Orlando's Hotel Tax Dips to $33M Amidst Rising Short-Term Rentals

Orange County, USA - April was a rollercoaster for Orange County’s hotel tax revenue, raking in $33 million. Although that might sound like a hefty sum, it’s actually a 9% dip from April 2024, which has some folks scratching their heads. Even more surprising, this number falls short of April 2023’s collections by $519,300, despite both months hosting Easter celebrations. So, what gives?

March 2025, on the other hand, was quite the opposite with approximately $40.6 million collected in tourist development tax (TDT). Hotel occupancy in Orlando rose about 2 percentage points year-over-year, reaching a respectable 73%. Meanwhile, short-term rentals saw an impressive 28% increase compared to the previous year, hinting that many visitors are opting for private accommodations.

Booking Trends and Upcoming Attractions

As we look at bookings from May through July 2025, hotel reservations are currently running 1% behind last year’s figures. However, the picture shifts dramatically when it comes to short-term rentals, which are ahead of last year’s bookings by a notable 15%. It’s clear that while traditional hotels might be struggling, the allure of short-term rentals is pulling tourists in.

Excitement is building for the long-awaited Epic Universe, Universal Orlando’s upcoming theme park. The true impact of its grand opening on hotel tax revenue will be analyzed in early July, when the figures for May are released. Expected to be laden with attractions themed around various franchises, Epic Universe is generating buzz that could breathe new life into the local tourism economy.

Only time will tell how these factors play out, especially with legendary theme parks in Orange County gearing up for a summer full of special events. For instance, SeaWorld Orlando has launched a mesmerizing new drone show alongside a summer concert series. Not to be outdone, Disney World’s Magic Kingdom is preparing to debut a captivating nighttime parade on July 20, while Legoland Florida has opened its new Sea Life Aquarium at the Winter Haven park.

The Future Looks Bright

Reflecting on the broader tourism scene, last fiscal year saw tourists in Central Florida generating over $359 million in tourist development taxes. This number is expected to get a healthy boost in the next fiscal year, thanks in large part to the anticipated opening of Epic Universe. The „bed tax,“ which is a 6% levy on hotel stays of less than six months, funds numerous local projects that are already making waves, such as the ongoing $90 million construction of a new four-level facility for the University of Central Florida’s stadium and a $400 million expansion of Camping World Stadium.

Mayor Jerry Demings, who heads the Tourist Development Council, remains optimistic about the influx of tourists and the revenue growth that will support these transformative initiatives. With the next council meeting on the horizon, scheduled for Friday, March 7 at 9:30 a.m., more discussions on the expected tourism boom are likely to stir up renewed excitement for the region’s future.

In the end, while Orange County’s hotel tax revenue may have taken a step back this April, there remains a silver lining. The combined effects of rising short-term rentals, upcoming attractions, and infrastructure investments paint a promising picture for the months ahead. Indeed, there’s something to be said for the resilience and adaptability of the local tourism industry.

For further details on April’s hotel tax revenue, Florida Politics reports that the short-term rental market is booming, while Click Orlando highlights Mayor Demings’ optimism about the future of tourism in Orange County.