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Downtown Orlando drivers are paying more to park starting Thursday, as new parking rate increases approved by the Orlando City Council last spring are now officially in effect.

The city projects the hike will generate an additional $5.5 million per year.

On-street parking rates are nearly doubling in some areas. Drivers will now pay $2 per hour for the first two hours, up from $1 per hour. The third hour costs $3, the fourth costs $4, and rates continue to increase incrementally up to six hours.

Parking garage rates are also rising. The new rate is $2 per hour for the first four hours, then $3 per hour after that, with a maximum daily charge of $20 — up from $15.

The city approved the rate changes after a study found Orlando’s parking fees were outdated compared to similar cities.

Businesses, drivers worry about impact

Not everyone is welcoming the change. Ricardo Ibanez, owner of Buffalo Boss on Orange Avenue, said the increases add pressure on small businesses.

“It’s like the city of Orlando is trying to put some more stress on me,” Ibanez said.

He worries higher parking costs will deter people from visiting downtown.

“So, it’s definitely a worry. Hopefully customers do understand and can support the business. It has nothing to do with us,” Scott said.

Parking rates are now enforced from 8 a.m. to 8 p.m. Monday through Saturday, up from 8 a.m. to 6 p.m.

Parking will remain free from 8 p.m. to 8 a.m. on Sundays and on city-observed holidays

Along with the rate hike, the city is eliminating traditional parking meters. Drivers must now pay using the ParkMobile app or by calling or texting the number posted at each parking location — a shift that is already creating confusion.

One driver left a note on their car that read: “I don’t have a phone or a credit card and now I’m late. What am I supposed to do?”

Harold Scott, another driver, told News 6 he was still trying to figure out the new system.

“No, I don’t. I’m trying to find out. That’s why I’m looking at this sign here. I don’t know. So I’m going to have to find a parking spot where I can put my money in,” he said.

To help drivers adjust, the city has implemented a three-week education and warning period for the updated enforcement hours.

For more information on parking system modernization, click here.

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