R9V
Preliminary Findings
Economic Analysis:
Potential Short and Long-Term Impact of Reducing
Hours Available for Liquor Sales
City of Miami Beach
October 18, 2017
A Ban That’s Not a Ban
What Matters Most:
•Improving the Visitor Experience
•Improving the Miami Beach Brand
•Cost-Benefit Economics
A Neutral, Data-Driven Analysis of Economic Impact
and the Miami Beach Brand
Re-Framing the Conversation
Community Survey:
Results Profiles of Survey Participants
18-34
18%
35-49
25%
50-65
31%
over 65
26%
Ages
18-3435-4950-65over 65
48% 52%
Gender
MaleFemaleWHITE BLACK OR
AFRICAN
AMERICAN
ASIAN OTHER
82%
12%
1% 5%
Community Survey:
Results
How frequently do you visit South Beach?
6.7% 8.4% 8.9%
30.3%
45.7%
At least once a weekA few times a monthOnce a monthA few times a yearLess frequently than once a
year
Community Survey:
Results
16%
5%
7%
6%
26%
16%
25%
No time
Too expensive
Crime in the area
I only visit when someone out of
town in visiting
Traffic or difficult of access
I do not like the crowd
Other
What is the main reason for not visiting more often?
Community Survey:
Results How will the proposed alcohol sales restrictions affect your
willingness to go to Ocean Drive?
8%
23%
70%
0%10%20%30%40%50%60%70%80%
I will visit Ocean Drive less frequently
I will visit Ocean Drive more frequently
No effect
User Generated Content Analysis
Focus on Businesses Impacted by Proposed Ordinance
3,333 Reviews (Trip Advisor, Yelp) 2015-2017
Predominately International and National Visitors
General Theme - Positive Reviews Reflect the Totality of the
Miami Beach Experience
Miami Beach Ocean Drive Visitors
Mimai Beach Ocean Drive Visitors
Miami Beach Ocean Drive Visitors
Miami Beach Ocean Drive Visitors
Miami Beach Ocean Drive Visitors
Miami Beach Ocean Drive Visitors
Miami Beach Ocean Drive Visitors
Net Effect of the Ordinance:
55 Establishments Serve Alcohol Between 5th
and 15th
Ordinance Restricts Sale and Consumption of Alcohol
From 2AM to 5AM at 8 Establishments
Economic Impact Analysis
Fishkind & Associates
Restricting Sales of Alcohol From 2AM to 5AM at 8 Establishments:
Total Alcohol Revenue at 8 Impacted Est. = $64M
25% Loss of Sales Revenue at 8 Est……………………………………..$9.8 M
20% Loss of Room Nights South of 15th
St.
10% Loss of Room Nights North of 15th
St.
1 Million Total Room Nights Lost………………………………………..…$228 M Lost Hotel Revenue
15% Loss of Café and Restaurant Sales………………………………….$97 M
Total Sales Losses……………………………………………………………….$334 M
Lost Operating Profits Reduces Property Values by…………………$1.6 Billion
Economic Impact Analysis
Fishkind & Associates
Restricting Sales of Alcohol From 2AM to 5AM at 8 Establishments:
Lost Property Taxes………………………………….$8.6 M
Lost Resort Tax………………………………………$11.3 M
Lost State Sales Tax.……………………………….$334 M
Lost RLE Tax………….………………………………..$7.8 M
5,542 Lost Jobs
Lost Earnings………….……………………………….$197 M
Lost Economic Output………….…………………..$364 M
No Impact on Crime
Economic Impact Analysis
Data Differences
Reported Alcohol Sales Revenue from 8 Impacted
Establishments: $43 M
Projected Sales Loss at 8 Impacted Est.:
$6.5M to $10.8 M
Economic Impact Analysis
Conceptual Questions
Is the Sale of Alcohol from 2 to 5 AM at 8 Bars Driving 1 Million Hotel
Room Nights?
Will Ending the Sale of Alcohol Between 2 and 5 AM at 8
Establishments Result in up to 2.5 Million Less Tourist Visits to Miami
Beach?
Is it More Likely that Customers Will Simply go to Other
Establishments After 2 AM?
Economic Impact Analysis
Next Steps
Complete Data Collection & Analysis
Operator Interviews
Updated Analysis: October 31st
Economic Impact Analysis