(Miami Beach, Fla.) – Today, Fishkind and Associates released a study outlining the economic impact on Miami Beach if a Miami Beach Commission approved an ordinance to implement a ban on sales of alcohol on Ocean Drive after 2:00 AM is passed by voters.
The report entitled “Economic Impact of Proposed Ban on Sales of Alcoholic Beverages from 2:00 AM until 5:00 AM on Ocean Drive,” specifically outlines the negative economic impact the ordinance would have on the city and its taxpayers if passed.
The report, which was commissioned by the Florida Restaurant & Lodging Association (FRLA), details a loss of more than $340 million in sales revenues – translating to a loss of more than $19 million annually to the City in property, resort and sales taxes and shifting the burden of these lost city revenues onto local taxpayers. The report also indicates a potential loss of more than 5,500 jobs as a result of immediate and cascading effects of the late-night ban.
“The ballot referendum which will ban alcohol sales on just a few businesses on Ocean Drive will have far-reaching negative economic effects for Miami Beach taxpayers and businesses,” said Hank Fishkind economist with Fishkind and Associates. “After a full economic impact study, we found that direct and cascading revenue losses to local businesses will top $340 million dollars. This loss in sales from tourists will result in millions in lost tax revenue for the city, a significant loss in jobs and lower property values.”
Additional highlights from “Economic Impact of Proposed Ban on Sales of Alcoholic Beverages from 2:00 AM until 5:00 AM on Ocean Drive,” include:
• There will be cascading losses in sales to nearby hotels and restaurants with Dr. Fishkind estimating a 15% reduction in Ocean Drive restaurant sales and 10% reduction for nearby business sales, resulting in upward of $341 million in lost income to local restaurants, clubs, and hotels.
• Ocean Drive and nearby hotels will also see a decline due to the curb on late-night entertainment, resulting in a loss of upwards of $225 million in lost hotel revenues.
• The city will see an $19.6 million hole in their budget, as a result of lost tax dollars usually paid by tourists.
• The loss of sales and profits realized as a direct result of the ban and translates to a loss of more than 5,500 jobs in city bars, restaurants, and hotels.
“This ordinance will severely alter a formula that has proven successful and allowed hotels and restaurants to flourish. If this destructive measure passes, jobs will be lost and taxpayers in the City of Miami Beach will be responsible for footing the bill for the millions of dollars in lost tax revenue,” said Carol Dover, President & CEO of the FRLA.