Aviation Association Attendance: 26,564
Economic Impact: $52.3 million
NPE2015 set a record for number of exhibitors, amount of space, and the number of companies in attendance. The crowds of attendees and the clamor of working equipment that filled the giant exhibit halls at NPE2015 told the story better than numbers, but now there are statistics to make it official: NPE2015 was the largest show in NPE history.
The Plastics Industry Trade Association, founder and producer of NPE: The International Plastics Showcase, has released final data for NPE2015, which took place March 23-27 in Orlando, Florida. The data shows NPE2015 attracted 2,029 exhibitors over 1,128,200 net square feet (104,813 sq.m) of exhibit space—exceeding the previous records of 2,009 exhibitors and 1,041,000 net square feet (96,712 sq.m) set in 2000.
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TRADE SHOWS AND ASSOCIATIONS DOMINATE THE MIX In 1983, the Orange County Convention and Civic Center opened its doors welcoming an array of concerts and
FISCAL YEAR 2014–2015 MARKET MIX MEASURED BY ATTENDANCE
consumer events. As a new player, the Center strived to
N = 1,411,568
Association
make its mark in the industry. More than two decades later, Consumer
growth in the meetings and convention industry spawned continued expansion of facilities across the country. The
Corporate
234,796 (16%)
OCCC was no exception and expanded in 2003.
SMERF Market
463,314 (33%)
With the opening of the North/South Building, the Center ushered in a new era as a world class, state of the art facility. Today, with the ability to host events of all sizes, the mix of business has evolved and is now dominated by national
Trade Show
252,781 (18%)
and international trade shows and association conventions, all of which foster significant economic impact to our local community. Below is a breakdown of the events from fiscal
153,262 (11%)
307,415 (22%)
year 2014-2015 by market and by category.
FISCAL YEAR 2014–2015 EVENT CATEGORIES—MEASURED BY NUMBER OF EVENTS
88
CONVENTION/ TRADE SHOWS
59
MEETINGS AND CONFERENCES
29
CONSUMER, PUBLIC TICKETED EVENTS AND BANQUETS
176 TOTAL EVENTS 11
Source: Orange County Convention Center Market Research
HISTORY OF CENTER ATTENDANCE
Trade Show and Convention Delegates
*Other Attendees
1,600,000 1,400,000 1,200,000 1,000,000
220,203
242,907
252,694
268,942
1,104,893
1,142,626
250,055
800,000
1,074,136 1,010,589
600,000 400,000
242,951
1,019,088
823,468
200,000 0
Fiscal Year 2009–2010
Fiscal Year 2010–2011
*Other attendee figures include those attending a consumer event, public ticketed event or meeting for the fiscal year. Delegate attendance figures include those in attendance at a convention or trade show during the fiscal year.
Source: Orange County Convention Center Market Research
Fiscal Year 2011–2012
Fiscal Year 2012–2013
Fiscal Year 2013–2014
Fiscal Year 2014–2015
Since the facility opened in 1983, more than 30 million people have attended an event at the OCCC; this includes more than 22 million citywide delegates.
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DELEGATES MAKE AN IMPACT Delegates attending conventions and trade shows at the
SPENDING BY DELEGATES EXPRESSED IN BILLIONS
OCCC spent more than $2.2 billion in the community during
$0.0 $0.4
fiscal year 2014-2015. Economic Impact is the measurement
$0.8
$1.2
$1.6
of direct, event related spending within Central Florida, that would not otherwise occur within the market. This is considered new money that is injected into the community as a result of event activity. The average convention
Fiscal Year 2008–2009
$1.7 BILLION
Fiscal Year 2009–2010
$1.7 BILLION
Fiscal Year 2010–2011
$1.9 BILLION
Fiscal Year 2011–2012
$2.1 BILLION
Fiscal Year 2012–2013
$2.0 BILLION
Fiscal Year 2013–2014
$2.2 BILLION
Fiscal Year 2014–2015
$2.2 BILLION
delegate and trade show delegate spent approximately $1,970 on accommodations, retail, dining, entertainment and transportation per stay in Orlando.
ECONOMIC IMPACT: Since 1983, OCCC delegates have supported Central Florida with economic impact of approximately
$35.4 BILLION
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Sources: Visit Orlando, 2014 Convention/Group Meeting Visitor Profile; Fishkind & Associates, OCCC Economic and Fiscal Impact Report
$2.0 $2.4
OPERATING REVENUES AND EXPENSES FOR FISCAL YEAR 2014–2015 The OCCC’s sources and funds for operations for fiscal year 2014-2015 totaled $70.2 million. Approximately half of the Center’s revenue sources are derived from facility rental and event services such as electrical and plumbing. Sixty percent of the Center’s expenses consist of wages and benefits as well as facility utilities. The percentage each revenue and expense line item represents is detailed below.
USES OF FUNDS FOR OPERATIONS
SOURCES OF FUNDS FOR OPERATIONS ISP/TSP 5.84%
Tourist Development Tax 14.25%
Reserve 1.70%
Contractual Services 3.28% Services 28.35%
Materials & Supplies 2.99%
Utilities 19.37%
Other 2.14% Commissions 2.14%
Repairs & Maintenance 16.10% Parking 8.69% Catering/ Concessions 17.66%
Facility Rentals 19.23%
Insurance/ County Services 9.83%
Sources: Orange County Convention Center Preliminary Financial Statements; Orange County Comptroller’s Office
Other 5.69%
Wages & Benefits 42.74%
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TOURIST DEVELOPMENT TAX DOLLARS WORK FOR ORLANDO LOCALS Tourist Development Tax (TDT) dollars are not paid by Orange County citizens, but by the overnight business and leisure travelers to the Orlando area. Yet, these dollars work for Orlando locals. Key to the continued growth and success of the business and leisure tourism industry is the ability to promote and advertise business and leisure travel. Revenues from this tax allow the promotion of business and leisure travel, the livelihood of our community.
SUPPORTING THE TOURISM INDUSTRY IN OUR COMMUNITY:
$226.2 MILLION IN COLLECTIONS
Fiscal year 2014-2015 was a record year for Tourist Development Tax collection, totaling $226.2 million. TDT ALLOCATION
Capital 19.94%
Visit Orlando & Other Agencies 49.78% OCCC Debt Service 25.86%
OCCC Operations 4.42%
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Sources: Orange County Convention Center Preliminary Audited Financial Statements; Orange County Comptroller’s Office
OCCC IS COMMITTED TO GREEN INITIATIVES Client Sustainability & CSR Services
600
CLIENTS AND THEIR GUESTS PARTICIPATED IN SPECIALIZED RENEWABLE ENERGY TOURS AND MINI-SEMINARS
MULTIPLE CLIENTS DEDICATED FLOOR SPACE TO SUSTAINABILITY RELATED EXHIBITS AND DISPLAY AREAS
CLIENTS REPRESENTING OVER 550,000 IN CITYWIDE ATTENDEES REQUESTED AT LEAST ONE OR MORE SUSTAINABILITY SERVICE FROM THE OCCC
$2.3 MILLION IN GOODS WERE DONATED BY EVENTS TO LOCAL ORGANIZATIONS
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Sustainable Building Operations
INSTALLED NEW LED LIGHTING IN THE CROSS-WALK BRIDGE CONNECTORS SAVING
APPROXIMATELY $40K ANNUALLY
UPGRADED HVAC EQUIPMENT IN THE WEST BUILDING IMPROVING CHILLED WATER EFFICIENCY BY APPROXIMATELY 42%
COMPLETED ELECTRICAL SUB-METERING ON 100% OF OVER 120,000 KVA OF ELECTRIC CAPACITY
2,500 DIVERTED OVER 2500 TONS OF MATERIALS FROM ORANGE COUNTY LANDFILLS THROUGH RECYCLING
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GENERATED OVER 15MWH OF ON-SITE RENEWABLE ENERGY FROM 6 ACTIVE SOLAR ENERGY PROGRAMS
DIVERTED OVER 61 TONS OF FOOD WASTE FROM LANDFILLS RESULTING IN BIO-METHANE ELECTRIC POWER PRODUCTION AND BAGGED COMPOSTED AGGREGATE FOR LOCAL FARMERS
PURCHASED 100% OF RESTROOM PAPER PRODUCTS AND FACILITY TRASH BAGS WITH RECYCLED CONTENT USING OVER 5,400 CASES OF RECYCLED PAPER PRODUCTS VALUED AT $278,000
TRADE SHOWS DONATE $2.3 MILLION LOCALLY IN 2015 While the OCCC is known for providing an economic boost to the Central Florida community, it has also become a major source of donations for several of the area’s charitable organizations. In 2015, approximately $2.3 million in funds, goods and services were donated to local organizations by visiting conventions and trade shows and their exhibitors and attendees. Visiting shows made donations that included food to local food banks, educational supplies and building supplies.
“Our Charitable Giving program offers our clients another opportunity to leave behind an impact. These reusable donations touch the lives of people they may never meet, in ways they can never imagine and every year more is given back to our local community.” Kathie Canning — Executive Director
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INDUSTRY OUTLOOK Today, the exhibition industry is continuing its growth; the
From an economic point of view, the next three years
Center of Exhibition Industry (CEIR) has conveyed that after
promise to be good ones. According to CEIR’s current
a sharp increase in both the first and second quarters, the
projection, 2015 will be the first of three calendar years
performance of the business-to-business exhibition industry
where economic growth will reach about 3.0%. This
remained relatively strong during the third quarter of 2015,
growth is well above potential growth rates of about
posting a year-on-year gain of 3.1%. This growth is the third
2.0%. The biggest factor supporting a durable uptick in
highest rate since the second quarter of 2012. It also marked
economic expansion is the drive created by strong job
the 21st consecutive quarter of year-on-year growth.
growth. Over the last year, and for the first time in the recovery period that began in 2009, net employment
The CEIR Index measures year-over-year changes in four
rose by an average of 2.0% on a year over- year basis.
key metrics to determine overall performance of the
Furthermore, through February 2015, payroll employment
exhibition industry. All four exhibition metrics in the third
registered its biggest four-month gain in 17 years.
quarter posted year-on-year gains. As was the case during the first and second quarters, the strongest metric was Real
Locally, the 2015 hotel occupancy level was 77.0%, up
Revenues, which rose a remarkable 4.6%. It was followed
4.1% from 2014. Average daily rates (ADR) increased
by Net Square Feet, with an increase of 3.3%. Exhibitors
4.8% to $112.00. Both ADR and Orange County Tourist
increased 2.9%, whereas Professional Attendance rose 1.6%.
Development Tax were at all-time highs, and the annual occupancy rate was at the highest since 1997 (79.0%).
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THE ORANGE COUNTY CONVENTION CENTER LEADERSHIP TEAM
Top Row (From Left to Right): Kathie Canning, Executive Director, Yulita Osuba, Deputy Director, Jan Addison, Deputy Director. Second Row: Kris Shoemaker, Chief Financial Officer, David Ingram, Assistant Director, Terry Devitt, Assistant Director, Carla Bell Johnson, Strategic Planning and Development Manager. Third Row: Rodney Gutierrez, Director of Sales, Tim Wood, Building Security Manager, Lex Veech, Guest and Community Relations Manager
P.O. Box 691509 Orlando, Florida 32869-1509 (407) 685-9800 occc.net
