Hillsborough County Tourism Development Council Meeting: August 13, 2026

The Hillsborough County Tourism Development Council (TDC) met on August 13, 2026, at 3:30 PM to receive quarterly updates on tourism development tax (TDT) collections, consider a revised FY27 budget, and hear presentations on the Tampa Convention Center expansion study and Visit Tampa Bay’s performance. Key discussions centered on proposed reductions to Visit Tampa Bay’s funding amidst a challenging revenue outlook, with council members debating the appropriate balance between marketing, capital improvements, and reserve use. The council voted to accept the quarterly report and revised budget with a footnote allowing administrative reallocation of unspent funds to Visit Tampa Bay. One member dissented.

Consent Calendar

• Minutes Approval: The minutes from the prior meeting were approved unanimously with a voice vote after a motion by Councilmember Gonsmart Williams and a second by Councilmember Palencia. Roll call was taken: Hagan, Castor, Collier, Gonsmart Williams, Haney, Mackinaw, Manthe, Morrison, Licentia, and Ross were present, establishing a quorum.

Public Comments & Testimony

• No members of the public offered comments.

Discussion Items

Tourism Development Tax (TDT) Quarterly Report and Revised FY27 Budget

• Presentation: Yaxha (Administrative Officer) presented the TDT quarterly report for quarters two and three (Q2 and Q3) of FY26. Key points:
  • Three-cent TDT: $20.4 million in collections, $19.9 million in revenues, $15.6 million in expenditures, leaving a year-to-date balance of $182,000.
  • Six-cent TDT: $6.8 million in collections, $6.8 million in revenues, $3.4 million in expenditures, leaving $2.6 million year-to-date.
  • Collections were down 7.6% overall for FY26 compared to FY25, with Q1 down 17.2%, Q2 down 11%, and Q3 up 3.7%. July 2026 collections were up 0.78% compared to July 2025.
  • Projections for Q4: $6.8 million in collections but $10 million in expenditures, resulting in a $3 million shortfall for the quarter and a $2.9 million deficit for the year.
  • Revised FY27 budget: projecting 4% growth off FY26 expected numbers, with three-cent collections estimated at $35.5 million. Allocations include:
    • Visit Tampa Bay: $25.836 million (2.5% reduction from FY26)
    • Tampa Bay Sports Commission: $1.819 million (3% increase)
    • Tampa Bay Film Commission: $527,000 (3% increase)
    • High Impact Events: $750,000 (reduced from $1.3 million, with $550,000 reallocated to Visit Tampa Bay)
    • Film Incentive: increased by $500,000 for a new production ("Land Remembered")
    • TSA Operations: flat at $350,000
    • Facility Enhancements: flat at $500,000
    • Make It Tampa Bay: reduced by $850,000 to $150,000 (with $650,000 reallocated to Visit Tampa Bay)
    • Corporate Transient Demand Marketing: reduced by $200,000
    • Visitor Experience: unchanged at $255,000
    • Out-of-Area Marketing: unchanged at $985,000
  • Six-cent allocations: Visit Tampa Bay $3.3 million (a $254,000 reduction), Cultural and Attraction-Based Capital reduced by $594,000, and Tampa Convention Center obligation unchanged at $2 million.
• Council Discussion:
  • Councilmember Hagan expressed concern about the 2.5% reduction to Visit Tampa Bay (approximately $600,000), noting that the industry faces a tough year ahead and questioned whether the cut could be absorbed from reserves. He asked where the reduction would impact staffing or marketing.
  • Councilmember Placencia commended staff for walking a fine line and noted that the budget softened the blow compared to initial proposals. He highlighted the film incentive increase as a positive, calling the potential TV series "Land Remembered" a major opportunity.
  • Councilmember Morrison proposed restoring Visit Tampa Bay’s funding by reducing the Cultural and Attraction-Based Capital line item by the same amount (2.3%), arguing that the marketing fuel is critical. He also suggested looking at other categories like facility enhancements or corporate transient demand marketing for savings. He emphasized that the hotel industry supports keeping Visit Tampa Bay whole, and that the budget should reflect that priority.
  • Councilmember (Mayor) Castor noted that Visit Tampa Bay receives 43% of the total TDT budget (including flow-throughs like visitor experience centers, making it effectively 40-41% according to Santiago later). She argued that this is already a significant share and that capital investments are also necessary to maintain attractions.
  • Councilmember Manthe said his first priority is keeping Visit Tampa Bay whole, noting that competing cities typically allocate 50% of their TDT to their CVB. He suggested approving the budget with a footnote allowing the County Administrator to move unused funds from other line items (e.g., film incentives, cultural capital, high impact events) to Visit Tampa Bay on an administrative basis.
  • Greg Horwidell (Deputy County Administrator) explained that the reductions are a reflection of reality, not a judgment on Visit Tampa Bay’s performance. He stated that capital dollars are necessary to maintain first-rate facilities that attract visitors, and that the council can revisit allocations at the next quarterly meeting if revenues outperform.
  • Tom Fessler (Chief Financial Administrator) noted that TDT reserves are approximately $30 million, but there is a planned drawdown for the 2029 College Football Playoff National Championship and other projects. He said interest earnings on the three-cent TDT are expected to be about $1 million this year.
  • Councilmember Hagan expressed preference for using reserves rather than cutting any organization, especially in a challenging year. He supported the motion with the footnote.
• Vote: A motion by Councilmember Manthe, seconded by Councilmember Collier, to accept the quarterly financial report and the revised budget recommendation with the administrative footnote (allowing reallocation of unspent funds to Visit Tampa Bay) was approved. The vote was 9-1, with Councilmember Morrison recorded as a no vote.

Tampa Convention Center Expansion Feasibility Study

• Presentation: David Ingram, Executive Director of the Tampa Convention Center, presented findings from a study conducted by CSL (Convention Sports and Leisure). Key points:
  • Current facility: 200,000 square feet of exhibit space (bottom third of competitive set, average 290,000 sq ft), 36,000 sq ft ballroom (average 63,000 sq ft), and low ballroom-to-exhibit ratio.
  • Competitors are expanding: Austin (demolish and rebuild to 275,000 sq ft), Fort Lauderdale (expanded to 350,000 sq ft with 800-room Omni), Raleigh (expanding with 90,000 sq ft flexible space and 600-room Omni), and Nashville (moving toward expansion).
  • Occupancy at the center is at 65-70% (exhibit space) and exceeding 70% for ballroom, indicating the center is full and turning away business. In FY23-24, the center achieved 65% exhibit occupancy and over 70% ballroom occupancy.
  • Six targets for expansion: three critical – 150,000-200,000 sq ft additional exhibit space, 50,000-60,000 sq ft ballroom, and an 800+ room headquarters hotel. Supporting: 30,000-40,000 sq ft meeting space, outdoor capacity for 1,000, and more dining/retail within walking distance.
  • Four concepts presented:
    1. Concept 1: Expand north of Embassy Suites, reconfigure front drive (remove stairs), add 140,000 sq ft exhibit, 58,000 sq ft ballroom, 24,000 sq ft meeting rooms. No new hotel. Tax impact: $12.6 million (currently $11.4 million).
    2. Concept 2: Add a 200-300 room hotel on the Sails Plaza site. Tax impact: $13 million.
    3. Concept 3: Use FDOT property (off-ramp) for a 600-800 room hotel. Tax impact: $14.5 million.
    4. Concept 4: Full build-out with 150,000 sq ft exhibit, 800-1,000 room hotel on both FDOT and TIA property. Tax impact: $15.1 million.
  • If no expansion, tax revenue is projected to drop to $10.7 million as the center reaches capacity and large groups like SOF Week (27,000 attendees) may seek other venues.
  • Phased approach suggested: first build the exhibit space behind Embassy Suites, then renovate the existing facility, keeping the center operational during construction.
• Council Discussion:
  • Councilmember (Lou) advocated for going big with Concept 4, cautioning against a phased approach that could disrupt business. He noted that in his experience, adding hotel rooms lifts all boats.
  • Councilmember (Mayor) Castor noted that four hotel brands are interested, and the property is available.
  • Councilmember (Bob) thanked Ingram for the valuable discussion and noted the need to plan for future revenue generation.
  • Councilmember (Troy) supported Concept 4, saying "go bigger, go home."

Visit Tampa Bay Performance Report

• Presentation: Santiago, President and CEO of Visit Tampa Bay, provided a performance update.
  • He thanked the council for their concerns about funding and acknowledged the collaboration with county staff.
  • Clarified that the 43% figure includes flow-throughs (e.g., visitor experience centers, Make It Tampa Bay) that Visit Tampa Bay manages without taking an admin cut, so the effective allocation is 40-41%.
  • Performance data (Smith Travel Research, October 2025 – June 2026):
    • Occupancy: 73% (down from hurricane-inflated 77% in FY25, but on par with normal record years).
    • Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) outperformed FY25 and FY24.
    • July 2026 hotel performance was up over 2% compared to July 2025; first week of August 2026 was up 2.9%.
    • Bed tax collections through May 2026: $54.6 million.
  • Economic impact: major conventions and events hosted, including all four major government groups (U.S. Conference of Mayors, National League of Cities, National Association of Counties, county administrators).
  • Competitive concerns: Tampa has the smallest convention center in its comp set, and other markets like Savannah are expanding. Without expansion, the center will lose business.
  • Marketing campaigns generated $48 million in hotel revenue (tracked via ad clicks and bookings).
  • Free media: $22 million in earned media, averaging 4 stories per day.
  • Corporate transient program generated 92,000+ room nights and $19 million in hotel revenue.
  • Santiago stated that the organization will make the budget work, but noted that contractual commitments (rent, utilities, incentives) and staff are the primary uses of funds, with marketing and programming being flexible.

Key Outcomes

• Budget Approval: The council voted 9-1 to accept the quarterly TDT financial report and the revised FY27 budget, including a footnote allowing the County Administrator to reallocate unspent funds from other line items to Visit Tampa Bay. Councilmember Morrison was the sole dissenter, advocating for a different allocation.
• Next Steps: Staff will bring back a report at the next quarterly meeting to revisit allocations if revenues improve. The convention center expansion study will be further considered; no formal action was taken.
• Convention Center: The council acknowledged the need for expansion and directed staff to continue exploring options. No vote was taken.