Commissioners Move Tourism Privatization Proposal Forward for Further Development

Collier County commissioners agreed Tuesday to move forward with further development of a proposal that could shift the county’s tourism promotion work from county government to a private nonprofit organization. 

The June 30 workshop did not include a final vote to create the organization, approve a contract or transfer tourist tax dollars. Instead, commissioners gave unanimous direction to move the proposal to the next stage of development and review, with the understanding that many details still need to be worked out. 

At the center of the discussion is a proposal to create a 501(c)(6) nonprofit destination marketing organization, commonly known as a DMO. A DMO promotes a place as a destination for visitors, conventions, events, sportstourism and business travel. In Collier County, that work is currently handled by local government through the county’s tourism structure. 

The proposed nonprofit would use public money, specifically Tourist Development Tax (TDT) dollars, to promote tourism in Collier County through a private organization. Collier County currently levies a 5% tourist tax on hotel, campground and vacation rental stays of six months or less. 

Presenters argued the change would improve Collier County’s competitiveness, efficiency, flexibility and responsiveness, particularly after major storms or other disasters. They said a private nonprofit could give the county’s tourism marketing operation greater speed to market, faster response times and more tourism-specific expertise. 

In response to questions from commissioners, presenters said the concept remains at a “30,000-foot view” stage. Much of the actual structure has not yet been determined, including who would sit on the nonprofit board, how appointments would be made, how contracts would be handled, how records would be made available and how the county would ensure oversight of public funds. 

Commissioner Daniel Kowal said one of his biggest concerns was safeguarding against misconduct, noting that other jurisdictions have encountered problems with private tourism organizations receiving public tourist tax dollars. In Orange County, a comptroller audit of Visit Orlando, a nonprofit tourism marketing organization funded with Tourist Development Tax dollars, found problems with the way public tourism tax money was classified and spent. Visit Orlando later agreed to reclassify roughly $11 million as public TDT funds rather than private funds. The case has become a cautionary example of why Collier County commissioners said transparency, auditing, contract access and public records must be addressed before any tourism privatization structure is approved. 

During public comment, those who spoke in support of the nonprofit model indicated they work in the tourism industry or in businesses that rely on tourism marketing. Some argued that government should focus on core public responsibilities, such as infrastructure, quality of life and public safety, while tourism marketing should be handled by an organization with industry expertise. They said the proposal could make tourism promotion more adaptable, create stronger accountability through measurable performance and remove politics from marketing decisions. 

No final structure was approved Tuesday. Commissioners instead directed staff to continue working with the county manager on the next step in the process. Before the proposal can return for final consideration, the county will have to determine how the organization would be structured, who would oversee it, how contracts would be awarded and how public records, audits, conflicts of interest and safeguards against misuse of public funds would be handled. 

For now, the proposal moves forward, but it remains a long way from implementation, with many details still to be determined, weighed and reviewed before any final structure is approved.