Pre-Ian Lodging Inventory vs. Post-Ian Status

Before Hurricane Ian, Sanibel Island's tourism economy was supported by a robust lodging sector encompassing roughly 2,900 units – including hotel rooms, resort condos, timeshare suites, and licensed short-term rentals. This diverse inventory ranged from small beach cottage colonies to full-service resorts. In the wake of Ian (September 2022), every accommodation property on Sanibel was damaged – many severely – bringing the island's hospitality industry to a standstill.

Recovery has been painstakingly slow. By March 2025 – two and a half years into rebuilding – the island reached a milestone of 1,898 rooms available, just two-thirds of pre-storm capacity. Nearly one-third of Sanibel's lodging remained offline as of early 2025, illustrating the profound shock to the island's tourism infrastructure.

Key Types of Accommodations and Their Status:

• Resorts/Hotels: Larger resorts like Sundial Beach Resort and Casa Ybel remained closed for extensive repairs through 2024. By early 2025, some major resorts finally prepared to reopen, boosting the room count. Still, many hotel rooms remained out of service.
• Condo Rentals & Timeshares: Ian knocked out dozens of individually owned condo units in the short-term rental pool. Timeshare resorts (e.g., Tortuga Beach Club, Sanibel Cottages) faced lengthy reconstruction but are generally expected to return as owners invest assessments in rebuilding.
• Cottage Inns & Small Lodgings: Sanibel's signature cottage-style inns were among the most brutal hit. Many were older, ground-level structures that couldn't withstand Ian's storm surge. These intimate properties (often 10–30 units each) are a big part of Sanibel's charm – and their loss has been deeply felt by the community and repeat visitors.

Loss of ~427 Units Across 14 Properties

One of the most alarming long-term issues is the loss of lodging capacity. Roughly 427 rental units (rooms or suites) – spread across 14 formerly operational properties – may not return to Sanibel's inventory under current conditions. These include beloved inns, cottages, and small resorts that have either been demolished and not rebuilt or are in limbo with no clear plans to reopen as lodging.

A loss of ~427 units (~22% of pre-storm capacity) means Sanibel will have substantially fewer visitor accommodations than before, even when all planned rebuilding is finished. This caps the island's tourism volume well below historic norms. Fewer rooms constrain visitor spending and overnight stays and threaten to alter the balance of Sanibel's economy.

Economic and Fiscal Consequences

The ripple effects of losing lodging capacity are far-reaching – impacting not just hoteliers and tourists but City finances, local employment, and community services.

Tourist Tax Revenue

Sanibel's "bed tax" collections (the 5% Tourist Development Tax on short-term rentals) plummeted after Ian – a 97% decrease in TDT revenue immediately following the storm. In FY2023, Sanibel brought in only about $262,000 in tourist tax for the entire year (versus multiple millions in a normal year). Recovery has been slow – FY2024 totaled ~$1.22 million. Even as visitors return, the loss of ~427 units creates a lower ceiling on tourist tax potential.

Employment and Business Impacts

The downsizing of Sanibel's lodging sector translates into significant job losses in hospitality and related businesses. Hotels that have reopened are generally running with "less than half the employees they had before the hurricane" due to fewer rooms and lower occupancy. Many hospitality workers were displaced – though Lee County officials note that most who wanted to stay in the area have found jobs on the mainland.

City Finances – Property Tax Base

Sanibel's property tax base shrank drastically after Ian, primarily due to storm damage devaluing many properties. City officials reported a 34% drop in taxable property values – over $2 billion in value wiped out – following the hurricane. This translated to an estimated $3.8 million annual loss in property tax revenue for the City budget.

Infrastructure and Community Services

Tourism downturns have also hit other revenue streams that fund island infrastructure. Due to dramatically lower traffic, Sanibel's causeway tolls were down 74% after Ian. Beach parking fees dropped 88%. These revenues will improve as access and visitation recover, but a sustained reduction in tourist numbers could hamper long-term infrastructure investments.

Strategies and Policy Recommendations for Recovery

Restoring Sanibel's tourism vitality will require targeted actions to address the lodging capacity gap. Both policymakers and the community have roles to play in incentivizing the return of lost accommodations.