The economic dependency on tourism from climate vulnerable cities (like Miami FL) has yet to find a sustainable and suitable middle ground.
In Miami the tourism industry has become a catch 22. On one hand, it provides a reliable and necessary income stream that helps to social efforts — via sales and local taxes- on the other hand, it inversely contributes to rising ecological damage creating further need for resiliency efforts and taxes to fund them.
This article examines:
- A brief overview of Miami’s geographical scale
- A review of the average tourism impact and income
- An overview of the projected impacts climate change will have on this economy
Drawing from the analysis we will discuss resiliency and economic development strategies that include:
- Decoupling economic activity +environmental impact: the future of tourism (behavioral +policy change)
- Regional strategies for ecotourism
- Regional taxation strategies supported by new tourism standards (reallocation of Tourist Development Tax — TDT)
Getting to now the 305: Overview of Context / The Population
The “Miami” region is defined as both Broward County and Miami-Dade County due to three key rationales: population density, central business activity, and environmental similarities. In addition to the quantitative metrics that support the need for a regional alliance, the qualitative data is even stronger: these counties have become purveyors of “Miami culture”, a set of regional influencers that has earned broad appeal globally. With unique urban design, ethnic diversity, and strategic marketing initiatives these two counties have become a key travel destination. Tourism runs through the veins of the region, with businesses amplifying their unique value propositions as tools for recruiting both day-trippers and weekenders alike. However, the focus on an economic need for tourism has painted a shadow over the growing concerns of climate action and resiliency plans; especially when the very assets that are bringing people in (weather, beaches) are set to be the very ones that could dissuade visits in the future (severe weather patterns and rising sea levels). In order to explore the externalities that the Miami region could address head-on, we must first analyze the most impacted economic base of the region: its citizens.
From a demographic perspective, (sourced by Data USA) Miami-Dade and Broward Counties have the same median age of 40, and median household income of $52- 57K. Both counties are the number 1 and 2 in foreign-born population with Miami-Dade at 50% and Broward at 33%. This rate is higher than Palm Beach (at 24%) and U.S.A. at-large (at 13%) . From an economic perspective in 2018 Broward County saw over $86.9M in tax collections from tourist development (a 33.5% increase over 2017) (Broward County tourism board). Furthermore $1.3Billion was brought in as hotel revenue, in addition to 36 million domestic and international flights passing through FLL and over 3.8 million cruise passengers arriving through ports. In 2018, Miami-Dade County saw over 16.5 million overnight visitors, growing Miami-Dade’s hotel occupancy rate to 76.7%, a 3.5% increase from 2017; in addition to 6.8 million day-trippers bringing tourism gains to $18 billion (Greater Miami Convention and Visitors Bureau). However, for all of its gains, tourism is also considered one of the main contributors of greenhouse gases globally, with the aviation only sector contributing the nearly 40% of the industry’s CO2 contributions.
Overview of Context / The Problem
When it comes to forecasting the impacts of climate change and biodiversity, Miami has been considered one of the “most vulnerable” coastal cities worldwide (Scientific American). Recent reports forecast for nearly 5% increase in sea level rise by 2060, impacting over 8,500 miles of lucrative coastline and over $145 billion in real estate value (UCF research group and Journal for Financial Economics). From serve temperatures and rising tides, to storms and hurricanes, the impacts have already been felt. Miami has created a $400 million Forever Bond program investing in infrastructure and housing for climate forecasts, mostly in lower-income inland neighborhoods. This phenomenon of “climate gentrification” maps these impacts, as the search for resilient real estate brings attention to historically under-developed neighborhoods; putting affordable housing and living into question. A recent study shows that properties in Miami-Dade at risk of flooding due to rising sea level are already selling for “7% less than homes equidistant from the waterfront that are not at risk of flooding” (Harvard, SITN). “Climate gentrification” is not only a residential phenomenon, but also a tourism and economic development one, where inland neighborhoods are being rebranded to welcome visitors like “Little Haiti” becoming “Magic City” and “Wynwood” being a destination for arts over agriculture (Curbed, 2020). As a response to grim forecasts, the South East Florida Climate Change Compact (RCAP) has adopted a regional-wide effort to advance resiliency efforts and collaboration. The platform supports in customizing implementation plans with a range of regional resources, in addition hosting the “Mayor’s Climate Action Pledge” as a mechanism for municipalities to get involved.
Takeaway:
The issue of inequality is especially interesting within the context of tourism dependence and resiliency action. Tourism, though beneficial for the local economy, is in itself a form of inequality — as it allocates investments and funds to marketing and development efforts instead of specialized local needs — like affordable housing, senior needs and education. As “climate gentrification” continues to impact Miami’s geography, access to flood-resistant geographies will further elucidate inequalities in the region. The region’s historical boosterism culture (that defines and markets a location purely for its projected economic benefits) is alive and well in Miami today. Nearly all of the effects from a growth machine-like development plan are apparent, including inequality, impact on fiscal health, need for environmental health, green gentrification and the need for land use and development controls (Urban Fortunes, Logan & Molotch). Miami’s status as the Southern United States’ hub of culture and creativity has been anything but a natural occurrence. Rather investment in the arts has been calculated and coordinated by an informal “growth coalition” (Logan and Molotch, page 62); which includes politicians, local media (like The Miami Herald), utilities (FPL), universities (like UM and FIU), museums and expositions (like Art Basel and Ultra), and professional sports (the NBA’s Miami Heat and the NFL’s Miami Dolphins) — all of which are located in Miami-Dade and Broward County and drive monumental amounts of tourism directly or indirectly.
Recommendation A: Decoupling Economy from Environment
- Decouple economic prosperity and environmental resilience
The two regions can decouple the relationship between economic activity and environmental impact by rejecting the notion that they are mutually exclusive. This kind of paradigm shift would strengthen coalitions between economic and labor powers and their tradition opponents in environmental and resiliency groups. The New Climate Economy (NCE) believes that GDP can and should be decoupled with GHG emissions. The group maps out two kinds of decoupling: Inclusive “relative decoupling” — which still does not necessarily reduce or help in the climate crisis- and “absolute decoupling”, which argues for a scenario where the economy (and not the emissions) grow. Though decoupling has been widely criticized, it should be seriously considered as a narrative for bridging the gaps between tourist dependent economies, businesses and localities; and neighboring resiliency efforts.
Recommendation B: Embrace and Enforce Ecotourism
- Herald eco-tourism as a mandated standard and reach strategy
Regional strategies for eco-tourism is the next obvious recommendation for the Miami region’s existential Catch 22. Eco- tourism has broadly been accepted across Europe (and Lat Am) as a solution to tourist-dependent economies and their need for resiliency efforts. One interesting case study is Copenhagen, which completely rebranded its tourism efforts for a 4-year destination strategy. The “Wonderful Copenhagen” plan is based around highlighting local neighborhoods in order to reframe every visitor not as a tourist, but rather a local who can both enjoy and contribute to the city. This kind of proposed regional strategy for eco-tourism could be outlined by the SE Florida regional climate change compact, wherein a range of tools are given for making new tourism standards. These could include mandatory videos for all tourists (played in airports, hotels, or cabs) that outlines the new standards, and the fines that will be implemented if they are not followed. This could also further build out Miami’s rewards-based public transportation program, encouraging both tourists and locals to embrace public utilities. Eco-tourism also involves investing in natural ecosystems that are self-protecting as a form of tourism attraction — for example coral reefs, barrier islands and wetlands — as opposed to another casino.
Recommendation C: The Tax Strategy
- Reallocating Tourist Development Taxes exclusive into resiliency efforts.
The relationship between tourism and resiliency could be somewhat amended by adopting more specified measures for taxation and budget allocation. Florida has famously adopted a “Tourist Development Tax” (TD) which taxes hotels & restaurants 2% in Miami-Dade & 6% in Broward County. Those funds are then used to support the development & maintenance of tourism needs (like beach maintenance & marketing) by the local municipality or non-profits.The allocation of these funds should instead be used exclusively for resiliency efforts, making the endurance and health of the ecosystem a primary tourism strategy. Some argue that altering the use-case of these funds will create larger competitions regionally for marketing dollars; with every $1the GMCVB (Greater Miami Convention and Visitors Bureau) spends on marketing they achieve a return of $63 in economic impact. However, a reallocation of the tax is benefitting of the tourism industry itself, since hotels are a a prime contributor to the growing need for climate resiliency.
Protecting Miami’s Future
Economic development can and should find a way to be made more sustainable, and more single- minded with the need for resiliency. Investing in resiliency efforts is within itself a dedication to the future of the tourism economy, allowing for scale and responsibly. From reframing the paradigm, to implementing new behavioral and policy changes (like taxation and eco-tourism) immediate actions are a crucial next step, for not only Miami but also for vulnerable cities globally.
