Key West Economy Strong in 2025

Key West Economy Strong in 2025

By: Liana Gonzalez-Blanco December 19, 2025

If President John F. Kennedy were alive today, you might confuse him for a Republican. He popularized the phrase “a rising tide lifts all boats” to argue that broad economic growth benefits entire communities. Kennedy used that phrase in 1963 while promoting a national tax cut, explaining that when the overall economy expands, workers, businesses, and local governments all gain.

That idea fits Key West perfectly. With a year-round population of about 27,000 residents, the city supports an economy driven largely by tourism. Through a 5 percent Tourist Development Tax, visitors generated approximately $61.4 million in 2025. Monroe County used those funds for beach maintenance, destination marketing, and visitor-related infrastructure across the Florida Keys.

When tourism is doing well, residents benefit directly. More money flows back into the local economy, supports essential community services, and reduces the tax burden on households. This is a textbook example of supply and demand working as intended — the foundation of our capitalist system.

You only need to look 90 miles across the Florida Straits to understand how fortunate we are. Despite having a much larger land mass than the Florida Keys and beaches that can rival any in the world, Cuba’s economy struggles to meet even basic needs. Their communist system has failed miserably. It is a stark contrast to what we enjoy in Key West. Even though we are a much smaller island, we perform at economic levels that Cuba can only dream of.

Florida Economic Snapshot Is Solid

When it’s snowing in other parts of the country, one destination consistently tops the list: Florida. Key West remains one of the state’s most sought-after destinations, and the data backs that up.

VISIT FLORIDA, the state’s official tourism marketing and research organization, compiles tourism estimates using airline data, traffic counts, lodging metrics, and other indicators to track travel trends. According to VISIT FLORIDA’s Q1 and Q2 2025 estimates packets, Florida recorded 41.2 million visitors in the first quarter of 2025 and 34.4 million visitors in the second quarter, marking a record high for second-quarter visitation.

Domestic travelers accounted for the largest share in both quarters. VISIT FLORIDA also reported modest growth in hotel room demand and steady average daily rates statewide, clear signs of continued interest in Florida travel during the early and mid-year months.

Florida Keys and Monroe County Economic Data

Tourism activity in the Florida Keys remained stable through mid-2025 and continued to deliver significant economic benefits. Each year, visitors spend approximately $3.5 billion across the Keys, generating nearly $400 million in tax revenue and supporting more than 24,000 jobs.

In a county with only about 80,000 year-round residents, that visitor economy saves local households an estimated $11,500 per year, including more than $1,100 in property taxes, while also funding critical infrastructure and quality-of-life projects. These numbers are staggering when you consider the county’s small size, with 27,000 residents living in Key West alone. Anyone claiming the Key West economy is hurting simply is not looking at the data.

The Monroe County Tourist Development Council (TDC), the county-authorized agency responsible for managing bed tax revenues and destination marketing, made this point clearly in an August 29, 2025 post on the Visit Florida Keys website. The TDC stated that while national headlines question the future of tourism and some U.S. markets face softening demand — especially among international travelers — the Florida Keys are telling a different story, outperforming 2019 benchmarks and holding steady across key indicators.

As election season approaches, negative economic narratives tend to intensify. Politicians and corporate media voices often push these stories to keep residents anxious and angry, believing fear produces votes. The flip side is that a strong economy and potential tax relief in 2026 could bring out voters who support stability and having more money in their pockets. In the end, elections are often decided by whether anxious voters or satisfied voters show up.

More data helps cut through that noise. Looking ahead to 2026, the Monroe County Board of County Commissioners approved a $673 million budget while maintaining one of the lowest countywide millage rates in Florida. Public safety spending includes increased compensation for EMS and law enforcement personnel and construction of a new fire station on Sugarloaf Key.

The budget also includes maintenance and improvement projects at the Monroe County Detention Center and $1.1 million for the Human Services Advisory Board, which supports local nonprofit organizations. A budget like this would not exist if the local economy were struggling. It reflects confidence in Monroe County’s economic outlook heading into 2026.

The Monroe County School Board also approved a $320.65 million budget for fiscal year 2025–26, an increase of $13.28 million from the previous year. The plan includes a $172.39 million general fund and $86.90 million earmarked for capital projects such as ADA compliance improvements, safety upgrades, and bus replacements.

The district also maintained about $9.6 million in reserves for hurricane and emergency response. These decisions suggest school officials expect stable property tax revenues, not emergency cuts or layoffs. Some may argue for lower millage rates or more efficiency, but the key point remains: there is steady income and flexibility to meet educational needs.

Strong Key West Economy

Tourism in Key West remained strong throughout 2025, with official reports confirming the city outperformed pre-pandemic benchmarks. The Monroe County Tourist Development Council reported consistent visitation even as some U.S. destinations experienced softening demand. Statewide, Visit Florida announced a record 34.4 million visitors in the second quarter of 2025, a milestone mirrored in the Keys.

Data from the Key West Travel Guide showed increases in airport passenger arrivals, cruise ship calls, and hotel occupancy, with average daily room rates among the highest in Florida. The Key West Chamber of Commerce and the TDC also highlighted the continued strength of the $61.4 million Tourist Development Tax, which funds marketing, special events, and hurricane recovery efforts.

Federal and state policies also played a role. At the federal level, President Trump’s administration emphasized deregulation and tax incentives aimed at strengthening small businesses and tourism-related industries.

At the state level, Governor Ron DeSantis prioritized tourism promotion and infrastructure investment, including protecting the TDC’s funding mechanism during legislative challenges in 2025. Together, these actions helped ensure the Keys remained competitive as one of Florida’s premier destinations.

Immigration and Workforce Data

According to the U.S. Census Bureau’s American Community Survey, approximately 21.6 percent of Key West residents are foreign-born, representing about 5,700 people. This includes naturalized U.S. citizens, lawful permanent residents, visa holders, and some undocumented residents. Because the Census does not report legal status, analysts rely on demographic modeling to estimate undocumented populations.

With roughly 27,000 residents in Key West, applying Florida’s statewide estimate of 5 percent undocumented immigrants suggests about 1,350 undocumented residents locally. Even doubling that estimate to account for error would place the total near 2,700, still a small share of the population.

That number may affect businesses heavily dependent on undocumented labor, but it is not large enough to damage the broader economy. In 2025, ICE removed criminal illegal immigrants from the community, who already had removal orders and criminal records including child rape, elderly abuse, murder, and drug trafficking. Even though such removals were taking place, employment levels, hotel demand, and visitor spending remained strong.

Across Monroe County and Key West, workforce indicators stayed consistent throughout the year. Businesses struggling in 2025 are far more likely facing competitive pressures and the pace of visitor demand — not workforce challenges. There is no direct correlation between ICE enforcement and the Key West economy. In fact, knowing Key West is more safe may even encourage more tourism, especially families.

Economic Outlook for 2026

Some people can drown in a cup of water, so they will always claim the economy is terrible. However, the numbers tell the real story. They show most residents are benefiting from a strong economy and looking ahead with optimism. In a booming tourism-driven market, anyone with a strong work ethic, determination, and legal status has real opportunity.

Add Trump’s Big Beautiful Bill with tax breaks that will help small business and families in 2026.  Also, with the  “no tax on tips” provision, service workers in Key West will undoubtedly benefit from that.  The low gas prices, averaging just under $3 nationally right now, is having a positive impact on our economy as well. These data points indicate that an even stronger Key West economy is coming in 2026.

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Liana Gonzalez-Blanco

Liana is a Key West native who loves writing about her island home. She taught English to students in grades 6–12 for nearly 35 years in Key West schools, sharing her love of literature and language with generations of local students. She earned a bachelor’s degree in English from the University of Florida and a master’s degree in Educational Leadership from the University of Central Florida. Liana is the owner of Conch Media Group, LLC, and the creator and manager of The Key West Post. Her goal is to keep readers informed about the issues that matter most in Key West. As a lifelong local, she offers a perspective often missing from corporate media and from journalists and bloggers who are new to the island.  When Liana isn't writing and managing this website, she enjoys spending time with her friends and family. On most days, you’ll find her walking, biking, or running outdoors, soaking up the natural beauty, friendly people, and diverse cultures that make Key West so special.

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