Florida considers new taxes on tourism as state spending rises

03-04-25

The governor of Florida, Ron DeSantis, has recently put forward a proposal that has generated controversy in sectors linked to tourism: to establish new taxes aimed at visitors to the state. The announcement has set off alarm bells in a key industry for the Floridian economy, which fears that this type of measure could affect the flow of national and international tourists, just at a time when the sector is seeking to consolidate its recovery after the toughest years of the pandemic.

During a press conference in the southern part of the state, DeSantis said the current tax system, based on income tax and other state revenues, is proving insufficient to meet the growing needs of the public budget. The governor argued that tourism, as one of the state's most powerful economic engines, must contribute more directly to sustaining infrastructure, services and security costs, which in many cases are increased by the high influx of visitors.

Although no specific details were provided on how these taxes would be implemented, nor what types of tourism activities would be taxed, the announcement has raised immediate concern among business associations, chambers of commerce, tour operators and hotel industry representatives. Florida is one of the top tourist destinations in the United States, welcoming more than 130 million visitors in 2023, a figure that exceeds pre-pandemic levels and confirms the state's attractiveness to both domestic and international tourists.

Industry insiders warn that introducing new taxes could affect Florida's competitiveness vis-à-vis other tourist destinations in the country and the Caribbean. ‘This could cause the overall cost of visiting our state to increase significantly, especially for families who choose Florida for its value for money and diversity of attractions,’ said a spokesperson for the Florida Hotel and Lodging Association.

DeSantis, however, argues that residents should not continue to bear the brunt of the growth in public spending alone and that visitors also benefit from the services and infrastructure offered by the state. In his words, ‘it is not fair for the citizens of Florida to fully subsidise the costs of maintaining parks, roads, public transportation and security when millions of people from outside the state use them every year’.

Some analysts believe that this proposal could be politically motivated, aimed at strengthening the governor's image as a defender of local interests against outside influences. However, they also recall that any change in tax policy would have to go through the state legislature, where it would likely face intense debate.

For their part, some tourism economists point out that while it is reasonable for destinations to seek new sources of funding, it is essential to find a balance that does not discourage visitor arrivals or negatively affect the perception of the Florida brand, especially in international markets.

Currently, Florida already levies taxes on tourism-related activities, such as the bed tax, which varies by county. However, DeSantis' proposal seems to go beyond this scheme and opens the door to an eventual restructuring of the tax collection model.

The news comes in a context in which other tourist destinations around the world are also considering or implementing tourism taxes as a tool to regulate visitor flows and finance the sustainability of their destinations. However, Florida faces the challenge of doing so without losing its attractiveness or generating rejection among tourists, a complex but crucial balance.

In the coming weeks, the state government is expected to clarify the details of the proposal and open a space for dialogue with industry stakeholders, who have already begun to mobilise to express their concerns about what they see as a risk to the state's economic growth and international image.

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