Explore Minnesota reports record-breaking tourism growth

Discover Minnesota, the state’s marketing and promotion agency, released the results of its 2023 tourism study in mid-December, revealing a historic year for Minnesota’s tourism industry. Visitor spending reached a record $14.1 billion last year, $1 billion more than in 2022 and 7.8% higher than pre-pandemic levels in 2019. Minnesota also welcomed 80.2 million visitors in 2023, a 4.6% increase from the previous year.

Visitor spending generated a total economic impact of $24.2 billion, including $8.1 billion in labor income and $2.3 billion in state and local tax revenue, and the tourism industry supported 180,473 jobs.

“Minnesota’s tourism industry is not only back, but reaching new heights,” Minnesota Gov. Tim Walz said in a prepared statement. “Record-breaking spending, visitor numbers and economic impact underscore our state’s resiliency and its appeal as a destination. We will continue to work to ensure Minnesota remains a vibrant, welcoming place for visitors while also prioritizing our residents. Quality of life.”

“Visitor spending and attendance are breaking records, demonstrating Minnesota’s unique appeal as a four-season destination,” said Lauren Bennett McGinty, executive director of Discover Minnesota. “Growth in the daytime, overnight and international travel markets demonstrates the effectiveness of our strategic marketing efforts and partnerships across the state, country and around the world.”

Explore Minnesota’s industry-specific growth highlights

• Accommodation and transportation: Statewide lodging spending increased 8.5% year over year, driven by a 2.8% increase in room demand and a 5% increase in average daily room rate. Short-term rental income soared 14.2%, up 16% from pre-pandemic levels. Transportation spending also increased, driven by strong demand for air travel.
• Entertainment and Activities: Demand for live events and unique experiences drove significant growth in leisure spending, reflecting Minnesota’s abundant sports and music attractions as well as well-attended events like Twin Cities Pride and the Minnesota State Fair.
• International Audience: Although international tourists have not yet reached pre-pandemic levels, the recovery continues, with year-on-year growth of 36% compared to 2022. Similarly, international visitors will spend $501 million in Minnesota in 2023, a 35% increase from 2022.

The Explore Minnesota report notes that Hennepin and Ramsey counties dominate visitor spending and impact in Minnesota, accounting for 37% and 8% of the state total, respectively. Visitor spending in other counties was relatively dispersed, reflecting year-over-year growth trends in other states. Smaller, more rural counties have recovered fastest post-pandemic, while larger counties and those that rely on activity have taken longer to return to pre-pandemic levels last year.

However, even with record growth, hotel performance indicators in Minnesota and the metro area still lag behind national hotel performance indicators, demonstrating the need for continued efforts to sustainably grow Minnesota’s visitor economy.

exploreminnesota.com