Collier County will nearly double its tourism spending this fiscal year, upping it to $11.45 million, to remain competitive with other markets after hotel occupancy dipped and then two hurricanes hit.
The Board of County Commissioners on Nov. 12 unanimously approved the Tourist Development Council’s enhanced marketing funding request of up to $5.45 million to remain competitive and to promote tourism after tourism-development tax collections dipped about $250,000.
“We’ve obviously had to address negative perceptions with storms, but we’ve also had to address negative perceptions with red tide, the economy, certainly the pandemic … and hurricanes, hurricanes, hurricanes,” county Tourism Director Jay Tusa said before the vote.
The money comes from the county’s 5% bed tax — revenues from hotels, Airbnbs and other rentals of six months or less. Although they’re tourism funds, commissioners’ approval is needed to add to the already approved $6 million tourism budget.
The two votes involved up to $390,000 from TDC Disaster Recovery Fund, which has $1.5 million in reserves. That will be used for emergency hurricane recovery marketing to address negative perceptions after hurricanes Helene and Milton in September and October. Up to $5.06 million in operating reserve funds from the TDC Promotion Fund will be used to enhance tourism marketing. Commissioner and TDC Chair Rick LoCastro called the additional spending an investment and made both motions.
In September, the TDC urged Tusa to boost marketing and advertising due to waning occupancy rates over the summer, noting they had surplus funds, $12.2 million in reserves. The next month, Tusa presented a plan that was approved by the TDC, which then held an emergency meeting to polish its presentation to county commissioners to ensure it passed.
This week, Tusa told commissioners Collier County, called Florida’s Paradise Coast, was nearly last in hotel occupancy compared with eight competitors, just above Bradenton. Sarasota’s advertising budget topped the list at $14.99 million, followed by Tampa Bay at $14.90 million and Fort Myers/Sanibel at $14.3 million.
He noted several areas already increased marketing efforts after hurricanes, including Visit Tampa, which just raised its budget by $6 million and Amelia Island, by $5.2 million.
Tusa noted Collier ranks second to last in full-time tourism employees, nine, just above Florida Keys, which has eight; Bradenton numbers weren’t available. In comparison, The Palm Beaches has 40, Tampa Bay has 41 and Fort Myers-Sanibel, 33.
Collier’s average occupancy rate for leisure travel and group business dropped to 64.3% and it’s forecasted to drop to 41% without enhanced marketing. Tusa said more than 1,000 new hotel rooms will be added over the next year, meaning hotels must fill 147,000 room-nights to maintain the current occupancy rate. “Without increased demand, we could fall by an additional 5%, so it’s really important that we really try to stay ahead of this with our marketing efforts,” Tusa added.
The funds will be used to increase visitation from markets Collier targets; boost research, data and insights; and strengthen sales efforts, especially offseason, June through October. Boston, Philadelphia, Detroit, Indianapolis, the Northeast and Midwest will be targeted for expansion.
LoCastro urged fellow commissioners to approve the increase, noting they made a similar approval after Hurricane Ian, and other counties already used emergency funds to boost marketing after hurricanes. He cited the economic impact, more than 28,000 tourism-related jobs, with $1.2 billion in wages.
“People make their livelihoods off their tourism jobs,” LoCastro said. “It’s how they feed their families and give them shelter, pay their rent, their mortgage, so I think these are really important numbers.”
Mark Ferland, general manager of Ritz-Carlton Resorts of Naples, praised Tusa and his team, saying he met with them after the hurricanes and found they already had a marketing plan to combat visitors’ perceptions after the hurricanes.
Industry members packed the chambers to urge approval, but commissioners assured them it would be approved. Among those lining up to speak were Greater Naples Chamber of Commerce, Fifth Avenue South Business Improvement District, FC Naples professional soccer team, Hilton Naples and Marriot International.
Chris Lopez, Florida Restaurant Lodging Association’s regional director, commended commissioners, adding, “Collier County is leading this charge across the state. A lot of eyes are on this meeting this morning, not just from this area but from across the state and other TDCs and other counties and in Tallahassee specifically, so thank you.”
Mick Moore, co-owner of Vanderbilt Beach Resort and Turtle Club Restaurant, called the county’s work to increase marketing, maintain beaches and expand tourism opportunities important. He added: “I think everyone realizes now, after a year like we’ve had, that part of storm resiliency is coming up with a marketing plan, so I appreciate your efforts.”
