Year: 2012

Record Breaking Tourism Month for May

Summer tourism is off to an explosive start with May’s bed tax revenue numbers literally smashing the mild record that was set last year. Total collections for May of 2012 were $1,409,032.20, whereas the total collections for May of 2011 were $1,127,340.30. This equals a 24.99% increase and provides the local tourism industry clear support for another record breaking summer.

Bed Tax, or officially known as the Bay County Tourist Development Tax, is a tax on revenue generated from tourism accommodations rentals.

Read here to learn more about the Bed Tax.

Let’s look at the numbers.

May of 2011 was a weird month. Many had high expectations, yet many others were very leery as we were still distancing ourselves from the devastating impact that the Deepwater Horizon Oil Spill left us with in the tourism season of 2010. Tourism numbers were up last year (2011) over the year before (2010), but only slightly (4.8%).

For May of 2012 (this May), everyone’s hopes were high, but expectations weren’t, necessarily, since April had been such a lackluster month (seeing a paltry 4.45% gain 2012 over 2011).

But, putting all speculation aside, May turned out to be phenomenal and we have the numbers to prove it.

  • May of 2009: $998,779.40
  • May of 2010: $1,075,882.69 (7.7% gain)
  • May of 2011: $1,127,340.30 (4.8% gain)
  • May of 2012: $1,409,032.20 (24.99% gain)
The numbers from Panama City Beach Luxury Properties

Being in the tourism business, I have the great luxury and benefit to have a real picture of what we are seeing. Now, grant it, occupancy stems from a variety of factors that carefully work together, including type of rental, marketing acumen, exposure and environmental circumstances.

Since we’ve experienced dramatic growth over the last 18 months, looking at raw numbers year over year would be misleading. So obviously we’d need to do a unit by unit average. And I’m not sure if it’s considered social acceptable or even ostentatious to disclose how many total vacation homes we manage, so I’ll just leave that number out. But, if you were really curious, you could always just go to our vacation rental website and count them. 😉

Please note: these numbers are an average across the board, and include properties that may or may not perform equally during all tourism periods.

May of 2011

  • Total average: $843.30
  • Highest performing unit: $2928
  • Lowest performing unit: $182

May of 2012

  • Total average: $1779.87
  • Highest performing unit: $5,233.75
  • Lowest performing unit: $603.09

Looking at our average revenue per unit, we had an astounding 111.06% increase in our average revenue generated per unit.

Again, this representation is extremely skewed, especially looking at the variety of rental units we host this year compared to last year. We have a large number of high-revenue properties because our flat rate management fee ($397 per month) lends itself very good to those owners (saves tons of money).

June’s bed tax revenue numbers should be out the first week in August, so expect to see some really fun numbers then as well.

What is the Bay County Bed Tax

We talk a lot about Bed Tax around here, because largely it’s a fairly accurate snapshot of the vitality of our tourism industry.  Bed Tax, or officially known as the Bay County Tourist Development Tax, is a tax on revenue generated from tourism accommodations rentals.  In other words, if a property charges $1000 base rent rate, there is an additional 5% bed tax charged on top of that, or $50, which is collected and managed by the Bay County Clerk of the Court and Comptroller, Bill Kinsaul.

What the bed tax is used for.

To understand what the bed tax is used for, we need to break down what every percentage is apportioned to.

The first 3 points are specifically designated to be used “for advertising and promotion of Panama City Beach, Florida as a tourist destination, beach cleaning and maintenance and product improvement of the area.”  Then “1% of the monies collected are dedicated to the beach renourishment project and for the on-going maintenance of the renourishment. [And]1% of the monies collected are dedicated to supporting low cost air service and promoting the area nationally and internationally.”

Further clarification from Dan Rowe, CEO of the Panama City Beach Convention and Visitor’s Bureau: “The third cent goes to beach renourishment. The 5th is for cooperative marketing with low fare carriers flying into ECP. The CVB is funded from the other 3 cents, as is beach maintenance, landscaping, etc.”

The original base bed tax rate was 3%, but it was increased to 5% in February of 2009 in what was a dramatic series of public workshops and meetings.  The decision went through a litany of discussions in boards that ranged from local home owner’s associations (whether they would support it) to Tourist Development Council meetings, with the ultimate decision being on the shoulders of the Bay County Commission.

Read the 5th cent increase article here. 

Originally determined in the county commission meetings in which the bed tax increase was proposed, the 4th cent increase had no “sunset clause” – meaning it would never expire.  The 5th cent increase had a sunset clause that was to expire its collection in April of 2013, however that sunset clause was removed this morning in a regularly held County Commission meeting.

At this point, the bed tax rate will remain at 5% indefinitely.

Foreclosures & Summertime Dreaming on The Beach Show


1.  Deal #1 is a Wild Heron Foreclosed bungalow for only $279,900
SEVERAL OFFERS ON THE TABLE AT TIME OF FILMING.
2,496 square feet, 3 bedrooms and 2.5 baths
Gated neighborhood of Wild Heron located on Lake Powell with amazing amenities
Fitness center, Kayaks, canoes, fishing, swimming pool, boat house, walking trails and 24 hour security
2. Deal #2 is a beautiful Gulf front community home for only $765,000
Summertime Dreaming is an amazing beach home with a guest house
Pool with beautiful architecture and landscape
Over 2,000 square feet and total of 4 bedrooms and 3.5 baths
Several walk overs to the beach with 3 pools and playground, tennis courts and 24 hour guarded gate
3. Deal 3 is move in ready GREAT investment condo for $224,900
EXCELLENT rental potential with a fully furnished Beachy Beach FUN
Beautiful pool with murals and great access to your beach front with excellent views
Near the water park making it a family fun spot

30A Sales Activity

What’s Going On in the 30A Real Estate Market?

Are statistics exciting or what? To some, me included, it is like watching grass grow, unless it happens to be about a subject dear to my heart or perhaps my wallet.

Recently there has been a lot of buzz in the area about how the market is going up and the doom and gloom is over. With that in mind I decided it was time to just take a look at the facts and see where things stand.

The area that I am concentrating on is the roughly 18 miles of the Hwy. 30A corridor. I am comparing the first 2 quarters of 2012 to the same period in 2011 (January 1 to June 30th). These numbers were generated from the Emerald Coast Association of Realtors and do not include properties that were handled outside of that format.

These are simply the facts and I will let you draw your own conclusions, but I do have a couple of observations.

It is apparent that sales activity is up as far as single family homes and residential land is concerned. Prices are also up in those 2 categories with 5.6% in price per square foot for homes and 10% for residential land. Time will tell if these increases are sustainable. Condominiums are a different matter, while sales have gone down the prices have gone up 7.3%. It’s possible sales have been affected by the financial market. Condominium mortgages continue to be problematic.

Well, the grass has grown a little since you’ve been contemplating this information. I hope you find it useful and welcome any suggestions you may have for additional research on this topic that affects all of our wallets.

*Statistics were compiled by Hugh Smith using data provided by the Emerald Coast Association of Realtors.

Beachy Beach Real Estate  850-233-4351

Panama City Beach July 4th Celebration Locations

July 4th is this Wednesday and in celebration of our country’s independence, there are a variety of fireworks displays to enjoy along the beaches of Panama City Beach.  Every year we’ve watched our local celebration grow as Pier Park has opened and more and more people flock to our beaches to commemorate the independence of our country.  And beginning last year, the Panama City Beach Convention and Visitor’s Bureau responded to the public’s request and sponsored fireworks displays at three different areas along our beaches: Russell Fields Pier (at Pier Park), M.B. Miller Pier (County Pier) and Grand Lagoon.

Fireworks Display Locations and Event Schedule

This year, the fireworks display will be at three different locations, simultaneously.

Along with the fireworks display, there is always a huge celebration at Pier Park.

Schedule

9:00 a.m. Veterans Celebration at the Veteran’s Memorial Park (adjacent to Aaron Bessant Park) Chairs will be provided for Vets and Families for the Morning Service.

7:30 p.m. POPS Performance in Aaron Bessant Park  — Bring your chairs, blankets and all the children.

9:00 p.m. Three Fireworks Shows all along the Gulf.  — City Pier, County Pier and Grand Lagoon.

History of Independence Day

Independence Day, commonly known as the Fourth of July, is a federal holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776, declaring independence from the Kingdom of Great Britain. Independence Day is commonly associated with fireworks, parades, barbecues, carnivals, fairs, picnics, concerts, baseball games, family reunions, and political speeches and ceremonies, in addition to various other public and private events celebrating the history, government, and traditions of the United States. Independence Day is the national day of the United States.

More information in Independence Day.

[VIDEO] South Thomas Drive CRA Complete

Short of a bit of landscaping and some finish work, the South Thomas Drive CRA is complete!  They’ve been working on this project since September of 2009 and regardless of delays, setbacks and disappointed expectations, the improvements look awesome.  So, before you start flaming off in the comments about how you know how to run a project of this magnitude so much better and how if YOU were running it it would have been all perfect, just go take a drive through there and enjoy it.  It’s really fantastic.

I won’t spend a whole lot of time walking you through what they did, as we’ve discussed that in great length here, here and here – so let’s get right to the video!

Florida Beach Flag Warning System

Panama City Beach is known as having some of the most beautiful beaches in the world.  And if you’ve done some traveling, you know this to be true.  Emerald green waters, crystal white sand and normally calm waters draw people here from all over the country.

However, when dealing with mother nature, water conditions can change quickly and create rough conditions fast.  Undertow, rip currents and large waves all pose a threat to our safety and unfortunately many lives have been lost to compromising surf conditions.

The Uniform Flag Warning System was standardized in 2005 by the Florida Legislature to enact a standard system that was consistent in all of Florida’s beaches.  Knowing that tourists often go to a variety of beaches in Florida throughout the year, a system that was the same everywhere was necessary to avoid confusion.

The flags and their meanings.

Double Red Flag: Water Closed to Public

A double red flag indicates water and surf conditions that are unsafe for the public.  When double red flags fly, water entry access is closed and is enforces by local law enforcement.

These conditions often include rip currents, strong undertow and heavy and choppy surf that is life threatening.  However, the presence of a double red flag doesn’t specifically indicate any or all of the above conditions, it just stipulates that the waters are closed.

Single Red Flag: High Hazard

When a single red flag is flying, it is advised that the public does not enter the water but does so at their own risk.  Single red flag conditions include high surf and/or strong currents

Yellow Flag: Medium Hazard

Yellow flags flying indicates moderate surf and/or currents and that the water should be entered with caution.  Usually during yellow flag conditions it is considered safe to enter the waters, but like always, you’re encouraged to be safe.

Green Flag: Low Hazard

Green flags indicate calm conditions.  The water is usually flat during green flag conditions.  I liken green flag conditions to swimming in one great big, salty swimming pool.

Purple Flag: Dangerous Marine Life

Dangerous marine life can range from jelly fish to sharks and all varieties in between.  I’ve only seen that flag flown a couple times here but have read it’s flown regularly in south Florida.

Warnings everywhere.

The State of Florida and local tourism officials circulate beach flag warning signs and have them posted at public beach access points.  The sign graphic is publicly available for hospitality partners to use to warn their guests and the sign magnets can be found all over the place.

With Panama City Beach Luxury Properties, we had our own magnets designed and placed in our condos.

Leave No Trace, What it Means to You (Tent Ordinance)

A couple weeks ago the Panama City Beach City Council passed an ordinance dubbed Leave No Trace that prohibits beach goers from leaving personal property on the beach overnight.  Also known as the Tent Ordinance, the initial goal was to eliminate the left over tent skeletons that sometimes seem to pollute our shimmering white sands.

What the ordinance includes.

Specifically, the ordinance states that personal property left on the beach between the hours of 9 pm and 5 am will be considered abandoned and will be disposed of.  Some of these items may include tents, chairs, coolers, towels, etc.

On public beaches or with the upland landowner’s permission, guests may store personal property overnight at the Toe of the Dune at their own risk.

The Toe of the Dune is the area of the beach immediately seaward of the dune and beach vegetation. To be specific, it is the area of the beach that is furthest from the water that is not in a sand dune or beach access point.

Items left at the Toe of the Dune will not be removed by the contractor.  However, the owners of the personal property storing items at the Toe of the Dune, do so at their own risk. The County, City, TDC and its beach maintenance contractor, do not assume any liability for any items left on the beach after 9:00 pm.

When does the ordinance take effect?

The ordinance is in effect now.  However, it’s not being enforced until Sunday, July 8, 2012. Local officials and the Convention and Visitor’s Bureau are getting the program prepared and beginning an awareness campaign so no one’s caught off guard.

How will the program work?

Each evening the beach maintenance contractor will travel the length of the beach and remove any items from the beach that are in violation of this ordinance.

The contractor may issue courtesy warnings for items left on the beach as they begin the implementation. When a courtesy warning is issued the material will be tagged informing the owner of the ordinance and the intent to remove the item the following evening if it is not removed.

However, officials are saying these warnings are a courtesy and that the contractor may remove any item from the beach whether or not a prior warning has been issued.

The release states that there may be times and circumstances that the contractor is unable to remove items from the entire length of the beach in a single evening.  This inability to fully enforce the ordinance will not change or prevent the contractor from removing the items the next evening without notice.

BREAKING: Tropical Storm Debby and Panama City Beach [Updated]

If you’ve been to the beach in the last 24 hours, you’ve seen the increase in wave activity and noticed the double red flags.  Tropical Storm Debby is churning in the Gulf right now and is giving forecasters little hint as to where she’s going.

I’m going to use this post to keep us up to date on important information as to where she’s going, what she’s doing and what we need to do about it.

First off, I keep an eye on a couple places to make sure I know what’s going on:

Current Status

UPDATED 6-26-12 1940 cst

Whew!  That was a close one.  Initial reports had Tropical Storm Debby Downer lingering until Friday of this week.  But with a little westerly wind the storm moved to the east and off of us yesterday afternoon allowing the sun to peek out for a bit before sunset.

Today was beautiful with nary a sign of the previous day’s storm that threatened vacations all up and down the beach.  I’ve found a few isolated signs of wind damage and a few lingering puddles, but overall our area fared well, and we can get back to enjoying the beach.

The water is still brownish looking and I personally am predicting it to return to the normal emerald green by week’s end just in time for the July 4th week!

UPDATED 6-25-12 1515 cst

Things have changed quite a bit since yesterday evening.  The projection has changed, the storm’s begun to move and it’s picked up speed!  Currently it’s moving northeast at 5 mph and projections are putting it towards the coast of Cedar Key by Wednesday morning.  Hopefully the rain will be gone from here by then.  Currently the wind speed is around 45 mph and it’s traveling at 5 mph.

One of the things that has been extremely challenging here is the direction in which the rain is coming – from the northeast.  The rain has been blowing in sideways hitting the back side of condominium buildings and causing front doors to leak all up and down the beach.

If you’ve been out to the beach, you’ll notice things have calmed down a lot.  While double red flags are still flying (and waters are NOT SAFE to enter), the surf looks much more calm.

Around town, there are visible signs of wind damage in some areas, although light, and there still remains a Tropical Storm Warning from Destin to Englewood Florida.  Areas west of there have been cleared.

AGAIN – keep an eye on the links above as they’ll have up to the minute updates on what this thing is doing.

  • Location: The eye is 125 miles from Panama City Beach, lat/long – 28.4, -85.8
  • Wind Speed: 45 mph
  • Direction: Heading northeast at 5 mph
  • Bay County Warnings: [Tropical Storm Warning] from Destin to Englewood Florida. 
Current Satellite Image

From NOAA

What we should do to prepare.

Being a vacation rental property manager in Panama City Beach, I have a variety of concerns with a Tropical System comes our way.

Are we safe?

Right now, we are.  But this could change over the next couple hours/days.  The best thing we can do is keep an eye on the storm.  At this point, it’s not likely we’ll be hit catastrophically by a devastating storm.  The most we’ll likely see in Panama City Beach is 50 mph wind (max), rain and storm surge.

Do I need to make preparations at my 35 individual condos to protect them?

My experience has shown me that all condos that are interior are rarely impacted by high winds.  The buildings cut through the wind and the closer to the building you are, the less the wind on the balcony.  I was recently at a friend’s condo (Mr. Castle!) in Tropic Winds, and his end location gave him a very neat and large balcony that has a whole corner that’s open with guard rails.  He told me he loses tables, chairs and other items with regularity.

So, if you’re on an end unit or have a wrap around balcony, pull your stuff in if the wind kicks up.  Otherwise, I wouldn’t worry too much.  BUT – don’t take my word for it, use it as advice, but keep an eye on your units!

What concerns do I have about my guests and how can I help?

We’ll be calling all our guests and letting them know what we know, and telling them where they can go to look for more information.  Our rental policy states that if we have a mandatory evacuation, then we’ll refund their rental monies for the nights they didn’t get to stay with us.

It’s common for people to get upset or concerned when tropical systems come through, but generally we are all pretty safe and there is usually nothing to worry about.

What should we do should conditions get worse?

We need to keep an eye on the system, and if it gets worse, we’ll need to take the appropriate action based on the severity of the situation.  The best thing we can do is keep an eye on our local warnings issues to us by NOAA (above in the ‘warnings’ section).

More about the hurricane rating system

The Saffir-Simpson Hurricane Scale is a 1-5 rating based on the hurricane’s present intensity. This is used to give an estimate of the potential property damage and flooding expected along the coast from a hurricane landfall. Wind speed is the determining factor in the scale, as storm surge values are highly dependent on the slope of the continental shelf and the shape of the coastline, in the landfall region. Note that all winds are using the U.S. 1-minute average.

  • Tropical Depression: 0 – 38 mph wind speeds
  • Tropical Storm: 38 – 73 mph wind speeds
  • Category 1 Hurricane: 74 – 95 mph wind speeds
  • Category 2 Hurricane: 96 – 110 mph wind speeds
  • Category 3 Hurricane: 111 – 130 mph wind speeds
  • Category 4 Hurricane: 131 – 155 mph wind speeds
  • Category 5 Hurricane: 156 mph and greater wind speeds

Photo Credit