Resilient SWFL economy making post – Ian progress
The weather this spring and summer was unseasonably hot, and while that same description wouldn’t necessarily apply to the local economy, Southwest Florida continues to offer a warm and welcoming business climate. There are still plenty of positive indicators this year: more businesses have opened their doors, more people continue to move here, tourists are still visiting our tropical paradise and the region’s recovery from Hurricane Ian continues to impress.
The after-effects of Hurricane Ian continue to be felt in the Southwest Florida economy. As rebuilding continues in Fort Myers Beach, Sanibel Island and other coastal areas, Lee County is experiencing an impact in tourist tax revenue, which is down year-to-year by an average of 52.5% in the second quarter of 2023. Real taxable sales have also followed this downward trend since Ian. This isn’t just a Lee County concern. Charlotte is the only county in Southwest Florida where the real taxable sales have mostly been on an upward trend since the lowest point in September 2022.
Passenger activity at Southwest Florida International Airport (RSW) has also been affected by the hurricane, but the impact is minimal. Seasonally adjusted passenger traffic at RSW was 892,689 in August 2023, about 4% below the same month last year. Overall, passenger activity at all three airports in the region amounted to 1,406,840 in August 2023, down less than 1% from July 2023 and 1% lower than the August 2022 measure.
Meanwhile, as expected, home sales have been on the rise. There were 1,997 single-family home sales in August 2023, a 7% increase over the previous month. However, new home builds saw a significant decrease since the storm and only recently have seen that change course. Lee County issued 741 residential building permits in August 2023, a decline of 27% from the previous year and 25% over the prior month.
As we move forward and continue our recovery from Ian, experts say that the confidence in the consumer sentiment index has seen a slight upward trend over the past quarter and purchasing big-ticket household items continues to trend upward (since October 2022). That suggests confidence in the ability to pay for such goods and indicates a positive outlook on inflation. The Consumer Price Index for Florida’s two largest economic regions, Tampa and Miami, also indicated a slowing of inflation in the past quarter.
In general, Southwest Florida continues to be a hotspot of economic activity and growth. With a flourishing job market, booming real estate sector, recovering tourism industry and growing health care sector, the future looks promising for this region of Florida’s Gulf Coast.
About the Author
Holly D. Smith is President of the Horizon Foundation, a Sanibel City Council Member and the former Mayor of Sanibel.