TALLAHASSEE (CBSMiami/NSF) – State and local tax revenues from hotels will drop an estimated $1.3 billion this year in Florida because of the coronavirus-driven reduction in travel, according to a study released by the American Hotel & Lodging Association.
The study, conducted by Oxford Economics, projected that the hotel industry tax impact in Florida will be among the largest in the nation, trailing a $1.9 billion impact in California and matching a $1.3 billion impact in New York.CBS4 Nat Moore Trophy Profile: Gulliver Prep Running Back Sedrick Irvin Jr.
“This year is projected to be the worst year on record for hotel occupancy, and experts estimate it will be at least 2022 before hotels return to their 2019 occupancy and revenue levels,” the association said in a statement.
In May, Florida economists projected that overall state sales-tax collections in April were down $598.2 million from an earlier estimate.READ MORE: Florida Mom Making Angel Gowns For Families Who Lose Baby Unexpectedly
The association’s news release said more than 70 percent of hotel employees have been laid off or furloughed.
Nationally, the drop in hotel operations and occupancy is projected to lead to $16.8 billion in lost tax revenue for the year. The association said hotels generated nearly $40 billion in state and local taxes nationally in 2018.MORE NEWS: South Florida Businesses Relying On Tourism Hope To Recover From Pandemic Lows
(©2020 CBS Local Media. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The News Service of Florida’s (REPORTER NAME) contributed to this report.)