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Orange County Achieves Record Tourist Development Tax Revenue

Attractions in Orange County, Florida, attract visitors year-round.

News Summary

In January 2025, Orange County, Florida, reported a remarkable $33 million in Tourist Development Tax (TDT) revenue, reflecting a 9.5% increase from last year. This surge in income is attributed to a rise in hotel occupancy and key events that attracted tourism. Major attractions and events, along with improved hotel rates, have played a significant role in boosting visitor numbers. The county is now looking to utilize these funds for important public improvements and considering changes to the allocation of TDT revenues for better transportation services.

Orange County Hits New Tourist Tax Record!

Orange County, Florida, is buzzing with excitement as the latest report reveals that the county has raked in a jaw-dropping $33 million from the Tourist Development Tax (TDT) in January 2025. This figure marks a notable 9.5% increase from the previous year, making it the highest January revenue ever recorded!

For those who might not know, the TDT, often affectionately referred to as the “bed tax,” is a 6% tax on short-term rentals and hotel stays that last less than six months. This tax is not just a number; it reflects the vibrant visitor activity taking place in the area.

Why the Spike in Revenue?

So, what’s behind this fantastic surge in revenue? The answer lies in a combination of factors that have helped boost hotel visits and stays. First off, we saw hotel occupancy in Orlando grow by 3.3%, hitting an impressive 74.4%, the highest it’s been since March 2024. Coupled with this, the average daily room rate (ADR) also saw a healthy uptick, now sitting at $202.91. That’s a 4.7% increase from last year’s $193.81!

This growth in hotel demand can largely be attributed to a series of high-profile events that drew crowds to the area. Major happenings, including exciting FC Series soccer games at Camping World, the Future of Education Technology Conference, and the annual PGA Show at the Convention Center, were big draws. Not to forget the winter school breaks paired with a long holiday weekend that also helped fill up hotels to the brim.

What’s Next for the County?

Renewal & Replacement Reserves saw a boost of $4.8 million in January alone. Additionally, the Other Authorized Uses Reserves now sit at a whopping $121.8 million, ready to cover future public improvement projects that have been greenlit by the county. Some of the exciting projects on the horizon include:

Convention Center 5A expansion project
Renovations at Camping World Stadium
Funding for the Arts and Application Review Committee (ARC)
UCF football stadium tower project

Pushing for Change in Tourist Development Tax Allocation

SB1114 and HB6031, aimed at adjusting the current requirement that mandates 40% of TDT money be allocated for tourism advertising. If these changes are approved, it could allow for funds to be directed to much-needed public transit projects. Imagine enhanced bus services that whisk you away to Disney World, or connecting the SunRail to the airport!

Monitoring and Future Oversight

Visit Orlando, which received about $99 million of the TDT revenue, uncovered some discrepancies in spending. There were concerns about services that went uncharged as well as a hefty emergency reserve account. An ongoing audit is expected to publicly release its findings by the end of April 2025. There’s a sense of optimism among lawmakers that there’s potential for bipartisan support regarding these proposed legislative adjustments.