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Visit Orlando Faces Scrutiny Over $20 Million Misclassification

Crowded tourist area in Orlando, illustrating the tourism sector's importance and challenges.

News Summary

Visit Orlando is under scrutiny after an audit revealed potential misclassification of nearly $20 million in tourist development tax revenue. Following an Orange County audit, concerns were raised about the organization’s financial accountability, transparency, and spending practices. A mandate for clarification on funding classifications by December was issued, highlighting concerns regarding the equitable distribution of tourism benefits. The audit’s findings may lead to significant changes in oversight and accountability within Visit Orlando and its operations.

Orlando, FL – Visit Orlando, the region’s primary tourism marketing organization, is facing serious scrutiny after reports emerged of potential misclassification of nearly $20 million in tourist development tax revenue. Findings from an audit conducted by Orange County officials indicate that the organization may have improperly classified funds, raising concerns about financial accountability and transparency.

The estimated $19.9 million in misclassified funds dates back to 2019 and was recently presented during a public discussion with the Orange County Board of County Commissioners. The Orange County Assistant Comptroller, Wendy Kittleson, mentioned that the challenges in reviewing financial records underscore the complexity involved in determining the proper classification of these funds.

Visit Orlando, which receives over $100 million annually in taxpayer-funded tourist tax revenue, is responsible for promoting tourism in the area. However, the audit revealed that approximately $3.54 million, or 39% of Visit Orlando’s reported private funds in 2023, were misclassified. These funds should have been designated as public money generated from the county’s 6% Tourist Development Tax (TDT).

Following the audit’s release, Orange County Commissioners have mandated that Visit Orlando provide clarity on its funding classifications and report back by December. The Comptroller’s team also expressed intentions to conduct a thorough review of records from 2019 through 2024 in order to gain a more accurate picture of the organization’s funding practices.

Commissioner Kelly Martinez Semrad highlighted the necessity of prudently managing county revenue, referencing an ongoing state investigation led by the Florida Department of Governmental Efficiency (DOGE). This investigation arises from broader concerns regarding governmental transparency, spurred by findings in the recent audit.

The audit also identified questionable spending practices by Visit Orlando, including questionable expenditures on skyboxes at events, office decor, and employee sneakers. Although Visit Orlando’s CEO, Casandra Matej, expressed surprise at the $20 million figure and clarified that it was not included in the recent audit report, she defended their expenditures as investments in immersive experiences aimed at enhancing their marketing strategy and client engagement.

Community members have expressed concerns regarding the equitable distribution of tourism benefits, particularly for frontline hospitality workers. Furthermore, Commissioner Mayra Uribe identified evidence of TDT fund misuse and emphasized the need for clearer standards and stronger oversight mechanisms moving forward.

While some county officials have come to the defense of Visit Orlando, arguing that the audit’s findings might be subject to interpretation, others within the board are advocating for improved accountability measures. In response to the audit findings, Visit Orlando has committed to hiring an internal auditor to enhance oversight of its financial practices and clarify any discrepancies in reported expenditures.

The local tourism economy plays a crucial role in Central Florida, with a reported $94.5 billion in spending last year, further underscoring the importance of ensuring that tourism-related revenues are properly managed and allocated. Future discussions are anticipated to address the alleged misclassifications and consider the possibility of revising Visit Orlando’s funding agreement with the county to enhance transparency and accountability.

This audit has raised critical questions about the financial governance of Visit Orlando and the broader implications for tourism funding strategies in the county. As community leaders and stakeholders seek to clarify the situation, the ongoing dialogue signals a growing demand for transparency and effective management of public funds within the tourism sector.

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Additional Resources

STAFF HERE ORLANDO WRITER
Author: STAFF HERE ORLANDO WRITER

ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.

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