ARCADIA, Fla. — After a record year, DeSoto County's tourism industry is slowing down as hotel tax revenue declined for the last five months, according to the DeSoto County Tourism Development Council.
"We're seeing a couple of things going on," said Sondra Guffey, DeSoto County's economic development director.
WATCH: New advertising campaign highlights 'wild' DeSoto County:
The county's bed tax revenue comes from hotels, motels, short-term rentals campsites, and RV parks, Guffey said.
DeSoto County's bed tax revenue dropped in March, April, May, June, and July of this year, according to the development council. That's compared to the same time last year.
The biggest drop happened in May, when revenue fell 32% year-over-year.
It's a sharp contrast from the last several years. Bed tax revenue increased most months between the end of fiscal year 2020 and 2024, according to development council statistics.
In 2024, DeSoto County collected more than $170,000 in bed tax revenue — a record high, Guffey said. She said the 2024 figures are inflated because of recent hurricanes.
The storms displaced locals and drew contractors, Guffey said, filling up hotel rooms.
DeSoto County is now coming off that record high. Fewer Canadian tourists, downtown road construction, and a sluggish economy are driving the slowdown, Guffey said.
A record-setting 34.4 million people visited Florida between April and June of this year, according to VISIT FLORIDA.
But the vast majority are domestic travelers, with about 31.5 million U.S. visitors. The News Service of Florida reports the 640,000 Canadians who visited during this time marks a 20% drop from 2024.
Sanjay Patel, owner of the Oak Street Hotel in Arcadia, said he experienced the downturn firsthand. Patel estimated business slowed between 10% to 15% this year.
Patel said the decline is driven by fewer international travelers - including Canadians. One Canadian family canceled it's reservation because of stricter visa requirements, Patel said.
Earlier this year, President Donald Trump signed an executive order requiring many foreign visitors to register with the federal government if they visit the U.S. for more than 30 days. Canadians were previously exempt from this.
Patel said there's also been fewer European travelers. Europeans prefer the boutique bed and breakfast style that Oak Street offers, Patel said.
After two decades in the hotel industry, Patel said he isn't overly concerned.
"There's always ups and downs," Patel said.
Patel said he is considering adding an events venue to the hotel to diversify revenue.
Meanwhile, DeSoto County is working to promote tourism.
The development council helped launch the award-winning 'Florida Wild' campaign that includes a new website, commercial, and DeSoto County-themed shirts, pens, and glasses. The development council also said it increased digital advertising.
Guffey said she is optimistic numbers will improve with events like Arcadia Bike Fest on the calendar. Patel said he's seen worse before.
"Things have been slowed for anyone in the hotel industry," Patel said.
