Before building facilities Central Floridians deserve -- a performing-arts center, a state-of-the-art arena and a first-class stadium -- it would be smart to first build strong partnerships and unite around the idea of raising Orange County's tourist tax.
Adding an additional penny to the county's 5-cents-on-the-dollar tax on hotel rooms would do more than improve Central Florida's quality of life by building these amenities. The $22 million in new money could boost the region's tourist advertising and build a strong reserve to guard against a devastating economic downturn.
Orange County Mayor Rich Crotty is reluctant to raise this tax, but by sharing the benefits of a sixth penny he could bring tourist leaders in as full partners. And, since good partners share risks as well as benefits, it is reasonable that Orlando Mayor Buddy Dyer could offer that the city will guarantee the tourist-tax bonds used to build these amenities in the unlikely event tax collections disappear.
An aggressive plan advanced by former Orlando Mayor Bill Frederick shows these projects could be built within the existing 5-percent tax. But the case for a penny increase is compelling.
Orlando remains the nation's best vacation value, with hotel rates and taxes below its toughest competitors and the national average. The tourist tax raised a record $120.2 million this year, an 11 percent increase over 2004.
Despite the glowing numbers, there is concern in the industry.
The sky-is-falling crowd personified by hotelier Harris Rosen describes "an industry on the ropes," quoting dubious hotel occupancy rates of 70 percent, compared with 95 percent rates in Las Vegas. Mr. Rosen fails to note that occupancy rates here have held steady despite thousands of new rooms built in the past decade and the growing number of time-share resorts. His cynical arguments do little to advance the industry's cause.
But the argument that this community needs to spend more on advertising is being made -- in far more calm and rational tones -- by other tourism-industry leaders.
The Las Vegas Convention and Visitors Bureau -- a chief competitor for tourist and convention business -- spent an estimated $97 million on advertising, far more than Orange County's Convention and Visitors Bureau entire tourist-tax allocation of $20 million. The $6 million the Orange County bureau directed to advertising has not changed in five years despite increases in ad costs.
Even when coupled with the millions of dollars spent by area theme parks and hotels, it's clear that the bureau's advertising budget needs a boost. More advertising dollars would help remind the world what's great about an Orlando vacation: What happens here doesn't stay here, but becomes a cherished memory shared with family and friends for a lifetime.
In addition to boosting tourist advertising, part of a penny increase to the resort tax could be used to build the $131 million reserve Orange County Comptroller Martha Haynie says is needed to protect taxpayers should an economic downturn stop visitors from coming. While Mr. Crotty's financial team recommends $96 million in reserves, it is Ms. Haynie's job to be a good steward of public money. In either case, current reserves of $82.5 million are too low.
Finally, that extra penny could ensure Central Florida residents get tangible benefit from the tourist industry. A new arena will ensure the Orlando Magic professional basketball team stays in this community. A performing-arts center will improve the culture and arts education for generations to come. A renovated Citrus Bowl will help the region keep two signature college bowl games and attract other events.
Forge a partnership for a sixth cent and leaders will invest in a vibrant tourist industry, secure vital reserves and improve the region's quality of life.
These are partnerships that do far more than build buildings. These are the partnerships that will build a community.