Tourism in Florida could be hurt by bill in Congress

Tourism is the lifeblood of Florida. Though many visitors spend just a few days in our state, their impact is felt long after they leave. Tourism supports nearly 450,000 jobs, generates more than $120 billion in economic impact, and supports $73 billion in wages for Floridians.

Unfortunately, some politicians in Washington are pushing a new bill in Congress that could significantly cut into tourism to Florida and shrink our economy.

Every time a consumer uses a credit card to make a purchase, the retailer pays a small percentage to run the transaction – usually 1% to 3% of the total purchase price. This charge, known as interchange, ensures the security of the transaction and protects both the consumer and retailer from fraud. Banks also use these funds to fund popular rewards programs like cash back, airline miles, hotel points and more.

Credit card rewards are immensely popular with travelers, as they reduce out-of-pocket expenses and help make trips more affordable. In 2022, more than 2.4 million visitors used airline credit card points to travel to Florida. That figure does not include visitors who used credit card rewards to pay for meals at restaurants, vacation rentals along Sarasota’s beaches or passes to amusement parks. When millions of travelers use rewards to pay for the core pieces of their trip to Florida – flights, hotels, and rental cars – they have more money left in their pockets to spend at our small businesses. That’s great news for our economy.

Despite the many benefits these rewards provide, Congress is considering legislation that would end the credit card reward system. The Durbin-Marshall credit card bill would allow retailers to choose new, cheaper and untested payment systems, eliminating the funding that banks use to provide rewards and further exposing consumers to fraud. That would be devastating for travelers and local economies that rely on visitor spending.

A new survey from the U.S. Tourism Economy Alliance finds that of the 80% of Americans who have credit cards with rewards, 7 in 10 say they would cut travel spending if those rewards were to be reduced or eliminated. Cutting travel would mean fewer diners in restaurants and fewer shoppers in stores. The COVID-19 pandemic showed what can happen to our economy when travel comes to a halt, and we should do all that we can to make sure that our economy never suffers such a consequential event again.

With so much of Florida’s economy built around tourism, any reduction in tourism spending will affect our economic outlook, our businesses and our workers. Should fewer travelers visit – or spend less money when they arrive – businesses will see tighter profit margins, workers will lose jobs and local municipalities will see tax revenue fall. Tourism generated $16 billion in state and local tax revenue in 2022, which saved $1,840 for the average household in Florida. Under the Durbin-Marshall bill, local leaders would be forced to either cut critical services or raise taxes to make up the budget shortfall. No one wants to see either option.

With summer vacations just around the corner, millions of families are planning visits to our state – visits that will support small businesses, drive employment and generate tax revenue. U.S. Sens. Marco Rubio and Rick Scott have not yet announced how they plan to vote on the legislation, but I hope they consider the impact it will have on Floridians before casting a vote. Tourism is essential to our state, and we must do all that we can to protect it.