The city hosts an estimated 18,630 tourist/visitors per day. During special tourist events such as Fantasy Fest, the population can approach an estimated total of 75,000.

Key West contains 63 hotels/motels with 4,154 rooms, 127 guest houses with 949 rooms and 404 other transient lodging facilities with 510 rooms.

There are 202 full service restaurants and 85 take out restaurants. From September, 2003 to October, 2004, a total of 462 cruiseships with 929,790 passengers called on Key West. For the same period 289,945 passengers arrived by airplane.

Key West lies near the end of the chain of islands known as the Florida Keys, and is the southern-most city in the continental United States. The island-community is located about 90 miles north of Cuba and 150 miles southwest of Miami at a latitude of 24 degrees, 33 minutes, 5 seconds North and at a longitude of 81 degrees, 48 minutes, 14 seconds West. The island has an area of 4.2 square miles, while the City-incorporating the northern part of neighboring Stock Island-has an area of 5.79 square miles.

The City initially developed because of its proximity to the Florida Straits, the abutting Florida Reef, strong offshore ocean currents (the Gulf Stream), and the area's unpredictable winds, combined with a large natural deep-water harbor and deep channels into the harbor. The Florida Straits are the northern-most sea passage from the Gulf of Mexico to the Atlantic Ocean.

For three centuries this passage formed part of the great nautical trade route that carried ships from Caribbean and South American ports to their European homelands.

The location of Key West serves as a gateway both to the Caribbean and between the Atlantic Ocean and the Gulf of Mexico was recognized by the military at an early date. Another important regional factor in the development of the City has been its proximity to Cuba, 90 miles to the south.