Orange County tourist tax collections decline for second straight month
Orange County’s tourist tax collections declined for the second month in a row, according to data released by Comptroller Phil Diamond Thursday.
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The tax is generated form hotel stays and short-term rentals in Florida.
After a post-COVID rush to Central Florida’s attractions, Diamond says he thinks the tourism market might be normalizing.
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“Down two months in a row, and the month before it had been completely flat. That’s following 14 record-breaking months of tourist taxes,” Diamond explained. “Last year was so good that you just can’t keep up that level of demand and that level of tourism all the time.”
Comptroller Diamond announced that TDT collections for May 2023 were $26,216,500. That is a 6.7% decrease compared to May 2022. Click here to read the press release: https://t.co/iXXjhE7cFi
— OC Comptroller - FL (@occompt) July 6, 2023
Diamond says the data should serve as a caution as Orange County leaders prepare to decide what to do with funds from the Tourism Development Tax.
He compares the Tourist Development Tax to the roller-coaster rides Central Florida is known for, citing highs and unprecedented lows in revenue during the COVID-19 pandemic and during the 2008 recession.
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“One thing we’ve seen over history is that the tourist tax is very volatile,” Diamond said. “It can change on a dime.”
As Orange County leaders entertain 11 final proposals for how last year’s funding should be used, Diamond urges the decision makers to proceed with caution before committing to costly construction plans.
“They need to be realistic about what they can expect for projects they support, or projects they might be interested in,” Diamond explained. “Just because, if the tourism tax goes down, there’s less money to pay for stuff.”
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The Dr. Phillips Center for the Performing Arts is one of many groups now trying to get their hands on that funding. Officials there say they hope to receive $145 million from last year’s Orange County Tourist Development Tax to expand the center.
If they’re selected, construction could begin in 2024.
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