Florida could lose $37 billion in economic impact and 682,000 jobs if proposed legislation redirecting tourism marketing funds becomes law, according to a new analysis by Down & St. Germain Research.
- Background: House Bill 7033, which has cleared the House and awaits Senate consideration, would repurpose tourist development taxes to offset property tax reductions while eliminating all 62 Tourist Development Councils statewide. The measure aims to reduce costs for Florida residents, but could devastate the state’s $128 billion tourism industry.
Dig Deeper: The analysis projects a 30% tourism decline within two years, citing Colorado’s experience after zeroing its tourism marketing budget in 1993. Colorado lost $2 billion annually and took nearly two decades to recover, according to industry research.
“We could soon be watching high-value travelers fly over Florida,” warned Robert Skrob of Destinations Florida
Currently, tourism allows Florida households to save over $1,900 annually on taxes since visitor revenue funds many state services. Florida welcomed 143 million visitors in 2024, supporting 2.1 million jobs across hotels, restaurants, and attractions. The legislation would eliminate $1.8 billion in bed tax revenue currently used for tourism promotion, fundamentally altering Florida’s marketing strategy that has maintained its position as America’s top vacation destination.
- Tourism in Escambia County contributed over $2 billion in economic impact in 2024. This includes approximately $65 million in local tax revenue. The sector supports more than 18,000 jobs, equating to one job for every 37 visitors.
Visit Pensacola’s Analyst Unpaid
In Escambia County, County Clerk Pam Childers has tied up tourism marketing in endless bureaucratic red tape, refusing to pay the utilities bills and payroll for the Pensacola Visitor Center.
- Tourism marketing should be data-driven. However, the Clerk’s office is withholding payment for invoices from Down & St. Germain Research, which also does marketing analysis for the state and other Florida counties:
2/28/25 Invoice for $12,583.33
3/31/25 Invoice for $12,583.33
Total: $25,166.66
More Tourism Marketing Needed
The Clerk’s office has submitted the Tourist Development Tax Collections Data for the first six months of FY 2025. Tourism is flat: FY 2025 $8,741,175 compared to FY 2024 $8,754,884. March collections are down 5.4%. Read 7. March 2025 TDT Returns Collected April 2025 – ADA.
Year-to-date: Pensacola Beach, Perdido Key and Southwest Escambia County are down. All other areas are up. Tourism advertising is critical for our beach areas. Escambia County should ramp up its tourism marketing for the fall shoulder season. Commissioners Steve Stroberger and Ashlee Hofberger should be fighting for beach tourism in their districts.
| FY 2025 | FY 2024 | Difference | % Change | |
| Downtown Pensacola | 780,086 | 721,033 | 59,053 | 8.2% |
| Southeast Pensacola | 1,277,554 | 1,262,783 | 14,771 | 1.2% |
| Southcentral & Southwest Pensacola | 379,622 | 442,742 | (63,120) | -14.3% |
| Perdido Key Area | 1,514,362 | 1,532,444 | (18,082) | -1.2% |
| Northeast Pensacola | 612,065 | 504,288 | 107,777 | 21.4% |
| North Escambia & Northwest Pensacola | 721,952 | 670,166 | 51,786 | 7.7% |
| Pensacola Beach | 3,455,534 | 3,621,428 | (165,894) | -4.6% |
| Total | 8,741,175 | 8,754,884 | (13,709) | -0.2% |
