Orange County's tourism tax collections down for 3 months in a row

ORANGE COUNTY, Fla. - Orange County Tourist Development Tax collections were down in June over the previous year for the third month in a row. 

New numbers released Thursday show a 7.3% drop in June compared to the year before after collecting $30 million dollars from tourists. Phil Diamond, Orange County comptroller, compared TDT revenues to a rollercoaster.

"It’s not time to push the panic button, but it’s time to remember that TDT goes up and down very quickly, and the county should continue to be very cautious in what commitments it chooses to take on," Diamond said.

Orange County charges a 6% tax on hotel and short-term rental bookings to collect the TDT. The revenue helps fund multi-million dollar development projects. The county collected a record $336 million last year.

Gary Kaltbaum, FOX News business contributor, said summer 2022 set a high bar.

"I think probably in the last year there was a lot of ‘Get out and go’ because we were holed up with the COVID, but definitely something to watch because it really does drive the economy of Central Florida in a very big way," Kaltbaum said.

Tourism is a $75 billion industry in Orange County, accounting for 24% of the county’s overall employment. This summer several groups pulled future events and conventions out of Central Florida, citing the state’s political climate.

"I think that could be somewhat of a component," Kaltbaum said. "I don’t think it’s a big one, but I can promise you the more people that decide to not to come and the more times it’s in the news, there will be a certain effect that I can promise you won’t be positive."

Hotel occupancy in June dipped 4.3% percent from last year. FOX 35 spoke with tourists who mentioned increased costs as part of their experience.

"It’s very expensive here," tourist Anthony Vicente said. "Even though you might think it’s not because they always say ‘The south is cheaper.’ It’s not. The tourism part of it is pretty expensive."

"In comparison to Canada, it’s more expensive here," tourist Gerald Gonsalves said.

SeaWorld Orlando reported fewer visitors this most recent quarter, citing the hot summer weather while predicting a dip in profits this year.

Walt Disney Company CEO Bob Iger confirms Central Florida’s Fourth of July heat wave is partly to blame.

"It’s been hot in Ohio, too, but it’s definitely hotter down here," tourist Makaylla Belinsky said.

Despite the decreases in recent months, Diamond remains hopeful for a strong finish to the summer and the year.

"There’s a real good chance we’re gonna finish ahead of last year," Diamond said.

The full-year forecast backs up Diamond’s hope for a strong 2023 with a 3 percent increase in hotel demand. The county expects 75 million visitors in 2023.