Jun. 29--Orange County's tourist tax raked in fewer dollars in May -- marking the third straight decline and reinforcing hoteliers' fears that it will be a painful summer. 

The take from the 5 percent tax on hotel rooms fell 8.7 percent last month, compared with May 2000. That's an even steeper decrease than the 3.8 percent decline in April and the 2.2 percent fall in March. 

The three-month decline is the first in at least a decade. 

"Definitely, we're concerned. This is probably the worst 90 days that we've experienced in the last 10 years," said Rich Maladecki, president of the Central Florida Hotel-Motel Association. 

And business likely won't improve for months. 

"Projections for the summer are weak, particularly August," Maladecki said. 

For the year, the tax collection remains higher than in 2000, but only by a measly 1.1 percent. 

Another month like May could turn the tide into negative territory for the first half of 2001. And if hotels don't make a turnaround, Orange County could see its first-ever year-over-year drop in the tax. 

The tourist tax generates more than $100 million a year and primarily supports expansion of the county's large and growing convention center. 

A continued slide could further weaken the chances that the Orlando Magic basketball team will be able to talk county officials into using some of the tax to help finance a new arena. 

Maladecki doesn't anticipate significant improvements until next spring, even though some hotels have been dropping prices to lure guests. 

Jeff Brinda, general manager of the Sheraton Safari, said his bookings weakened when the stock market tumbled in March and still haven't recovered. So far, June looks as bad as May was. 

"What I see right now, it's basically status quo," he said. "I don't see things getting any worse at this point. I don't see them getting any better." 

The biggest hit, Brinda said, has come from business travelers who appear to be staying away from Orlando this year. 

"Guests on vacation, if they're taking vacations, might not be staying as long. They might be downgrading the type of hotel they're staying at," he said. 

"But a lot of the corporate business has stopped traveling altogether." 

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(c) 2001. Distributed by Knight Ridder/Tribune Business News.