Amelia Island tourism stays strong, but officials watching late-summer booking slump

By Mike Lednovich/Editor

FERNANDINA BEACH — After months of outperforming expectations, Amelia Island's tourism industry is showing its first signs of slowing as hotel bookings for August and September trail last year's pace by more than 20%.

The late-summer outlook was the primary caution raised Monday during the Amelia Island Tourist Development Council meeting, even as officials reported tourist development tax collections remain well ahead of budget and above last year's levels.

"Here's where we see the concern is August, hotels specifically, and September, hotels both down over 20% booking pace," Director of Research and Analytics Nate Aaron told the council. "So that's something to really be — keep our eye on."

Despite that concern, Amelia Island continues to enjoy a strong fiscal year having generated almost $8.2 million in bed tax revenue.

"If you look we are 8% above our budgeted amount," Aaron said. "Year-over-year, we're 3% above last year at this time. That's all assuming the May estimate here, at $1.2 million, is relatively accurate."

Aaron said tourist development tax collections continue to be evenly divided between traditional lodging properties and vacation rentals. "About 50% through vacation rentals and 50% through hotels, resorts, bed and breakfast."

He credited strong average daily room rates for much of the revenue growth.

"Daily rate has really been a star of keeping us on pace for our TDC collections and revenue," Aaron said. "Hotels are... getting that rate at $332 average daily rate. That's up 6% over last year. And vacation rentals... also maintaining... up on last year's number at $285."

Vacation rentals continue to outperform hotels despite a growing inventory.

"Vacation rentals really outperforming last year," Aaron said. "With that said, they even had an increase in supply. So not only are they keeping up with the increase in supply... that and then some. So that's really great to see."

The outlook for July also remains positive.

"The week of July 4th... we are considerably up, at least our pace is up from last year at this time," Aaron said. "Hopefully, we can win this 4th of July as a peak weekend."

He added that "July we're looking great, as far as room nights are concerned," with hotels pacing 9% ahead of last year and vacation rentals up 4%.

The concern begins as schools reopen and Amelia Island enters its traditional shoulder season.

"The majority of schools return... right there at the beginning of August, which kind of starts that shoulder season," Aaron said. "Right now, we're pacing — it's not really on people's radar right now for booking. We're pacing a bit behind for that September date."

The council also discussed changes in the island's lodging inventory.

Aaron said the new 95-room Holiday Inn Express opened about a month ago, although its impact is currently offset by the temporary closure of the Ocean Coast Hotel during a major renovation.

"Holiday Inn Express, 95 rooms, went live about a month ago," he said.

"And of course the Ocean Coast Hotel, which is over 100 rooms, they're closed right now for a full renovation. So, it kind of offset right now, but once Ocean Coast comes back online, we'll have another 100 rooms in supply."

Aaron said the Convention & Visitors Bureau is continuing to transition to a new financial reporting system, with more detailed budget reporting expected in future monthly updates.

"We're going through that transition phase," he said. "As we're working into new buckets, everything will come into focus."