June 27, 2018
MIAMI BEACH REVOLVES AROUND TOURISM: Miami Beach was founded and remains to be funded by tourism: tourism related jobs, tourism related expenditures, and the majority of the property taxes / city tax base are funded by investors and vacation home owners.
MIAMI BEACH VISITORS ARE ON VACATION: An estimate 86% of visits to Miami Beach are for vacation/leisure purposes, and Miami Beach remains the most common area to lodge those visitors (58.5%).*
VISITOR SPENDING: In 2017, a record 15.86 million total visitors spent an estimated $26BN in direct expenditures in Miami. (Average length of stay was 6.05 nights, at average daily expenditure of $271 per visitor.*)
VISITOR GROUP SIZE HAS INCREASED: Since 2013, the average visiting party size has increased from 1.9 to 2.17. The average age remains consistent at 40.2 years old, and those who travel in groups of 4 or more visitors has increased from 6.2% to 14.8%.*
MIAMI BEACH IS PREDOMINANTLY SMALL BUSINESS: According to DataUSA, Miami Beach has a population of approximately 92,000 people, a median household income of $47,216 and a poverty rate of 16.7%. The economy of Miami Beach is specialized in real estate, accommodation, food service, arts, entertainment and recreation, in other words small businesses that predominantly depend on leisure and tourism.
HOTELS REMAIN PROFITABLE: According to the City of Miami Beach’s Economic Indicators Report (2015), the city’s approximate 20,000 hotel rooms achieved an average daily rate of $266 with an occupancy rate of 75%, one of the highest in terms of occupancy and rate among the U.S.’ top 25 hotel markets.
MAJORITY OF MIAMI BEACH IS INVESTOR OWNED: Of the approximate 68,388 housing units, ONLY 16,107 (23%) claim ‘homesteaded exemption’ (meaning they are owner occupied.) Furthermore, of the estimated daily population of 222,000, the majority (133,076) are tourism related visitors.
TAXES & FUNDING:
Miami Beach’s 2017 Operating Budget = $317.2M
Miami Beach taxable property values $34.7B
Total property tax revenues = $161M
Taxes collected from permanent/homesteaded residents = 16.6% ***
Taxes collected from non-homesteaded residential (investors) & commercial properties owners = $134M (42%) ***
ECONOMIC IMPACT OF BANNING SHORT-TERM RENTALS: Miami Beach’s prohibition of short term rentals discourages investment, which ultimately has a negative impact on the local economy, jobs, taxes, and leads to decreasing property values. Since implementing exorbitant short-term rental fines in early 2016 and through the 2017 year, while tourism and visitor spending were record highs, property values decreased despite low interest rates, and strong economic growth. The median price of condos in Miami Beach decreased from $340,000 to $320,000, and the median price of a single-family home decreased from $1.6M to $1.36M. **
* Greater Miami Convention and Visitors Bureau, 2017 Visitors Industry Overview
** Southeast Florida MLS
*** Miami Dade County Property Appraiser