Updated on May 1, 2025
In a move that could reshape Florida’s vibrant tourism industry, lawmakers have proposed dissolving the state’s local Tourist Development Councils by the end of 2025.
Revenue from the state Tourist Development Tax–a bed tax collected from guests staying in hotels, motels, and short-term rentals–currently funds local tourism marketing efforts through county Tourist Development Councils (TDCs).
House Bill 7033, a large tax package, would abolish all 62 of the state’s TDCs and redirect Tourist Development Tax revenue toward property tax credits, beginning in 2026, according to Florida Politics. Meanwhile, House Bill 1221 would make all Tourist Development Taxes automatically expire every eight years.
Both bills passed the Florida House of Representatives on April 25, 2025, and are now being considered in the Senate.
“Eliminating tourism promotion isn’t a cost-saving measure–It’s an act of economic sabotage,” said Robert Skrob, Executive Director of Destinations Florida. “This proposal gambles with the livelihoods of more than 2 million Floridians, from hotel workers to small business owners, and risks collapsing the tax base that makes Florida’s income tax-free status possible.”
The proposal has raised alarm across the state’s tourism industry, especially among vacation rental operators that rely on destination marketing to attract visitors.
In a legislative action alert sent out April 28, 2025, the Florida Alliance for Vacation Rentals (FAVR) described Tourism Development Tax revenue as “a vital lifeline for Florida’s thriving tourism sector.”
“These funds are not merely numbers; they translate into marketing campaigns that attract visitors, invigorate our travel communities, and ultimately fill the ‘heads in beds’ across our beautiful state,” the FAVR email stated.
Florida is one of the nation’s most visited states. The tourism industry generated $127.7 billion in economic impact in 2023, making tourism a major contributor to the state’s economy, according to VISIT FLORIDA.
Tourism industry leaders have warned that shutting down TDCs and depleting destination marketing funds could plummet visitor numbers, tourism jobs, and other state revenues.
The legislation’s backers argue that the policy change won’t affect Florida’s success as a tourist destination because the state’s attractions are already well known, and that it will provide property tax relief to residents.
FAVR stated that the proposal would provide a $60 property tax benefit for families, but would jeopardize “the very foundation of our tourism infrastructure.”
Annie Holcombe, a vacation rental business development executive based in Panama City, Florida, and cohost of the Alex & Annie Vacation Rental Podcast, challenged that notion.
“Florida and each destination compete against other states and destinations for events, conferences, and the attention of travelers who can choose any destination. Just like a business–that I would venture many lawmakers own–you don’t stop marketing when you’re on top,” Annie said.
Tourist Development Councils are vital in funding events, supporting infrastructure, and promoting their regions.
Annie credits the Panama City Beach TDC with helping to attract significant investments like Pier Park, the Northwest Florida Beaches International Airport, and multi-use sports facilities.
“Those events are being courted by other states all the time,” she said. “If the TDC doesn’t have the ability to maintain presence and those relationships, they will choose to go elsewhere.”
For Florida’s vacation rental hosts and managers, often small businesses, the loss or weakening of local tourism promotion could be a direct hit. These operators depend on steady visitation to support bookings and generate local economic activity.
“Tourism is the engine that drives many communities,” Annie said, “and shuttering them would lead to sputtering economies.”
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