Visitors to the St. Petersburg/Clearwater area save the average Pinellas County household more than $600 a year in taxes, according to research released by the…
Visitors to the St. Petersburg/Clearwater area save the average Pinellas County household more than $600 a year in taxes, according to research released by the St. Petersburg/Clearwater Area Convention & Visitors Bureau (CVB).
Residents would also have to make up more than $12 million a year in beach nourishment funds paid by visitors, and the popular Penny for Pinellas would lose nearly $40 million each year. The area would also have to cover $6 million per year in money that goes to maintain the area’s professional sports facilities.
As part of the planning process for FY2006/2007, which started in October of this year, the Tourist Development Council directed the St. Petersburg/Clearwater CVB to design and implement an education program for local residents and businesses to better understand the positive attributes of tourism, which include helping to fund beach nourishment, keeping local and independent restaurants open and creating local jobs. Without the contribution of tourism dollars to the local economy, residents would pay a larger share of their income to support these programs or see businesses close and unemployment rise.
To demonstrate this impact, the St. Petersburg/Clearwater CVB, in conjunction with Walter Klages of the Klages Group, conducted a scenario analysis of the loss of Pinellas County Tourism and the tax impact on local residents.
Based on 2005 county figures, visitors contribute more than $292 million dollars in taxes to Florida’s and Pinellas County’s economy from visits to restaurants, bars, attractions, and gas, gift shop and other retail sales purchases as well as lodging. They also contribute more than $12 million toward beach nourishment funds and support over 85,000 jobs.
Based on a 25 percent decrease in tourism, local residents could face an increase in their taxes of at least $167 per household and the loss of more than 21,000 jobs and $720 million in lost wages. Estimated restaurant closures stand at over 300. At 100 percent loss of tourism, the household cost escalates to $668, with a $2.8 billion dollar loss in related wages.
“Tourism reaches every aspect of our community and many residents don’t understand how broad based tourism dollar contributions are, and even more specifically how these dollars help them at tax time,” said Carole Ketterhagen, Executive Director of the St. Petersburg/Clearwater CVB. “Our goal is to create a better understanding among residents and industry members about how the presence – and absence – of visitors to our county help lower their taxes and aid to the quality of life programs and services they enjoy,” she added.
To localize information by community and resident base, the St. Petersburg/Clearwater CVB Board of Directors selected five communities that they believe represent a variety of socioeconomic backgrounds as pilot communities for the program. These include Clearwater, Dunedin, St. Petersburg, St. Pete Beach and Tarpon Springs.
Over the next fiscal year, which runs from October 2006 through September 2007, a variety of informational programs will be implemented in these five communities as well as trying to reach Pinellas County businesses and residents as a whole, working with local media, chambers and community based organizations.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
