Tourism leaders say end of hotel tax revenue would damage Miami-Dade's economy
Tourism surrounds me every day — whether meeting with visitors who come to Miami for vacation or business, working with our highly skilled team members or partnering with local small business owners who support our hotel or entertain our guests.
I see firsthand that tourism goes beyond my doors and extends into our community. It isn't just a part of Miami-Dade's economy; it's essential to our livelihood. That's why House Bill 1221 and House Bill 7033 are so concerning.
The proposed legislation would reallocate Tourism Development Taxes (TDT) — paid by visitors and designated to fund tourism marketing and other industry programs — toward legislation that could shift funding away from advertising to non-tourism uses.
That not only means less visibility for Greater Miami and Miami Beach on the global stage — ceding visitors to other destinations who will be happy to welcome them — but less funding for institutions and programs across Miami-Dade's 34 municipalities that celebrate local cultures. The bill is currently in the senate.
We must remain top-of-mind in promoting our destination and protecting the communities that make our destination unique.
When visitor numbers drop, the fallout hits real people: the taxi driver, concierge, elevator mechanic, tour guide and shop owner. No TDT means a direct threat to the 200,000 people employed because of the industry.
No TDT also means a possible lessening of quality of life for all Miami-Dade residents because a robust tourism industry creates tax revenues that help pay for improvements in education, public safety, transportation and other community services that residents would otherwise have to pay for.
And no TDT means a possible hit to everyone's finances. Miami-Dade visitors pay more than $1.1 billion in sales taxes annually, which translates into more than $2,200 in annual savings for each household.
Simply, Tourist Development Taxes, or bed taxes, are a benefit, not a burden, to Miami-Dade residents.
The TDT is one of the reasons Florida doesn't have a state income tax. Visitors pay their way and it's a tax mechanism that works, creating jobs and real economic impact.
And the alternative if the TDT is reallocated?
It would become a property tax break, applied as a credit against Miami-Dade County's property tax roll; the projected property tax savings per resident would only amount to approximately $60.
Compared to the fact that every dollar invested in tourism marketing yields $63 of economic impact and $3.24 of additional tax revenue, which goes to funding resident services, the answer is clear.
HB 1221 and HB 7033 threaten one of our most powerful economic drivers.
I urge lawmakers to protect Tourism Development Taxes. Let's not hurt locals and jeopardize an industry for an experiment with minimal upside. Tourism helps us today and will help our economy remain resilient in the future. The TDT is tourism's fuel, so why stop putting gas in the engine now?
Julissa Kepner is board chair at the Greater Miami Convention & Visitors Bureau.
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