Diversifying the economy is a long, but doable, journey

The COVID-19 pandemic has reopened old wounds and conversations about how a national crisis negatively affects our local economy disproportionately to other communities nationwide.

Lack of industry diversity and our dependence on tourism continue to challenge us. No doubt, the poverty, housing, health care and transportation challenges we faced before the pandemic, when our economy was strong, are all about to get worse. Much worse.

We had this conversation in 2001 and again in 2008. As we have seen in several articles, columns and a recent Orlando Sentinel editorial, we are having it again. So, when the Sentinel points out the percentage of jobs in the tourism industry is largely unchanged over the last 20 years, the logical question to ask is, why? And if we truly want to change this, what can we do differently this time to ensure effective change?

As someone devoting a great deal of my professional and community time to helping find viable solutions to this particular challenge, and who made it the foundational message of a political campaign, I am all in.

Most of us are, including the tourism executives I know. It is time to move from conversation to action, with some core tenets guiding us:

1. Recognize effective and lasting change requires long-term commitment, at least a decade or two. For elected officials, especially those with term limits, it means some results may not be realized until after their term in office. For businesses, typically focused on short-term results, it requires taking a longer view.

2. Accept there is no miracle cure. It will take a long-term, strategic commitment. Improvement will happen through big, calculated bets and small wins adding up to success over time. When we commit to a potential game changer, like Sanford Burnham, we should hold people fiscally accountable but also be committed for the long haul. While Sanford Burnham did not work out as planned, the economic impact it spurred as a catalyst for Lake Nona, is clear and continues today.

3. Leverage and build upon — don’t bash — our tourism industry. Diversifying our economy is an “and” game, not an “or.” Tourism provides jobs and a tax base. The tourism development tax has allowed us to invest in developing amenities, like the Dr. Phillips Center, which higher-wage employers expect when considering relocation. While many tourism jobs are lower wage, having theme parks and attractions here has created higher-wage jobs through innovative companies that build rides, create ticketing systems and develop other innovations. Tourism is also one of the few industries bringing corporate headquarters here, creating higher-wage corporate jobs. Let’s build on the talent here to increase the percentage of higher wage employees in this important sector.

4. Economic development efforts must expand using a dual approach: continue recruitment but also help local innovative companies grow and stay. We compete in a global marketplace, so incentives that reward high-wage job creation make sense. We are making strides helping early stage companies scale. Several local investment funds have launched in recent years. The Orlando Economic Partnership is committed to this effort, recently creating an empowered Tech Council. UCF launched its Innovation District strategy to better leverage its assets to help create more innovation-focused, high-wage jobs. A thriving, research-based university is always at the heart of a diversified economy.

5. Government has a role. Georgia Tech’s ATDC incubator has created more than 5,500 jobs and generated $1.3 billion in revenue. In 2018, Cleveland’s JumpStart program created over 6,000 jobs and $850 million in annual economic output. Both programs, started over a decade ago, are largely supported through state government funds.

We are taking steps forward, but there is much more work to do. Truly diversifying our economy requires government, business leaders, universities and community organizations working together toward the long-term vision.

We also need more of us who’ve spent our careers in technology, innovation, venture capital, healthcare and entrepreneurship to get engaged in community organizations, seek elected office and take seats at the table alongside traditional industry leaders.

Our top priority is getting through the health pandemic and restarting our economy. And we will. But once that happens, let’s not slide into old habits, going back to business as usual, shelving this conversation again. Let’s move beyond conversation and on to action. Then, when the next catastrophe strikes, we’ll be better prepared because we took decisive action today.