Dr. Rachel J.C. Fu, Chair & Professor of Dept. of Tourism, Hospitality and Event | Director of the Eric Friedheim Tourism Institute at the University of Florida
Florida’s hospitality and tourism industries have long served as cornerstones of the state’s economy. From the theme parks of Orlando to the sun-soaked beaches of Miami and the cultural richness of cities like St. Augustine and Tampa, tourism consistently ranks among the top economic drivers. As we look ahead to the next five years, the industry is poised for continued growth.
A Promising Five-Year Outlook
Florida’s tourism economy is projected to expand steadily, fueled by strong domestic demand, rising international travel, and a resurgence in group and business travel. Orlando alone welcomed over 75 million visitors in 2024, and expectations are high for continued record-setting arrivals.
Visit Florida and regional destination marketing organizations (DMOs) have sharpened their marketing strategies to diversify visitor segments—targeting higher-spending travelers, international tourists, and off-peak visitors to spread tourism more evenly throughout the year.
The hospitality sector, too, is undergoing innovation. Hotels and resorts are investing in personalized guest experiences and digital enhancements to meet rising consumer expectations. Industry leaders anticipate continued development of boutique properties, wellness-focused retreats, and mixed-use tourism infrastructure. In addition, the return of major conventions and events is reinvigorating urban destinations and helping diversify revenue streams beyond leisure travel.
With the right policies and strategic alignment between industry stakeholders and local governments, Florida is well-positioned to remain a global tourism leader—so long as it addresses the underlying tension between economic opportunity and community impact.
Understanding Mixed Community Sentiment Toward Tourism
Despite its economic advantages, tourism often generates mixed reactions in the communities it touches. This ambivalence is not unique to Florida but resonates globally in high-traffic destinations. On the one hand, tourism brings substantial benefits including career creation, business growth, and vital tax revenues that support public services. In regions like Orlando, roughly one in three jobs is linked to tourism.
Tourists contribute billions in local and state tax revenues annually, funding schools, transportation, parks, public safety, and more. Many small and medium-sized businesses thrive because of consistent visitor spending, and the industry’s success often promotes investment in infrastructure and cultural venues that residents enjoy as well.
However, the rapid influx of visitors—especially during peak travel seasons—can place considerable strain on local infrastructure. Traffic congestion, wear and tear on public spaces, environmental stress, and rising housing and service costs can diminish residents’ quality of life. While tourism may increase local tax collections, residents often question whether those revenues are being fairly or visibly reinvested in their neighborhoods.
In some cases, locals perceive that the benefits of tourism are disproportionately captured by private entities or are reinvested solely into attracting more visitors, rather than enhancing community well-being. Overtourism, loss of neighborhood character due to short-term rentals, and crowding at beloved local spaces all contribute to skepticism. Thus, while communities often appreciate the economic vitality tourism brings, they want to see clear, tangible benefits for residents—not just for visitors or the tourism industry itself.
Use of Tourism Tax Revenues: Balancing Growth and Community Needs
Tourism-related taxes, such as hotel occupancy and resort taxes, generate billions in annual revenue. How that revenue is allocated plays a central role in shaping public opinion and sustaining long-term tourism growth. Across the United States, approaches vary. In states like Michigan, tourism taxes are narrowly earmarked for marketing and promotion. In contrast, places like Illinois and Colorado have adopted more flexible frameworks, allowing tourism tax revenues to support broader community needs such as transportation, public safety, and housing—especially when approved by local voters.
Florida has an opportunity to lead in adopting a balanced model. By expanding the allowable uses of tourism tax revenues—while still supporting strategic promotion and infrastructure development—state and local governments can ensure that the benefits of tourism are shared equitably. For instance, dedicating a portion of tourist taxes to maintaining parks, funding public transit, or addressing workforce housing can help bridge the gap between industry growth and resident satisfaction.
When residents see visible improvements in their communities—better roads, enhanced safety, revitalized public spaces—they are more likely to support the continued expansion of tourism. Transparent reporting and community engagement in how tourism taxes are spent can further enhance accountability and trust.
Tourism organizations, including DMOs and convention and visitor bureaus (CVBs), play a critical role in Florida’s tourism strategy. Their success is traditionally measured by key performance indicators such as visitor numbers, visitor spending, hotel occupancy rates, and overall economic impact. A successful tourism organization must demonstrate not only how it attracts visitors, but how it contributes to community vitality, protects natural resources, and fosters inclusive economic opportunity.
Looking Ahead: Sustainable, Inclusive, and Community-Centered Tourism
The future of Florida’s hospitality and tourism industries is bright—but must be guided by thoughtful policy, collaborative leadership, and inclusive vision. By leveraging tourism tax revenues to reinvest in communities, embracing innovation, and prioritizing resident quality of life alongside visitor satisfaction, Florida can maintain its status as a world-class destination while ensuring long-term social and economic resilience.
The path forward is not simply about attracting more tourists—it’s about building a tourism economy that works for everyone.
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