The Pinellas County Tourism Development Council (TDC) unanimously recommended that the Pinellas County Board of County Commissioners…
The Pinellas County Tourism Development Council (TDC) unanimously recommended that the Pinellas County Board of County Commissioners raise the area`s Tourist Development Tax from four percent to five percent to aid in marketing the county to visitors. The Tourist Development Tax, also known as the resort or bed tax, is levied on short-term rentals at commercial lodging establishments, and is not a tax on county residents.
The TDC`s recommendation will go to the Pinellas County BCC who will make the final decision after studying the issue and holding a public hearing (tentatively scheduled for July). Made up of tourism industry leaders, the TDC oversees spending of the Tourist Development Tax and directs the marketing efforts of the St. Petersburg/Clearwater Area Convention & Visitors Bureau. The CVB is now spending $1.25 million less on marketing the area than was spent in 1999, after adjusting for inflation. The recommendation is that the proceeds from the fifth cent would be used only for advertising and promotion.
Tourism is Pinellas County`s #1 industry and we are charged with keeping tourism strong, said Tim Bogott, president and CEO of the TradeWinds Resorts in St. Pete Beach and chairman of the TDC`s budget committee. We believe the economic benefit will be very, very significant.
The group cited the fact that though Pinellas County has the fourth most accommodations of any area in the state, there are 10 other counties in Florida charging more than four percent in Tourist Development Tax. Many of these areas are considered as competitors.
It`s a slam dunk decision, Bogott added. We need to do this to stay competitive from a marketing perspective. And we would be remiss not to do it knowing the economic impact which is projected to be achieved from the increase.
Research indicates that the additional one percent would generate approximately $4.75 million in tourist tax revenues, said Carole Ketterhagen, CVB executive director. And with that we should be able to bring an estimated economic benefit to the county of more than $117 million in direct visitor spending in the first year alone. It would also bring an additional $7.4 million in state and local sales taxes and should support an additional 5,923 jobs in the industry. That`s quite a return on investment.
The Tourist Development Tax was last raised in 1996 going from three percent to four percent. Tourism that year increased by 3.1 percent, the largest increase of the decade to that point. This increase would allow the CVB to increase its sales and marketing efforts and capitalize on the #1 Beach ranking that Fort De Soto Park recently received. The CVB would also be able to extend its advertising for international markets, top domestic markets and niche markets such as African American, Arts & Culture, Hispanic and Alternative Lifestyle.
Pinellas County`s Tourist Development Tax was created in 1978. The tax is levied on visitor accommodations (hotels, motels, condominiums, campgrounds, etc.) which are rented for a period of six months or less. A portion of the tax also goes to help fund beach renourishment and for debt service on Tropicana Field and Spring Training facilities in Clearwater and Dunedin. Last year $17.7 million was generated by the tax.
As small and medium-sized resort properties continue to be converted to condos, the area`s room inventory will continue to shrink, Ketterhagen added. That will also shrink the amount of dollars collected through the resort tax further limiting the CVB`s ability to promote the destination. We expect to gain back inventory once several large resort projects throughout the county are completed, but these will not come online until after many units are lost.
The CVB is the countywide marketing organization responsible for promoting the St. Petersburg/Clearwater area as a leisure, business, convention and conference destination. The group`s purpose is to strengthen the county`s economy and employment by investing the Tourist Development Tax receipts in a comprehensive, successful and research-driven tourism marketing program.
The CVB oversees the tourism promotion of the leading visitor destination on Florida`s Gulf coast. The results of these efforts are that more than 13 million visitors (more than five million overnight visitors) annually come to Pinellas County and contribute nearly $6 billion per year directly and indirectly into the local economy, making tourism the area`s leading industry.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
