Walton County Tourism Director Matt Algarin Details The Big Picture

We recently received inside information about Walton County tourism directly from the top - Walton County Tourism Director Matt Algarin.

At SoWal, we try to keep on top of all business in Walton County in our stories and on our Forum. It's very helpful when officials weigh in directly with a bit of the behind-the-scenes info.

From the Director: Is Tourism Up or Down?

It’s a question we hear often from residents, business owners, community stakeholders, our Tourist Development Council and the Board of County Commissioners. And it’s a fair question. The challenge is there isn’t one number that can answer it, or gauge the impact. When we ask whether tourism is “up” or “down,” we’re really asking several questions at once: Are more people visiting? Are they staying longer? Are more lodging units in the market? Are those units being occupied more often? Are visitors paying higher nightly rates? Is the lodging industry generating more taxable revenue? Are local businesses seeing more visitor spending? Each measure tells us something different, and they don’t always move in the same direction. Broadly, the main metrics discussed are tourist development tax revenue, occupancy, average daily rate and RevPar. 

What Does TDT Tell Us?

Tourist Development Tax (TDT) is collected on qualifying short-term lodging rentals, including hotels, condominiums, single-family vacation homes, campgrounds and RV parks. Walton County currently collects 5% south of Choctawhatchee Bay and 3% north of the Bay. TDT tells us about taxable lodging activity. It does not directly measure the number of people on the beach, eating at a restaurant, shopping locally, fishing in the Gulf or Bay, or visiting for the day. TDT revenue can fluctuate due to visitor volume, length of stay, available lodging inventory, occupancy, nightly rates, tax rates, or a combination of these factors.

Occupancy Needs Context

Occupancy tells us what percentage of lodging inventory is being used. Because it is a percentage, the size of the inventory matters. For example, 60% occupancy on 12,451 units represented approximately 2.73 million occupied unit nights in 2017. The same 60% occupancy in 2025 on 20,278 units represented approximately 4.44 million occupied unit nights. The percentage is the same, but the amount of lodging activity is very different. That is why occupancy is most useful when considered alongside the size of the lodging inventory.

What Does ADR and RevPar Tell Us?

ADR, or average daily rate, tells us the average amount paid for an occupied lodging night. RevPAR, or revenue per available room, combines occupancy and ADR to show revenue generated per available unit night. For example, 60% occupancy with a $300 ADR generates a RevPar of $180. At 50% occupancy and a $400 ADR, RevPAR increases to $200. Occupancy declined, but the revenue generated from the higher ADR offset that decline.

COVID-19 Changed the Baseline

Walton County’s recent history also requires context. The pandemic created an extraordinary period for the travel, tourism and hospitality industry, particularly in 2021 and 2022. Pent-up demand and changing global and domestic travel patterns produced unusually strong results that should not automatically be considered the “new normal.”

From 2021 to 2025, visitation declined approximately 14.5%, room nights declined 6.6%, occupancy fell from 61.3% to 48.3%, and RevPAR declined approximately 22%. Yet TDT revenue increased from approximately $59.2 million to $61.4 million. That isn’t contradictory. It demonstrates why no single number tells the whole story. The appropriate baseline also matters. Comparing 2025 with 2024 tells us about the most recent trend. Comparing it with 2022 shows how far we have moved from the post-pandemic peak. Comparing it with 2019 provides a pre-pandemic perspective.

Looking at the Whole Picture

The most useful community conversation is not simply whether one number went up or down. It is about looking at the indicators together: TDT + visitors + room nights + inventory + occupancy + ADR + RevPAR + visitor spending. Walton County has moved from an extraordinary post-COVID surge into a period of normalization, while lodging rates and TDT revenue have remained comparatively resilient. At the same time, the lodging inventory has grown substantially, changing how occupancy percentages should be interpreted.

So perhaps the better question isn’t whether tourism “is up or down?” It’s “what is happening to visitor demand, lodging utilization, pricing, economic activity and community capacity, and how are these trends changing over time?”

That broader perspective gives our community better information for making thoughtful decisions about the future of tourism in Walton County. As these conversations continue, it’s worth considering whether these are the right metrics and how do we as a community and an organization measure success? 

If you’d like to learn more about Walton County Tourism, our team and our mission, visit our website, email me at Matt@wcfltourism.com, or call (850) 267-1216. 

Kindest regards,

Matt Algarin, CDME, TMP, CPM
Tourism Director, Walton County Tourism