Why Tempe's billion-dollar tourism industry is a boost to locals and Arizona

Visitor spending also rose by 6.9% from 2022.

PUBLISHED AUG 20, 2024

The report detailed the influence of Tempe tourism on visitor spending, income, employment, and tax revenues for the year 2023.

Tempe, Arizona: The Tempe Tourism Office recently released the findings of a study conducted by Tourism Economics, highlighting the economic impact of tourism in Tempe. The report, titled 'The Tempe Visitor Economy 2023', details the influence of tourism on visitor spending, income, employment, and tax revenues for the year 2023. The study reveals that Tempe hosted 4.4 million visitors in 2023, generating $1.1 billion in direct spending on tourism.

“We are pleased to announce that Tempe’s hospitality industry had a banner year in 2023,” said Michael Martin, President and CEO of the Tempe Tourism Office. “Our tourism partners are essential to Tempe’s economic success, contributing to jobs, tax revenues, and a high quality of life for our residents.”

The report highlights steady growth in visitor volume and spending since 2020, surpassing pre-pandemic levels in 2022. In 2023, Tempe saw a 3.2% increase in visitors, with an additional 130,220 people compared to the previous year. Visitor spending also rose by 6.9% from 2022. Among the 4.4 million visitors, 63% stayed overnight, while 37% were day-trippers. Overnight guests typically spent up to three nights in the city.

Visitor spending was concentrated in five key areas: $273 million on food and beverage, $271 million on lodging, $224 million on transportation, $187 million on retail, and $131 million on recreation. Lodging spending, in particular, experienced its third consecutive year of double-digit growth, reaching $271 million.

In addition to the direct economic benefits, tourism in Tempe generated $191.7 million in federal, state, and local taxes in 2023. (Photo: Mill Avenue Bridge/Tempe Tourism)

In addition to the direct economic benefits, tourism in Tempe generated $191.7 million in federal, state, and local taxes in 2023. State and local tax revenues alone totaled $116.7 million, equating to $1,505 in tax savings for each Tempe household. The tourism sector also supported 8,969 jobs, primarily in lodging, recreation, food, beverage, and retail sectors.

“Tempe’s tourism industry continues to be a significant driver for our economy,” said Tempe Mayor Corey Woods. “The 2023 Tourism Economic Impact study demonstrates the vital role tourism plays in creating jobs, supporting local businesses, and enhancing the quality of life in our community.”