Tourism and Key West: Why its Real Estate is a Good Investment

KEY WEST, Fla. - July 11, 2015 - PRLog -- Per Fred Mullins, Top Producing Member of Team Mullins at Coldwell Banker Schmitt, "

Tourism impacts local real estate in a really big way. If you take a look at residential homes in resort areas and compare those to average neighborhoods, you’ll no doubt see a substantial difference. There are several reasons for this, and here are some factors as to why:

●      Tourism creates a need for more commercial construction. No matter what it is that drives tourism, be it the beach or something else, destination locations invite commercial enterprise. For instance, in Key West, marinas for sport fishing, diving, and other outdoor recreational opportunities.

●      More jobs are created in tourist destinations. Since more enterprise is created, more jobs become necessary. That means there are more dollars staying in the local economy, and, the need for more housing, as well as other living necessities, such as grocery stores and retail establishments.

●      Municipalities increase their advertising. As tourism builds, sustains, and expands, municipalities seek to capture more revenue and therefore increase their advertising. This makes more travelers aware of the destination, which increases tourism.

●      More tax incentives are created to entice new business. Municipalities, counties, and states always seek to increase tourism because of the dollars it brings. These entities also recognize that businesses are positive contributors to the economy and therefore offer incentives so business will either relocate or open branches.

●      Staycations become more and more common. Locals will opt to stay and spend their dollars within the locality during vacation days because of all the area has to offer. This provides a great benefit to the area and generates more revenue in the economy.

Keep in mind, none of this happens in a vacuum. Another sector that is directly impacted in a very positive manner is residential real estate. When an area becomes a destination location, or is one, local property values increase steadily. This dynamic is why tourism is so good for property values.

Fred Mullins has more than 16 years of cross functional experience in real estate, international asset management and construction management. He has been a part of the management team for several Fortune 100 companies, including AT&T, Visa, FPL and C. B. Richard Ellis.

His responsibilities have included real estate / property management portfolios of more than 9 million square ft. and international responsibilities in more than 10 countries.

Fred holds an MBA, B.S., real estate license, mortgage broker’s license, USCG Master Captains license and commercial pilot’s license and is the owner of www.lowerkeys-homes.com serving the lower Florida Keys.