The economic impact of rezoning to increase tourism.
This paper provides an economic analysis of a proposed zoning change that will enable the City of Treasure Island, Florida, to attract more tourists. The proposed zoning change would result in hotel renovations and new hotel construction in Treasure Island, Florida. The study uses tax analysis to see how the change would increase taxable property values as well as increase revenues from the tourism development tax. The study then uses the REMI model to analyze the changes to the economy that result from the ensuing increase in tourists. The results suggest that if the proposed zoning change comes to fruition and hotels build out to the maximum, the City will gain at least $920,919 in increase property tax revenues, while the County will gain at least $1.6 million in increased bed taxes (some of which will return to Treasure Island in the form of tourism support). Overall, over 813 jobs would result in the County, with an increase in Regional Gross Domestic Product of $46.2 million in the first year. This is the first economy-wide analysis of a zoning change that specifically impacts the hotel industry. The study provides a deeper understanding of the revenue-raising options for a tourism-dependent economy and then analyzes a unique proposed solution to its budgetary dilemma.
Croatian National Tourist Board
Harris, R. L. & Dieringer, S. (2017). The economic impact of rezoning to increase tourism. Tourism, 65(1), 103-114.
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