Florida is a state known for its sunshine, beaches, and theme parks. It’s no secret that tourism plays a significant role in the state’s economy.
But just how much of Florida’s income is actually generated by tourism? Let’s dive in.
The Impact of Tourism on Florida’s Economy
Florida is one of the most visited states in the United States, with over 131 million visitors in 2019 alone. This high number of visitors has a significant impact on the state’s economy. In fact, tourism is one of the largest industries in Florida.
Direct and Indirect Impact
The impact of tourism on Florida’s economy can be seen both directly and indirectly. Direct impact refers to the amount of money spent by tourists in the state, while indirect impact refers to the ripple effect that tourism has on other industries such as hospitality, transportation, and retail.
According to Visit Florida, the state’s official tourism marketing corporation, direct spending by tourists in 2019 was approximately $97 billion. This includes expenses such as lodging, food and drink, transportation, and entertainment. The indirect impact of tourism was estimated to be an additional $53 billion.
Employment
Tourism also plays a significant role in employment in Florida. In 2019, it was responsible for employing over 1.5 million people directly and indirectly. This represents approximately 14% of all jobs in the state.
The Percentage of Florida’s Income from Tourism
So how much of Florida’s income is actually generated by tourism? According to Visit Florida, tourism accounts for approximately 11% of the state’s total gross domestic product (GDP). This makes it one of the largest industries in terms of contribution to GDP.
Variations Based on Region
It should be noted that the percentage of income generated by tourism varies based on the region. For example, in some counties such as Monroe County (home of the Florida Keys), tourism can account for over 50% of the local GDP. In other areas, such as the Panhandle, tourism may play a smaller role in the local economy.
The Future of Tourism in Florida
The COVID-19 pandemic has had a significant impact on tourism in Florida and around the world. In 2020, the number of visitors to Florida dropped by over 34% compared to the previous year. This has resulted in a major loss of revenue for businesses that rely on tourism.
However, as vaccination rates increase and travel restrictions ease, it is expected that tourism will rebound in Florida and around the world. According to a report by Oxford Economics, it is projected that by 2023, spending by tourists in Florida will reach pre-pandemic levels.
Investments in Tourism
To help support the recovery of tourism in Florida, there have been several investments made by both public and private entities. These include marketing campaigns to attract visitors back to the state, improvements to infrastructure such as airports and highways, and incentives for businesses to invest in new attractions and experiences.
Conclusion
Tourism plays a significant role in Florida’s economy, accounting for approximately 11% of the state’s total GDP. It also provides employment for over 1. While COVID-19 has had a major impact on tourism in Florida and around the world, it is expected that spending by tourists will rebound in the coming years with investments made to support its recovery.