For the first time in Arizona history the tax revenue produced by tourist activity exceeded $4 billion. New data released by the Arizona Office of Tourism show not only the historic tax revenue but that the tourism industry added almost 9,000 jobs in 2023.
All indicators up
There was a 4.3% increase in visitor spending last year, a 4.4% increase in jobs related to tourism, and a 1.7% increase in overall visitation to the state. On average this is about $80 million spent every day in Arizona. Nearly $30 billion was spent across the state by about 41 million overnight visitors.
“Our strong 2023 shows how placing Arizona’s majestic beauty, welcoming warmth and abundant diversity at the forefront of our visitor attraction efforts continues to deliver,” said Lisa Urias, CEO of the Arizona Office of Tourism. “Whether you’re an Arizonan on an in-state road trip, joining us from across the country for Cactus League Spring Training or an international visitor seeing the Grand Canyon for the first time, we always appreciate that Arizona remains a top choice.”
Furthermore, the data released by the Arizona Office of Tourism also demonstrated other areas in which Arizona has been successful the past year.
- Arizona remains a favored destination for out-of-state visitors, with 71% of overnight travelers in 2023 being non-residents. Top contributing states include California, Texas, New York, and Florida.
- International visitation and spending saw significant growth over 2022, with a 20% increase in international visitors and a 30% rise in spending.
- Mexico continues to lead as the primary source of international visitors. The top seven international markets for Arizona in 2023, in order, are Mexico, Canada, the United Kingdom, Germany, France, India, and Italy.
- International tourism is on the path to recovery, with full restoration to 2019 levels projected for 2026.
- Even minor fluctuations in visitor numbers have a substantial impact. A 1% change in visitor volume translates to over 400,000 additional overnight visitors.
- Tourism marketing is effective, with 55% of visitors stating that marketing influenced their decision to visit.
- Positive visitor experiences have a lasting effect on future travel choices. Arizona excels at providing memorable vacations, as 86% of 2023 visitors were repeat travelers, and 73% reported being highly satisfied with their experience.
- Tourism is a key driver of the state’s economy. In 2023, $1.15 billion in tourism-related tax revenue was collected, contributing about 10% to the state’s overall operating budget.
Statewide economic benefit
Tourism spending helps reduce the tax burden on residents across all counties. Coconino County saw the largest tax reduction per household from tourism spending at $3,369, followed by La Paz ($1,963), Gila ($1,330), Santa Cruz ($1,218), Yavapai ($1,155), and Navajo ($1,026). This underscores the significant economic impact of tourism spending, especially in rural areas, with the statewide average tax reduction per household at $889.