Orange County hotel tax inches up in February - Orlando Business Journal
Orange County's hotel tax is critical to big projects around the region. Here's the latest on how much it brought in for February 2024. Orange County's tourist development taxes (also known as the hotel taxes) increased in February, with collections reaching $34.05 million, up 4.3% from $32.6 million the previous year. This is a month-to-month increase after January saw a 4.98% increase in tax revenue. The tourist development tax revenue is a key funding source for marketing, projects, and other tourism-related needs such as the University of Central Florida using it to expand its football stadium amenities. Despite a 1.5% decrease in hotel demand compared to the prior year, Metro Orlando experienced a 1,5% increase. Tax collections for the fiscal year so far have fallen 1% to $153.6m compared to $155.2m the previous season.
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Orange County's tourist development taxes — also known as the hotel taxes — took advantage of the leap year to go above collections from 2023.
Tax collections for February — which ended Feb. 29, thanks to the leap year — were $34.05 million, up 4.3% from $32.6 million for the same month last year, said a report from the office of Orange County Comptroller Phil Diamond.
This is a month-to-month increase after January saw the tax revenue rise 4.98%, from $29.04 million in January 2023 to $30.49 million. Most notably, it's another month of hotel tax growth after several months of decline.
Why do the tourist development tax trends matter?
The tourist development tax revenue is a key funding source Orange County uses for marketing, projects and other tourism-related needs. For example, the University of Central Florida is tapping into $90 million in county hotel taxes to expand its football stadium amenities.
Collections for the fiscal year so far — which started in October — are down 1% to $153.6 million when compared to $155.2 million for the same time last year.
In addition, the extra day for the month helped rake in $1.17 million in tourist development taxes for the county.
Metro Orlando saw a 1.5% increase in hotel demand compared to the previous year, despite a dip in average hotel occupancy from 82% to 79.8%, said an April 4 newsletter from Visit Orlando President/CEO Casandra Matej.
Increased traffic at the Orange County Convention Center, which results in more hotel stays by attendees, also played a role in the bump in collections, added Visit Orlando.
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