Show Me the ROI: How Four Pennies Power the Florida Keys Tourism Economy
Inside the data-driven overhaul transforming how we invest tourism tax dollars.
When I stepped into the role of President & CEO of Visit Florida Keys a year ago, I walked into a system that had calcified around legacy relationships and outdated practices. The advertising agency had held the contract for years, and 40% of the advertising budget was going to broadcast television—a medium whose viewership had plummeted from 77% in 2015 to just 20% in 2024, according to Nielsen data. Meanwhile, streaming had surged from 5% to 49% in that same period.
By the time I arrived on my first day on the job, the auditors of Visit Florida Keys (aka the TDC) had already blown up the status quo. My job was to rebuild it. But I did not realize that many locals weren’t ready for change. Businesses in the Keys had grown accustomed to pandemic-era profits, so this pivot in strategy, combined with economic headwinds, hasn’t been easy. It turns out that some folks in the Keys are still clamoring for a bygone era. And broadcast TV.
Now that tourism seasonality is returning to Florida and national political policies continue to evolve, we have to be nimble. Change is hard, but it’s necessary.
The Audit That Forced Change
The 2024 audits exposed what many had suspected but few had been willing to address: the old way of doing business wasn’t compliant with evolving best practices. Visit Florida Keys was completely agency dependent, with only a dozen people on staff to manage a roughly $60 million budget. We needed in-house talent and a long list of other things.
We had no choice but to issue competitive RFPs for new agencies across multiple categories, including advertising, public relations, websites, social media, and more. This wasn’t just about changing vendors—it was about fundamentally rethinking how we invest the tourism development taxes collected from visitors to the Florida Keys.
The Law That Governs Every Penny
To understand where we are today, you need to understand the legal framework that governs every dollar we spend. Monroe County’s tourist development tax (TDT) is unique in Florida—we’re structured differently than any other destination marketing organization in the state.
Florida Statute §125.0104, known as the “Local Option Tourist Development Act,” authorizes counties to levy a tourist development tax on short-term stays (six months or less). The statute outlines exactly how these funds can be used and prohibits any use not explicitly authorized by law.
Monroe County’s Four-Penny Structure
Monroe County levies a 4% tourist development tax. Many Florida counties (especially those with the larger tourism destinations) collect up to 6% under the statute, which is a topic for another day, because those two extra pennies paid by visitors could infuse even more benefits into the Florida Keys community. But let’s put a pin in that for now. (Not included in this analysis is the additional 1% Tourism Impact Tax, which does not go to the TDC and is split equally between the Monroe County general fund and the Monroe County Land Trust.)
The First Two Pennies (Generic Fund):
Primary Use: Promote and advertise Monroe County tourism statewide, nationally, and internationally
Budget Allocation After Administration:
65% for advertising (national/international marketing, trade shows, fulfillment)
35% for events, public relations, and consumer marketing
Administration Cap: Up to 7% for administrative costs (staff, operations)
Reserve: 5% held outside receipts division per F.S. §129.01
The Third and Fourth Pennies (District Funds):
Primary Use: Capital projects, district-specific marketing, beaches, cultural facilities
Administration Cap: Up to 3% for the administration of these funds
Reserve: 5% held outside receipts division per F.S. §129.01
Critical Requirement: Per Monroe County Code §23-200(b)(8), “the remaining balance of the third- and fourth-cent net revenue shall be expended for the district from which it is generated.”
This district-based allocation isn’t a suggestion—it’s a county ordinance.
The Five Districts: Marketing Five Different Destinations
Monroe County is divided into five tourism districts, each with its own visitor profile and infrastructure needs:
• District I: Key West
• District II: The Lower Keys & Big Pine Key
• District III: Marathon
• District IV: Islamorada
• District V: Key Largo
Each district has a District Advisory Committee (DAC) composed of nine members: three from lodging, three from tourist-related businesses, and three from the general public.
This framework reflects the reality that the Florida Keys are not one homogeneous destination. Key West draws a different visitor profile than Key Largo. Islamorada’s audience looks different than Marathon’s. A one-size-fits-all marketing approach would be as ineffective as it would be contrary to modern digital marketing best practices.
These DACs review funding requests, recommend capital projects, and ensure that tax dollars collected in their district benefit their community and visitors.
From TV Buys to Data-Driven Decisions
When I arrived on the job, 40% of the advertising budget was going to broadcast TV. But the media landscape had shifted dramatically. Nielsen’s data shows broadcast viewership fell from 77% in 2015 to just 20% in 2024, while streaming surged from 5% to 49%. Seventy-four percent of adults 35–50 now consume TV content through streaming platforms, and 70% of Disney+ and Hulu viewers have cut cable entirely.
Digital media also plays a much larger role in trip planning. The 2024 Florida Keys Visitor Profile Study found that travelers rely more heavily on digital content and influencer recommendations than on traditional advertising. It’s not about being trendy—it’s about meeting audiences where they actually are.
Data-Driven Marketing: Results that Matter
Our new agency partners brought measurable accountability. For example, Starmark’s analysis using Epsilon data confirmed a strong return on ad spend of 18:1—meaning that for every dollar invested in digital advertising, visitor spending in the Keys increased eighteenfold.
The campaign reached millions of potential travelers, converting measurable audiences into booked visits and generating significant economic impact across all five districts. It’s a powerful example of how data-driven targeting delivers measurable results for the destination.
Tourism That Builds Community
Perhaps the most powerful example of visitor-funded benefit is the $11 million in tourism infrastructure grants approved for FY2026. These projects—recommended by DACs and approved by the TDC and BOCC—include coral restoration, seawall repairs, park upgrades, and cultural preservation initiatives across all Keys communities.
Visitors, not residents, fund these improvements. Tourism spending generates roughly $173 million in local taxes each year, saving each Monroe County household about $11,500 annually.
Transparency Isn’t Optional
The tourism tax structure ensures oversight at multiple levels: five District Advisory Committees, the nine-member TDC Board, the Monroe County Board of County Commissioners, and independent auditors. Every expenditure must comply with both Florida Statute §125.0104 and Monroe County ordinances. Meetings are public, audits are published, and accountability is nonnegotiable.
Stewardship Is Strategy
Four pennies at a time, we’re not just marketing a destination—we’re safeguarding a way of life in the Florida Keys.
We’re not done. Marketing evolves rapidly, visitor behavior continues to shift, and the Florida Keys face both opportunities and challenges in the years ahead. The headwinds continue to blow.
But we’re committed to a data-driven, legally compliant, and accountable approach to investing tourism development taxes. That’s not just good business. It’s our legal obligation and our public trust responsibility.
Show me the ROI? I’m happy to.