Tampa Bay tourism leaders say hotel tax change would damage economy
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Tourism industry leaders are concerned a proposed bill would shift funding away from advertising. Photo: Joe Sohm/Visions of America/Universal Images Group via Getty Images
Tourism marketing agencies in Tampa Bay 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: "This is an economic disaster waiting to happen," said Mark Jackson of Visit Central Florida, the tourism arm of Polk County, which saw 5 million visitors in 2024. "Billions of dollars in tourism spending simply won't be there if this goes into effect."
- "This is like expecting a farmer to produce the same number of crops when you only sow a quarter of the seeds," he told Axios.
- "If [Florida wants] to keep that edge and be the number one state for tourists," Santiago Corrada, CEO of Visit Tampa Bay, told the Tampa Bay Business Journal. "There's a reason that happens. It's because of marketing."
The intrigue: Attracting tourists became especially important after last year's hurricanes.
- As images of the storm-tattered beaches dominated headlines, Visit St. Pete-Clearwater and local officials rolled out the "Still Shining" campaign to highlight parts of the region that were ready for visitors.
- "We do not want to see these initiatives absolutely decimated with a late-session proposal that has not been vetted with local impacts discussed," per a statement from the Tampa Bay Beaches Chamber.
- A spokesperson for Visit St. Pete-Clearwater said the agency doesn't comment on pending legislation.
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: About 60% of visitor-generated funds from the tourist development tax, 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 is 6% in Hillsborough and Pinellas counties and 5% in Polk County.
The big picture: In 2024, 28 million people visited Hillsborough County, resulting in $1.16 billion in taxable hotel revenue. Hillsborough's tourism generated $9.4 billion in overall economic impact and supported over 40,000 jobs.
- Pinellas County saw 15.4 million visitors last year and generated an overall economic impact of $11.2 billion.
What we're watching: If the tax proposal passes the House and Senate, it will also need to survive Gov. Ron DeSantis' veto pen.