A controversial bill advancing through the Florida legislature is raising alarms among tourism advocates and local business groups, as it seeks to divert hotel tax revenues away from tourism promotion and toward county-level projects and property tax relief.

Under the proposed legislation, spearheaded by Rep. Monique Miller (R-Palm Bay), counties would be required to allocate hotel taxes—which currently fund marketing campaigns, major event venues, museums, and beach restoration projects—toward broader government uses. These include general county contracts and property tax rebates, potentially beginning in 2026. The move could effectively defund key tourism marketing agencies such as Visit Tampa Bay and Visit St. Pete-Clearwater.

“This is not a cost-cutting strategy; it’s economic sabotage,” warned Robert Skrob, Executive Director of Destinations Florida. “This proposal gambles with the livelihoods of over 2 million Floridians, from hotel staff to small business owners, and risks collapsing the tax base that makes Florida’s income-tax-free status possible.”

Florida’s tourism industry is a cornerstone of the state economy, particularly in regions like Tampa Bay. Pinellas and Hillsborough counties alone generate over $150 million annually through hotel taxes, helping to finance everything from advertising campaigns in New York subways to maintaining local attractions like the Dali Museum and Raymond James Stadium.

Local officials argue the timing couldn’t be worse. After enduring two major storms, coastal communities are only now beginning to recover, and tourism promotion is considered vital for economic rebound. Charlie Justice, former Pinellas County Commissioner and current head of the Tampa Bay Beaches Chamber of Commerce, emphasized that tourism generated approximately one-third of local sales tax revenue in 2024, thanks to over 15 million visitors.

Tourism marketing also supports more than 160,000 hospitality jobs in the Tampa Bay area, according to Santiago Corrada, CEO of Visit Tampa Bay.

Justice noted the crucial role of advertising in restoring confidence post-disaster: “After oil spills and COVID-19, Florida increased its marketing budget to remind the world that we’re open for business. Very few successful industries or brands survive without promotion.”

Despite growing concern, the bill narrowly passed a legislative committee on Tuesday, with a rare coalition of Republicans and Democrats voicing opposition. The Florida House and Senate must approve the measure before the legislative session ends on May 2 for it to become law.

Some lawmakers are defending the bill. Rep. Linda Chaney (R-St. Pete Beach) said she’s proud to support legislation that could ease the tax burden on her constituents. “My residents have been asking for this for 30 years,” she stated.

However, Rep. Lindsay Cross (D-St. Petersburg) voiced concern over the potential negative impacts on beach communities and voted against the bill.

Tourism organizations across the state—including Destinations Florida, the Florida Attractions Association, and several hotel and restaurant groups—have joined forces to oppose the measure, arguing that now more than ever, Florida’s global reputation as a premier travel destination must be protected and promoted.