By Ed Offley
Government officials and business leaders are quietly confident that the Panama City Beach area will enjoy a relatively robust economy and tourism industry in 2026 despite what one described as the “headwinds” of lingering inflation and weak job statistics nationwide.
As the new year begins, both the area housing market and business community show signs of strength, and tourism projections remain positive, if slightly below previous years, officials say.
“With inflation moderating and even starting to come down in most key travel areas, I believe PCB is set up for an even better year in 2026,” Panama City Beach Chamber of Commerce Kristopher McLane told PCB Life. Citing both record arrival numbers at Northwest Beaches International Airport and gasoline prices significantly lower last month than one year ago – $2.61 contrasted with $2.78 locally – McLane said, “I remain positive for the 2026 tourism outlook that directly impacts our area’s economy.”
While 2025 tourism revenues for Panama City Beach were 2.9 percent down from a year ago, Tourist Development Council President Dan Rowe said he expects tourism in 2026 will overcome the “challenges ahead.”
“With all of the uncertainty in the world, I’d say [the area’s economy] is okay,” Rowe said. “There are a lot of economic headwinds out there, but I’d say we’re okay. We are very well positioned to make it strong.”
Mayor Stuart Tettemer also expressed optimism for the city’s outlook this year. “We were prepared for a[n economically] tight year,” he said, “although it is now looking like it will be a pretty good one.”
In another key economic sector, signs of a booming housing market thus far unaffected by economic uncertainties are clearly visible. Along the SR 79 corridor north of the PCB city line, construction of the Ward Creek community is continuing even as the nearby massive FSU Health Hospital continues to take shape.
“The three neighborhoods that make up the Ward Creek community – Bayside, Breakwater and Salt Grass – will continue to grow,” said St. Joe Company spokesman Mike Kerrigan.
Since 2023, 234 homes have been completed and another 30 sites have received building permits, according to the county building permit office. When St. Joe announced the Ward Creek development in 2022, officials said it planned to build 1,600 residential units there.
McLane said he is proud that the city and Bay County are coping well with the unprecedented growth in the area in recent years. He noted that the U.S. Census Bureau recently ranked the area as the second-fastest growing area in the nation.
“I think most residents have noticed the large influx of growth our area has seen since the 2020 pandemic,” McLane said. “By prioritizing smart growth, conservation of our natural beauty, and resident-centered decision making, Bay County will remain an attractive place for families and businesses to grow.”
The city and TDC area are proceeding with a number of public safety and infrastructure projects in 2026 that reflect the response to that growth.
* On Thursday, January 8, city officials will hold a grand opening ceremony for the new Fire Station 32 on Hutchison Boulevard just east of Alf Coleman Road. The $7.24 million facility is the last of three modern fire stations built for the city since 2020.
* Later this year, groundbreaking will be held for the $60 million, 130,000-square-foot Sabre Center, located adjacent to Walsingham Academy near the Publix Sports Park. When completed, the facility will serve as a hurricane-hardened emergency response facility serving the PCB “island,” Rowe said. The TDC is spearheading the project.
* Another major project scheduled to begin this year is Segment 4.1 of the Front Beach Road infrastructure redevelopment, Tettemer said, The $59.7 million project will widen the roadway to four lanes and add storm water drains, underground utilities, sidewalks and pedestrian crossing signals. It runs from Lullwater Drive west of Pier Park to Hills Road.
Mayor Tettemer said that officials this year are proceeding with a number of new or expanded public safety programs that will serve the city, its residents and visitors.
* Following City Council passage of Ordinance 1667 in October in response to outbreaks of violence last year, the city is preparing even more steps to further enhance public safety during future high-volume special events.
“This is a dramatic enhancement” of the city’s legal restrictions aimed at minimizing lawlessness during the tourist season, he said.
The steps include a tough curfew for unaccompanied minors, additional requirements for manned security at condominium complexes,
restrictions on alcohol sales after 10 p.m., and raising the minimum age for renting a condo from 18 to 21.
The city plans to conduct a special meeting early in 2026 to detail the new measures to local business owners and rental companies. “We want to give local businesses as long a lead time as necessary.”
* The city plans to obtain a “Unified Command Bus” to enhance emergency response and coordination for the city Police and Fire Rescue Departments. Funded by a $500,000 Florida Department of Law Enforcement grant, the vehicle will improve on-scene management during natural disasters, large-scale events and critical incidents, ensuring efficient communication, resource deployment and public safety
Tettemer said other city programs for 2026 include:
* The beginning of “a neighborhood at a time” installation of new wireless, customer-accessible water meters;
* Construction of eight pickleball courts at Frank Brown Park;
* A second annual “Citizen’s Academy” that will run eight weeks in late spring or early summer that provides an in-depth look at city government for up to twenty volunteer applicants.
* Incorporating special recognition of the nation’s 250th anniversary into several ongoing events such as the 2026 Gulf Salute Air Show during April 10-12 and the city’s July 4 celebration.
Sabre Center to Break Ground in 2026
By Ed Offley
A major “lesson learned” from Hurricane Michael will begin taking shape later this year.
The $60 million multi-purpose Sabre Center, slated for construction near the Publix Sports Park, will serve the community in a wide variety of ways, said county Tourist Development Council President Dan Rowe, whose organization is spearheading the project.
In case of a major hurricane, the Sabre Center will serve as the Beach’s primary response facility, sheltering in place up to 24 search and rescue teams and their equipment, along with other first responders. It will also house an alternative county Emergency Operations Center to expand the reach of the primary EOC in Southport with a physical presence west of the Hathaway Bridge.
The facility is designed to withstand sustained winds up to 200 miles per hour.
The facility will also include a business resource center where in a storm’s aftermath business owners will find in one place government assistance agencies such as the Federal Emergency Management Agency and the Small Business Administration and contractors to help them recover from storm damage and restart their operations.
An industrial-sized kitchen will be able to serve first responders after a major storm.
And once the first responders have deployed in the wake of a hurricane, the 110,000-square-foot main building can serve as a “secondary” storm shelter for people unable to return to their storm-damaged homes.
Absent a hurricane threat, the facility will serve as a multi-use community center. The massive main building will be capable of hosting major sports events such as basketball and volleyball tournaments, a major collegiate sports event, or large-scale concerts and community meetings.
A later phase of the project will comprise a 20,000-square-foot attached gymnasium facility that in non-emergency conditions will be used by Walsingham Academy students.
The Tourist Development Council already has $30 million in the bank for the project, and anticipates receiving another $12 million from FEMA, Rowe said. The remaining $18 million investment will come from bonds that will be paid off using the county’s 5 Cent tourist development tax.
Construction of the facility is expected to take 18 months.
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