Explore Minnesota Reports Record-Breaking Tourism Growth in 2023

ST. PAUL, MN, December 10, 2024 – Explore Minnesota, the state's marketing and promotion agency, has released its 2023 tourism industry research findings, revealing a historic year for Minnesota tourism. Visitor spending reached a record $14.1 billion in 2023, marking an increase of $1 billion over 2022 and surpassing pre-pandemic levels in 2019 by 7.8%. Minnesota also welcomed 80.2 million visitors in 2023, a 4.6% increase from the prior year.

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

"Minnesota's tourism industry has not only recovered but reached new heights," said Governor Tim Walz. "The record-breaking spending, visitor volume and economic impact underscore the resilience of our state and its appeal as a destination. We'll continue working to ensure Minnesota remains a vibrant, welcoming place for visitors while also prioritizing quality of life for residents."

Key Findings from Explore Minnesota's 2023 Tourism Research:

• 80.2 million total visitors: A 4.6% year-over-year increase, and 3.9% above pre-pandemic levels.
• $14.1 billion in visitor spending: Up 8.0% from 2022 and 7.8% above pre-pandemic levels in 2019.
• $24.2 billion in total economic impact: Driven by robust spending across lodging, transportation, recreation and other sectors.
• 180,473 jobs generated: Supported by $8.1 billion in labor income.
• $2.3 billion in state and local tax revenues: Directly benefiting Minnesota communities.

"Breaking records in both visitor spending and volume showcases Minnesota's unique appeal as a travel destination for all four seasons," said Lauren Bennett McGinty, Explore Minnesota's Executive Director. "Growth across day, overnight and international travel markets points to the effectiveness of our strategic marketing efforts and partnerships across the state, nation and around the world."
 

Sector-Specific Growth Highlights

• Lodging and Transportation: Statewide spending on lodging grew 8.5% year-over-year, bolstered by a 2.8% increase in room demand and 5.0% growth in average daily room rates. Short-term rental revenue surged by 14.2%, contributing to a 16% increase above pre-pandemic levels. Transportation spending also rose, fueled by strong air travel demand.
• Recreation and Events: Demand for live events and unique experiences drove significant growth in recreation spending, reflecting Minnesota's rich array of sports and music attractions as well as well-attended activities like the Twin Cities Pride Festival and the Minnesota State Fair.
• International Visitors: Although international arrivals have not yet reached pre-pandemic levels, recovery continues with a 36% increase year-over-year compared to 2022. Similarly, in 2023 international visitors spent $501 million in Minnesota, a 35% year-over-year increase from 2022.

Hennepin and Ramsey counties dominated visitor spending and impacts for Minnesota, accounting for 37% and 8% of the state total, respectively. Visitor spending throughout other counties was relatively dispersed, reflecting year-over-year growth trends in other states. Smaller and more rural counties recovered quickest after the pandemic, while larger counties and those reliant on events took longer, catching up to pre-pandemic levels in 2023.

However, even with record growth, Minnesota and metro area hotel performance metrics continue to lag behind national performance metrics, demonstrating the need for continued efforts to sustainably grow the visitor economy in our state.

For more information on tourism's impact on the state of Minnesota and to view additional research and economic data, visit https://mn.gov/tourism-industry/research/ or The Minnesota Visitor Economy 2023 Report.

About Explore Minnesota: Explore Minnesota is the marketing and promotion agency for the State of Minnesota. Our mission is to support and help Minnesota's economy grow sustainably through innovative marketing, industry partnerships and authentic storytelling, showcasing Minnesota as the premier state for travel, quality of life and economic opportunity. To learn more, visit exploreminnesota.com or find us on Instagram at @exploreminnesota.