Pensacola’s vital tourism industry faces an unprecedented crisis as over $2.5 million in marketing bills remain unpaid, threatening to derail the county’s economic engine during critical booking season.
Always ‘Dysfunctional’
Mayor D.C. Reeves brings unique insight to Pensacola’s tourism industry through his previous leadership role as chairman of the Visit Pensacola Board of Directors. He shared that the Clerk’s office’s reimbursement and disbursement system has always been “dysfunctional.”
At today’s press conference, he strongly defended Visit Pensacola’s tourism efforts, emphasizing their scientific approach to marketing and economic impact.
“We went as far as, when I was there, scientifically researching why people picked Pensacola over Gulf Shores when the beaches are the same color sand and the same proximity,” Mayor Reeves said, “This is not just running a commercial during a SEC football game. There’s lots of science that goes into how we talk to people, how we track people, and there’s a lot of expertise that goes into that.”
The mayor dismissed local complaints about tourists, arguing the economic benefits—job creation and wealth generation—justify minor inconveniences.
“Every opportunity I get, one of my pet peeves is when I hear locals complain about traffic because of visitors and you think about how many people have jobs in this town and how many jobs we’ve created, I will sit in another light for another 30 seconds to have the economic impact for creating jobs, creating wealth, putting food on the table for people here.”
- Drawing from his four-year board experience, including serving as chairman during challenging times, Reeves called Visit Pensacola “vital to the engine of this city.”
Impossible Bureaucratic Maze
During a recent podcast interview, Tourist Development Council Chairman David Bear revealed the alarming situation, explaining how bureaucratic gridlock has brought tourism promotion efforts to a virtual standstill. The crisis centers on the Clerk of Court’s administration of tourist development tax funds, with unpublished and constantly changing documentation requirements creating an impossible maze for tourism organizations.
“She’s not publishing those rules. She’s just keeping those to herself,” Bear said
Ad Agencies Carry the Financial Burden
The situation has forced respected local advertising agencies, including Appleyard Duncan McCall, to front over $1.2 million of their own money while waiting for reimbursement. These agencies, which have successfully managed tourism marketing campaigns for a decade, now find themselves unable to pay vendors as invoices dating back to September remain in limbo.
- As WEAR-TV reported last week, Visit Pensacola, the county’s destination marketing organization, is considering borrowing money just to maintain operations. Meanwhile, the Visitor Center’s utilities, payroll and routine operational expenses go unpaid by the Clerk’s office.
Adding to the crisis, a $10.5 million Triumph Gulf Coast grant match remains unpaid. This regional tourism marketing initiative, designed to help eight counties recover from economic impacts, represents a significant opportunity for Northwest Florida’s tourism growth that now hangs in the balance.
- The grant requires matching funds from participating counties’ tourist development taxes, distributed fairly based on collection amounts. Despite clear statutory authority for such expenditures, the Clerk has blocked payment, citing concerns about the amount and questioning the program’s validity.
Critical Timing
With the fall booking season approaching, the timing couldn’t be worse. Tourism marketing agencies should be actively promoting the destination and securing advance bookings, but the payment crisis has effectively paralyzed these efforts.
- “When does this stop?” Bear asked, highlighting the urgent need for resolution. A planned June 4th meeting between Visit Pensacola and the Clerk offers hope, but without immediate action, Pensacola risks losing ground in the competitive tourism market while other destinations continue aggressive marketing campaigns.
