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Polk County Officials Warn of Tourism Funding Crisis

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Polk County Tourism Highlights

News Summary

Polk County tourism leaders are raising concerns about proposed legislation that threatens to redirect hotel tax revenues, vital for promoting local attractions and events. Mark Jackson from Visit Central Florida emphasized that bills HB 1221 and HB 7033 could lead to serious economic repercussions, including a loss of over $200 million in community revenue. The bed tax, fundamental to the county’s tourism marketing efforts, could result in the cancellation of planned hotel developments and the elimination of local tourism councils. Polk County leaders are gearing up to advocate against these legislative changes.

Florida – Polk County tourism officials are sounding alarm bells over proposed legislation that could significantly impact the local economy by redirecting hotel tax revenues away from tourism marketing. Mark Jackson, the director of Visit Central Florida, revealed that the potential changes related to bills HB 1221 and HB 7033 might lead to what he characterized as a “potential economic disaster” during a recent Tourist Development Council meeting.

The bed tax, or tourist development tax, currently set at 5% in Polk County, is essential for funding marketing efforts that promote local attractions such as Legoland and various events. The revenue generated from this tax has been crucial for the growth of the county’s tourism sector, which currently employs over 41,000 individuals. In the past year alone, Polk County saw a 13.2% increase in bed tax revenues, amounting to approximately $25 million. This income is primarily contributed by visitors, not residents, making it a vital source for the local economy.

If the proposed legislation were to pass, it could lead to the elimination of local tourism development councils and limit how tourism tax funds can be utilized, hindering vital capital investments for sports and cultural events. The repercussions could amount to more than $200 million in lost revenue for the community. Furthermore, the legislation could thwart the development of nine planned hotel properties that would add over 1,000 hotel rooms in the area. With ongoing discussions surrounding Governor Ron DeSantis’s proposal for property tax relief, Jackson noted that the expected benefits to residents from such relief would average only $58 per household, a figure starkly insignificant when compared to the potential economic downfall stemming from reduced tourism funding.

Polk County, recognized as an emerging dynamic hub for businesses, has a well-diversified economy that extends beyond its traditional industries such as agriculture, citrus, cattle, and mining. The strategic advantages offered by the county, including infrastructure, talent availability, and a supportive business environment, have been underscored by the efforts of the Central Florida Development Council (CFDC). Since 2016, the CFDC, under the leadership of President & CEO Sean Malott, has played a pivotal role in attracting and retaining businesses within the county.

Historically, the tourism sector has acted as a stabilizing force for Polk County’s economy, cushioning the impact of downturns during crises like 9/11, the Great Recession, and the COVID-19 pandemic. However, if funding for tourism development is diminished, various corporate sponsors may withdraw their support for local tourism campaigns. The lessons learned from similar situations in the past, such as Colorado’s experiences between 1993 and 2000, illustrate the dangers of dismantling tourism agencies, which can lead to significant revenue losses.

With the future of tourism marketing hanging in the balance, Polk County’s leaders are preparing to advocate vigorously against the proposed legislation in hopes of preserving the critical funding that supports local businesses and attractions. The outcome of these legislative discussions could not only reshape the tourist landscape in Polk County but also have lasting effects on the overall economic health of the region.

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