Wednesday, June 18, 2025

Tourism has long been a major economic driver for Indian River County, and 2025 is proving to be another strong year for the sector. Visitors are flocking to the area, spending more than $90 million on overnight accommodations alone, with a substantial increase in bed tax revenue. For a region where tourism constitutes a significant portion of economic activity, these figures paint an optimistic picture of a thriving industry. However, changes may be on the horizon, as legislative proposals could alter the way the county funds its tourism efforts and how bed tax revenue is allocated in the future.

In this article, we will examine how tourism continues to fuel Indian River County’s economic growth, the ways the county is adapting its marketing strategies to keep pace with changing trends, and the potential impact of Florida’s proposed legislative changes to the tourism funding model.

Indian River County is seeing impressive growth in its tourism sector, with visitors spending significantly on overnight stays. In 2023, tourism expenditures in the county totaled over $90 million for just accommodations alone. This resulted in $4.67 million in bed tax revenue for the county government, a vital source of income that supports tourism infrastructure and services. But what’s even more encouraging is that the numbers for 2025 are showing a substantial upward trend.

From October 2024 to March 2025, bed tax revenue surged by 17.2 percent, jumping from $2.8 million to around $3.3 million. The month of March saw a particularly impressive spike, with visitors spending $16.4 million on accommodations and generating $818,000 in bed tax revenue—an increase of 22 percent compared to the same month last year. These statistics highlight the continuing popularity of the area, attracting visitors seeking a variety of experiences, from nature excursions to beach getaways.

The county’s strong tourism performance has not gone unnoticed. In response to these rising revenues, the County Commission approved a 22 percent increase in the budget for the Tourist Development Council (TDC). On June 3, 2025, the commission approved the allocation of $1.95 million for the TDC’s budget. This is a significant bump that reflects the increasing importance of tourism for the county’s economy. The additional funds will be distributed to several local organizations that promote and support tourism-related activities throughout the region.

Among the allocations is a first-time payment of $10,000 to the Vero Beach Art Club to promote its Under the Oaks Art Show, a popular event that draws thousands of visitors each year to the barrier island where most of the county’s tourism revenue is generated. This event has become a key feature of the county’s cultural and tourism offerings, and the funding is expected to bolster its reach and visibility.

To continue building on this momentum, the county’s tourism marketing efforts are also evolving. As Ben Earman, Vice President of Tourism and Marketing at the Indian River Chamber of Commerce, points out, tourism marketing today must cater to a new generation of travelers who are looking for more personalized, experience-driven vacations. Activities like air boating, river exploration, nature trails, birdwatching, and, of course, beachgoing are growing in popularity, making it critical for local organizations to adapt to these changing preferences.

To capture the attention of this new audience, Visit Indian River County, the county’s tourism marketing department, is increasing its digital footprint across multiple platforms. Streaming services, digital billboards, gas station TVs, and hotel networks are all being leveraged to reach travelers in the ways they now consume media. These marketing investments reflect broader shifts in media consumption and demographic trends, as digital platforms continue to become the primary mode of reaching potential tourists.

The majority of the TDC’s budget—$1.2 million—will be allocated to the , which oversees Visit Indian River County. This funding supports tourism and marketing initiatives across the region, ensuring that the county can continue to attract visitors and maintain its reputation as a desirable destination. The Chamber plays a pivotal role in coordinating the county’s tourism efforts, and this financial boost will help them continue promoting the area on a larger scale.

Other notable disbursements include:

In addition to supporting tourism promotion, the funds generated by the bed tax are also used for other important projects in the county. Notably, bed tax revenue helps fund , ensuring that the county’s beaches remain pristine and attractive to visitors. These efforts are crucial in maintaining the area’s allure as a top beach destination. Additionally, the revenue supports , which is home to the county’s spring training facility. This infrastructure, while not directly tied to tourism, plays a role in the overall appeal of the area to visitors.

While tourism in Indian River County is flourishing, the future of the county’s current tourism funding system may be uncertain. On April 25, 2024, lawmakers in the Florida House of Representatives passed , a bill that would abolish all 62 county Tourist Development Councils (TDCs) and redirect bed tax dollars toward property tax credits. The proposal has sparked significant concerns within the Florida tourism industry, as the argument is that Florida’s tourist attractions are already well-established and do not require further advertising.

If passed, HB 7033 could dramatically alter the way bed tax revenue is used, as it would no longer be allocated toward local tourism promotion efforts. This bill has been sent to the Senate Appropriations Committee for further consideration.

Another bill, , would cause all tourist development taxes to expire every eight years. While HB 1211 was withdrawn from consideration on May 3, its introduction signaled potential changes to the funding model for tourism promotion in the state. The passing of HB 7033, if it moves forward, would significantly alter the landscape of Florida’s tourism industry, which generated $127.7 billion in economic impact in 2023, according to Visit Florida.

These legislative changes, if enacted, could shake up the current system in place in Indian River County, making it difficult for local tourism departments to rely on the funds generated by the bed tax. Given the success of tourism in the county and the significant contributions it makes to the local economy, any changes that limit the ability of local organizations to fund tourism promotion could have far-reaching consequences.

If the proposed legislative changes pass, the county may face challenges in maintaining its current level of funding for tourism marketing and infrastructure. Without the Tourist Development Councils, funds from the bed tax could be redirected to property tax credits, leaving tourism organizations with less financial support for their advertising and promotion efforts.

Despite the uncertainty, the county’s tourism sector has shown remarkable resilience. Tourism revenue continues to grow, and local organizations are adapting to emerging trends in media and demographic shifts. With increasing investments in digital marketing and new attractions to offer, Indian River County’s tourism sector is positioning itself for continued success, even amid potential changes to the funding model.

Moreover, as the legislative process moves forward, local officials and tourism organizations will likely continue to advocate for the retention of bed tax funding for tourism promotion, emphasizing the importance of keeping local businesses thriving and attracting visitors to the region.

Indian River County’s tourism industry is thriving, with substantial increases in both bed tax revenue and visitor spending. The County Commission’s decision to allocate additional funding to tourism organizations shows the county’s commitment to maintaining its position as a top tourism destination. As the county adapts its marketing strategies and continues to invest in infrastructure, the outlook for the tourism sector remains positive.

However, the proposed legislative changes present a potential challenge, as they could redirect bed tax revenue away from local tourism promotion. As this issue continues to unfold, it will be important for the tourism sector in Indian River County to remain adaptable and proactive in securing the necessary funding to support its growth.

The future of Indian River County’s tourism industry may depend on the outcome of these legislative proposals, but with strong local leadership and an evolving approach to marketing, the county is poised to continue thriving as a top destination for visitors.