Orlando has long been distinguished as an iconic vacation destination by continuing its ranking as the number 1 destination in the United States, according to Visit Florida.

Since 2013, Orlando has reigned as the nation’s “Most Visited Tourist Destination.” With multiple factors driving Orlando’s appeal, hotel investors and developers are curious as to what is on the horizon for the hospitality market in Central Florida.

With a variety of hotels and attractions in the Metro Orlando pipeline, and major international brands continuing investment in the market, the metrics point toward continued success in 2020 and beyond.

Orlando's $75.2-billion tourism industry is the region's dominant economic engine, drawing 75 million-plus visitors annually. With visitation up 4.2%, domestic visitation grew to 68.55 million people, up 4.1%, while international visitation grew to 6.48 million, representing a 5.4% annual gain.

Source: HVS, STR & Visit Orlando Market Research and Insights Department
Note: The National Travel & Tourism Office, Dept. of Commerce, methodology change in 2015.

Combined passenger traffic at the Orlando International Airport (MCO) surpassed 50 million passengers for the first time in 2019, up 6.11% over last year. Domestic travel increased 5.7%, while international passenger volume was up a strong 8.4%.

With more than 50.6 million annual passengers, MCO is the busiest airport in Florida and the tenth busiest in the U.S. According to the Greater Orlando Aviation Authority, the airport is currently engaged in a $4.2-billion capital improvement program to increase capacity and enhance customer convenience.

Most notably, Phase I of the improvement project will include the $2.8-billion South Terminal, set to debut in late 2021. The new, state-of-the-art facility will add 19 new airline gates to accommodate up to 27 aircraft, including narrow body, jumbo, and super-jumbo jets. These planned improvements should allow MCO to handle traffic increases moving forward.

Orlando International Airport Statistics - Annual Percentage Change

(1) 12-month rolling through December 2019
Source: Greater Orlando Aviation Authority

According to official statements, the September termination of flight service by Thomas Cook Airlines notably affected volume at MCO in 2019. The airline, which had served MCO since 2014, averaged between two and sixteen flights per week, depending on the time of year. Thomas Cook offered service between Orlando and destinations like Manchester, London, and Glasgow.

The loss accounted for 12,000 of the 30,000 fewer seats into Orlando International when compared to November 2018. Domestic seat capacity, however, increased by 6.8%, with an additional 268,000 seats available year-over-year.

As the United States’ most visited destination, Orlando theme parks offer some of the most desired attractions in the world.

Read the full report here