Sarasota County Experiences a Decline in Tourism

Sarasota County is experiencing a downturn in its tourism economy after a period of heightened activity post-pandemic. Data from Visit Sarasota County revealed that the total economic impact from tourism dropped to $198.5 million in May 2025, reflecting a decrease of over 10 percent from $220.8 million in May 2024. Visitor spending also fell by 6.6 percent, and there was a 7.7 percent drop in paid accommodation visits.

Nevertheless, hotel metrics present a more nuanced picture. Average daily rates (ADR) in May surged by 10.8 percent year-over-year, while revenue per available room (RevPAR) increased by 11.1 percent. Yet, many local property managers reported weak forward bookings for summer. In a survey conducted in May, 71 percent noted fewer reservations compared to the same period last year.

Erin Duggan, the president and CEO of Visit Sarasota County, remarked on the duality of rising prices coupled with a decrease in visitor numbers, particularly among Floridians. “I don’t know if I’m going to correlate [that data] to visitor sentiment,” she states, suggesting that ongoing beautification projects post-hurricanes might affect perceptions. For instance, some areas now appear less lush and manicured due to storm recovery efforts.

Consumer preferences are shifting as well. Online platforms like Airbnb and Vrbo brought in $10.8 million in tourist development tax (TDT) revenue for fiscal year 2024, marking a 2.7 percent increase year-over-year, and accounting for 22.3 percent of total collections. Conversely, the traditional hotel and motel sector saw a 10.4 percent drop, with many families still opting for these platforms to avoid shared spaces.

Group travel has seen a significant decline, especially in the second quarter, with bookings for weddings and reunions down by 33 percent. Duggan attributes part of this to an irregular tourism season impacted by the aftermath of hurricanes, which shifted typical travel motivations to more need-based trips rather than leisure-oriented ones.

For the first eight months of the current fiscal year (October 2024 to May 2025), TDT collections reached $34.6 million—roughly $2 million behind the same timeframe in FY2024. Total economic impact decreased by 7.7 percent year-over-year to $1.17 billion.

Sarasota County experienced a drop in TDT collections in FY2024, even with an increased rate from 5 to 6 percent implemented in October 2022. During this fiscal year, collections fell to $48.37 million, down 3.24 percent from $50 million in FY2023. The month of October 2024 witnessed a dramatic year-over-year decline of 28.2 percent following Hurricanes Helene and Milton, with visitation to paid accommodations also decreasing by 13.3 percent.

Despite these setbacks, room rates have risen, going from an average daily rate of $254.56 to $262.69, while occupancy rates decreased from 71.4 percent to 64.8 percent. Revenue per available room, however, dropped by 6.3 percent. This fluctuation has been echoed by a remarkable 52.5 percent decrease in requests for Sarasota County’s travel guides, a critical indicator of travel interest. Duggan speculates that this shift could be linked to Google’s new AI-driven search result methods.

“There’s a lot we still don’t know,” Duggan comments, anticipating further research to emerge in the coming months. Despite declines in print material engagement, online channels are thriving, with solid performance in digital marketing outreach and relocation packets for potential residents.

“Our dream is for quality over quantity,” Duggan emphasizes, as the county seeks to balance visitor numbers with spending. Looking forward, she expects FY2025 to resemble FY2024 in terms of visitation dynamics. “We try to use our marketing dollars to complement gaps and drive activity during the off-season,” Duggan notes.

The tourism landscape is evolving; families, particularly younger ones, are becoming a significant driver of travel trends, with more inquiries focused on family-friendly activities. Meanwhile, early signs suggest that international travel may be on the mend, possibly recovering from previous issues caused by political tensions and travel restrictions.

Although it remains preliminary, Duggan notes an uptick in international tourist numbers in the first half of FY2025, especially from Canadian travelers, despite some lingering frustrations that could affect future visits. “It wouldn’t surprise me to see a dip in Canadian travel,” she reflects, adding that concrete conclusions are yet to be drawn.