Comments to the Honorable Ed Hooper, Chair, and Members of the Senate Committee on Commerce and Tourism Regarding SB 778 –

Florida Tourism Marketing

My name is Dominic M. Calabro and I am President and CEO of Florida TaxWatch, an independent, nonpartisan, nonprofit taxpayer research institute & government watchdog which, for over 40 years, has worked to improve the effectiveness, efficiency, and accountability of Florida government and promote a fair and equitable system of taxation.

Tourism plays a major role in Florida’s economic strength. In 2019, more than 131 million tourists visited Florida and spent an estimated $91.3 billion. This spending supports as many as 1.5 million Florida jobs, and generates significant state and local tax revenues in Florida, helping to keep the tax burden on residents down. According to the Office of Economic and Demographic Research, for every $1 the state invests in VISIT FLORIDA, $3.27 in state tax revenue is generated.

 In November 2018, Florida TaxWatch released an independent research report entitled “The Show May Not Go On: An analysis of the cost of severe cuts to Florida's tourism marketing.” Our report highlights the many benefits of VISIT FLORIDA and how important its mission of promoting tourism is to the well-being of our state. In normal times, strengthening the ability of VISIT FLORIDA to market our state is important. In light of the economic recovery needed within the leisure and hospitality sectors, it is essential. (For a look at our analysis of how the sector was impacted and recommendations to ensure its recovery, see our report: Bringing The Sunshine State Back: the Impact of COVID-19 Across Florida’s Economy & Options for Recovery.)

Global tourism is an increasingly competitive market. To maintain its share of the tourism market, Florida must remain ready to compete for visitors against other states and global destinations. While the pandemic has managed to disrupt normal travel decisions, positioning for current and future success remains an important mission. Prior to the pandemic, one only need look at the experience of other states that reduced or eliminated their tourism marketing efforts to understand what might happen if VISIT FLORIDA is impacted. States like Colorado and Washington that drastically cut or eliminated their investment in travel promotion have experienced immediate and long-term negative economic impacts. Destinations that fail to invest consistently in travel promotion will see visitors, jobs, and tax revenues go elsewhere. Should Florida choose to follow suit, tourism and the economic activity and taxes it generates will certainly decline.

Florida TaxWatch research shows that continuous, targeted investment into Florida’s tourism industry is critical to our state’s success. We look forward to working with you and your colleagues as the conversation regarding VISIT FLORIDA progresses.