May Economic Development & Public Policy Committee

1. Summer Months Vs. Academic School Year
A presentation by
Chapel Hill/Orange County Visitors
Bureau

2. The Economics of OC Hospitality Industry
• Since 2011, there has been significant growth
in rooms available in Orange County and
Revenue Per Available Room or RevPar which
is a key financial indicator.
• We are attracting more hotels/rooms AND we
are seeing greater revenues.
• A pleasant surprise? Summer is showing a
greater increase in revenues.

3. Rooms per Month
1625
1623
1483
1452
1483
1483
1353
1360
1422
1247
1247
0 200 400 600 800 1000 1200 1400 1600 1800
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
June
July
August

4. Demand for Summers in Chapel Hill
• In terms of Absolute Occupancy:
• The summer occupancy levels exceed the
other nine months of the year since 2005,
every single year.
• However, the summer months typically see
lower room rates.

5. Absolute Numbers
68.3
63.8
$100
$109
$68 $70
June - Aug Sept - May
Occ ADR RevPar

6. Absolute Occupancy
68.2
71.7
70.2
69.1
61.0 61.0
66.1
67.3
71.0
76.8
65.8
67.9
64.6
63.6
58.2 58.7
63.5
64.4
63.5
67.7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
June - Aug
Sept - May

7. Absolute ADR
$94
$99
$106
$108
$100
$93
$95
$98 $98
$107
$101
$106
$113
$117
$110
$105 $104
$107
$110
$116
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
June - Aug
Sept - May

8. Absolute RevPAR
$64
$71
$74 $74
$61
$57
$63
$66
$70
$82
$66
$72
$73
$75
$64
$62
$66
$69
$70
$79
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
June - Aug
Sept - May

9. 2014 Occupancy Tax Revenues
• Summer months increased at an average
$9,295 per month in occupancy tax
collections.
• And the other 9 months increased at an
impressive $17,522 per month in the county’s
occupancy tax collections.

10. Hospitality’s Growing Impact
•Comparing 2014 to 2013, we
saw a 17.6% increase in
Orange County’s occupancy
tax revenues or an additional
$185,575 more than the
previous year.

11. Conclusion
• These numbers serve to demonstrate the
importance of using a 12 month calendar to
boost the economy, rather than just the
academic school year.
• We have what tourists want in a destination,
even in summer.
• The 2014 summer growth is related to a large
business project.
• It is so important to the economy to focus on
groups, year-round tourism.

12. Contributing to the Summer Success
• Booking Corporate Meetings
• Advertising our summer events, restaurants
• Town/Gown: UNC Conferences in summers
• Healthcare-related meetings
• CTOPS and Summer School
• August-Move in at UNC
• More private sector businesses are advertising,
i.e., U-Mall, Restaurants, Retail.

13. Visitor Bureau Programs
• Dedicated sales force to booking new business
• Growing conference services to help groups
succeed (trolley, welcome gifts, transit)
• Growing Wedding services programs
• $150,000 summer related tourism ads
• State partnerships with VisitNC
• News-wire stories: we are a great place to visit
• Partner among partners