Orange County’s hotel tax revenue is booming and breaking another record, as the tax generated $25.6 million in August — up about 11% from the previous year.
“August 2025 marked a record-breaking month, reflecting the strongest collections for any August and underscoring sustained momentum in summer collections,” said Orange County Comptroller Phil Diamond[1] in a statement.
In August, Orlando’s hotel occupancy rose to 64%, a 2.5% increase over last year. The average daily rate reached $164.07, up 2.3%, according to Visit Orlando.
This Spring, Universal opened the new theme park Epic Universe, which has created buzz and brought in crowds to ride the new Harry Potter attraction and more.
The hotel tax is a 6% surcharge on Orange County hotel rooms and short-term stays. Also known as the tourism development tax (TDT[2]), the millions of dollars generated every month are used to help fund Visit Orlando, promote the region’s tourism and pay for the Kia Center and Orange County Convention Center’s expansion, as well as other local events.
Earlier this year, lawmakers considered reforming TDTs, but ultimately did not approve[3] legislation that would have allowed Orange and other communities to spend the hotel tax on other needs, such as improving public transportation.
Orange County Commissioners are also reviewing their contract[4] with Visit Orlando following a Diamond audit[5] that raised concerns about the organization improperly spending the hotel tax.
In releasing the latest revenue numbers, Visit Orlando CEO and President Casandra Matej[6] also looked ahead to the rest of the year.
“Hotel room demand for September is expected to trail last year, with bookings pacing 8% behind,” Matej said. “However, the fourth quarter (October–December) shows promise, currently pacing 3% ahead. Short-term rentals remain strong with bookings from September to December pacing 9% higher than the same period in 2024.”
Canada is the No. 1 international market in Orlando, but Canadian tourists have been declining for months amid talk of U.S. tariffs and the political climate. But Canadian visitation is poised to start rebounding, Visit Orlando said.
“In August 2024, 25% of Canadians were ‘very likely’ to visit the U.S. in the next 12 months,” according to a Visit Orlando blog[7]. “By July 2025, this dropped to 12.6%, but August 2025 saw a slight rebound to 13.7% — the first positive uptick since October 2024.”
References
- ^ Phil Diamond (www.occompt.com)
- ^ TDT (www.ocfl.net)
- ^ ultimately did not approve (floridapolitics.com)
- ^ reviewing their contract (floridapolitics.com)
- ^ following a Diamond audit (floridapolitics.com)
- ^ Casandra Matej (www.visitorlando.org)
- ^ according to a Visit Orlando blog (www.visitorlando.org)