ORANGE COUNTY, Fla. — The Tourist Development Tax collections in Orange County during May 2023 declined 6.7% compared with the same period a year ago, Comptroller Phil Diamond reported Thursday.

It marked the first time TDT collections have dropped from year-over-year for two months in a row since February 2021, Diamond noted.

Orange County still collected more than $26 million, according to the report.

The TDT is known as a "bed tax," generated by the 6% tax tourists pay to stay at hotels or short-term rentals in the county, according to the report. 

May was the first month since February 2021 that the convention hotel segment saw a decline in demand. The number of events at the Orange County Convention Center in May increased year over year, but the groups were smaller, meaning less overall attendance.

It could be too early to extrapolate a trend, such as a pause on tourists flocking to the Sunshine State, however, based on contextual information from Visit Orlando.

Metro Orlando's hotel occupancy rate in May was 69.3%, down from 71.1% a year ago, Visit Orlando President and Chief Executive Officer Casandra Matej said.

However, bookings in advance are tracking similar to last summer's numbers, she noted. Big-group bookings in advance — such as the AAU Girls Junior Volleyball Championship and others — are outpacing group hotel bookings by 15% from last summer.

Orange County names a task force to recommend how to distribute TDT funds. They are used to help pay for projects ranging from sports and stadiums to arts and museums. TDT also pays for operations, acquisitions and renovations for tourism-related facilities.

The report for June TDT collections will be released in early August.