Indian River County: Tourism as a Key Economic Driver

Located along the scenic Atlantic coast of Florida, Indian River County has emerged as an influential player in the state’s tourism landscape. With a surge in visitors, tourism continues to be a vital contributor to the county’s economic health. In 2024, the region witnessed remarkable growth, with over $90 million spent by tourists on overnight accommodations. This surge in spending has directly translated into a significant rise in bed tax revenue, which reached $4.67 million last year—a figure that is expected to rise even further this year.

County Commission Responds to Growing Tourism Demand

On June 3, the County Commission took proactive measures to ensure the continued success of the tourism sector. The commission voted to increase the budget for the Tourist Development Council by an impressive 22 percent, bringing the total allocation to $1.95 million. These funds are earmarked for eight local organizations, with a notable first-time allocation of $10,000 to support the Vero Beach Art Club in promoting its Under the Oaks Art Show, an annual event that attracts thousands to the barrier island. This show is a major draw for visitors and a key contributor to the county’s tourism revenue.

Explosive Growth in Bed Tax Revenue

Between October 2024 and March 2025, the county’s bed tax revenue soared by 17.2 percent, climbing from $2.8 million to nearly $3.3 million. The month of March alone saw a remarkable $16.4 million spent on accommodations by tourists, which generated $818,000 in bed tax—a 22 percent increase compared to the same month the previous year.

Tourist Tax Increase to Strengthen Future Revenue

As part of ongoing efforts to bolster tourism funding, voters approved an increase in the tourist tax from 4 percent to 5 percent in November 2024. This tax boost, combined with the already-strong tourism growth, positions the county to see even greater returns. According to Ben Earman, the Vice President of Tourism and Marketing at the Indian River Chamber of Commerce, visitors today are increasingly looking for experiential activities—such as air boating, river exploration, nature trails, and birdwatching—along with traditional beach tourism.

Shifting Marketing Strategies to Target Modern Travelers

In response to evolving tourism trends, the county is modernizing its marketing approach. Visit Indian River County has ramped up its digital presence, expanding its outreach across platforms such as streaming services, digital billboards, gas station TVs, and hotel networks. These digital strategies aim to capture a wider audience and engage travelers more effectively, capitalizing on the growing importance of online media consumption.

Bed Tax: A Visitor-Funded System

An important aspect of the bed tax is that it is paid only by visitors who stay in local accommodations, not by residents. This ensures that the burden of funding tourism promotion falls on the visitors themselves, not on the county’s residents, unless they opt for a “staycation” at a local hotel. This model allows the county to maintain a sustainable and effective means of generating revenue while minimizing the impact on local residents.

How Tourist Development Funds Are Allocated

The Tourist Development Council is responsible for distributing the revenue generated from the bed tax. The bulk of the funding, a substantial $1.2 million, will be allocated to the Indian River County Chamber of Commerce, which oversees the county’s tourism and marketing efforts. Other significant allocations include:

• $28,730 for the Sebastian River Area Chamber of Commerce, marking a 14.5 percent increase.
• $55,000 for the Cultural Council of Indian River County, a 47.5 percent increase.
• $33,200 for Vero Heritage, representing an 8.5 percent increase.
• $20,000 for Coastal Connections, an eco-tourism organization involved in environmental conservation efforts, which saw an 81.8 percent increase.

These funds are vital in sustaining and growing the region’s tourism offerings, including cultural events, nature conservation programs, and heritage preservation.

Revenue Allocation Beyond Marketing Efforts

In addition to supporting marketing and tourism initiatives, the revenue generated from bed taxes is also allocated to other critical infrastructure and environmental projects. For example, a portion of the funds is used for beach renourishment programs to maintain the beauty and accessibility of local beaches. Additionally, bed tax revenue helps cover lease obligations for the Jackie Robinson Training Complex, ensuring that the facility remains operational and continues to support local sports and events.

Legislative Challenges for Florida’s Tourism Industry

While the tourism sector in Indian River County is booming, the broader Florida tourism industry is facing potential challenges from state legislative actions. On April 25, 2024, the Florida House of Representatives passed HB 7033, a bill that could dismantle the state’s 62 county-level Tourist Development Councils. If the bill passes, it would redirect bed tax revenue toward property tax credits, arguing that Florida’s major tourist attractions no longer require significant advertising. Another bill, HB 1211, proposes that tourist development taxes expire every eight years, which could disrupt funding for local tourism promotion efforts.

These legislative changes have caused concern in the tourism sector, which was responsible for a $127.7 billion economic impact in 2023, as reported by Visit Florida. If passed, these bills could significantly alter how counties like Indian River County manage their tourism and marketing funds, potentially affecting long-term growth prospects.

Implications for the Travel Industry

The tourism boom in Indian River County reflects broader trends within Florida’s travel industry, which is becoming increasingly diverse. With nature tourism, beach activities, and cultural events becoming major attractions, the region is positioning itself as a multifaceted destination catering to a wide range of travelers. The growth in bed tax revenue and the increased funding for local organizations like the Vero Beach Art Club and Coastal Connections highlight the county’s commitment to sustaining its tourism industry.

However, the potential legislative changes loom large over the future of tourism funding. If state lawmakers pass bills that disrupt the current system of Tourist Development Councils or alter the use of bed tax revenue, the economic future of regions like Indian River County could be at risk. For now, the county remains focused on its growth, but the evolving political landscape adds an element of uncertainty to its tourism-driven economy.

The post Indian River County Sees Substantial Increase in Tourism Budget as Visitors Flood In, Driving Economic Growth and Expanding Marketing Strategies Across Vero Beach Here’s All You Need to Know About the Boost to Local Tourism appeared first on Travel And Tour World.