FISCAL YEAR ANNUAL REPORT
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1 FISCAL YEAR ANNUAL REPORT
2 MESSAGE FROM THE EXECUTIVE DIRECTOR On behalf of the Orange County Convention Center, we present the Annual Report capturing the can do culture at The Center of Hospitality. We are delighted to share this report with you showcasing our accomplishments as we host hundreds of meetings/events that contribute more than $2.2 billion to the area s economy. The Orlando hospitality industry, our service providers, our clients and community leaders are all partners in our success. As stated by the Orlando Economic Development Commission following a recent study, Orlando is a great environment for doing business. This past year, national conglomerates such as Forbes Magazine, Wine Enthusiast, U.S News & World Reports and Inc. Magazine touted Orlando as a number one travel and business destination. Join us as we re-energize International Drive and transform the Orlando destination. Thank you for choosing the OCCC in the past and for considering us for your future events. Kathie Canning Executive Director
3 CONTENTS Industry 7 The Welcome to the Orange County Convention Center Orange County Convention Center Mission Affecting Growth through Leadership What Our Customers Have to Say Outlook Economic Benefit of 2.1 Million Square Feet of Exhibit Space Trade Shows and Associations Dominate the Mix History of Center Attendance Delegates Make an Impact Operating Revenues and Expenses for Fiscal Year Tourist Development Tax Dollars Work for Orlando Locals OCCC is Committed to Sustainability 8 Understanding the Convention/ Group Meeting Visitor 17 Trade Shows Donate $2 Million Locally in Conventions and Trade Shows Mean Big Business 18 An Award-Winning Convention Facility
4 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. 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. WEST BUILDING 1 NORTH/SOUTH BUILDING
5 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. Recently, the Orlando Economic Development Commission (EDC) designed a Regional Branding Initiative to measure current perceptions of business targets both in- and outof-market and developed a strategic campaign to get Orlando into the consideration set for business location decisions. The campaign, Orlando, You Don t Know the Half of It, primarily targets out-of-area business decision makers; its efforts also are focused on better educating Orlando residents and local influencers about what the region offers. The results found Orlando as top-ranked in job growth, attracting some of the biggest names in business, creating thousands of high-wage, high tech jobs in a region traditionally known for tourism. Orange County Mayor, Teresa Jacobs 2
6 AFFECTING GROWTH THROUGH LEADERSHIP Orange County Government The OCCC is owned and operated by Orange County Government, led by Orange County Mayor Teresa Jacobs. Additionally, the Board of County Commissioners oversees the management of the OCCC. With strategic leadership through Orange County, the OCCC has evolved into a state-of the art, world-class convention facility a leader 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 Orange County Convention Center Management The OCCC s Executive Management Team consists of the Executive Director, two Deputy Directors and two Assistant Directors. Collectively, they are responsible for the day-to-day operations of the OCCC, administered through the following divisions: Business Capital Planning Event Operations Facility Operations Guest & Community Relations Sales, Marketing, Event Management & Exhibitor Services Security 3
7 WHAT OUR CUSTOMERS HAVE TO SAY Our show comes to Orlando for many reasons but the venue has to be spectacular for our clients. The OCCC is a great place for us to do business from the sheer size of its space, the streamlined communication from the staff, to their service partners this allows us to deliver the best show in the market. RYAN STROWGER Vice President of Exhibitions, Conferences, and Sales International Association of Amusement Parks and Attractions (IAAPA) Featuring 985 exhibitors, 289,600 net square feet and more than 3,000 new product launches, it is critical that all aspects of our conference and trade show event are well planned and run smoothly. The OCCC team works seamlessly behind the scenes to help make our event a success. They take care of everything which allows us to simply manage our show. ANDY DARMOHRAJ Executive Vice President & COO American Pet Products Association Global Pet Expo 4
8 INDUSTRY OUTLOOK Today, the exhibition industry is healthier than ever, with the Center for Exhibition Industry Research (CEIR) performance of the business to business exhibition industry continued to improve during the third quarter of The growth accelerated from a revised year-onyear gain of 1.3% in the second quarter to 1.8%. The third quarter of 2014 marked the seventeenth consecutive quarter of year-on-year growth. All metrics except real revenues posted year-on-year gains in the third quarter. The strongest performer was the number of exhibitors, which rose 3.7%. Net square feet increased 2.1% whereas professional attendance was up 1.9%. Nominal revenues increased only a modest 1.2% year-on-year, weighted down by a moderate decline in consumer goods and retail trade exhibitions. Adjusted for inflation, real revenues declined by 0.5% year-on-year. Locally, the OCCC has registered an uptick in business. For fiscal year , we are projecting approximately 203 events with 1,465,430 attendees which is an increase of 7.36% in attendance from fiscal year The 2014 hotel occupancy level was 73.7%, up 4.6% from Average daily rates increased 5.9% to $ Orange County TDT collection rose 9.8% to $207.2 million. Both ADR and Orange County TDT were all-time highs, and the annual occupancy rate was the highest since 1998 (74.6%). 5
9 Our own 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 a glut 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. The upgrades to the Convention Centers West Halls E/F deliver a one stop, all under one roof environment, providing more options and flexible meeting space for our event. The open-air Sunburst Terrace, and the new Tangerine Ballroom, will provide more dining and entertainment possibilities and the renovated concourse and meeting rooms on the third level offer extreme versatility to accommodate almost any event. Karen Malone Healthcare Information and Management Systems Society (HIMSS) 6
10 THE ECONOMIC BENEFIT OF 2.1 MILLION SQUARE FEET OF EXHIBIT SPACE As the economic development engine of the convention industry in Orlando, it is critical to understand the value of events held at the OCCC. We determine this through economic impact, which is the measurement of total direct and indirect spending in Central Florida by events held at the OCCC. This calculation includes induced impact from job creation and gains in resident income levels attributed to event-related activity. The OCCC calculates economic impact on citywide delegates per research provided by Fishkind & Associates, specialists in real estate, fiscal impact assessments, and the Florida economy. Citywide events (conventions, trade shows & conferences) have been shown to drive significant economic impact in the form of multiple hotel nights, restaurant dining, transportation, retail and entertainment spending. MORE THAN 1,000 BUSINESSES IMPACTED BY OCCC ACTIVITY $1,970 PER ORANGE COUNTY HOUSEHOLD PER DELEGATE MORE THAN 25,600 EMPLOYEES IMPACTED BY OCCC ACTIVITY CENTER S ACTIVITY YIELDS TAX SAVINGS OF $ $2.2 BILLION IN TOTAL ECONOMIC IMPACT Fiscal Year Sources: The Fiscal and Economic Impact of the OCCC 2014, Fishkind & Associates; 2014 Convention/Group Meeting Visitor
11 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 PEOPLE AVERAGE PARTY SIZE 2.9 NIGHTS AVERAGE STAY $1,970 APPROXIMATE ECONOMIC IMPACT PER VISITOR PER TRIP HOW VISITORS ARRIVE IN ORLANDO 52% BY AIR 46% BY AUTOMOBILE 2% OTHER 89% STAY IN A HOTEL TOP FOUR VISITOR ACTIVITIES 26% DINING 25% THEME/ AMUSEMENT PARK 19% SHOPPING 16% BEACH/ WATERFRONT Sources: The Fiscal and Economic Impact of the OCCC 2013, Fishkind & Associates; 2014 Convention/Group Meeting Visitor Profile, Visit Orlando 8
12 CONVENTIONS AND TRADE SHOWS MEAN BIG BUSINESS Premiere Beauty Show Attendance: 55,214 Economic Impact: $108.7 million The OCCC is home to some of the largest events in the industry. These 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 PGA Merchandise Show Attendance: 41,000 Economic Impact: $80.7 million Healthcare Information and Management Systems Society Attendance: 38,828 Economic Impact: $76.4 million International Association of Amusement Parks & Attractions Attendance: 25,000 Economic Impact: $49.2 million W.W. Grainger Attendance: 14,995 Economic Impact: $29.5 million Grainger s annual trade show brings together thousands of customers, products and service suppliers and Grainger employees from across the country to discuss emerging trends in areas such as mobility, inventory management, sustainability and safety. During the PGA Show, PGA professionals, retailers and industry leaders will uncover the latest trends, source the newest golf merchandise, test the latest equipment, attend industry presentations, learn proven business best practices, network among peers and move forward the business of the game. 9 Source: Orange County Convention Center Market Research (Attendance estimates provided by clients)
13 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 consumer events. As a new player, the Center strived to make its mark in the industry. More than two decades later, growth in the meetings and convention industry spawned continued expansion of facilities across the country. The OCCC was no exception and expanded in 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 and international trade shows and association conventions which foster significant economic impact to our local community. On this page is a breakdown of the events from fiscal year by market and by category. FISCAL YEAR MARKET MIX MEASURED BY ATTENDANCE N = 1,357, ,487 (19%) 150,477 (11%) 128,344 (9%) 327,653 (24%) 499,626 (37%) Association Consumer Corporate SMERF Market Trade Show FISCAL YEAR EVENT CATEGORIES MEASURED BY NUMBER OF EVENTS 98 CONVENTION/ TRADE SHOWS 67 MEETINGS AND CONFERENCES 31 CONSUMER, PUBLIC TICKETED EVENTS AND BANQUETS 196 TOTAL EVENTS Source: Orange County Convention Center Market Research 10
14 HISTORY OF CENTER ATTENDANCE The OCCC hosted approximately 1.4 million total attendees at various events during fiscal year Economic challenges have impacted convention attendance at venues across the country. The OCCC is encouraged by the increase in convention attendance seen in fiscal year and is cautiously optimistic about attendance performance in the near future as the economy recovers. Trade Show and Convention Delegates *Other Attendees 1,600,000 1,400,000 1,200,000 1,000, , , , ,203 1,010, ,951 1,074, ,907 1,019, ,694 1,104, , , ,000 0 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year *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. Since the facility opened in 1983, more than 29 million people have attended an event at the OCCC; this includes more than 21.5 million citywide delegates. 11 Source: Orange County Convention Center Market Research
15 DELEGATES MAKE AN IMPACT Delegates attending conventions and trade shows at the OCCC spent more than $2.2 billion in the community during fiscal year Economic Impact is the measurement 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 delegate and trade show delegate spent approximately $1,970 on accommodations, retail, dining, entertainment and transportation per stay in Orlando. SPENDING BY DELEGATES EXPRESSED IN BILLIONS $0.0 $0.4 $0.8 $1.2 $1.6 $2.0 $2.4 Fiscal Year $1.7 BILLION Fiscal Year $1.7 BILLION ECONOMIC IMPACT: Since 1983, OCCC delegates have supported Central Florida with economic impact of approximately $33.3 BILLION Fiscal Year $1.9 BILLION Fiscal Year $2.1 BILLION Fiscal Year $2.0 BILLION Fiscal Year $2.2 BILLION Sources: Visit Orlando, 2014 Convention/Group Meeting Visitor Profile; Fishkind & Associates, OCCC Economic and Fiscal Impact Report,
16 OPERATING REVENUES AND EXPENSES FOR FISCAL YEAR The OCCC s sources and uses of funds for operations for fiscal year totaled $64.2 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 of this total is detailed below. SOURCES OF FUNDS FOR OPERATIONS USES OF FUNDS FOR OPERATIONS Services 24.9% Facility Rentals 18.2% Contractual Services 3.74% Materials & Supplies 2.87% Utilities 20.19% ISP/TSP 5.37% Catering/ Concessions 14.62% Repairs & Maintenance 15.37% Tourist Development Tax 24.47% Other 1.73% Parking 8.67% Commissions 2.04% Insurance/ County Services 10.56% Other 4.16% Wages & Benefits 43.11% 13 Sources: Orange County Convention Center Preliminary Financial Statements; Orange County Comptroller s Office
17 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. The key to continued growth and success of the tourism industry is the ability to promote and advertise. Tourist development tax revenues allow for the promotion of the destination and help create jobs, and the livelihood of our community. SUPPORTING THE TOURISM INDUSTRY IN OUR COMMUNITY: $201 MILLION IN COLLECTIONS Fiscal year was a record year for Tourist Development Tax collection, totaling $201 million. TDT ALLOCATION OCCC Debt Service 35.85% Visit Orlando & Other Agencies 45.03% Capital 14.15% OCCC Operations 4.97% Sources: Orange County Convention Center Preliminary Audited Financial Statements; Orange County Comptroller s Office 14
18 OCCC IS COMMITTED TO SUSTAINABILITY OCCC Year End Sustainability Facts Sustainable Building Operations By implementing LEED Gold O+M best practices EVENTS REQUESTED ON OR MORE SUSTAINABLE EVENT SERVICES CLIENTS AND THEIR GUEST PARTICIPATED IN SPECIALIZED RENEWABLE ENERGY TOURS AND MINI-SEMINARS THE OCCC REDUCED POTABLE WATER CONSUMPTION BY 10% IN ITS N/S BUILDING SAVING 1,949,000 GALLONS OF POTABLE WATER. UPGRADED LIGHTING AND HVAC EQUIPMENT RECEIVING OVER $40,000 IN ENERGY EFFICIENCY REBATES 1.3 MILLION GUESTS USED 1100 RECYCLING CONTAINERS MADE FROM RECYCLED MILK JUGS PURCHASED TOILETRIES AND GARBAGE BAGS MADE FROM RECYCLED MATERIALS 15
19 Renewable Energy Production MAINTAINED 6 ACTIVE SOLAR EDUCATIONAL PROJECTS GENERATED ALMOST 1,500,000 KWH IN ELECTRIC POWER FROM OUR 5808 ROOF TOP SOLAR PANELS, ENOUGH TO POWER 130 HOMES FOR A ONE YEAR Waste Reduction By implementing ISO best practices for environmental management 53% THE OCCC HAS REDUCED EVENT GENERATED WASTES BY 53%, THAT S 4332 FEWER TONS GENERATED PER YEAR THAN OUR 2005 PEAK $40,000 APPROXIMATELY 1800 TONS OF WASTE ARE RECYCLED EACH YEAR AVOIDING LANDFILLS AND GENERATING $40,000 IN WASTE RECYCLING REBATES ALMOST 40 TONS OF FOOD WASTE WAS COMPOSTED FOR USE AT LOCAL FARMS 16
20 TRADE SHOWS DONATE $2.2 MILLION LOCALLY IN 2014 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 2014, approximately $2.2 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 17
21 AN AWARD-WINNING CONVENTION FACILITY Awards The OCCC regularly receives national and international recognition from professional and leading organizations for outstanding service to clients. Recent recognition has included the following: Prime Site Facilities & Top Destinations Award. This was based on destination appeal; attractiveness of facility, marketability, high tech meeting spaces, customer service, entertainment options and a high client satisfaction rating. Distinctive Achievement Award Association Convention & Facilities Magazine. The OCCC was honored for those that best served their association meetings during the year. IAEE Art of the Show Award The Orange County Convention Center was selected as first place winners for the Convention Center Marketing category by the International Association of Exhibitions and Events (IAEE) Art of the Show Competition. 18
22 THANK YOU FOR YOUR BUSINESS AND CONTINUED SUPPORT Left to Right: Strategic Planning and Development Manager, Carla Bell Johnson, Assistant Director, David Ingram, Building Security Manager, Greg Forehand, Deputy Director, Jan Addison, Executive Director, Kathie Canning, Chief Financial Officer, Kris Shoemaker, Guest & Community Relations Manager, Lex Veech, Director of Sales, Rodney Gutierrez, Assistant Director, Terry Devitt, Deputy Director, Yulita Osuba 19
23 THE ORANGE COUNTY CONVENTION CENTER LEADERSHIP TEAM
24 P.O. Box Orlando, Florida (407) occc.net
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