Item O3
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: 3/15-16/00
DIVISION: COUNTY ADMINISTRATOR
BULK ITEM: NO
DEPARTMENT: COUNTY ADMINISTRATOR
AGENDA ITEM WORDING: Presentation by The Market Share Company concerning the End of the Year Publication.
ITEM BACKGROUND: The Market Share Company will provide the BOCC with an update on the End of the Year
Publication.
PREVIOUS RELEVANT BOCC ACTION: Contract with The Market Share Company approved January 19, 2000.
.,
STAFF RECOMMENDATION: N/A
TOTAL COST: N/A
BUDGETED: N/A
COST TO COUNTY: N/A
REVENUE PRODUCING: N/A
AMOUNT PER MONTH !YEAR:
APPROVED BY: County Attorney N/A
OMB/Purchasing N/A
Risk Management N/A
DIVISION DIRECTOR APPROVAL
~:L~
JAMES L. ROBERTS, County Administrator
DOCUMENTATION: Included
To Follow
Not Required XXX
AGENDA ITEM #
I~
DISPOSITION:
THf [W~!~~~K~WN
RECEIVED
February 29, 2000
MAR ... 2 2000
Mr. Jim Robers
County Administrator
5100 College Road, Room 212
Key West, FL 33040
I
COUNTY ADMIN1STRA~
Re: Cuba Committee of the Monroe County Tourist Developrnent Council
Dear Mr. Roberts,
As you are aware the Monroe County Tourist Development Council's Opening of Cuba Comrnittee
released their report on August 10, 1999. The report defined the objectives of the committee as two
fold:
1. To identify the potential impacts of the opening of Cuba on Monroe County (Florida Keys)
2. To position our marketing strategy to the opening
The report also recommended a follow-up to their report that subsequently resulted in two further
rneetings involving pertinent representatives as listed on page 14 of the report enclosed.
It was the consensus of the participants that a broader based committee be established that can
discuss, research and interact with the business community and governmental agencies on the
possible impacts of the opening of Cuba. The members felt that the following representation should
be established:
Cuba Committee:
,
,
Voting Members:
· 5 charnbers of commerce (1 representative from each charnber)
· 1 TDC representative
· 1 County Comrnissioner
· 5 City Cornrnissioners (1 from each municipality - Key West; Marathon; Key Colony Beach;
Layton and Islarnorada)
Resource Personnel:
. 1 City Manager
· 1 County Adrninistrator
.. 1 State Representative
· 1 Federal Representative
.. ./2
P.O. Box 866, Key West, Florida 33041 U.S.A. (305) 296-1552 Fax: (305) 296-0788
http://www.fla-keys.comKeysSales@aol.com
.../2
The meetings will be open to the general public, as well as all the constituents of business and
government including the US Navy and US Coast Guard. The meetings will have a workshop format
with possible task force members assigned to certain projects.
The County is a key stakeholder in the event of the opening of Cuba. Your input is a welcome and
valuable resource in our research and development of a comprehensive plan for Monroe County.
We encourage the County to appointment a representative to attend our upcoming rneeting to share
the views and insight. The meeting is scheduled for March 21, 2000, 1 :00 p.m. at Harvey
Government Center at the. Historic Truman School, 1200 Truman Avenue, Key West.
Please call the Administrative Office and advise us of your representative so that we may provide
meeting information directly.
Thank you in advance for your consideration and we look forward to your participation.
Yours very truly
~~~~
M.t
Robert Padron
Chairman
Opening of Cuba Committee
Monroe County Tourist Development Council
"
I
Attachment - Opening of Cuba Report
The Opening of Cuba Committee met on March 9, 1999 for the
first time and defined the objectives of the committee as two
fold:
1. to identify the potential impacts of the opening of Cuba
on Monroe County (Florida Keys)
2. to position our marketing strategy to the opening.
The dates of the committee meetings were: March 9, 1999;
March 30, 1999; April 19, 1999; May 10, 1999 and July 26th,
1999.
Mr. Robert Padron, Chairman
TDC
Key West
Mr. Jim Johnson
Tinsley Advertising
Miami
Mr. Bob Lehman
Holiday Inn La Concha
Key West
Ms. Nance Frank
he Gallery on Green
Key West
Mr. Scott Marr
Marina Del Mar
Key Largo
Cuba Report
TOC CUBA COMMITTEE
MEMBERS
Mr. Greg McGrady
Key West Information Center
Key West
Mr. Russ Teall
TDC
Marathon
Mr. Andy Newman
Stuart Newman Associates
Miami
Mr. Bob Tracy
Key West
Mr. Ed Block
Key West
Mr. Harold Wheeler
TDC Director
Florida Keys & Key West
Mr. Fred Salinero
Key West
Captain Jim Sharpe
Sea Boots Outfitters
Big Pine Key
Ms. Gloria Teague
Lady Cyana
Islamorada
Background
Source:
Visit Florida - Report:
Tourism Potential of Cuba
February, 1999
1. Cuba is a formidable player in the Caribbean tourisrn arena. Arnong other data supporting this
are the following points:
· Hosting 1,400,000 visitors in 1997.
· Fourth rnost visited Caribbean destination in 1997.
· Receipts of US$ 1.7 billion from touristic spending on this island in 1997. (note that the
tourism industry standard is to measure expenditures in their equivalent in U.S. dollars.
2. Cuba has achieved this position in the international tourism arena through very rapid growth.
Arnong other data supporting this are the following points:
· Visitor volume went frorn 340,000 in 1990 to 1,400,000 in 1997, a span of only eight years.
· Tourisrn spending on the island went from US$ 243 million to'US$ 1.7 billion over the sarne
eight years.
· Hotel roorn inventory increased two and one-half tirnes during this sarne period, from
13,000 roorns in 990 to 32,000 in 1997.
3. Cuba overcame a tremendous obstacle in reaching these levels, which are the restrictions placed
on Americans traveling to Cuba. Data supporting include:
· In 1997, Cuba was the fourth rnost visited Caribbean destination, with only three percent of
its visitors coming frorn the United States. (A substantial number of those were likely to be
visiting friends and relatives in "extreme circumstances, II one of the few conditions
permitted by the U. S. government.)
Cuba Report
3
· The nurnber two Caribbean destination at that tirne, the Baharnas, attributed 81 percent of
its vi~ito.rs to Americans.
· The nurnber three Caribbean destination at that tirne, Jarnaica, attributed 67 percent of its
visitors to Americans.
· Early data for 1998 indicate that Cuba may have passed Jarnaica in total person-visits.
4. Tourisrn has risen to the dominant place in the Cuban economy.
5. Cuban tourism from its major overseas countries of origin appears to be peaking in some cases,
but appears capable of being sustained at those high levels.
6. The Cuban tourisrn product has been strongly rooted in one market, which is relatively low cost,
high value, all-inclusive package trips. .
7. Cuba is rapidly developing its tourisrn potential in rnultiple dirnensions. These include nature-
based tourisrn, heritage tourism, water sports, excursion travel, nostalgia and retro, cruise
passenger visits, business travelers, and excursionists (inter- and intra-Cuban).
8. Cuba is rapidly developing its tourism lodging sector through agreements with rnajor quality hotel
operators from several other countries.
9. Cuba is rapidly developing its air accessibility with over 40 airlines serving the island and with
rights already in effect for it to fly over United States territory on its route patterns. (Florida
appears to be excluded frorn these route patterns.)
10. Cuba is focusing its energies on tourism as the key econornic tool to improve the other sectors of
its econorny. Presently, tourisrn is the pathway to hard currency transactions. At the sarne time,
significant foreign investrnent is going towards tourism product.
11. Cuba tourisrn has been, an will likely continue, to receive publicity about its attributes
considerably out of proportion to its present American visitation and the lack of a clear horizon for
are-opening. Arnong other data supporting this are the following points:
Cuba Report
4
· Newspaper articles in travel sections of rnajor papers;
· Mag~zil1e articles in travel publications;
· Internet advertising readily available to Americans on tourism experiences in Cuba that
Arnericans can enjoy now and how to go about it; and, Heavy exposure to the American
travel industry
12. Cuba tourism has already made,significant inroads against rnajor international origin markets for
Florida. Among other data supporting this are the following points:
· 170,000 visitors annually from Canada;
· 87,000 visitors annually from Gerrnany;
· 48,000 visitors annually from the .United Kingdom; and
· 200,000 visitors annually from Spain.
13.ln general, the eight countries of greatest significance to Cuban tourisrn now are of extrernely
irnportant significance to Florida, among all the states that international tourists visit.
14. The data suggest that Cuba rnay have contributed to the stagnation of the Canadian market to
Florida, rnay be threatening the Gerrnan rnarket to Florida, and may be irnpairing Florida's ability
to increase visitation from Italy and France. A conservative estimate that potential Florida visitors
could have been found with 15 percent of the Cuban visitors frorn a set of seven major origin
countries, coupled with 50 percent of the Canadian visitors to Cuba, would irnply an unrealized
potential of 160,000 visitors to Florida at present.
15. Cuba is presently focusing its efforts on tourisrn expansion on the anticipation of Americans being
able to travel to Cuba without legal restrictions. Cuba forecasts one rnillion Arnerican visitors
within the first twelve rnonths of a re-opening of relations. This appears to be an achievable
goals.
Cuba Report
5
16. The difficulty will be in the race to balance the development of the Cuban infrastructure, the
attractiveness Of the island with respect to socioeconomic conditions, and the increase in
visitation. If the visitors come faster than the other two cornponents, increases from new
(Arnerican) tourisrn may be short-lived, This is a prevalent hypothesis on the side against an
anticipated significant irnpact frorn a re-opening of tourisrn possibilities from the United States.
Yet, on the other hand, Cuba has seen significant gains in visitor volume from Canada, France,
Germany, Italy, and Spain, despite these drawbacks.
17.American interest in a Cuban vacation is surprisingly high right now, considering the restrictions
on Arnerican travel to Cuba, Arnong other data supporting this are the following points:
· VISIT FLORIDA's interviews with. travel professionals indicates a sense of pent-up demand
and quick sales when the island re-opens.
· VISIT FLORIDA's interviews with Hispanic-Americans indicates a strong interest from a
rnarket segment that could explore this island easily in the early days of are-opening.
· VISIT FLORIDA's national telephone polls indicate that about 41 percent of Arnericans
have an interest in taking a vacation in a re-opened Cuba, with a higher level of 51 percent
arnong Arnericans who vacationed in Florida in the past year.
18. Two tourisrn positioning advantages for Cuba will be marine tourism and cosmopolitan tourisrn.
· With respect to rnarine tourisrn, Cuba is developing the docking capacity to handle an
influx of Arnerican pleasure craft. Cuba will be an exciting trip for Arnerican "boatrnen" with
craft of 40 feet in length or greater, in about a day's journey frorn Key West.
19. Because Americans have not been able to go to Cuba, tourism there has developed with a
distinctly international flavor. This includes the rnix of visitors already going there; it includes the
brands of lodging available, and it includes the types of hospitality services the visitor encounters.
This is unlikely to change when Arnericans start corning, save for the opening of a few rnore
Cuba Report
6
distinctively Arnerican retailers. The result rnay be like a Montreal to the south: relatively close to
the United ~tat.es, yet providing a distinctly international and global flavor to its tourism.
20. The data support strategic marketing actions by VISIT FLORIDA, leading the Florida tourism
industry, to leverage a re-opening of tourisrn by Americans to Cuba for the benefit of Florida
tourism, wherever possible, when that re-opening occurs. For exarnple:
· Marketing pre- or post-Cuba trips in Florida s the place connecting travelers to their flights.
· Marketing pre- or post- cruise packages in Florida for .cruise passengers whose journeys
include a port of call in Cuba.
· Marketing regional excursions that include Florida and other Caribbean destinations.
Cuba Report
7
FINDINGS
The comrnittee felt that the impacts to Monroe County from the opening of Cuba to the United States
should be analyzed as possible negative and/or positive influence and categorized as controllable or
uncontrollable by the policies of the TOC.
A. Possible Negative influences:
1. traffic - this could be one of the most negative irnpacts to the opening of Cuba for the
County. Whether we are able to establish a positive rnarketing position for the Keys or
Cuba booms with US/South Florida visitors, traffic through the Keys will have a sizable
increase. The only controllable condition for the TOC is how we position our marketing.
Sorne traffic could be controlled by a toll or regulating the ferry service schedules.
2. Stress on existing infrastructure. The increase in traffic and visitors will effect cornmunity
streets, parking areas, public facilities. For the TOC, marketirlg would be the only
controllable factor.
3. environmental issues - concern for responsible development decisions in and around
sensitive lands. Uncontrollable factor for the TOC.
4. Competitive effect on lodging AOR - there could be a short terrn effect on our lodging
accornrnodations' average daily rate. If Cuban accomrnodations have a lower overnight
rate, potential visitors may choose a Cuban stay over the Florida Keys.
5. Parking - at this point Key West is the rnost effected by the parking issue. The ferry service
is not adding available parking for trips to Cuba. If other Keys locations develop a ferry
service, they will need to include parking to their plans. Uncontrollable factor for the TDC.
Cuba Report
8
6. Impact on cruiseship industry within Key West - with the opening of Cuba, the possibility
that cruiseships may change their route direct to Cuba instead of Key Wet. Cuba rnay
increase cruiseship service so to establish floating lodging accommodations for sustainable
infrastructure to the tourism industry. Uncontrollable factor for the TOC.
7. US curiosity seekers - as-soon as Cuba opens to the United States, US visitors will be very
curious and eager to travel to the island. A lot of visitors would like to see Cuba before it
becomes too Americanized. This curiosity could be a major irnpact on our visitation.
Uncontrollable factor for the TOC.
8. Port Authority - the departures and incoming boat or ferry customers will be more than the
Key West airport capacity, The control and rnanagernent of these services along with
Customs, will be important. Uncontrollable factor for the TOC.
9. Air travel - May cause increased pressure on limited seats - ferry passengers would/could
burnp long term stays; dernand would increase airfares impacting value to dollar ratio
forcing AOR downward.
10. These impacts could effect the friendslrelatives of residents travel to the Florida Keys. A
large segment of visitors to the Keys make up this market and could have an economic
impact to the County.
Cuba Report
9
B. Possible Positive Influences:
1. Economic opportunities - the opening should contribute to econornic opportunities with the
development of new jobs such as the comrnercial fishing industry, marine repair, cigar
industry, ferry services, customs and irnporttexport industries. Uncontrollable factor for the
TOC.
2. Marathon Airport - the Marathon Airport should increase flights and service into Marathon
and to Cuba with new commercial, chartered and private airlines. The airport could be
used for other travel related services. Uncontrollable factor for the TOC.
3. Marketing Opportunities - markettng programs such as packaging, tours, special events,
excursions, inter-Cuba advertising will be established. Other rnarketing opportunities will
be outlined within the marketing position portion of this report. This is a controllable factor
for the TOe.
4. Port Revenues - the City, County and State will benefit from port fees frorn departures and
incoming visitors. Uncontrollable factor for the TOC.
5. Labor force - based on how Cuba opens to its own residents, will deterrnine whether there
rnay be an opportunity to have a increased labor force to our industry from Cuba.
Uncontrollable factor for the TOC.
Cuba Report
10
RECOMMENDATIONS
I. In identifying the potential impacts to Monroe County, it was obvious that traffic in all modes,
could be a rnajor issue to address within our report to the TOC. Therefore, we recommend that a
traffic document be developed that would include the following:
a. vehicular - state, county and city governments need to survey and review traffic flow
throughout Monroe County.
b. air traffic - review of carrying capacity of airports. Which airport would handle air flight to
Cuba? Should we be positioning ourselves at this time for air service? We should re-open
negotiations with Navy to open Boca Chica to charter flights.
c. cruiseship, ferry services, boats - the City of Key West needs to review commitment of
cruise industry to Key West. Will ships change course to dock directly in Cuba instead of Key
West? How many ferry services will be allowed to operate? How many daily trips and
passenger loads will be established? How will ferry services irnpact vehicular traffic and
parking? What type of facilities will be available to private boats coming and going to Cuba?
How will Custom services operate with private boats?
d. Parking - the City of Key West already has a parking issues and how will the increase in
traffic and visitors impact current parking conditions? Where will ferry service customers park?
If another Keys location such as Marathon was to develop ferry services, how would parking
be addressed as part of the developrnent?
e. Maximizing of the Key West Airport - the airport is already operating at near capacity. Can
the Key West Airport handle added air flights to Cuba? How would other flight schedules be
effected?
f. Optirnizing the use of Marathon Airport - the airport has the capacity toJncrease operations.
Adding cornrnercial and chartered flights should be considered.
Cuba Report
11
II. The'second objective of the comrnittee was to establish or position our rnarketing strategy to
the opening of a free Cuba.
The TOC must take a pro-active position and not allow the Florida Keys to becorne a drop off or lay-
over destination to Cuba. The TOC staff and agencies of record should be prepared to develop
marketing programs with the following marketing strategy positioning points:
· marketing the 'two-nation~vacation' package where visitors stay in the Keys a number of
days with an excursion trip to Cuba. This positioning allows us to promote Cuba as being
just a short trip away from any of our locations through the Keys. The Florida Keys being
the Caribbean that you can drive to with a short air shuttle or ferry trip to Cuba,
· promoting heritage/cultural tours planned for both Cuba and the Florida Keys, Guided
historical and cultural tours through the Florida Keys and the streets of Havana would
make wonderful sightseeing prornotions.
· prornoting boating trips to the Florida Keys and over to Cuba.
· promoting fishing trips and tournarnents based in the Florida Keys, but into the waters
surrounding Cuba, and visits to the Cuban marinas.
· prornotion of special dual destination events. The Cuban American Heritage Festival,
Hemingway Days or Fantasy Fest could include excursions to Havana or'have a Cuban
therne to the festivals.
· the prornotion of air service frorn our airports to and from Havana.
· to promote the Florida Keys frorn within Cuba to locals and foreign visitors to Cuba.
Possible advertising available on billboards and local Cuban publications.
· to prornote possible marketing alliances with Cuban businesses and tourisrn officials.
Certain lodging accornmodations and attractions rnay want to develop alliances for the
purpose of packaging, and sales staff rnay co-op with Cuban sales on'trade shows.
Cuba Report
12
Our public relations agency would develop an editorial campaign that would include travel writers,
press releases, supported sales promotions, and other related publications rnarketing techniques to
develop an image and awareness of our destinations.
The following are areas of concern for issues that the governments of record (city, county, state or
federal) should address at this time~
1. A traffic document needs to be developed to address. the areas of concern within this
report.
2. City and County governments should review and consider action on how to regulate ferry
services to and from Cuba. This.may effect traffic throughout the Keys.
3. City of Key West needs to survey the cruiseship industry to determine direction for possible
increase or decrease of activity into our port of call.
4. County needs to prepare a plan of action on how airports will respond to possible increase
air service development - commercial, charter and private.
5. City of Key West and County need to consider how to handle parking issues within the
areas of port services and how their policies impact other parts of the Keys.
6. We need feed back from state and federal agencies on how Custom Services are
preparing and how operations will expand. How will operations effect the flow of
consurners, ferry, boats and air traffic?
7. We need to organize an operations meeting with city, county, law enforcernent and
industry officials to review and prepare the Florida Keys for this event.
Cuba Report
13
The committee suggests, upon the acceptance of the report by theTDC, that it be distributed but not
Iirnited to the following for information purposes, The committee also recommends that we review,
update and follow-up within forty five (45) days with all pertinent representatives in a joint meeting.
1. District Advisory Committees
2. TOC website
3. media releases
4. County, City governments
5. regional state representatives
6. tourism industry
a. all chambers of commerce
b. Key West Hotel and Motel Association
c. Key West Innkeepers Association
d. Key West Business Guild
e. Key West Attractions Association
f. Heart of the Keys Tourism Association
Cuba Report
14
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