1. Issue 4
The Tourism Sector in Orange County
by Luis Nieves-Ruiz, AICP
Introduction
Much attention has been devoted lately to the fact that Florida’s economy is in transition. State and
local economic development agencies now focus much of their efforts in attracting high tech
industries that would help to diversify the economy and raise wage levels. While these efforts are
laudable, based on its economic impact, leisure and entertainment likely would continue to
represent the most significant share of the State’s economy. The State of Florida received about
82.5 million visitors in 2008 (Associated Press, 2009), and the Metro Orlando area accounts for
about half of this total. Our area receives over 40 million family and convention visitors each year
(CVB, 2009). These visitors, in turn, spend money that benefits other sectors of the economy.
The local tourism market is made up of two important sectors. The leisure visitors group consists of
families that come to visit the area’s theme parks. The second group is convention attendees
traveling to our area to attend professional meetings and seminars. Both groups are very important
to our industry.
This issue of the Economic Research Initiative will address the relationship between the industries
that make up the tourism sector using location quotients and business establishment data.
Moreover, it will also show areas of concentration of these industries in the County.
Economic Impact of Tourism Industry
Staff performed a study of local leisure activity by first using the location quotient method, which
expresses the percentage of economic concentration of an industry in the local economy. This
information was later correlated with establishment data found in the InfoUSA 2009 database to
determine total business establishments and employees in 2009. The data were studied at the
five-digit level to remove any establishments that may be used by the local population. Moreover, to
facilitate the analysis at the County level, staff divided the establishments into core and supporting
tourism industries.
Exhibit 1: Core Tourism Sector in Orange County
Industry Number of Estimated Location
Establishments Number of Jobs Quotient
NAICS 71311 Amusement & Theme
20 27,704
Parks 51.96
NAICS 72111 Hotels and Motels 352 64,598 4.41
NAICS 71399 All Other Amusement and
25 479
Recreation Industries 1.29
Sources: Info USA 2009, Location Quotient Calculator, 2009
The core tourism establishments include all businesses within the Amusement and Theme Parks
(NAICS 71311), Hotels and Motels (72111), and All Other Amusement and Recreation Industries.
ECONOMIC OUTLOOK DECEMBER 2009

2. (71399) sectors. The reasoning behind grouping these industries together is that they are the most
direct beneficiaries of the tourism trade. Exhibit 1 shows the location quotients and establishment for
these core sectors.
The Amusement and Theme Parks sector includes all establishments that operate attractions such as
Sea World and Disney’s Magic Kingdom. This sector has the highest location quotient in the County.
The Hotels and Motels sector includes short term lodging facilities without casinos. Finally, the Other
Amusement and Recreation industries include small commercial amusements such as mini golf
courses. Orange County has more than 310 core tourism establishments that are responsible for over
60,000 jobs.
Because of this situation, a second category call supporting industries was created. These industries
are very important because they provide specific services to the core industries. Supporting industry
establishments are responsible for another 66,000 jobs. Exhibit 2 shows the information for the
supporting industries with the highest location quotients.
Exhibit 2: Supporting Tourism Industry Sectors
Number of Estimated Number of Location
Industry Establishments Employees Quotient
NAICS 56159 Other Travel
27 2,203
Arrangement Services 14.96
NAICS 56152 Tour Operators 96 510 9.93
NAICS 56192 Convention and
70 1,305
Trade Show Organizers 8.78
NAICS 48551 Charter Bus 28 352 6.08
NAICS 44832 Luggage and
23 229
Leather Goods Stores 5.39
NAICS 53249 Other Machinery
3 14
Rental and Leasing 4.36
NAICS 424460 Fish and Seafood
4 229
Merchant Wholesalers 3.35
NAICS 485999 Other Ground
62 294
Passenger Transportation 2.03
NAICS 51821 Data Processing,
4 195
Hosting and Related Services 1.53
NAICS 7115 Independent Artists,
107 3,099
Writers, and Performers 1.83
NAICS 7111 Performing Arts
93 828
Companies 1.29
NAICS 72211 Full-service
1,786 43,107
Restaurants 1.21
NAICS 7223 Special Food
101 17,195
Services 1.11
Sources: Info USA 2009, Location Quotient Calculator 2009
Some of these industries cater specifically to visitors. Charter Bus establishments (NAICS 48551)
provide buses for hire without specific routes. Other Ground Transportation firms (NAICS 4859)
provide shuttle services between specific destinations. Establishments within the Tour Operators
(NAICS 56152) and Other Travel Arrangement Services (NAICS 56159) sectors sell services, such
as tickets and special vacation packages. The Performing Art Companies (NAICS 7111) sector
includes dinner theaters, dance companies, and musical groups.
ECONOMIC OUTLOOK DECEMBER 2009

3. Establishments within the following sectors probably benefit more from the local convention market:
Convention and Trade Show Organizers (NAICS 56192), Independent Artists, Writers, and Performers
(NAICS 7115), and Special Food Services (NAICS 7223). The first sector is responsible for organizing
business trade shows, conferences, meetings, and other events. Independent artists and performers are
individuals engaged in artistic productions or that provide technical expertise for these productions. This
sector includes costume designers, recording technicians, and dancers, among others. Finally, the
Special Food Services sector includes food service contractors and caterers that prepare food for
special events and trade shows.
Then there are other sectors that are not directly linked to the tourism industry, but benefit from it. These
sectors include Fish and Sea Food Merchants Wholesalers (NAICS 424460), Luggage and Leather
Goods Stores (NAICS 44832), and Full Service Restaurants (NAICS 7221). The high location quotients
for the seafood wholesalers and luggage stores hint that there are a higher number of establishments
within these sectors than what would be warranted by the local demand for their products. For example,
most of the luggage stores are located either within discount outlet stores or within commercial tourist
corridors in International Drive. In the case of seafood, it is plausible that some of the products are sold
to hotels and restaurants that cater mainly to tourists. While most restaurants cater to the local
population, this sector benefits from visitor spending and are an important component of the local tourist
districts.
To study the Data Processing, Hosting, and Related services (NAICS 51821) and Other Machinery
Rental and Leasing (NAICS 53249) sectors, staff only selected the establishments that were most
directly linked to the tourism industry. This explains the low number of establishments within these two
sectors. The four data processing and hosting companies provide multimedia services that help to
attract new visitors. The rental and leasing companies help with renting props or designing sets.
Even though the retail industry activity is likely affected by visitor spending, its employment numbers
were not included, because it is very difficult to separate the impact that tourists have on commercial
demand versus that of the local population. According to the BLS, in 2008, Orange County had over
69,000 jobs in this sector, and the location quotient was 0.82. This means that our current retail sector
may not meet the current demand from Orange County residents. Besides Luggage and Leather Goods
Stores, there were only four retail sectors with a location quotient higher than 1.5. These were Shoe
Stores (NAICS 44821), All Other Miscellaneous Store Retailers (NAICS 45399), Family Clothing Stores
(NAICS 44814), and Cosmetic and Beauty Supply Stores (NAICS 446120). However, the County does
have some significant commercial developments that cater to tourists, such as Prime Outlets, the
Florida Mall, and the Mall at Millenia.
Concentration of Tourism Activity
Identifying tourism activity clusters is challenging because, unlike nurseries and simulation companies,
there are accommodation and food service establishments all over Orange County. This is specially true
along highly traveled commercial corridors such as Colonial Drive, Semoran Boulevard, and South
Orange Blossom Trail. However, three areas within the unincorporated Orange County stand out
because of their high concentration of core and supporting tourism establishments (Exhibit 3).
The first area follows Interstate 4 from the City of Orlando to Lake Buena Vista and is the biggest of the
clusters. This area includes properties along International Drive, Universal Boulevard, and Sand Lake
Road. This area is home to the Orange County Convention Center, several convention hotels, and
commercial amusements. The area boasts over 130 restaurants, some of them located in “Restaurant
Row”, a development of fine dining establishments in Sand Lake Road. This cluster probably serves
both convention and leisure visitors.
ECONOMIC OUTLOOK DECEMBER 2009

4. A second cluster has formed at the intersection of State Road 535/S. Apopka Vineland Road and Palm
Parkway, near Lake Buena Vista. This area benefits from its proximity to one of Downtown Disney’s
entrances. The area is mainly home to hotels and restaurants, and the predominant customer base in
this area is probably leisure visitors who want good access to the Disney theme parks. Most of the
parcels in the area have an Activity Center Mixed Use future land use.
Exhibit 3: Clusters of Tourism Activity in Orange County
3
1
2
Source: InfoUSA, 2009
The third cluster is along S. Orange Blossom Trail, between Oakridge Road and the S.R. 528. This is
an interesting area, because it is mainly composed of industrial uses and hotels that serve either the
airport or the Florida Mall, a destination in itself. Most of the restaurants in this area are fast food chain
restaurants that probably serve a high volume of commuters. The area is home to over 25 supporting
establishments that are not restaurants, such as convention and trade show organizers, tour operators,
promoters, and transportation providers. Most of them are located in Orlando Central Park, an older
ECONOMIC OUTLOOK DECEMBER 2009

5. industrial subdivision. These companies probably locate here because of the area’s location near the
Convention Center and lower rental rates. Indeed, south of S.R. 528, there are about 20 additional
supporting companies.
Conclusion
Tourism is and will continue to be Orange County’s most important economic sector. It does not only
positively impact core industries, but it also has an effect on a variety of industries within the retail and
service sectors. Orange County should continue to support this industry and help it to face the
challenges and remain competitive.
The biggest current challenge to the local tourism industry is the global recession. After increasing
steadily for the past seven years, the number of annual visitors has started to decline. Hotel stays and
tourism tax revenues have continued to drop during the past couple of months. The current economic
conditions are a worldwide phenomenon that will constrain the tourism industry over the next couple of
years. Competition, both national and international, is another concern, but Orange County does have
the physical and human infrastructure to compete in the world market. The vitality of the current tourism
cluster is very important to our competitiveness. The concept of “theming,” or creation of place identity,
is very important to the tourism industry, and both the International Drive and State Road 535 clusters
excel in this concept. The Sand Lake Road area could probably benefit from this approach, especially
near South Orange Blossom Trail, where the land use pattern transitions to an industrial area. The
redevelopment of some of these areas could be achieved by attracting more supporting industries
related to the convention and entertainment industries, which would benefit the most from the area’s
location.
References
Associated Press. Visits to Florida Fell in 2008. Florida Trend [online version]. Originally
published on February 17, 2009. Retrieved November 17, 2009 from http://floridatrend.com/article.asp?
aid=50576
Bureau of Labor Statistics, U.S. Department of Labor. 2007 Location Quotient Statistics for
Orange County. Retrieved on November 20, 2009 from http://data.bls.gov LOCATION_QUOTIENT/
servlet/ lqc.ControllerServlet
Info USA Database License Group. (May, 2009). Orange County Business Leads Report.
Office of Management and Budget. (2207). North American Classification System. Lanham:
Bernan
Orlando/Orange County Convention and Visitors Bureau. Travel to Orlando. Retrieved at
http://www.orlandoinfo.com/research/visitors/volume.cfm
Orange County Growth Management Department
Planning Division Issues Month of Publication
Research & Intergovernmental Coordination Section
Post Office Box 1393
Orlando, FL 32802-1393 Health Care and Biotechnology January
Telephone: 407.836.5600
Conclusions March
Fax: 407.836.5862
E-Mail: planning@ocfl.net
ECONOMIC OUTLOOK DECEMBER 2009