Escambia County’s Tourism Resurgence: A Strong Recovery Post-COVID
Escambia County has experienced a remarkable rebound in tourism, overcoming the challenges posed by COVID-19, Hurricane Sally, and staffing shortages. With a 23% increase in bed tax collections compared to 2019, the region is poised for what could be an even more record-breaking year in 2022. This resurgence highlights the resilience of the local tourism industry and the community’s commitment to revitalizing its economy.
Understanding the Tourism Development Tax
The Tourism Development Tax (TDT) is a crucial component of Escambia County’s tourism funding. Collected from all short-term lodging locations, including hotels, motels, and Airbnbs, the TDT is set at 5% on stays. This tax revenue is reinvested into organizations such as Visit Pensacola and Pensacola Sports, as well as local agencies that seek funding for tourism-related events and initiatives.
In 2019, the TDT collection from October through September totaled $12.3 million. However, the pandemic’s impact was evident in 2020, with collections dropping to $9.7 million. The following year, 2021, saw a significant recovery, with collections soaring to $17.6 million, signaling a strong resurgence in tourism.
Factors Driving the Recovery
Several factors have contributed to the impressive recovery of Escambia County’s tourism sector. One notable aspect is the increase in TDT collections, which was partly influenced by a fifth-cent increase in the tax that took effect in April 2021. Despite this adjustment, the 23% year-over-year increase from 2019 remains significant, as it does not account for the additional funds collected from the tax increase.
As the fiscal year begins in October, early data for the 2022 fiscal year shows promising trends. The collections for October and November indicate a 27% increase over the previous year, showcasing a robust recovery trajectory.
The Role of Pent-Up Travel Demand
Visit Pensacola President and CEO Darien Schaefer attributes much of the tourism surge to pent-up travel demand. As travel restrictions eased, many tourists from nearby states like Louisiana, Georgia, and Alabama flocked to the area, particularly in April 2021. This influx was driven by a desire for safe travel options, as many were restricted from flying or taking cruises.
The Clerk of Court’s office reports that nearly 3,900 active accounts are contributing to TDT collections, with 650 new registrants added in 2021. This growth in lodging options, including hotels and short-term rentals, has expanded the inventory available to tourists, further boosting the local economy.
Rising Rates and Increased Inventory
Another contributing factor to the high TDT collections is the recovery of hotels damaged by Hurricane Sally. Many of these establishments have reopened, adding to the available lodging inventory. Additionally, hotels and short-term rentals have raised their rates to match demand, a move that many industry experts believe was overdue. Schaefer notes that the Pensacola area has long been perceived as a good value, and the adjustment in rates reflects a more accurate market position.
Ted Ent, CEO and president of Innisfree Hotels, which owns several properties in Pensacola Beach, acknowledges the uncertainty of predicting future booking trends. However, he notes strong booking numbers leading into spring, suggesting continued interest in the area.
Investment in Tourism Infrastructure
The increased TDT collections have also allowed for significant investments in local tourism infrastructure. Escambia County Commissioner Robert Bender, who serves on the Tourist Development Council, highlights how additional funds have facilitated projects such as beach facility upgrades and beach renourishment. These improvements enhance the visitor experience and contribute to the overall appeal of the region.
Moreover, the successful hosting of events like the unexpected November Blue Angels beach show, typically held at Naval Air Station Pensacola, demonstrates the community’s ability to adapt and thrive despite challenges.
Looking Ahead: A Promising Future
As Escambia County moves into the spring season, expectations remain high. With the Pensacola Bay Bridge back in operation and much of the damage from Hurricane Sally repaired, the region is well-positioned for continued growth. Schaefer emphasizes that despite the hurdles faced in recent years, the tourism numbers are trending positively.
In conclusion, Escambia County’s tourism sector has shown remarkable resilience in the face of adversity. With strong bed tax collections, increased lodging options, and ongoing investments in infrastructure, the region is on track for a bright future in tourism. As travelers seek new experiences and safe destinations, Escambia County stands ready to welcome them with open arms.