ORLANDO, Fla. — Orlando just hit a record for tourism tax revenue, pulling in nearly $400 million last year. That money helps fund roads, the convention center, and marketing to bring more visitors to Central Florida. But a new economic forecast from the University of Central Florida warns that global conflict and rising energy costs could slow the Sunshine State’s growth in the years ahead.
UCF economist Sean Snaith says the war with Iran is creating uncertainty that hits families right at the gas pump. When fuel costs more, people have less to spend on everything else, including vacations. And if fewer visitors come to Orlando, that $400 million in tourist tax revenue could start to shrink.
“It creates uncertainty. And now consumers that are dealing with high levels of credit card debt and all these high costs of living are seeing spikes now, and the cost of gasoline, for example, so every time you go to the pump, more money goes into the tank,” Snaith said.
Channel 9 was at the Florida TaxWatch luncheon on International Drive today, where leaders discussed how to protect tourism dollars in uncertain times. Florida TaxWatch President and CEO Jeff Kottkamp says the region should not pull back on tourism investments now, even with global headwinds.
“It’s always going to be an issue where there can be events that temporarily impact all types of businesses, including tourism. But what we know historically is Florida tends to bounce back faster than any other state,” Kottkamp said.
The UCF forecast shows Florida’s economy is still expected to grow faster than the nation’s through 2029, with unemployment easing to 4 percent by the end of the decade. But the pace is slowing, and global uncertainty remains the biggest wildcard.
For now, Orlando is betting that visitors will keep coming. Because in this economy, every tourist dollar is working hard for local families.
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