For the first time in Arizona’s history, tax revenue from tourism activity has surpassed $4 billion. In addition to historic tax revenue, new data released by the Arizona Tourism Office shows the tourism industry has created nearly 9,000 jobs in 2023.
All indicators increased
Last year, visitor spending increased 4.3%, tourism-related jobs increased 4.4% and statewide visitor numbers increased 1.7%. On average, visitors spend about $80 million per day in Arizona. Statewide, about 41 million overnight guests spent nearly $30 billion.
“A strong 2023 shows how putting Arizona’s majestic beauty, warm welcome and diverse attractions at the forefront of our visitor attraction efforts continues to pay off,” said Arizona Tourism CEO Lisa Urias. “Whether it’s Arizonans taking road trips around the state, Arizonans from around the country attending Cactus League spring training, or international visitors seeing the Grand Canyon for the first time, we’re always appreciative that Arizona continues to be a first choice.”
Additionally, data released by the Arizona Tourism Office highlights other areas where Arizona has seen success over the past year.
Arizona is a popular destination for out-of-state visitors, with 71% of overnight travelers in 2023 being non-residents. Top states include California, Texas, New York, and Florida. International visits and spending increased significantly compared to 2022, with international visitors up 20% and spending up 30%. Mexico continues to lead as the primary source of international visitors. Arizona’s top seven international markets in 2023 are Mexico, Canada, the United Kingdom, Germany, France, India, and Italy, in that order. International tourism is on the path to recovery and is projected to fully recover to 2019 levels in 2026. Even small fluctuations in visitor numbers have a large impact. A 1% change in visitor numbers will add more than 400,000 overnight visitors. Tourism marketing is effective, with 55% of visitors saying marketing influenced their decision to visit. Visitors’ positive experiences have a lasting impact on their future travel choices. Arizona excels at providing memorable vacations, with 86% of 2023 visitors being repeat visitors and 73% saying they were very satisfied with their experience. Tourism is a key driver of the state’s economy: in 2023, tourism-related tax revenues reached $1.15 billion, accounting for approximately 10% of the state’s overall operating budget.
Statewide economic benefits
Tourism spending helps reduce the tax burden for residents in every county. Coconino County has the largest tax reduction per household due to 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 highlights the large economic impact tourism spending has, especially in rural areas, with an average tax reduction per household statewide of $889.