Tourism industry alarmed by trims to its marketing tax

As a bill works its way through the Florida legislature that could dramatically change how tourist development tax dollars are used, Miami’s tourism industry is raising alarms about potential consequences.

The proposed legislation would redirect tax funds currently reserved for tourism-related initiatives into general government coffers to offset property taxes beginning in 2026. Supporters say the shift would provide residents tax relief, but hospitality leaders argue it could weaken Miami’s visitor economy, strain public services funded by tourism dollars and diminish the city’s appeal as a global destination.

The tax, known as the bed tax, is levied on hotel stays, short-term rentals and motels, with most of the tax paid by visitors, not residents. In Miami-Dade County, that tax rate is 2%, while areas like Miami Beach, Surfside and Bal Harbour charge 4%.

Curtis Crider, CEO of the Greater Miami and the Beaches Hotel Association, said the bed tax has long been a vital revenue source for the region.
“Tourism is the number-one economic engine for the area for the last six years,” Mr. Crider told Miami Today. “It’s responsible for approximately 200,000 jobs in the community and contributes to a savings of more than $2,200 per household annually.”

Revenue from the bed tax supports a wide range of programs central to Miami’s tourism economy and broader community. The funds promote and advertise the region and support convention, visitor bureaus and tourist information centers.

“This money is used to market our destination and bring business to South Florida and the state,” Mr. Crider said, warning that eliminating the tax could drive tourism elsewhere. He said that cutting the funding could reduce marketing, making it harder for Miami to compete with other areas for visitors.

Beyond marketing, bed tax revenue also helps fund essential public services and infrastructure, including public safety, health services and cultural programs. Miami’s arts and culture sector benefits from grants funded by the tax, which Mr. Crider highlighted as crucial for preserving the region’s cultural vibrancy and attracting tourists.

“More than 730 cultural grants have been awarded to organizations in Miami-Dade County alone,” he said, saying that some events and festivals could eventually disappear without the continued financial support from tourism development tax funds.

Supporters of the bill say it’s intended to give local governments greater control over tourism tax revenue, requiring that those funds be used for official county projects, contracts or property tax relief by 2026.

With the 2025 Florida legislative session extended to June 6, providing more time for discussion, Mr. Crider said Miami’s tourism industry is urging lawmakers to reconsider the bill’s potential impact. Industry leaders, he said, are calling for alternative solutions to provide property tax relief without jeopardizing the tourism infrastructure that helps support the region’s economy.