Explanation of Indicator
Florida's economy is largely based on tourism. The tourist dollars brought into the state each year account for a large portion of the state's revenue. Accordingly, the economic stability of the state depends on tourist dollars. Indeed, many businesses
, particularly along the coast, are tourist-oriented and rely on revenue generated from tourists.
Currently there is no tax in the state which is levied specifically and exclusively on tourists. The general sales tax applies to goods and services that tourists and residents consume. There is a tourist development tax, otherwise known as a “bed tax”, which is levied on lease or rental charges from hotels, motels, rooming houses, and apartments. Currently only 40 counties in Florida levy this “bed tax” which ranges from one to five percent (above the established sales tax rate) of each dollar spent. The money generated from this tax is then distributed to various sectors of the state; some of the funds go to beach enhancement, roads, and police protection. Thus, the revenue generated by this tourist development tax represents a portion of the money available to coastal counties to improve their beaches and coastal areas.
Data Characteristics
SOURCE
Information about the tourist development tax may be obtained from Berry Pitegoff who can be reached at the Florida Department of Commerce, Office of Tourism Research, 107 West Gaines Street, Room 324, Tallahassee, Florida 32399-2000, or at (904) 488-4952
.
ACQUISITION
The data can be found in the annual visitor studies conducted by the Department of Commerce and are available at no cost.
COLLECTION
The data are tabulated continually for each county and updated annually.
Data Limitations
Currently it is impossible to separate the revenue generated by tourists from that generated by residents or business travelers; therefore, these data overestimate the amount of money generated by tourists in the state’s lodging facilities. However, thes
e data underestimate the total amount of money generated by tourism since they do not include other activities that tourists pursue while vacationing in Florida, such as amusement parks, boat rentals, and other recreational activities. This indicator onl
y represents the amount of tax revenue generated by hotels, motels, rooming houses, and apartments in the state.
Data Analysis
The tourist development tax has been increasing in recent years. Also, the number of coastal counties which levy a tourist tax has increased in recent years. These factors may account for the decisive upward trend in revenue generated by coastal countie
s from the tourist tax. Tax collections have gone from $66,862,457 in 1989 to $94,139,419 in 1993, a 41% increase. The increase in tax collections has risen an average of 9% per year during the period 1989 to 1993. Clearly, increases in the numbers of
tourists visiting coastal areas may account for some of the growth in tax collections.