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Panhandle's Best Tourism Year Ever: Fact-Checking Scott's Claim

Strategic Insights

— 1 min read

Florida's Panhandle is experiencing its best tourism year ever, according to Governor Rick Scott, with record-breaking bed tax collections and packed restaurants. The governor attributed the surge to the $30 million marketing funds provided by BP, which allowed tourist development councils to do additional outreach and advertising in high-value markets. However, PolitiFact Florida investigated the claim, comparing bed tax collections in 2011 with past years to verify the accuracy of Scott's statement.

Key Takeaways:

  • Bed tax collections in the Panhandle's seven counties totaled approximately $33.9 million through July 2011, compared to about $27.5 million for the same period in 2010, according to the state's Department of Revenue.
  • The increase in bed tax collections can be attributed to the higher bed tax rates in several counties, with Bay County raising its rate from 3 percent to 5 percent in 2009, resulting in a 67 percent increase in collections if rates were held constant.
  • Researchers at the University of West Florida found that, when normalized for bed tax rate changes, bed tax collections were highest in 2011, but pointed out that the boost was partly artificial, created by the additional BP dollars.
  • Occupancy rates were higher in the Panhandle in 2006 and 2007, and hotel operators were able to charge higher prices for their rooms in 2007 and 2008.
  • Scott's office pointed to a September 2 news release from the Northwest Florida Tourism Council, which boasted about summer bed tax collections.

Statistics:

  • Bed tax collections in the Panhandle's seven counties totaled approximately $33.9 million through July 2011.
  • Bed tax collections for the same period in 2010 were about $27.5 million.
  • Bay County raised its bed tax rate from 3 percent to 5 percent in 2009.
  • The temporary influx of BP dollars contributed to the artificial boost in bed tax collections.
  • Occupancy rates in the Panhandle were higher in 2006 and 2007 than in 2011.
  • Hotel operators were able to charge higher prices for their rooms in 2007 and 2008.

Sources:

  • [Sept. 2 news release] from the Northwest Florida Tourism Council
  • PolitiFact Florida investigation
  • [State's Department of Revenue, bed tax collections data]
  • Interview with Craig Savage, BP spokesman
  • Research study by the University of West Florida's Office of Economic Development and Engagement

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