Orange County tourist tax collections slide again, but revenues remain strong
Tourist-tax collections slid in November compared to a year ago, continuing a downward trend.
November’s year-over-year decline was the seventh such drop over the past eight months, said Orange County Comptroller Phil Diamond, whose office monitors collections of the 6% levy added to short-term lodging costs.
Receipts for the month totaled $29.6 million, about $1.24 million or 4% lower than last November.
But that performance was actually better than anticipated.
“We are definitely still doing pretty well,” said Diamond, who forecast a drop of 7.5% in tourist-tax revenue in 2023-24. “When you compare it to last year, which was the greatest of all tourism years ever, there’s just going to be some fall off.”
Collections have totaled $59.1 million for the first two months of fiscal year 2023-24, which began Oct. 1.
The figure exceeded expected collections by about $4.1 million.
Diamond said the extra money will help offset future expenses associated with projects and programs approved for tourist-tax funding recently by Orange County commissioners, including a convention center expansion estimated to cost over $600 million and an addition to the University of Central Florida’s football stadium.
The UCF stadium tower will add coaches’ offices, suites and new premium seating.
The Tourist Development Tax, also known as TDT or the hotel tax, is sometimes viewed as a measure of the tourism industry’s health in Central Florida, where collections broke records in fiscal years 2021-22 and 2022-23.
The tax hauled in $359 million in fiscal year 2022-23, the most ever.
Despite recent declines, collections are about $9 million ahead of the collection pace of 2019-20, a surge derailed in mid-March 2020 by the COVID-19 pandemic, forcing theme parks to close and leisure travel to stop. Travel-starved tourists returned in droves to Central Florida when the state gave the all-clear sign, but that surge has evaporated amid increased competition from both U.S. and international destinations, Diamond said.
For November, hotel occupancy fell slightly from 72.6% in November 2022 to 69.8%.
The average daily room rate was $180 for the month, up from $151 in 2022 but down from $189 in October.
Visit Orlando, the TDT-funded agency that promotes tourism in Central Florida, reported attendance at the Orange County Convention Center was up about 5% in November with the International Association of Amusement Parks’ annual expo drawing 36,000, the largest crowd of the month. One big draw: SeaWorld Orlando gave the public its first look at the snowmobile-inspired lead car for its upcoming Penguin Trek, an indoor-outdoor coaster expected to debut in the spring.
The training, simulation and modeling industry brought another 18,000 registrants to its annual gathering, which included exhibitors from 517 companies. The show is scheduled to return to Orlando in 2024.
TDT reports generally lag behind collections by several weeks. December’s report is expected in February.
Casandra Matej, president and CEO of Visit Orlando, offered a hopeful outlook for first quarter 2024.
She said airline service to the Orlando area continues to grow on both domestic and international service with advanced airline sales into Orlando for the first quarter of 2024 pacing about 10% ahead of the same time last year.
shudak@orlandosentinel.com