Dunedin's lodging tax collections surged nearly 23% compared to two years ago, new data from Visit St. Pete-Clearwater shows, as Pinellas County posted its strongest spring tourism season on record.
The city collected $106,274 in tourist development taxes in May 2026, up 8.76% from May 2025 and up 22.99% from May 2024, according to the county tourism agency's destination metrics report. Palm Harbor also saw a boost, collecting $87,162 in May, a 21.86% jump from the same month last year.
Brian Lowack, president and CEO of Visit St. Pete-Clearwater, told St. Pete Catalyst on Tuesday, July 28 that Dunedin has emerged as one of the county's fastest-growing tourism destinations.
"We're far beyond bouncing back from 2024. We're past that," Lowack said.
Countywide, the numbers are striking. Pinellas collected more than $36.1 million in tourist development taxes from February through April 2026, up 7.7% from the same period a year earlier. Four of the first five months of 2026 set new monthly records, and the county is on pace to surpass its all-time annual record, set in 2023. More than 3 million visitors came to Pinellas in May alone, a 9.7% increase over May 2025.
The tourist development tax is a 6% levy on overnight lodging that funds beach renourishment, sports facilities, and destination marketing.
What's driving the surge
Lowack credited several factors: travelers whose trips were delayed by the 2024 hurricanes, continued hotel investment, expanded airline service, and consumers prioritizing travel despite broader economic uncertainty. Visitor surveys show groups of friends now account for 24% of travel parties, up from 13% in 2024, and 12% of spring visitors cited a concert or special event as their primary reason for visiting, a level not reached since 2019.
Hotel occupancy in May hit 71.9% countywide, and vacation rental average daily rates climbed to $387, up 9.2% from spring 2025. Hotel guest night bookings for July 2026 are tracking ahead of last year at roughly 123,000 nights reserved.
Downtown merchants still feel a summer squeeze
The record spring numbers contrast with what some downtown Dunedin business owners describe as a slower summer. At a Thursday, July 9 City Commission meeting, Jason Seibert, owner of Rosie's Tavern and Flanagan's Irish Pub, led more than a dozen restaurant and bar operators in asking commissioners to consider an open-container district and other measures to draw visitors during the hotter months.
"While we tighten our belts, we're watching our neighbors pull ahead," Seibert told commissioners on July 9.
In a separate interview with Tampa Bay 28 on Monday, July 13, Seibert said expansion plans are on hold for most downtown operators, though no layoffs have been necessary.
City Manager Jennifer Bramley directed staff to research what other municipalities are doing and bring the item back to a future commission workshop. No date has been set.
The seasonal gap makes sense on the calendar: the record tax data covers February through May, the peak of snowbird and spring-break season, while merchants are describing conditions in June and July, traditionally the slowest stretch for Gulf Coast tourism.
Lowack said reservation pacing data indicates demand should remain strong through the rest of summer, tracking ahead of 2025 and on par with 2024.
What's ahead
Fiscal year-to-date visitor counts have reached nearly 11.7 million through May, up 11.1% from the same point last year. The Dunedin commission workshop on the open-container proposal has not been scheduled. Residents can monitor the City Commission agenda for updates.
Coming up in the community:
- Thursday, July 30 — Back to School Bash with free backpacks for Dunedin families, 5–7 p.m. at the Dunedin Community Center, 1920 Pinehurst Road
- Downtown Dunedin Market — weekly Saturday morning market on Main Street
- Studio 1212 Summer Art Sale — open in downtown Dunedin through the summer
