Tourism industry warns against diverting advertising funds
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Tourism industry leaders are concerned a proposed bill would shift funding away from advertising. Photo: Jeffrey Greenberg/Universal Images Group via Getty Images
Tourism marketing agencies in South Florida are raising concerns about legislation that could shift funding away from advertising to property tax relief.
Why it matters: The legislation concerns the tourist development tax, a levy on hotel rooms that has long been used to lure travelers to the state and fund venues that attract them.
- A decrease in revenue could hinder agencies' ability to attract visitors, industry leaders say, causing long-term damage to one of the state's economic drivers.
What they're saying: Tourism is the "economic engine for the state of Florida," Curtis Crider, president and CEO of the Greater Miami and the Beaches Hotel Association, told Axios.
- Despite the strong global recognition Miami and South Florida have as a tourism destination, "we have to stay on top of our game."
- "We've been fortunate over the last five to six years that tourism has been [at the top], but we need to be able to continue building on that," he said.
The other side: Lawmakers backing the legislation say it will help reduce residents' property taxes, which is needed amid the ongoing housing affordability crisis, multiple outlets reported.
- Some also argue visitors will flock to Florida regardless of advertising efforts, per the Tampa Bay Times.
How it works: Currently, about 60% of those visitor-generated funds, also known as the hotel tax or bed tax, support marketing and advertising efforts to attract tourists.
- The other 40% funds things like transportation, arts and culture programs, and other community services for locals.
The latest: The Florida House passed a tax package last week that would require 75% of the county's tourism tax to be redirected to county projects and property tax relief by 2026.
- The remaining funds could be used for advertising or other county needs.
- The House is also considering eliminating the state's tourist development councils, which help promote tourism in individual counties, per multiple reports.
By the numbers: The hotel tax in Miami-Dade County is 2%; in the cities of Surfside, Bal Harbour and Miami Beach, it's 4%.
Zoom in: In 2023, 27 million people visited Miami, resulting in more than $21 billion in revenue, according to the Greater Miami Convention & Visitors Bureau.
- Tourism generated almost $30 billion in overall economic impact and more than $19 billion in gross domestic product, about 9% of the county's overall GDP, per the bureau.
- The industry also supports 200,000 jobs throughout the county.
What we're watching: If the tax proposal passes the House and Senate, it will also need to survive Gov. Ron DeSantis' veto pen.