By Michael Baginski/ Florida’s tourism industry – and its partners in Canada – have been rocked by sudden legislation passed by the state House last week that would eliminate 62 tourist development councils across the state – affecting organizations such as Visit Orlando, which promote tourism to their destinations in markets including Canada.
The proposal, which still faces deliberation by the state Senate, is part of a $5.4-billion tax break package that would require county collection of bed taxes to be used to lower property taxes; and TDCs would be eliminated by the end of the year.
In a news release, Robert Skrob, executive director of the Florida Attractions Association (FAA) said the organization has for weeks been “sounding the alarm” about a bill that would force all Tourist Development Taxes (TDTs) to expire every eight years, thereby “placing Florida’s tourism economy on a never-ending treadmill of uncertainty.”
He decried that the amendment to commandeer bed taxes entirely was filed with less than 24 hours notice taking the threat “to a whole new level.”
In addition to de-funding tourism promotion, Skrob said that if enacted the legislation would also affect such activities as beach renourishment and environmental enhancements; convention centres; professional and spring training sports facilities, and more.
Critics suggest that the savings for property owners would be marginal (as little as $58, according to an estimate in one county), but the economic consequences for Florida’s tourism industry massive, including job losses in the millions.
The TDCs collect nearly US$2 billion annually based on a booming travel sector that saw a record 142.9 million visitors in 2024.
While generally slow to recognize the threat that has now suddenly reared its head after years of simmering resentment amongst state politicians under the leadership of Gov. Ron DeSantis, who have long coveted the tourism tax for other purposes (the legislation was introduced on Feb. 26 and passed, with the new amendment, in the House on April 25), the industry is now coming together to resist the proposal.
Writing in the Tampa Times on the weekend, Don Welsh, President and CEO of the global tourism advocacy group Destinations International, said, “Florida’s economy is the envy of the nation and many countries around the world, and tourism is the engine that makes it run. For decades, the state has thrived on a smart, sustainable model: out-of-state visitors contribute billions through the Tourist Development Tax, fueling local economies, creating jobs and funding public services without burdening residents.
“But two bills in the state legislature – HB 1221 and HB 7033 – propose to dismantle this model. If passed, they would eliminate dedicated funding for tourism marketing and facilities, dissolve every Tourist Development Council in the state and force Tourist Development Tax dollars to be used as property tax credits. On paper, that might sound like savings. In practice, it’s an economic cliff: It cuts the funds allocated to promote and encourage tourism, which fuels the significant economic impact of tourism across the state.”
“This is not just a policy change,” he said. “It is an existential threat to one of Florida’s most vital industries and the local jobs, small businesses and public services that rely on it. Florida doesn’t have a state income tax. Why? Because visitors pay their way. Through the Tourist Development Tax, visitors pay a tax on their accommodations during short-term stays that fund the campaigns that bring them and future visitors, supporting everything from hospitality jobs to infrastructure projects. These dollars are reinvested to generate more revenue, more jobs and more opportunity. It’s a cycle that works.”
Welsh went on to “urge every Floridian, especially those whose lives and livelihoods are tied to tourism, to stand up and speak out. Contact your local legislators, tell your story to the media and share what these bills would mean for your town, your business, your family.”
Meanwhile, in Canada, some Travel & Tourism companies are worried about what the bill will mean for their business amid reported contract delays and other general uncertainty emanating from the Sunshine State.
“These proposed measures would have a profound effect on the tourism industry in Florida, devastating how tourism is promoted and supported,” the FAA’s Skrob concluded.
“This,” he stated, “is a direct attack on Florida’s tourism industry and the millions of Floridians whose jobs, businesses, and communities rely on visitor spending.”
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