Convention center plots path amid tourist tax hit

Orange County’s tax on hotel rooms and vacation rentals cratered to the lowest point in its 40-year history in April — with collections about on par with 1980 when Walt Disney World operated just a single park and long before Universal Orlando existed, Comptroller Phil Diamond said Wednesday.

April’s $765,900 total for the tourist development tax is a 97% decrease from the same month last year when the county brought in $25.7 million. Money from the 6% tax is used to help pay for venues like the Dr. Phillips Center for the Performing Arts and the Amway Center, as well as luring major sporting events, and expanding the giant Orange County Convention Center.

“In the meantime, we’re fortunate to have healthy TDT reserves that can help the county weather this economic storm,” Diamond said.

Mayor Jerry Demings acknowledged the

plummeting tax collections in March and April, when the theme parks were shut down and Floridians were ordered to stay at home, have led to conversations about scrapping a planned $605 million expansion to the convention center. But he said it’s more likely the project will be delayed or completed in phases to take advantage of lower construction costs.

“We have a lot of uncertainty,” Demings said.

The mayor said he was optimistic that collections will improve as more attractions reopen. Universal began allowing in guests this week and SeaWorld’s three parks plan to reopen June 11. Walt Disney World announced a phased reopening starting on July 11.

“I believe that we will recover,” Demings said.

Also Wednesday, Mark Tester, executive director of the convention center, which has not hosted a show since mid-March because of the coronavirus pandemic, said the complex has a slate of 27 events scheduled over the next three months, beginning with the Amateur Athletic Union’s annual junior volleyball championships which starts July 14.

Tester said the center, the nation’s second-largest, aims to keep staff and visitors safe, if the latter can be lured back to the 7-million-square-foot event showcase.

“We look forward to getting back into business,” he said during a virtual meeting of the mayor’s Economic Recovery Task Force. “We’re very optimistic about next year.”

Despite the new bookings, the mayor shrugged off as “mere speculation”

the possibility that the venue could host the Republican National Convention this summer.

Earlier in the day, Gov. Ron DeSantis, a staunch ally of President Donald Trump, said Orlando is a natural fit for the event with the array of hotels nearby.

Demings said the county has not been approached by Republican leadership.

The mayor also said he was concerned over potential costs of such an event to the county as well as the potential protests it would attract.

George Aguel, CEO of Visit Orlando, also said he hadn’t had conversations about the event.

Often touted as an economic engine for the tourism industry, the convention center technically never closed, but 32 conventions canceled and 21 others rescheduled.

Its parking lot has been used as a COVID-19 testing site.

Outlined by Tester, the convention center’s plan to bring back large gatherings mirrors safety protocols proposed by Central Florida’s major theme parks, which require employees and guests to wear face coverings and submit to daily temperature checks.

Tester said convention and trade shows will be required to contract with a medical provider to be on site. The convention center will help show organizers work with a Central Florida healthcare system for guidance and will provide onsite support with temperature checks, health screenings and telemedicine visits for their attendees and guests.

The AAU tournament, considered a showcase for high schoolers who want to play competitively in college, will span eight days.

But organizers are expecting less than a third of last summer’s crowd of more than 100,000 and will not allow spectators.

Also scheduled in July is “Con of Thrones,” a threeday gathering for fans of the HBO fantasy series Game of Thrones.

Tester said five more smaller events are scheduled for July, 10 in August and 11 in September.

“This is all evolving,” Tester said of the convention center’s new protocols. “There’s no playbook for what we’re doing in the industry. This is new for everyone.”

Proceeding carefully with reopening will be critical to prevent a new surge of the novel coronavirus in Orlando, health officials said.

Dr. Raul Pino, officer for the Florida Department of Health in Orange County, said there are signs a second wave could be coming: new cases of the virus have steadily risen since the region bottomed out in mid May.

Earlier in the day, while briefing the mayor’s task force, he hinted the county’s 2.8% rate at which tests come back positive could rise in coming days.

He also said his office was investigating test results from Monday, comprised of only a fraction of the usual number tests, but with a high rate of positive tests: 9.8%.

He said it was unclear if the figure was an anomaly or, potentially, an error.

Dr. Scott Brady of AdventHealth, echoed the calls of staying the course as the region reopens.

“It’s easy to get lulled into a sense this is not here anymore, and that would not be safe,” Brady said.