Tourism Officials Protest Use Of Hotel Tax Money To Ease Flooding

TALLAHASSEE, FL — State tax money earmarked to promote and market tourism in Florida would be diverted, in part, to other uses under a proposal that has drawn strong opposition from the tourism industry, which argues it has taken the brunt of the coronavirus pandemic.

The Florida Restaurant and Lodging Association has forwarded a letter to members of the Florida Senate Committee on Community Affairs strongly opposing Senate Bill 2008, which would expand the approved uses of Florida’s Tourist Development Taxes and Convention Development Taxes.

The approved uses of those taxes were originally adopted by a voter referendum and went into effect Jan. 1, 1968, to promote and market tourism in Florida.

The Senate bill sponsored by Sen. Manny Diaz Jr., R-Hialeah Gardens, aims to expand the approved uses of Tourist Development Taxes and Convention Development Taxes to include flood mitigation projects and improvements.

“No industry in Florida has been hit harder than the tourism and hospitality industries,” said Carol Dover, president and CEO of the Florida Restaurant and Lodging Association. “With an historic drop in visitors from 134 million to 86 million last year – the lowest in a decade – it is more important than ever to protect our tourism dollars and the stated mission of those dollars – to promote tourism so that we can bring back our guests and continue to rebuild.”

The opposition letter addressed to Sen. Jennifer Bradley, R-Orange Park, chairwoman of the Senate Committee on Community Affairs, was co-signed by FRLA Executive Chairman Jim Shirley and Vice Chair Olivia Hoblit.

"With shutdowns, travel restrictions, and a significant reduction in visitors, the revenue normally earned through tourism dollars plummeted," Shirley said. "Because tourism is the economic engine of the state and one of the top employers, the impact has stretched to other industries and the overall economic health of Florida."

He said using tourist development taxes, also known as the bed tax, for flooding mitigation would take away funds that are vital to getting the tourism industry back on track.

"Allowing revenues to be diverted to projects unrelated to the marketing and advertising of tourism jeopardizes the efforts of our industry to revive and renew in the wake of the pandemic," Shirley said.

While flood mitigation is a critical issue, Shirley said there are other revenue sources to address it.

"No one questions the nobility or necessity of addressing flood mitigation and the impact of sea level rise," he said. "Diverting TDT and CDT funds for flooding mitigation, especially when there isn’t even a required demonstration of a direct nexus to tourism, dilutes the effectiveness of these revenues and hurts Florida’s communities who need these funds to attract visitors. Smaller communities will be especially hurt by the diversion of these funds to other non-tourism-related projects."

Currently, local governments are able to collect a percentage of the money charged for hotel rooms, vacation rentals and other short-term leases. Depending on the county, a surcharge of 1 to 6 percent can be levied.

For example, Hillsborough County and Pinellas County both have a 6 percent tourist development tax. In 2018, Hillsborough netted $34 million in tourist development taxes while Pinellas collected $56 million.

Those funds are used by tourism agencies like Visit St. Pete/Clearwater and Visit Tampa to market the county's tourism assets to travelers around the world.

Diaz' bill would allow governments to boost the tax an additional 1 to 2 percent for at least three years and use the money for flood mitigation projects or improvements.

The Senate Committee on Community Affairs was scheduled to discuss the bill on March 30, but that meeting was postponed and has not yet been rescheduled.

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