Proposed 2 a.m. liquor ban will damage Miami Beach economy for years to come | Opinion
With Election Day on Tuesday, Miami Beach voters have some serious decisions to make — decisions that could affect their quality of life for the next several decades.
Let’s take a step back, not far from here, not long ago.
The city of Fort Lauderdale, some 40 years ago, decided it wanted to do away with being a Spring Break destination, raising many of the same concerns that Miami Beach officials have when they talk about wanting to shut the party down in their city.
Fort Lauderdale was successful in erasing its name off the lists of top Spring Break destinations, but they also invited localized economic depression — for 25 years. Eventually the beach was redeveloped, but it took over decades for the economy to spring back. Miami Beach is inching toward the same fate.
For those of us who are old enough to remember, before our Miami Beach renaissance in the ’80s, Miami Beach itself was pretty depressed. Now, city officials want to “reinvent” it, and they think a 2 a.m. alcohol ban will help get them there. But changes like this are costly and don’t happen overnight, with the probability of a successful transformation being far from guaranteed.
We’ve already heard from the city that it is facing a $10 million deficit in this fiscal year alone, with even greater deficits coming in the future.
If there was a significant disruption to our tourist-backed economy during this attempt to make such a major transition, there would be grave financial consequences for the city. Yet, Mayor Dan Gelber and City Commission members have spent time, effort and money they can’t spare to push a policy that will hurt local businesses and blow a bigger hole in the budget.
The 2 a.m. alcohol ban is a bad idea at an even worse time. We are in the midst of a very fragile economic recovery from the pandemic. An alcohol ban will undoubtedly have a devastating impact on the hospitality industry. Miami Beach bars, hotels and restaurants are looking at a loss in over $200 million in annual sales and more than 4,100 lost jobs. Beyond the impact to local businesses, these consequences will extend to property owners, taxpayers and all of the folks who use city services.
If the 2 a.m. ban is enacted, Miami Beach will see a $1.5 billion loss in property value. Though their land will be devalued, property owners will have to pay higher taxes. This is because the loss in sales taxes, bed taxes and other revenue that result will have to be made up elsewhere.
While the crime problem in Miami Beach cannot be ignored, we don’t need to devastate our economy for the sake of public safety. Other so-called party destinations like New Orleans and Memphis have taken community-policing approaches toward protecting visitors and club-goers from heightened criminal activity, effectively reducing crime and safeguarding a vital sector of their economy.
City leaders will learn the hard way that it’s the blocks upon blocks of empty storefronts and increased unemployment that drive up crime, not law-abiding businesses and their hardworking employees.
Miami Beach businesses and residents should not be forced to revisit this expensive lesson.
Hank Fishkind , Ph.D., is a Florida economist and an expert in tourism economies. He is a former professor of economics at University of Florida and has served as an economic advisor to two Florida governors, including on Gov. Jeb Bush’s Council of Economic Advisors.
