- Iowa Tourism Office data shows a record $7.3 billion spent by visitors in 2023 on food, travel, lodging, recreation, entertainment and other tourism-related expenditures in the state.
- On average, visitors spent nearly $20 million per day.
- Linn County saw a 5.5% increase in travel-generated expenditures, while Johnson County saw a 5.6% increase.
- The tourism industry supports 70,954 jobs, accounting for 5.4% of total employment in Iowa.
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New data from the Iowa Tourism Office found visitors to the state spent a record $7.3 billion in 2023 on food, travel, lodging, recreation, entertainment and other tourism-related expenditures — a 5.1 percent increase from 2022.
On average, visitors spent nearly $20 million per day, according to the study.
Travel-generated expenditures in Linn County totaled $730.5 million, an increase of 5.5 percent over 2022. In Johnson County, visitors spent a total of $683.8 million, a 5.6 percent increase.
For the study, visitors included those who stayed overnight or traveled more than 50 miles to the destination.
“These numbers mean that the health of the industry is strong. It’s recovering, and I give a lot of credit to our destination partners all the way across the state, and they are doing a great job recruiting the national- and regional-level sporting events and conferences,” said Chelsea Lerud, executive director of Iowa Travel Industry Partners, the state’s nonprofit tourism association.
The study, conducted by the international Tourism Economics research firm, also revealed that travel-generated spending generated more than $1.1 billion in state and local taxes last year, enough to pay the salaries of more than 19,000 Iowa public-school teachers. According to the study, if the state did not generate this amount of visitor spending, each household would have to contribute an additional $857 in taxes.
Tourism continues to play a key role in Iowa’s job market, supporting 70,954 jobs, which accounts for 5.4 percent of the total employment in Iowa. Visitor spending supported $2.5 billion in labor income, about $1,910 for each household, in the form of wages, salaries, benefits and proprietor income.
The tourism industry employs roughly 5,000 people in Linn County and about 4,800 people in Johnson County, according to the report. That accounts for about 4.4 percent of overall employment in Linn County and 9.2 percent in Johnson County.
Lerud said the growth is travel spending is partly attributed to inflation and to increased visitation.
“So we’re seeing an increase in seven-day a week visitors. It’s not just the weekend travelers coming to the state. We’re seeing that weekday business really bounce back as well,” she said.
Industry still working to recover from pandemic
Among the spending categories, food and beverage saw the strongest growth (9.6 percent) reaching nearly $1.7 billion, according to the report. Recreation, entertainment and lodging spending increased 5.6 and 4.5 percent, respectively, per the report.
Visitors spent $1.9 billion in 2023 on transportation costs, a 2.9 percent increase from 2022, as a result of increased air travel and declining gas prices. Meanwhile, retail spending saw modest growth (2.5 percent), but still registering a record high of nearly $1.2 billion.
Lerud, however, noted the tourism industry still is recovering from the effects of COVID-19, especially in hotel and restaurant sectors, due to staffing challenges and higher competitive wages in other industries.
Tourism-supported employment rose by more than 2,000 jobs in 2023, rebounding to 50,145 jobs. Visitor-supported employment recovery, though, continues to lag that of spending, with employment levels coming in at 91 percent of pre-pandemic levels, according to the report.
“So we’re having those conversations and how we can attract employees back to the industry,“ Lerud said.
Youth sporting events a boon for Iowa tourism
She attributes the increase in visitor spending to the work of the Iowa Travel Industry Partners and their presence at national trade shows.
“Everybody is out there sharing their message, sharing their story, and inviting visitors to come experience what Iowa has to offer,” Lerud said. “And visitors are listening and coming to experience it, having a great time and continuing to come back here after year.”
The Iowa Tourism Office, part of the Iowa Economic Development Authority, also works to promote attractions and events across the state, as well as Iowa’s diverse landscapes and cultural heritage.
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The study analyzed aggregated mobile device geolocation data, Bureau of Economic Analysis and Bureau of Labor Statistics employment and wage data, hotel occupancy and revenue, tax collections, U.S. Census business sales data and international travel data to Iowa based on aviation, survey and credit card information.
Lerud said her association plans to use the report to continue to educate lawmakers about the importance of tourism to Iowa’s economy and to advocate for state spending on grant programs that offer incentives to communities to create recreational, cultural, educational or entertainment facilities that enhance the quality of life in Iowa.
Future efforts will focus on attracting more “soft” sports events like biking, kayaking, white-water rafting and archery, in addition to continuing efforts to attract the youth sporting events that have been a boon for Iowa’s tourism industry.
By highlighting Iowa’s natural strengths and assets, Lerud said Iowa Travel Industry Partners hope to diversify the types of sporting events and visitors the state can attract.
She praised the efforts of the Cedar Rapids and Iowa City tourism teams in representing their regions and attracting visitors.
The Cedar Rapids Tourism Office did not respond to a message seeking comment.
The ‘Caitlin Clark effect’
Nick Pfeiffer, vice president for public affairs with Think Iowa City, said the increase in tourism spending locally can be attributed in part to the success of Xtream Arena in Coralville attracting international, national and collegiate wrestling tournaments like the U.S. Wrestling Open and United World Wrestling Freestyle and Women’s World Cup — as well as the “Caitlin Clark effect.”
During her college career, the current WNBA and former University of Iowa women’s basketball star broke countless records on the court and brought an unprecedented level of excitement to women’s basketball. Clark’s talent and celebrity led to soaring attendance at Iowa games, and larger crowds generated more economic activity.
A March report from the Common Sense Institute suggests Clark contributed between $14.4 and $52.3 million to Iowa’s economy due increased attendance at Iowa women’s basketball games during her four-year college career. The increased attendance is estimated to have led to an estimated $82.5 million in increased consumer spending over the last three seasons.
Attendance at Iowa women’s basketball games increased by 2.8 times during Clark’s senior year, from about 125,000 to 350,000. Out-of-state attendance grew by over 38,000 fans during Clark’s senior year.
“I’m at a conference Puerto Rico. It’s a destination international advocacy conference, and I’m wearing a sweatshirt with our Think Iowa City logo on it, and I’ve had three people stop me and just ask about Caitlin Clark,” Pfeiffer said, speaking Wednesday to The Gazette. “They know nothing else other than seeing Iowa City (and recognizing the connection to Caitlin Clark and Iowa women’s basketball), and that’s just anecdotal, but it’s been incredible.”
And the fact that the women’s basketball tickets sold out this year indicates sustained interest, Pfeiffer added.
He said Johnson County should work to keep the momentum going by continuing to actively promote the women’s basketball success, focus on ensuring the game day experience is welcoming and enjoyable for fans, and leverage the team’s reputation and visibility to drive more tourism to the area.
He said Iowa Tourism Partners intend to push lawmakers to provide a pot of state grant dollars that organizations like Think Iowa City could use to cover bid fees in efforts to attract large-scale national and international sporting events to the state, such as NASCAR events in Newton and international wrestling events in Iowa City.
Promoting Iowa’s natural assets
Pfeiffer also highlighted the importance of investing in trail systems and conservation bonds to promote biking and other leisure activities in Johnson County. He mentioned that Johnson County’s ‘core4’ multi-surface bike race keeps growing.
Nearly 1,000 participants rode in the annual cycling race this August across gravel, pavement, single-track and minimally maintained roads. Participation in core4 has risen steadily each year since the race’s first running in 2021, and, with a new donation, is expected to continue growing.
Pfeiffer also noted Think Iowa City’s launch of bikeiowacity.com website targeted to leisure bike travelers “who want to get out for a weekend adventure.”
“So we are able to tout the different trails, the different gravel routes, pavement routes that people can go on and utilize,” he said.
The state’s marketing efforts, including drone videos, have also helped attract leisure travelers, Pfeiffer said.
The goal, he said, is to create a great place to visit, which can eventually attract new residents and contribute to Iowa’s workforce and enhance the economy.
“More and more people are looking to where they want to live and then finding a job,” Pfeiffer said. “Or, they have the option now (with remote work) they can live wherever they want. So if we can create a great place to visit and make that great first impression, we can eventually gain a workforce out of it, and that’s going to help us in long run.”
The entire report is available at traveliowa.com.
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