Visitor growth may slow as Siesta nears maximum occupancy

Siesta Key tourism has surged in recent years, but is there room to grow?

That’s a question not just for Siesta, but for the Sarasota County at large, according to Virginia Haley, president of Visit Sarasota County, a nonprofit group that promotes tourism in the county. Haley recently told the Sarasota County Tourist Development Council that visitation and tourism would begin to “taper off” soon.

Based on surveys, national and local occupancy rates, and tourist development tax numbers, Visit Sarasota County projects that the number of visitors to the county will continue to grow, but not at the same rate as in recent years. Last year’s growth, from FY 2014 to FY 2015, was 9%, but this year’s projected growth is 5%.

Part of the reason for the slower growth, Haley said, is the scarcity of available accommodations.

“If you’ve got months in the year where you have 95% occupancy, there’s not a lot of room to grow,” Haley said.

Tourist development tax collections for Siesta Key have increased each of the past seven years, according to county data.

However, the increases have been anything but steady. For example, they grew by 29% in FY 2012 but only by 3% the following year. Collections for FY 2015 rose by 11%, less than the 14% the Key saw in  FY 2014 (See graph, right).

Ali Murphy, of Argus Vacation Rentals, helps oversee management of more than 300 rental properties at seven facilities on the Key, including Gulf and Bay Club Bayside and La Siesta.

“It does feel like Siesta Key is reaching that (saturation) point,” Murphy said. “There’s not a lot of space to build anything else on the Key.”

She said Argus is at full capacity during the winter. There is some room for growth in the summer, she said, but the late summer and early fall — when families and visitors from across the U.S. have gone home — can accommodate the most new visitors. She typically sees more international visitors during this period.

Paul Parr, owner of Siesta Sunset Royale, rents nine units on Siesta Key. His occupancy increased by 20% last year from 2014.

“I spent most of the year with no availability,” he said. “It’s gotten to the point where I can’t even recommend (people seeking rental units) to my friends because they have no availability.”

Parr expects the same this coming year. He is booked through May, and June is already half full.

Still, some restaurant owners believe they can continue to experience growth from tourism.

Russell Matthes, co-owner of the Daiquiri Deck, said his restaurant increased sales 7% last year over 2014, and he expects the same increase this year.

Like rental businesses, though, he believes there is more room for growth during the late summer and early fall.

“We’d like to bridge that gap between Labor Day and the holidays,” he said. “That would be a good time to go after those international tourists.”

Matthes said the limiting factor may more likely be parking, which many merchants feel has reached critical capacity in the Village.

“We can increase our sales,” he said, referring to locals and visitors. “If we can get people to the front door of these establishments. If we’re putting 3,000 rooms downtown, how do we get them out to the Key?”

Tom Kuvatsos, co-owner of Village Cafe for 20 years, said last year was the best he’s seen. He isn’t rattled by parking concerns, noting that parking has been an issue for 25 years, and will continue to be, no matter what. He said he’s eternally optimistic.

“Life is great,” he said. “It’s beautiful out here.”