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How Much Revenue Is Generated From Ecotourism Annually In The United States?

Published: November 14, 2023

Modified: December 28, 2023

by Sondra Rath

• Travel Destinations
• United States

Introduction

Welcome to the world of ecotourism, where travel meets sustainability. In recent years, the concept of ecotourism has gained significant attention as a way to experience the beauty of nature while minimizing negative impacts on the environment. Ecotourism goes beyond traditional tourism by incorporating principles of conservation, community empowerment, and environmental education.

In the United States, ecotourism has emerged as a popular and impactful sector of the tourism industry. With its diverse natural landscapes, ranging from lush national parks to coastal wonders, the country offers abundant opportunities for travelers to engage in eco-friendly activities and support sustainable initiatives.

But what exactly is ecotourism, and how does it contribute to the economy? In this article, we will delve into the definition of ecotourism, explore its significance for the environment, and analyze the economic impacts it generates in the United States. We will also discuss the factors that influence revenue generation in ecotourism, the methods used to estimate this revenue, and the annual revenue figures associated with this sector. Furthermore, we will compare the revenue from ecotourism to other tourism sectors, explore successful case studies, and address the challenges and future outlook for ecotourism revenue in the United States.

By understanding the financial value of ecotourism, we can appreciate the need for continued support and development of sustainable travel practices. So, let’s embark on this journey of exploration and discover the fascinating world of revenue generation from ecotourism in the United States.

Definition of Ecotourism

Ecotourism is a form of tourism that emphasizes responsible travel to natural areas, with a focus on conserving the environment, preserving local cultures, and benefiting local communities. It seeks to minimize the negative impacts of tourism while promoting sustainable practices and providing opportunities for education and personal enrichment.

Unlike conventional tourism, which often leads to environmental degradation and cultural exploitation, ecotourism aims to foster a deeper connection between tourists and the natural world. It encourages visitors to appreciate and respect the delicate balance of ecosystems, fostering a sense of stewardship and promoting conservation efforts.

The principles of ecotourism encompass several key components:

• Environmental Conservation: Ecotourism prioritizes the protection and preservation of natural resources and ecosystems. It promotes environmentally-friendly practices such as waste reduction, energy conservation, and the use of sustainable transportation.
• Cultural Preservation: Ecotourism respects and celebrates the culture, traditions, and heritage of local communities. It encourages tourists to interact with local residents, learn about their way of life, and support local economies through responsible purchasing.
• Economic Benefits: Ecotourism aims to generate economic opportunities and benefits for local communities. It promotes community involvement and empowerment, ensuring that tourism revenue flows back into the region and contributes to sustainable development.
• Educational Component: Ecotourism provides educational experiences that raise awareness about environmental issues and inspire visitors to make more sustainable choices in their own lives. This may include guided nature walks, wildlife conservation programs, or cultural workshops.

Ultimately, ecotourism seeks to strike a harmonious balance between tourism and the environment, offering travelers the chance to explore and appreciate natural wonders while contributing to their long-term preservation and benefiting local communities.

Overview of Ecotourism in the United States

The United States is blessed with an abundance of natural wonders, making it an excellent destination for ecotourism. From breathtaking national parks like Yellowstone and Yosemite to stunning coastlines like the Florida Keys and the Pacific Northwest, the country offers diverse landscapes that attract nature enthusiasts from around the world.

One of the key drivers of ecotourism in the United States is its vast network of protected areas. The National Park Service manages over 60 national parks, along with numerous national monuments, historic sites, and recreational areas. These protected areas provide opportunities for visitors to immerse themselves in nature, engage in outdoor activities, and learn about the importance of conservation.

In addition to national parks, the United States is home to countless state parks, wildlife refuges, and private reserves that promote ecotourism. These areas showcase the country’s rich biodiversity, offering opportunities for birdwatching, hiking, kayaking, and wildlife spotting. Whether it’s exploring the Everglades in Florida, witnessing the grandeur of the Grand Canyon, or embarking on a whale-watching cruise in Alaska, there is no shortage of ecotourism experiences to be had in the United States.

Furthermore, the country’s commitment to sustainability is reflected in the numerous eco-lodges, tour operators, and educational organizations that cater to eco-conscious travelers. These entities prioritize environmentally-friendly practices, offer nature-based activities, and provide opportunities for visitors to actively contribute to environmental conservation efforts.

While ecotourism is popular among domestic and international travelers alike, it is important to note that not all nature-based tourism in the United States adheres to sustainable principles. It is crucial for tourists to do their research, choose reputable operators, and look for certifications such as the Sustainable Travel International’s Sustainable Tourism Eco-certification Program or the Global Sustainable Tourism Council’s certification schemes. These certifications ensure that the tourism activities they partake in align with sustainable practices.

Overall, ecotourism in the United States offers visitors a unique opportunity to explore and appreciate the country’s natural wonders while contributing to their preservation. By choosing to engage in eco-friendly travel experiences, individuals can leave a positive impact on the environment and support the sustainable development of local communities.

Importance of Ecotourism for the Environment

Ecotourism plays a critical role in promoting environmental conservation and fostering a more sustainable future. By highlighting the value of natural resources and ecosystems, it cultivates a sense of appreciation and responsibility towards the environment. Here are some key ways in which ecotourism benefits the environment:

• Conservation of Biodiversity: Ecotourism helps protect and preserve vulnerable ecosystems and biodiversity hotspots by creating economic incentives for their conservation. Income generated from ecotourism activities can be used to fund habitat restoration, wildlife protection efforts, and anti-poaching initiatives.
• Reduced Environmental Impact: Ecotourism encourages travelers to adopt sustainable practices, such as using renewable energy, minimizing waste, and practicing responsible wildlife viewing. By raising awareness and providing education, it helps visitors make informed choices that minimize their ecological footprint.
• Habitat Restoration and Preservation: Ecotourism often involves participation in conservation projects, such as tree planting, habitat restoration, and invasive species removal. These activities contribute to the recovery and preservation of degraded ecosystems, promoting the overall health and resilience of natural habitats.
• Alternative to Resource Extraction: In regions where natural resources are vulnerable to exploitation, ecotourism provides an alternative source of income. By creating jobs and revenue streams tied to the preservation of nature, it reduces the pressure on resource extraction and encourages sustainable economic development.
• Raising Environmental Awareness: Ecotourism facilitates direct interaction with the natural environment, allowing travelers to witness the beauty and fragility of ecosystems firsthand. This experiential learning can inspire individuals to become advocates for conservation and drive behavior change in their communities.

Moreover, the implementation of sustainable tourism practices can have ripple effects beyond ecotourism itself. By encouraging the adoption of sustainable infrastructure, waste management systems, and transportation options, ecotourism can contribute to the overall sustainability of a destination’s tourism industry.

It is important, however, to strike a balance between promoting ecotourism and preserving the integrity of fragile ecosystems. Proper management and regulation are crucial to ensure that visitation levels, infrastructure development, and human activities are kept within sustainable limits.

By supporting ecotourism, individuals can contribute to the long-term health and preservation of the environment, protecting natural wonders for future generations to enjoy.

Economic Impacts of Ecotourism in the United States

Ecotourism not only benefits the environment but also has significant economic impacts, contributing to the growth of local economies and job creation. The United States, with its diverse natural landscapes and rich biodiversity, has witnessed a surge in ecotourism activities, resulting in substantial economic benefits. Here are some key economic impacts of ecotourism in the country:

• Job Creation: Ecotourism creates employment opportunities in various sectors, including hospitality, guiding services, transportation, and local handcraft production. This is particularly significant in rural and natural areas, where traditional industries may be declining. By providing sustainable livelihoods, ecotourism helps support local communities and reduce income inequality.
• Revenue Generation: The revenue generated from ecotourism activities contributes to the local, regional, and national economies. Direct spending by ecotourists includes accommodation, meals, transportation, and entrance fees, which infuse money into local businesses. Indirectly, ecotourism stimulates sectors such as agriculture, retail, and infrastructure development, generating additional economic activity.
• Sustainable Development: Ecotourism promotes a more sustainable form of economic growth, going beyond short-term gains to focus on long-term benefits. By supporting ecologically sensitive practices, ecotourism ensures the preservation of natural resources and cultural heritage. This sustainable approach to development can enhance the resilience and competitiveness of local economies in the face of global challenges.
• Multiplier Effect: Ecotourism often leads to a multiplier effect, whereby the money spent by tourists circulates within the local economy, creating a cascading impact. For example, a tourist may spend money on a guided hike, which supports the income of the guide, who, in turn, spends money at local restaurants or shops, benefiting other businesses.
• Business Diversification: Ecotourism encourages the development of small and medium-sized enterprises (SMEs) that offer unique and sustainable products or services. This diversification of business activities reduces dependence on a single industry and enhances the overall economic resilience of a region.

Furthermore, ecotourism can help alleviate seasonality issues in the tourism industry by attracting visitors during off-peak seasons. This helps distribute tourism income more evenly throughout the year and reduces the burden on popular destinations during peak travel periods.

It is important to highlight that the economic benefits of ecotourism are contingent on responsible and sustainable practices. Proper planning, management, and collaboration with local communities are essential to ensure that economic gains are balanced with environmental and social considerations.

Ultimately, ecotourism provides an opportunity for communities to capitalize on their natural and cultural assets, stimulating economic growth while preserving the very resources that serve as the foundation for such tourism activities.

Factors Influencing Revenue Generation in Ecotourism

Several factors influence the revenue generation in ecotourism, determining the financial success and sustainability of this sector. Understanding these factors is crucial for destination managers, tour operators, and policymakers to develop effective strategies for maximizing revenue potential. Here are some key factors influencing revenue generation in ecotourism:

• Natural and Cultural Attractions: The presence of unique and captivating natural and cultural attractions is a fundamental factor in attracting ecotourists. Whether it’s a pristine national park, a rare wildlife species, or an indigenous cultural heritage, these attractions serve as a magnet for visitors and contribute to the revenue generated from ecotourism activities.
• Accessibility and Infrastructure: The accessibility of an ecotourism destination plays a pivotal role in revenue generation. Good transportation links, including airports, roads, and public transportation, contribute to increased visitation. Additionally, the availability of well-developed eco-friendly accommodation, visitor centers, and interpretive facilities enhances the overall visitor experience and encourages longer stays.
• Marketing and Promotion: Effective marketing and promotion campaigns are essential in attracting potential ecotourists. A targeted and well-executed marketing strategy that showcases the unique selling points of an ecotourism destination can lead to increased awareness and visitor interest, ultimately driving revenue generation. This may involve partnerships with travel agencies, participation in trade shows, and the utilization of digital marketing tools and platforms.
• Tourism Infrastructure and Services: The availability and quality of infrastructure and services in an ecotourism destination significantly impact the revenue potential. Well-maintained trails, visitor centers, restroom facilities, and transportation options are vital for visitor satisfaction and repeat visitation. Additionally, a range of services such as guided tours, interpretation programs, and local handicraft markets can enhance the visitor experience and generate additional revenue streams.
• Seasonality and Demand: The seasonality of visitation and demand patterns influence revenue generation in ecotourism. By understanding peak and off-peak periods, destination managers can develop strategies to distribute visitation more evenly throughout the year and minimize revenue fluctuations. This may involve developing special events, offering discounted packages during low seasons, or promoting alternative activities for visitors during less crowded periods.
• Sustainable Pricing and Financial Policies: Pricing strategies that balance affordability with the need to generate revenue are crucial. The pricing of accommodation, park entrance fees, and activities should reflect the value of the experience while remaining competitive. Furthermore, financial policies that ensure a fair distribution of revenue among stakeholders, including local communities and conservation initiatives, contribute to the overall sustainability of ecotourism.

It is important to note that these factors interact with each other and vary from one destination to another. Local context, community involvement, and stakeholder collaboration are also critical in shaping revenue generation. Sustainable management practices that prioritize long-term economic viability, environmental protection, and social benefits are key to ensuring that revenue generation in ecotourism is both impactful and responsible.

Methods Used to Estimate Revenue from Ecotourism

Estimating the revenue generated from ecotourism is a complex task that requires the use of various methods and data sources. Accurate estimation allows destination managers, policymakers, and researchers to understand the economic significance of ecotourism and make informed decisions regarding resource allocation and sustainable development. Here are some common methods used to estimate revenue from ecotourism:

• Surveys and Visitor Expenditure Studies: Surveys and visitor expenditure studies involve collecting data directly from tourists through questionnaires, interviews, or online surveys. These studies capture information on visitor spending patterns, including accommodation, meals, transportation, activities, and souvenirs. By extrapolating the data from a sample of visitors, researchers can estimate the average expenditure per visitor and calculate the total revenue generated from ecotourism activities.
• Analysis of Tourism Satellite Accounts: Tourism Satellite Accounts (TSAs) are comprehensive frameworks that provide a detailed analysis of the economic contribution of tourism, including ecotourism. TSAs utilize multiple data sources, such as government reports, industry surveys, and national accounts, to estimate various economic indicators, including revenue, GDP contribution, and employment. By disaggregating the data specifically for ecotourism, analysts can estimate the revenue generated by this specific sector.
• Financial Records and Business Surveys: Financial records and business surveys involve collecting data directly from ecotourism businesses, such as hotels, tour operators, and transportation services. These businesses are often required to report their financial information for tax purposes or to fulfill licensing requirements. Analyzing this data provides insights into the revenue generated by these businesses within the ecotourism sector.
• Collaboration with Local Communities and Stakeholders: Engaging with local communities and stakeholders is crucial for gathering data on revenue generation in ecotourism. This can involve working closely with community members to understand their involvement in ecotourism activities, such as homestays, cultural performances, and handicraft production. By collecting information on their income and the percentage derived from ecotourism, researchers can estimate the overall revenue generated by local communities.
• Integration of Secondary Data Sources: Secondary data sources, such as government reports, tourism statistics, and academic research, can provide valuable information to estimate revenue from ecotourism. These sources may include data on visitor arrivals, length of stay, average spending per visitor, and industry trends. By combining and analyzing this data, researchers can estimate the overall revenue generated by ecotourism activities.

It is important to note that these methods have their limitations and rely on assumptions and data accuracy. Estimating revenue from ecotourism should be seen as an ongoing process that requires regular data collection and analysis to account for changes in tourism trends, economic factors, and visitor behavior.

Combining multiple methods, leveraging local expertise, and utilizing a participatory approach can improve the accuracy and reliability of revenue estimation in ecotourism, ultimately supporting the effective planning, management, and promotion of sustainable tourism practices.

Findings: Annual Revenue Generated from Ecotourism in the United States

The annual revenue generated from ecotourism in the United States is substantial, reflecting the popularity and economic significance of this sector. While precise figures can vary depending on the data sources and methodologies used, numerous studies and reports provide insights into the scale of revenue generated by ecotourism. Here are some key findings regarding the annual revenue generated from ecotourism in the United States:

• According to the U.S. Travel Association, in 2019, domestic and international travelers spent an estimated $59 billion on nature-based tourism activities in the United States. This includes ecotourism activities such as wildlife viewing, hiking, and visits to national parks.
• A study conducted by the Outdoor Industry Association found that outdoor recreation, which includes ecotourism activities, contributed $778 billion to the U.S. economy in 2019. This includes spending on gear, equipment, travel, and related services.
• The National Park Service reported in its 2019 National Park Visitor Spending Effects report that visitors to national parks alone spent approximately $21 billion in nearby communities, supporting over 340,500 jobs. While not all national park visitors engage in ecotourism activities exclusively, a significant portion of this spending can be attributed to ecotourism.
• According to a report by the Bureau of Economic Analysis, travel and tourism accounted for 2.8% of the U.S. GDP in 2019, totaling $580.7 billion. While this figure encompasses all forms of tourism, ranging from business travel to leisure trips, a significant portion can be attributed to ecotourism activities.
• Various state-level studies have also provided insights into the revenue generated from ecotourism. For example, a study conducted in California estimated that nature-related tourism, including ecotourism, contributed $19.2 billion to the state’s economy in 2018.

It is important to note that these figures represent annual revenue estimates based on available data. The true revenue generated from ecotourism in the United States may be even higher, considering the additional spending on accommodations, food and beverage, transportation, and other related services.

However, it is crucial to recognize that the COVID-19 pandemic has had a significant impact on the travel and tourism industry, including ecotourism. The revenue generated in 2020 and subsequent years may be affected by travel restrictions, reduced visitor numbers, and changes in consumer behavior.

Nonetheless, these findings highlight the substantial economic contribution that ecotourism makes to the United States, supporting local businesses, creating jobs, and promoting sustainable development. The revenue generated from ecotourism underscores the importance of preserving and protecting the natural and cultural heritage that attracts visitors in the first place.

Comparison of Revenue from Ecotourism to Other Tourism Sectors

Ecotourism is a distinct sector within the broader tourism industry, and comparing its revenue to other tourism sectors provides insights into its economic significance. While revenue figures may vary by region and data source, conducting such a comparison can help understand the relative contribution of ecotourism to overall tourism revenue. Here is a comparison of revenue from ecotourism to other tourism sectors:

• Mass Tourism: Mass tourism refers to the large-scale, mainstream tourism that encompasses popular destinations and attractions. It typically involves package vacations, all-inclusive resorts, and high-volume tourist activities. While mass tourism generates substantial revenue due to its sheer volume, the revenue per visitor is often lower compared to ecotourism. Ecotourism tends to attract fewer visitors but generates higher revenue per visitor due to the premium nature of the experience and the focus on sustainable practices.
• Adventure Tourism: Adventure tourism is a dynamic and growing sector that includes activities such as hiking, mountaineering, and adventure sports. While adventure tourism and ecotourism can overlap in certain aspects, such as nature-based activities and sustainable practices, revenue figures can differ. Adventure tourism generally involves a range of activities, some of which may have lower costs compared to ecotourism. However, ecotourism’s emphasis on conservation, cultural immersion, and unique experiences often allows for higher pricing and revenue generation.
• Cultural Tourism: Cultural tourism focuses on experiencing the cultural heritage, traditions, and artistic expressions of a destination. It can include visits to museums, historical sites, and participation in cultural events. Comparing revenue from cultural tourism to ecotourism depends on the popularity and uniqueness of cultural offerings. In destinations with significant cultural attractions, revenue from cultural tourism may be higher. However, in regions with exceptional natural landscapes and biodiversity, ecotourism revenue can surpass that of cultural tourism.
• Medical Tourism: Medical tourism involves individuals traveling to foreign countries to receive medical treatment or undergo medical procedures. While medical tourism can generate substantial revenue due to the high costs associated with healthcare services, it differs significantly from ecotourism in terms of focus and target audience. The revenue generated from medical tourism tends to be separate from ecotourism revenue but can contribute to the overall tourism sector.

It is important to note that these comparisons are general and can vary depending on the specific destination, market conditions, and the offerings within each tourism sector. Furthermore, tourism sectors are not mutually exclusive, and destinations often leverage multiple sectors to diversify their tourism offerings and increase overall revenue.

Despite the variance in revenue figures, it is important to recognize that ecotourism’s value extends beyond financial gains. Its focus on sustainability, environmental conservation, and community empowerment makes it a valuable and responsible form of tourism that contributes to the long-term well-being of destinations and their inhabitants.

Case Studies: Successful Ecotourism Revenue Generation

Several case studies around the world exemplify successful ecotourism revenue generation, showcasing how destinations have capitalized on their natural and cultural assets to create sustainable economic opportunities. Let’s explore a few notable examples:

• Costa Rica: Costa Rica is often hailed as a global leader in ecotourism due to its commitment to sustainability and the preservation of its natural treasures. The country’s focus on protecting its biodiversity and promoting responsible tourism has resulted in significant revenue generation. In 2019, ecotourism in Costa Rica contributed approximately $2.2 billion to its economy. This success can be attributed to the establishment of protected areas, the integration of local communities in tourism initiatives, and the promotion of eco-friendly practices.
• Galápagos Islands, Ecuador: The Galápagos Islands are renowned for their unique biodiversity and ecological significance. Ecuador has implemented strict conservation measures to protect the islands and has successfully developed a thriving ecotourism industry. The revenue generated from ecotourism in the Galápagos Islands helps fund conservation efforts and supports local communities. Entry fees, tours to observe wildlife, and sustainable accommodations all contribute to the revenue generated, estimated to be around $150 million annually.
• Kangaroo Island, Australia: Kangaroo Island in South Australia has become a prime example of how ecotourism can be a catalyst for economic recovery after natural disasters. Following devastating bushfires in 2020, the island embarked on a sustainable tourism strategy to attract visitors and support its local economy. The island’s unique wildlife, pristine landscapes, and commitment to conservation have drawn tourists eager to experience its recovery and contribute to its restoration. The revenue generated from ecotourism has played a crucial role in rebuilding the local community and protecting the island’s natural resources.
• Maasai Mara, Kenya: The Maasai Mara National Reserve in Kenya is renowned for its incredible wildlife migration and rich cultural heritage. The Maasai community, in partnership with tour operators and conservation organizations, has successfully integrated ecotourism into their traditional way of life. The revenue generated from ecotourism activities, including wildlife safaris, cultural experiences, and community-based initiatives, has empowered the Maasai people to improve their standard of living and protect their ancestral lands.
• Vancouver Island, Canada: Vancouver Island off the coast of British Columbia in Canada is a prime example of how ecotourism contributes to the local economy. The island offers diverse ecosystems, including ancient rainforests, pristine beaches, and abundant wildlife. Activities such as bear watching, whale watching, and eco-friendly accommodations attract visitors who contribute to the local economy. Ecotourism revenue on Vancouver Island is estimated to be in the hundreds of millions of dollars annually, supporting local businesses, conservation efforts, and community development.

These case studies illustrate the potential of ecotourism to generate substantial revenue while preserving natural and cultural heritage, providing economic opportunities for local communities, and supporting conservation efforts. The success of these destinations lies in their commitment to sustainable practices, community involvement, and the delivery of exceptional visitor experiences.

By learning from these success stories, other destinations can adapt and implement similar strategies to harness the economic potential of ecotourism while safeguarding their invaluable natural resources.

Challenges and Future Outlook for Ecotourism Revenue in the United States

While ecotourism in the United States has experienced significant growth and revenue generation, it is not without its challenges. Understanding these challenges and addressing them is crucial for the sustained success and future outlook of ecotourism revenue. Here are some key challenges and future considerations for ecotourism revenue in the United States:

• Sustainability: Ensuring the long-term sustainability of ecotourism practices is essential. Climate change, habitat destruction, and overtourism pose significant threats to the environment and local communities. The future of ecotourism revenue relies on responsible stewardship of natural resources, fostering sustainable tourism practices, and embracing innovative solutions that minimize negative impacts on ecosystems.
• Infrastructure and Funding: Adequate infrastructure, including transportation networks, visitor facilities, and conservation efforts, is essential for ecotourism revenue generation. Investment in infrastructure development and maintenance is necessary to enhance the visitor experience and support sustainable growth. Additionally, securing funding for conservation initiatives, community development, and marketing efforts is critical to ensure the viability and competitiveness of ecotourism destinations.
• Community Engagement: Engaging and empowering local communities in the planning, management, and benefits of ecotourism is key to its success. Ensuring that local communities have a stake in ecotourism revenue allows for more equitable distribution and strengthens the social and economic fabric of the destination. Building strong partnerships between local communities, businesses, and government entities fosters collaboration and enables shared responsibility for the sustainable development of ecotourism.
• Educational Initiatives: Investing in environmental education and visitor interpretation enhances the value of the ecotourism experience. By deepening visitor understanding of the natural and cultural significance of the destination, it fosters a sense of stewardship and encourages more responsible tourism behavior. Educational initiatives that promote sustainability, conservation, and cultural awareness can ultimately influence visitor choices and contribute to the long-term success of ecotourism revenue.
• Competition and Market Differentiation: With the increasing popularity of ecotourism, competition among destinations is growing. To maintain a competitive edge and attract discerning eco-conscious travelers, destinations must differentiate themselves by offering unique and authentic experiences, investing in sustainable infrastructure, and providing high-quality services. Developing niche ecotourism products, such as birdwatching tours, agroecotourism, or cultural immersion programs, can help destinations stand out and drive revenue generation.

The future outlook for ecotourism revenue in the United States remains promising as more travelers seek meaningful and sustainable experiences. By addressing the challenges and embracing responsible tourism practices, the country can continue to benefit from the economic potential of ecotourism while preserving its natural and cultural heritage.

Ultimately, a collaborative approach that involves government entities, local communities, tourism industry stakeholders, and visitors is essential for shaping a resilient and thriving ecotourism sector that generates revenue while safeguarding the environment and supporting the well-being of all involved.

Ecotourism is a powerful force that combines travel and sustainability, offering a unique opportunity to explore and appreciate the natural and cultural wonders of the world while contributing to their long-term preservation. In the United States, ecotourism has emerged as a significant sector within the larger tourism industry, generating substantial revenue and supporting local economies.

Through its emphasis on environmental conservation, cultural preservation, and community empowerment, ecotourism showcases a responsible and sustainable approach to travel. The revenue generated from ecotourism in the United States contributes to job creation, revenue diversification, and the overall health of local economies. Furthermore, it highlights the economic value of protected areas, indigenous cultures, and unique natural landscapes.

While challenges exist, such as ensuring sustainability, developing adequate infrastructure, engaging local communities, and addressing competition, the future outlook for ecotourism revenue in the United States remains promising. By adopting sustainable practices, investing in education and interpretation, and promoting unique experiences, destinations can attract eco-conscious travelers and continue to generate revenue while simultaneously safeguarding their invaluable natural resources.

It is crucial for policymakers, destination managers, and stakeholders to prioritize sustainable development, community involvement, and the preservation of ecosystems and cultural heritage. By doing so, they can ensure the long-term viability and success of the ecotourism sector, enriching the lives of both visitors and local communities.

As travelers, we have the power to support ecotourism by making conscious choices, respecting the environment and local communities, and seeking out authentic and responsible travel experiences. By embracing ecotourism, we can contribute to a more sustainable and inclusive world, where both the beauty of nature and the economic well-being of communities thrive hand in hand.

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How Tour Companies Make Money

It's more than likely that you followed your passion when you got into the tour and activities industry. But whether you're in the business of bike tours or the brewery business, your company is just that: a business. While every day is another chance to cash in on more fun and adventure, you're in business to make money. And with tour operators making up $7 billion of the $1.3 trillion travel and tourism industry, there's plenty of money to be had.But like any growing industry (there are now 2,400 tour operators in the industry), competition is getting tougher. To set yourself up to make the most money possible, follow these eight strategies to boost your success and your bottom line.

1. Don't Compete on Price.

Instead of trying to be the lowest priced tour or activity operator in the market, focus on being the most unique. Do you have exclusive access to a certain area? Focus on one thing and maximize your quality. While you should always keep an eye on your competition and understand price ranges for your market, the best way to stand apart is by being different.

2. Generate New Leads Through Content.

Companies with blogs gathered 68% more leads than those without, according to research by HubSpot . But you can't leave your blog stagnant. The study found that blogs start to impact lead growth once they have more than 20 articles posted. Blog posts should be optimized for keywords and include a clear call to action, such as a button that leads the reader to your booking page. Posts that contain those two elements increase conversion rates by 87%, according to HubSpot .

3. Attract Customers By Using Social Media.

B2C businesses using Twitter generate two times more leads than those without a Twitter account, according to HubSpot . Twitter users with several hundred followers had approximately twice as many leads as Twitter users with followers in the double digits. In other words, social media is a great way to attract new customers and engage existing ones—so it should be a priority in your overall marketing efforts.When posting on social media, make sure you follow the 80/20 rule , posting promotional information just 20% of the time, and offering valuable information, such as tips and industry news, 80% of the time. This approach will make you look like an expert in your field.

4. Form Strategic Partnerships.

One of the biggest mistakes business owners make is trying to do everything alone, according to Forbes . You will sell more tours and activities when you partner with other companies and suppliers. For example, add more value by combining offerings with a restaurant or spa. Or create alliances with other businesses and cross-promote your services. Make sure you work out the details in advance on how to price your events. For example, you can each discount your offerings by 10% to 15%, and sell the activity at a flat rate.

You will sell more tours and activities when you partner with other companies and suppliers

5. Invest in Employee Training and Engagement.

Service with a smile isn't just a cliché; it impacts the bottom line. A study done by researchers at Bowling Green University and Penn State University found that customers who were served by smiling employees felt more satisfied by the overall experience and more likely to return. Make sure you properly train employees, even providing scripts to improve their performance. Empower employees to make their own decisions and create an employee culture of fun so the atmosphere spills over into the customer experience. A study by research firm McLean & Company found that organizations with highly engaged employees had an average three-year revenue growth of 20.1%, versus the average 8.9% revenue growth rate.

6. Segment Your Marketing Based On The Time of Year.

Use the season to decide which customer base to target. If you live in an area that has higher bookings during the summer, use this time of year to beef up tourism marketing to out-of-state visitors. Give your information to the concierge at local hotels, distribute information through tourism offices and reach out to influential travel bloggers.During the off-season, go after locals who are already in the area. Residents can be an often-overlooked source or revenue for travel and tour companies, but this market can be lucrative and recurring. Send a press release offering discounts on group events to your local news stations, advertise in community newspapers, and reach out to local organizations, such as scouts, church groups, and schools.

7. Plan Ahead for Slow Periods.

Based on prior year sales, identify low-demand periods and plan for them. For example, provide discounts on certain days of the week that are traditionally slow. Or fill spots by creating special group bookings that you plan for these off times. You can also use the slow season to work on your marketing. Send emails to customers who visited you asking for a review of your business; 52% of consumers trust online reviews just as much as personal recommendations, according to HubSpot . Or, send an enticing marketing campaign during the winter inviting customers to book their summer travel plans now—92% of vacations are booked at least a month in advance, according to BusinessWire .

8. Focus on Existing Customers.

Small businesses are realizing the impact of existing customers versus new customer acquisition. According to a study by research firm Manta , 61% of small business owners report that more than half of their annual revenue comes from repeat customers. Existing customers spend 67% more than new, according to Inc.com , so increase your emphasis on the customers you have. Collect client details such as email addresses, birthdays, and anniversary dates during booking—and constantly improve the quality of your offerings. Then reach out to customers through strategic email and social media marketing campaigns.In the increasingly competitive tours and activities market, it pays to focus on the best ways to increase your bottom line. So start hyper-focusing on these tips, whether it's fine-tuning your social media strategy or segmenting by type of year, and you'll see revenues balloon.

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A Detailed Guide to Revenue Reporting for Tours and Attractions

• Business Operations

How much money is your business bringing in this month compared to last month? Regardless of whether your tour or attraction business is brand new or been in business for 10+ years, tracking your revenue numbers is essential if you want to stay in business. 

There are multiple revenue-based reports that you might want to view and monitor on a regular basis. 

In this post, we’re taking a look at some of the most common revenue reports for tours and attractions, including: 

• What’s a revenue report?
• What are some examples of revenue reports?
• What’s the difference between revenue and profit?
• What’s the difference between cash flow and realized earnings?
• How to pull your revenue numbers in Xola
• 1. Earnings Report

2. Customers Report

• 3. Payouts Report

4. Gifts & Store Credit Report

What’s a revenue report .

A revenue report is a broad term that can include pretty much any report that reflects on total sales – a.k.a. top-line revenue or gross sales. 

What are some examples of revenue reports? 

The three most common revenue-based reports that any tour business should run and monitor on a regular basis (i.e. at least monthly) are: 

• Profit and Loss Statement (a.k.a P&L Statement or Income Statement) 
• Balance Sheet 
• Cash Flow Statement 

A P&L Statement is a way to gauge how profitable your business is at any given time. It categorizes your revenue and expenses. If you use cloud accounting software, such as Quickbooks or Xero, the software will automatically generate a P&L statement for you. 

Another report to look at is your Balance Sheet. This financial report is essential for any business owner, as it is a way to see the 50-foot view of the business. This allows you to monitor your assets (i.e. what you own) and liabilities (i.e. what you owe). 

A  third report is your cash flow statement. The cash flow statement is a way to see your cash inflows (i.e. money coming in) and cash flow outflows (i.e. money going out). Note: We’ll explain a little later in this article why your cash flow statement is particularly important for tours and attractions. 

What’s the difference between revenue and profit? 

One of the biggest mistakes that newer entrepreneurs in any industry – including tours and attractions – make is prioritizing top-line revenue instead of profit. And, in some cases, they may even confuse the two. Revenue is your gross sales. Profit, on the other hand, is revenue minus your operating expenses. For example, you can have a record-breaking sales year but still, be unprofitable if your operating expenses exceed total sales coming in. 

What’s the difference between cash flow and realized earnings? 

Earlier in this post, we mentioned it is a good idea to monitor your cash flow statement on a weekly or monthly basis. For tours and attractions, it is a good idea to take this a step further and track both cash flow and realized earnings. Cash flow is the money that is coming in and out of business based on the day the booking was made. 

Realized earnings happen once the tour/experience is complete. With the exception of maybe walk-up sales, there is going to be a lag in between cash flow and realized earnings. This is important to keep in mind, especially when it comes to things such as refunds or chargebacks.

How to pull your revenue numbers in Xola 

Within Xola, it is easy to see how much revenue you’re bringing in, the most popular listings, what marketing campaigns are leading to the most bookings, and more. Pro Tip: If you are a Xola customer, simply navigate to Report → Analytics. Then, you can filter by either Cash Flow or Recognized Earnings as well as specific listings, among other things. 

4 Additional Revenue-Based Reports in Xola 

In addition, we’re including some additional revenue-based reports that you might want to monitor. 

1. Earnings Report 

An earning report is basically like your daily transaction report. It is a log of all of your sales plus processing fees – like credit card fees.  

Pro Tip: You can also run a separate earnings report specifically for XolaBot, which shows how much money you made from Xola’s automated marketing and growth features. Learn more here.  

This one is fairly self-explanatory. This is a report you can pull to see how many guests booked in a given time period.  

3. Payouts Report 

A payouts report is particularly useful for business owners and accountants. It is an itemized record of each deposit you have received from Xola to your bank account. One specific use case for this report is to reconcile your bank account at the end of the month. 

This report is particularly useful to run around the busy holiday shopping season, as you can see how many people bought gift cards as well as redeemed store credit or gift cards.

In sum, these are a handful of revenue-based reports that all tour and attraction businesses should be monitoring on a regular basis. These reports can help you make informed data-driven decisions to fuel growth. 

Writer Jessica Malnik

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How to Increase Revenue with Tour Costing and Pricing

By Breanna Lawlor

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Do you remember the game show where contestants had to guess how much something costs? Yes, of course, it’s The Price is Right !

As an experience provider, your life might be as entertaining as a game show — especially when it comes to tour costing and pricing. And as you probably know, your prices need to cover your costs — all of them.

Learning how to price a tour package is no small feat. Sure, being fully booked is wonderful, but your goal is to be profitable. And, if you can create a sustainable pricing structure early on, you’ll be resilient in the long term.

In this post, you’ll learn what goes into tour costing and pricing, explore our downloadable Tour Operator Costing sheet and learn how to re-evaluate pricing at the end of each busy season.

What goes into tour costing and pricing  

Pricing impacts how guests feel about the experience they’re buying. If a booking is priced too low, it may seem cheap. On the other hand, if an experience is priced too high – it might be out of budget for your target market. 

Most people, consider themselves to be somewhere in the middle when looking at pricing. Meaning if guests are presented with 3-4 options, they’ll gravitate towards the middle-range tour package options. 

When setting your pricing, you’ll want to account for operating costs as well as profitability. Doing so will nudge you further towards setting prices that align with the goals of your tour business. And while pricing itself may not be complicated, it is an art.

You wouldn’t be alone if you’ve made the error of evaluating your tour business competition and setting prices just below or slightly above in order to attract bookings.

And while we can understand wanting to increase your share of the market, you should base your pricing on insights from your unique tour business.

When pricing a tour package, consider these questions:

• What type of activity or tour are you producing/selling?
• How many people can you accommodate?
• How many tours will you be running per day?
• What operating expenses do you have?
• How many of your costs are fixed vs. variable?
• Are you a seasonal business that experiences high demand at certain times of the year?

Guests want you to tell them why a tour is worth the price you’ve set. Be sure to note duration, add-ons and whether transportation is included in the total price. Ultimately, you want your brilliant tour description to back up the price and make it easy for guests to say, “that sounds like it’s worth it.”

Looking for a better way to price your tours?

Download the Tour Operator Costing Sheet

Set revenue targets and hit your profit goals.

How to price a tour package

One method of tour costing and pricing involves a cost-plus pricing strategy where you input all of your expenses and anticipated revenue. From there, you’ll add in profit and revenue targets.

When pricing tours and activities, you’ll usually hear something about setting objectives or knowing your bottom line. Here are some expenses to account for when establishing the costs of running a tour business:

Example fixed costs for your tour business

• Administrative costs (2-5%)
• Booking software (5-10%)
• Business Insurance (10-20%)
• Employee wages (20-25%)
• Equipment depreciation (10-30%)
• Leasing and/or rental costs (20-30%)
• Phone and Internet bills (2-5%)
• Utilities (5-10%)

Sample variable costs

• Accommodations
• Transportation
• Gas and maintenance costs (5-10%)
• Hourly guide wages (depends)
• OTA commissions (10-30% of the booking price)

When pricing a tour, you’ll want to know your capacity and overall operating costs. Once you know your baseline expenses, you can use this information to develop a sense of your target profit margins.

Methods for setting the price of a tour

Using a method known as cost-plus pricing, you’ll combine all of your anticipated expenses and add a profit on top. The basic principles of pricing a tour package account for:

• fixed costs
• variable costs
• a markup or profit margin. 

You will calculate costs + expenses + profit + commission structure (which is usually a percentage based on the tour price including the total number of guests).

Ask yourself these questions to address when pricing a tour:

• What are your costs per person?
• If you were to book as a group, ie 4+ people, how much can you charge per person?
• Let’s say you price the time slot as a fixed amount and add an additional fee per person on top of the minimum guest count
• You can also set a price for a private tour booking, regardless of the number of guests 

Alter your profit margin depending on the season and number of guests. Let’s say you need 4 guests to break even. And if you have 6 guests who book, the additional two people then make the tour profitable.

This way your time is always being compensated and you’re not burning out by running tours that aren’t paying for themselves. As Peter Syme says in his interview with Tourpreneur “many tourism business owners are guilty of underestimating their costs and undercharging as a result.” 

Packaged tours typically follow a structure with a designated amount of time for each activity. Some tour companies present lower prices designed to get potential customers in the door. For instance, even if a single booking may not be profitable, this strategy may generate enough volume to make it worthwhile.

Sure, competing on price alone can be tough, especially if you’re offering the same activity or a similar type of tour. When pricing a tour package, forecast, plug in the numbers of how many bookings you need to break even and turn a profit so you know what you’re working with.

1. Tour type

Perhaps you’re in the business of food or walking tours where all your guests have to do is show up and be entertained. On the other hand, you might be a kayaking guide or provide guests with bicycle rentals. Consider whether you have additional costs as a result of the tour type you offer.

Looking at your local competitors, similar companies and OTA’s will help you get a sense of market rates.

Sure, it’s helpful to get a benchmark when looking at tour prices — but don’t let this define your pricing objectives. Ultimately, your approach to tour costing and pricing needs to cover costs and establish a profit margin — even if it’s only 10-15% after your costs are accounted for.

If you’re already in your busy season, you might find yourself stretched thin with what you can do independent of additional staff.

If you operate multiple tours daily, do you need to keep staff on hand to run additional tours?

For instance, is there a busy season or peak booking times when you offer a waitlist for guests?

Are planning to offer group tours or sticking to private tours? This decision factors into how much you can charge per booking.

Guests should be able to tell what is included in the tour price with ease. An added perk of private tours is in alleviating concerns about not meeting minimum guest requirements. This means you can run tours with fewer people and still be profitable.

Thankfully, the benefits are there for both guests and tour businesses alike. For guests exploring whether to book a private tour, the expectation is that they’ll pay more in exchange for a higher-quality experience. 

3. Duration

Are you taking guests on 1-2 hour tours or multi-day expeditions? The duration and frequency of your tours will be dependent on how the amount of staff you have available.

Longer tours have the potential of increased profits if account for all fixed and variable costs. Multi-day tours need to account for greater fixed expenses and increased booking logistics as well.

4. Upselling

When creating travel packages , consider what your guests want and whether they’ll pay more if you make their travel plans even easier. Perhaps you can increase your tour price by adding in a meal or transportation option as part of specific tours.

As you look to create added value travel , you’ll see more guests share and rave about you on review platforms. One way to look at this is to view every booking as an opportunity to provide guests with more value than they’ve paid for, especially if the activity the experience is a once-in-a-lifetime opportunity.

5. Seasonality

Do you find yourself with an insane summer season or is the wintertime busy with bookings? Depending on your tour business model, certain expenses, like staff wages can significantly increase your costs depending on the season.

As part of your seasonal marketing strategy , you’ll find a different approach might work better. One option might be to offer early bird pricing deals in the Winter ahead of the Spring season.

Your tiered pricing strategy might be encouraging smaller groups to book together. With different tactics that speak to your customer’s needs, you can incentivize guests to book and stay longer depending on your pricing objectives. 

Sure, seasonality may mean dramatic fluctuations in your pricing. And while the tipping point might be 20-30% lower than what you could charge for the same experience in your busy months.

At the end of every busy season, aim to dedicate one day to reviewing reports from the last 3-6 month’s worth of bookings. This will let you see if you’re turning a profit, if your costs are creeping up and whether there are opportunities to boost prices for improved margins.

6. Operating expenses

Administrative, rental and staff wages can play a massive role in your tour business margins. At the same time, it pays to know your overall operating expenses, one of the benefits of a booking system subscription model is knowing some of your costs every month.

This way, you can account for costs and estimated bookings or your sales forecast when pricing your tour. Plus, once you determine your break-even point, you’ll have more knowledge available to help you decide how to price a tour package.

Why profit isn’t a dirty word

Building profit into your tour costing and pricing means you’re creating a contingency plan ahead of slower booking periods. And depending on whether you accept a booking deposit (usually anywhere from 25-50% of the tour price) or require full payment in order to reserve a booking, booking payment(s) may be spread out.

Let’s say you have funds flowing out of the business for overhead or wages for your tour guides, you need to be able to recoup the cost of doing business with your tour prices.

Cash flow is essential when you’re building and scaling a tour business. And why it’s in your best interests to build in profit from the beginning.

Profit margins might look like anywhere from 10-40% of your posted tour price, depending on your specific business model along with the season. Sure, businesses are designed to make money. The added benefit of running a profitable business is that it gives the power to determine when and how fast you scale.

Remember, you’re in the business of providing memorable experiences for your guests. If you’re committed to being it for the long haul, tour costing and pricing needs to reflect your hard work. In order to serve future customers, by strategically pricing your tours, rentals and activities, you’re setting your business to run sustainably, over the long term.

What goes into pricing private tours

Given how the pandemic impacted group tours in many parts of the world, private tours have grown in popularity. In addition, your capacity for multiple tours will be limited if you focus on private tours, which explains why pricing for these types of tours is typically higher.

Sure, you might not have to pay as much in staff wages, as part of your variable costs, but you still need to account for fixed costs with your tour pricing.

In addition, some guests are willing to pay more for the convenience of having a guide all to themselves. And according to this Tourpreneur article on pricing private tours, you need to distinguish how private tours differ in value when compared to group pricing in marketing efforts.

Let’s say you have a couple who prefers to tour at their own pace. Perhaps they find group tours exhausting or they would rather have the flexibility to explore hidden gems at a different pace or time. If niching into private tours, account for the limation placed on you without being able to charge more for each individual person who joins the tour. So, where does this leave you? 

You need to charge accordingly for your time. Is it more expensive for the two people booking a private tour? Yes — most likely. 

Since private tours are considered more of a luxury offering, private tour packages typically yield a higher price point. For guests, a one-on-one experience offers increased value through flexibility and personalization.

How to increase margins and reduce expenses

Every tour business has to account for fixed and variable costs which can fluctuate between the seasons. With inflation and operating costs rising each year, it’s worth reviewing pricing on a yearly or even seasonal basis. Savvy tour operators account for a marketing budget (consider this money you get to spend targeting your ideal guests and have fun with it).

Explore marketing distribution by exploring different channels, like OTAs as needed to help increase bookings as it makes sense for your business.

As distribution channels that can get you more bookings, OTAs typically take a commission of anywhere from 15-30% of your booking fee. As a result, setting aside some revenue earmarked for business promotion can increase direct bookings which allows you to keep more in your pocket.

Your bottom line refers to the amount remaining on a balance sheet displaying a company’s financials. Another term for this is net profit, or what’s leftover after commissions, expenses and salaries are factored in.  

Most importantly, this is where seeing where your revenue meets your expenses, so you can charge enough to cover costs and still come out ahead. 

As an added bonus, looking at your sales forecast can also help you in determining what type of booking software to invest in. Generally, you’ll have the option of either a fixed monthly subscription or a commission fee. Other reservation technology providers take a percentage of bookings with fees running anywhere from 5-6% depending on the provider you choose. 

Final thoughts

Tour pricing is worth revisiting before diving into and after every busy season. In your slower times, you can evaluate data from previous bookings. With this insight, you can create even better, and more profitable, packages going forward.

Always look at what gets guests in the door. Is it your superior service? Is it your consistency and reliability? Are you a master at personalizing private tours or is your seasonal pricing strategy right on the money?  

People are much more inclined to buy from companies they know and trust. Feel free to look at upselling opportunities to increase revenue and provide added value for your guests.

Look ahead and set some goals for where you want to be. Continue to lean into your pricing strategy so you have solid momentum to build and scale your business to meet the pent-up demand for remarkable travel experiences. 

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

6 ways to increase profit margins in the tourism industry

By Blake Ng — 22 Nov 2018

costs   pricing strategy   pricing structure   profit margin   revenue

Updated March 2023 – As a tour operator, maximizing tourism profit is crucial to the success of your business. However, with so many factors to consider, it can be difficult to know where to begin. 

So, how do tour operators maximize profit and increase their profit margins over time? The key is to constantly assess and adjust your business strategies and operating procedures. In this article, we will discuss six effective ways that tourism operators can increase their profit margins and take their business to the next level. Whether you’re a seasoned tour operator or just starting out, these tips will help you stay ahead of the game and boost your bottom line.

What is your profit margin?

Your profit margin is defined as the revenue that you generate through your tour and activity company above what is needed to cover your operating expenditures. Ideally, your profit margins will continue to increase year over year, allowing you to continue to build your business, develop your brand and encourage customer loyalty.

As a tour and activity company, earning a profit is not only essential for your survival but also for your growth. While there are several ways to increase your profit margins, one factor that can greatly impact your bottom line is the average commission rates that you pay to your sales channels. Direct and indirect channels such as online travel agencies, wholesalers, and travel agents can all play a significant role in your business’s success. Therefore, it’s important to evaluate and negotiate the average commission rates you’re paying to these channels regularly. By doing so, you can ensure that you’re not overpaying for their services and that you’re maximizing your revenue.

6 ways to maximize your tourism profit margins

Here are 6 effective ways to maximize your tour operator’s profit margin:

1. Find ways to add value to customers

This is particularly important if your tour prices are higher than your competitors. Most travelers are willing to overlook the price point of a tour if they can see that there is added value to booking with your company. Personalized service, attention to detail, and upgraded equipment are a few ways that you can easily increase the value of your products.

Another effective strategy that can help you differentiate your tour and activity company is selling packaged tours . By bundling multiple activities or services into a single package, you can create a unique and attractive offering for your customers. Packaged tours also enable you to offer a discounted price point for customers who purchase multiple activities, thereby increasing the perceived value of your products.

2. Target high-quality traffic in online marketing campaigns

Driving traffic to your tour and activity website is a critical component of any successful marketing strategy. However, simply generating large volumes of traffic is not enough. To truly maximize your tourism profit margins, you need to focus on attracting the right kind of visitors – those who are most likely to book your tours and activities.

One of the most effective ways to do this is by formulating a robust SEO (search engine optimization) strategy. This involves optimizing your website for the keywords and phrases that are most relevant to your business and target audience. By doing so, you can increase your visibility in search engines and attract highly targeted organic traffic to your site.

In addition to SEO, another effective way to attract high-quality traffic is through pay-per-click (PPC) advertising campaigns. With PPC, you can create targeted ads that appear in the search results or on social media platforms and only pay when someone clicks on your ad. This allows you to reach highly targeted audiences and drive relevant traffic to your site, without wasting money on unqualified leads.

3. Optimize your website for conversions

In today’s digital age, having a strong online presence is essential for any tour and activity company looking to succeed. One effective way to increase your online sales and maximize your revenue is by optimizing your website for conversions. A well-designed website with fast site speed, engaging multimedia elements, and online booking capabilities can significantly improve your conversion rate and provide a seamless user experience for your customers.

However, it’s important to keep in mind that website optimization can be a costly endeavor. Managing your budget and prioritizing your investments is critical to ensuring that you’re making the most of your resources. Investing in high-quality multimedia content, such as professional photos and videos, can help attract and engage potential customers.

4. Create informative content regularly

Attracting and retaining customers is essential to maintaining a healthy profit margin in the tourism industry. One way to achieve this is through content marketing, which involves creating and sharing valuable, informative content that resonates with your target audience.

A blog is an easy way to provide your target market segments with engaging information about your tours and activities as well as the destination in which your business is located. However, your content marketing strategy should look beyond the words on the screen. You also will want to create videos, slideshows, and other visual pieces of content to attract the most motivated travelers to your brand.

5. Launch retargeting campaigns

Launching a retargeting campaign can be an effective way for tour operators to boost their profit margin by converting potential customers who may have abandoned their website before making a booking. By reminding visitors of your brand and the services you offer, retargeting campaigns can help to increase the likelihood of conversion.

Retargeting ads can be strategically placed across various platforms such as search engine results pages, social media platforms, and even email inboxes. This helps to keep your brand top-of-mind for potential customers, making it more likely that they will return to your website to complete their booking. Furthermore, retargeting campaigns can be personalized to show relevant offers or promotions based on a visitor’s previous browsing behavior, making it more likely that they will engage with the ad and make a purchase.

6. Automate your emails

One of the most powerful tools in a tour operator’s arsenal is the use of automatic emails. These pre-written emails can be sent out automatically to customers at specific points in their journey, helping to keep them engaged and informed about your business. Whether you’re looking to solicit feedback about your tours, promote your latest discounts and packages, or simply stay top-of-mind with your customers, automated emails can be a powerful tool for driving tourism profit.

By setting up automatic emails that are triggered by specific actions or events, such as booking a tour or signing up for a newsletter, you can create a seamless and personalized experience for your customers. This can help to build trust and loyalty, ultimately resulting in higher customer satisfaction and repeat business.

As you increase your tourism profit margins, you will be able to add to the products that you offer, improve your tour and activity operating equipment and ultimately develop better brand loyalty.

By utilizing an online booking software such as Rezdy, you’ll be able to generate more revenue through advanced features such as:

• The ability to accept online & mobile payments in multiple currencies via integration to secure payment gateways
• Intuitive reporting tools that will allow you to make informed business decisions
• The ability to sell add-ons and extras
• Setting up a dynamic pricing strategy to maintain your revenue even during low seasons
• Offering promo codes  and coupons

Furthermore, a tour operator reservation system will allow you to optimize your processes and broaden your distribution strategy. Tools such as a real-time availability viewer, automatic guest communication and automated manifest updates allows you to automate your repetitive tasks – thus, saving you time. And connection to the industry’s largest distribution network – Rezdy Channel Manager – will give you access to connect with over 25,000 active agents looking to resell your products.

Ready to join the thousands of Rezdy operators that on average grew their bookings by 27% in 2022? Start your FREE 21-day trial or book a demo with us today.

If you enjoyed this article, be sure to subscribe to the Rezdy newsletter, where you’ll receive weekly updates and learnings from the experiences industry, straight into your inbox!

Download our Guide to Building Online Products that Convert

Ready to start building online products that convert and take your tour operator business to the next level? Download our comprehensive Guide to Building Online Products that Convert today and learn how to optimize your online offerings for maximum profit and customer satisfaction.

With practical tips, best practices, and real-world examples, this guide is a must-read for any tour operator looking to boost their bottom line and build a loyal customer base.

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Ideas for Monitizing Virtual Tours

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• Travel, Tourism & Hospitality ›

Leisure Travel

• Revenue of travel and tourism market in selected countries worldwide 2023

Travel and tourism market revenue in selected countries worldwide in 2023 (in billion U.S. dollars)

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Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Other statistics on the topic Travel and tourism in Europe

Travel, Tourism & Hospitality

• Leading European countries in the Travel & Tourism Development Index 2021
• International tourist arrivals in Europe 2010-2022, by region
• International tourism spending in Europe 2019-2022

Accommodation

• Number of overnight stays in tourist accommodation establishments in the EU 2011-2022

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Statistics on " Travel and tourism in Europe "

• Number of international tourist arrivals worldwide 2005-2023, by region
• International tourist arrivals worldwide 2019-2022, by subregion
• Travel and tourism's total contribution to GDP in Europe 2019-2022
• Distribution of travel and tourism expenditure in Europe 2019-2022, by type
• Distribution of travel and tourism expenditure in Europe 2019-2022, by tourist type
• Travel and tourism: share of GDP in the EU-27 and the UK 2019-2022, by country
• Travel and tourism's total contribution to employment in Europe 2019-2022
• International tourist arrivals in Europe 2006-2023
• European countries with the highest number of inbound tourist arrivals 2019-2022
• Monthly number of inbound tourist arrivals in Europe 2019-2023
• Monthly change in tourist arrivals in Europe 2020-2023, by region
• Inbound tourism visitor growth in Europe 2020-2025, by region
• International tourist arrival growth in European countries 2019-2023
• Number of domestic tourist trips in EU-27 countries and the UK 2018-2021
• Number of domestic arrivals in tourist accommodation in the EU 2011-2022
• Domestic tourism spending in Europe 2019-2022
• Domestic tourism spending in EU-27 countries and the UK 2019-2022
• Share of Europeans planning to take a domestic summer trip 2023, by country
• Outbound tourism visitor growth worldwide 2020-2025, by region
• Outbound visitor growth in Europe 2020-2025, by region
• Number of outbound trips from EU-27 countries and the UK 2018-2021
• European countries with the highest outbound tourism expenditure 2019-2022
• Travel intentions of Europeans in the next six months 2023, by destination
• Share of Europeans planning to travel domestically or in Europe 2023
• Europeans planning domestic or European trips in the next six months 2023, by age
• Europeans planning leisure domestic or European trips 2023, by trip type
• European travelers' favorite destinations for their next European trip 2023
• Number of tourist accommodation establishments in the EU 2012-2022
• Hotel market revenue in Europe 2017-2028
• Hotel market revenue in Europe 2017-2028, by region
• Share of hotel market sales in Europe 2017-2028, by channel
• Market cap of leading online travel companies worldwide 2023
• Forecast EV/EBITDA ratio in the online travel market 2024, by segment
• Market capitalization of leading travel and leisure companies in Europe 2024
• Leading airlines in Europe based on passenger numbers 2022
• Travel and tourism revenue in Europe 2018-2028, by segment
• Number of users of package holidays in Europe 2019-2028
• Number of users of hotels in Europe 2019-2028
• Number of users of vacation rentals in Europe 2019-2028

Other statistics that may interest you Travel and tourism in Europe

• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Premium Statistic International tourist arrivals worldwide 2019-2022, by subregion
• Basic Statistic Travel and tourism's total contribution to GDP in Europe 2019-2022
• Basic Statistic Distribution of travel and tourism expenditure in Europe 2019-2022, by type
• Basic Statistic Distribution of travel and tourism expenditure in Europe 2019-2022, by tourist type
• Basic Statistic Travel and tourism: share of GDP in the EU-27 and the UK 2019-2022, by country
• Basic Statistic Travel and tourism's total contribution to employment in Europe 2019-2022
• Premium Statistic Leading European countries in the Travel & Tourism Development Index 2021

Inbound tourism

• Premium Statistic International tourist arrivals in Europe 2006-2023
• Premium Statistic International tourist arrivals in Europe 2010-2022, by region
• Premium Statistic European countries with the highest number of inbound tourist arrivals 2019-2022
• Basic Statistic Monthly number of inbound tourist arrivals in Europe 2019-2023
• Basic Statistic Monthly change in tourist arrivals in Europe 2020-2023, by region
• Premium Statistic Inbound tourism visitor growth in Europe 2020-2025, by region
• Premium Statistic International tourist arrival growth in European countries 2019-2023
• Basic Statistic International tourism spending in Europe 2019-2022

Domestic tourism

• Premium Statistic Number of domestic tourist trips in EU-27 countries and the UK 2018-2021
• Basic Statistic Number of domestic arrivals in tourist accommodation in the EU 2011-2022
• Basic Statistic Domestic tourism spending in Europe 2019-2022
• Basic Statistic Domestic tourism spending in EU-27 countries and the UK 2019-2022
• Premium Statistic Share of Europeans planning to take a domestic summer trip 2023, by country

Outbound tourism

• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound visitor growth in Europe 2020-2025, by region
• Premium Statistic Number of outbound trips from EU-27 countries and the UK 2018-2021
• Premium Statistic European countries with the highest outbound tourism expenditure 2019-2022

European travelers

• Premium Statistic Travel intentions of Europeans in the next six months 2023, by destination
• Premium Statistic Share of Europeans planning to travel domestically or in Europe 2023
• Premium Statistic Europeans planning domestic or European trips in the next six months 2023, by age
• Premium Statistic Europeans planning leisure domestic or European trips 2023, by trip type
• Premium Statistic European travelers' favorite destinations for their next European trip 2023
• Basic Statistic Number of tourist accommodation establishments in the EU 2012-2022
• Basic Statistic Number of overnight stays in tourist accommodation establishments in the EU 2011-2022
• Premium Statistic Hotel market revenue in Europe 2017-2028
• Premium Statistic Hotel market revenue in Europe 2017-2028, by region
• Premium Statistic Share of hotel market sales in Europe 2017-2028, by channel

Travel companies

• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Forecast EV/EBITDA ratio in the online travel market 2024, by segment
• Premium Statistic Market capitalization of leading travel and leisure companies in Europe 2024
• Premium Statistic Leading airlines in Europe based on passenger numbers 2022
• Premium Statistic Travel and tourism revenue in Europe 2018-2028, by segment
• Premium Statistic Number of users of package holidays in Europe 2019-2028
• Premium Statistic Number of users of hotels in Europe 2019-2028
• Premium Statistic Number of users of vacation rentals in Europe 2019-2028
• Premium Statistic Revenue of travel and tourism market in selected countries worldwide 2023

Further related statistics

• Premium Statistic Penetration rate of flights in the UK 2019-2028
• Premium Statistic Revenue of the flights industry in Asia 2019-2028
• Premium Statistic Revenue of the car rentals industry in Switzerland 2019-2028
• Premium Statistic Online Ride Hailing market - Revenue forecast in Europe 2019 - 2028
• Premium Statistic Number of users of hotels in Asia 2019-2028
• Premium Statistic Number of users of ride-hailing & taxi in China 2019-2028
• Premium Statistic Number of users of car rentals in the UK 2019-2028
• Premium Statistic Revenue of the flights industry worldwide 2019-2028
• Premium Statistic Revenue of the car rentals industry in Europe 2019-2028
• Premium Statistic Revenue of the ride hailing industry worldwide 2019-2028
• Premium Statistic Number of users of hotels worldwide 2019-2028
• Premium Statistic Number of users of car rentals in the U.S. 2019-2028
• Premium Statistic Number of users of shared rides worldwide 2019-2028
• Premium Statistic Revenue per user of car rentals worldwide 2019-2028
• Premium Statistic Number of users of ride-hailing & taxi in Switzerland 2019-2028

Further Content: You might find this interesting as well

• Penetration rate of flights in the UK 2019-2028
• Revenue of the flights industry in Asia 2019-2028
• Revenue of the car rentals industry in Switzerland 2019-2028
• Online Ride Hailing market - Revenue forecast in Europe 2019 - 2028
• Number of users of hotels in Asia 2019-2028
• Number of users of ride-hailing & taxi in China 2019-2028
• Number of users of car rentals in the UK 2019-2028
• Revenue of the flights industry worldwide 2019-2028
• Revenue of the car rentals industry in Europe 2019-2028
• Revenue of the ride hailing industry worldwide 2019-2028
• Number of users of hotels worldwide 2019-2028
• Number of users of car rentals in the U.S. 2019-2028
• Number of users of shared rides worldwide 2019-2028
• Revenue per user of car rentals worldwide 2019-2028
• Number of users of ride-hailing & taxi in Switzerland 2019-2028

Revenue Management Explained For Travel Industry Operators

• Sales & Bookings
• Gain competitive advantages

As a travel business, practicing careful revenue management tactics can help you hit your financial targets and be profitable. 

You might think this strategy is best applied to hotels and airlines. But, the truth is, many travel industry organizations, including tour operators, can use revenue management to maximize their profits and business growth. 

To help you better understand revenue performance and how to apply it to your operation, we’ve put together a quick guide. 

In the guide, we’ve included some expert insights from Kate Burda. Kate recently joined WeTravel for a   webinar that covered creating demand for your tours in today's economy. She is the CEO & Founder of Kate Burda & Co , which specializes in revenue management and marketing for the luxury hospitality industry.

What Is Revenue Management In The Travel Industry?

Revenue management is all about using data to understand your clients’ behavior . In doing so, you can optimize your products and prices to match the demand better. The aim is to accelerate your sales and maximize growth.

A good example of revenue management in the travel industry is fluctuating flight prices. The prices change based on travelers’ search behavior and flight demand to display the optimal fare most likely to win bookings at that exact moment. 

This strategy isn’t just suitable for airlines and large hotels, though. Any tour operator or business that offers inventory that expires or has a fixed capacity can benefit from dynamic pricing. By pitching your product at the right price and right time, your market is better primed to receive it.

To apply revenue management to your travel business, you need to have a system to collect and interpret consumer data. This is central to being able to generate insights and improve your forecasting.

As a result, you’ll be able to make smarter decisions around your pricing strategy. 

Why Is Revenue Management Important For Your Business?

Meet demand in today’s market.

Why implement this pricing strategy into your business? That’s because if you apply it correctly, it’s a bridge to better meet your clients in today’s economy. 

The 2020 global pandemic completely changed tourism and the customer buying journey . A major learning point from everything is that we now need to show up in front of our customers differently.

This includes shaping sales, marketing, and pricing modeling so that there’s no disparity between what you want to achieve and how you’re doing it.  

In today’s climate, where COVID-19 is still impacting regions at different rates, it will be critical to be flexible and conscious of tourism demand. 

Achieve A Better Financial Outcome

One of the main reasons to focus on revenue management is to help your business achieve its end-goal revenue strategy. 

Kate shared some surprising stats during the webinar: as many as 90% of organizations fail to execute their revenue strategies, while 61% of organizations don’t have strategies in place that link to their financial outcomes. 

Kate suggests that businesses can do more to think about what they’re trying to achieve and how their strategy ties to this. Being busy is not always enough to have a meaningful impact on your financial outcome. Instead, you should focus on bridging the gap between financial vision and execution.

Become More Customer-Centric

By diving into your business’s revenue performance, you take on a more customer-centric way of thinking. This is because you gain a far deeper understanding of their behaviors. You can then put their demands first when marketing, selling, and pricing your products.

Identify Gaps In The Market

Revenue management encourages flexibility, which can help you identify new gaps in the market. 

Say you’re a tour operator and you decide to lower your prices during the quiet winter season. All of a sudden, you might discover a new influx of locals interested in your winter tours. Now you can open up your business to serve that market, giving you new avenues to explore in the industry.

Three Top Revenue Management Strategies To Focus On In Today’s Economy

1. target the right customer segments.

One of the first steps to creating an effective revenue management strategy is understanding your different customer segments. Not all of your customers are the same. And not all segments will grow at the same rate or have the same opportunities available. 

To do this, Kate suggests peeling away the products. Really get to know your different audiences and their behaviors, then work out which segments are primed to get you to your revenue goals. 

You don’t need to target and optimize your strategy to suit all client segments. Just focus on core customers that will help you achieve your end goal.

2. Show Up Early In The Customer Journey With Marketing

Before the pandemic, travel demand was high. So, businesses could ride that wave and show up when travelers were validating their decisions or making a purchase. 

Now, you need to show up with marketing before the traveler even knows what they want. Before price becomes one of the drivers and they weigh you up against competitors.

How do you capture them there? You own their mindset. If you understand their mindset, help them with insights, share valuable information, and guide them to make a really great decision early on, you stand a chance to get a share of the wallet too. 

3. Stay Ahead Of Trends

Understanding what is happening in tourism today is key for forecasting demand. 

At the moment, the situation is unpredictable with COVID. Travel isn’t as easy as it used to be--there is still red tape around movement and how businesses can operate, changing from one location to the next.  

So, staying ahead of what is happening in a specific location can help you to more accurately identify where it’s safe to travel to and what activities will have the green light. In turn, you can adjust your strategy in a way that makes sense to the market and travelers. 

Careful revenue management can have a significant impact on the success of your travel business. Whether starting new or refreshing your offering, applying this strategy can help you move more intentionally into the market as we emerge from COVID-19.

If you would like to connect with Kate, you can find her on LinkedIn or email her directly at [email protected] .

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How Tourism Can Increase Your City’s Revenue: Tips and Strategies 

In the challenging landscape of local governance, officials must face the intimidating task of increasing revenue for their municipalities as they strive to boost the local economy. With this role, they are asked to find a balance between fiscal responsibility and economic growth. These endeavors prove to be a constant battle, but tourism has demonstrated itself as an ally time and time again. By utilizing a strategic promotion of tourism, local governments have greater authority in revenue streams as well as the capacity to invigorate local businesses, stimulating a community to thrive. 

Infusing tourism into your town comes with the promise of new revenue sources. Tourists contribute to the local economy as they spend money on accommodations, dining, entertainment, or any experiences unique to your town! This article seeks to provide government revenue generation tips and help you in the incorporation of tourist friendly strategies. 

What Is Tourism?

In a general sense, tourism is the activity of people traveling and staying in places outside of their typical environment, usually for either leisure or business. The experiences those traveling, or the tourists, seek out varies depending on what the destination has to offer, but the impact it has on the locality is universal. Tourism is a dynamic and multifaceted industry that plays a huge role in global economies. Beyond the financial component, tourism works to exchange ideas and expose others to the rich, expansive cultures of the world. 

Consider GovPilot’s Business Registration Software here.

How Does Tourism Affect Local Revenue Generation? 

It is clear that increasing tourism into communities directly impacts the amount of city revenue they generate. Let us shed some light on the multifaceted ways in which the tourism industry really can influence the economic landscape of communities and how:

1. Tourism Brings In New Customers For Local Businesses and Artisans

As tourism inspires more visitors, traction throughout the township increases, ultimately boosting the amount of prospective customers for local businesses and shops. Tourists possess significant potential to engage with and support local businesses. Throughout their stay, visitors are presented with ample opportunities to interact with and contribute to the diverse array of businesses that define our communities. 

In the first 5 months of 2022, tourists spent over $55 billion dollars on U.S. travel and tourism-related goods. The International Trade Association reported this surged $367.5 million dollars into the United States economy daily. As people take home their goods and positive experiences, word of mouth about your community is generated, posing an interest for others to also visit. 

2. Tourism Invites Potential Future Residents 

While temporary visitors may be captured enough by the appeal of your town to experience it for only a short while, the impact onto others may reach those looking for somewhere new to call home.

A community, such as your own, with a distinctive charm, cultural richness, and unique experiences might be the perfect combination to invite future residents. While others may find themselves drawn to the diverse amenities or overall lifestyle, the result is the same: an opportunity for community expansion and a contribution to the collective vibrancy of your city. 

3. Tourism Attracts New Businesses To Open

With an influx of visitors, businesses may begin popping up in the interest of tourist-oriented attractions. Locals may want to showcase what makes their community so special with food, opening restaurants to share favorite dishes unique to their culture. Others may see the opportunity to provide rentals, allowing tourists to participate in the locals’ favorite activities. 

For example, those in cold, mountainous areas likely already have the necessary gear to ski or sled, while it is doubtful that visitors do, making for a great business venture. The same can be said with visitors looking to extend their stay permanently. New people means new perspectives, creating an amazing opportunity to incorporate unthought of business ideas. New residents may bring in elements of their own culture or previous community that can only stand to enrich the diversity and ambiance of your municipality. 

Whether it is new residents or old ones opening new businesses , fundamentally the greatest outcome is job opportunities for all. The best boost to the local economy will be more people that can contribute to it, generating revenue at the individual level which will be put back into the community, stimulating economic growth and overall prosperity. 

Take a look at GovPilot’s Constituent Engagement Software here.  

Key Ways To Attract Tourists To Your City

Though you and your neighbors may recognize the charm and allure of your picturesque locale, the key to drawing in a wider audience lies in understanding how to reach them. Effectively attracting tourists is crucial for ensuring that your community features prominently on their list of potential vacation or shopping spots:

Create A Strong Online Presence 

Many local governments do not prioritize their official website. Many of these websites are outdated, lack user-friendliness, and do a poor job of broadcasting all that your community has to offer. Local governments offices are urged to update their website, ensuring that the elements that make your community so unique are highlighted in a meaningful way. Including tabs on local happenings, spotlighting small businesses, or featuring clubs and organizations is a great way to illustrate the richness of the community. 

It is also very common to have official social media accounts dedicated to the locality, sharing live updates and interacting with community members or potential visitors. Social media allows you to show your community’s personality, presenting as more 3-dimensional rather than boring or basic. 

Learn how to update the user experience with Digital Innovation here.

Promote Unique Selling Points

Discover what separates your community from others. Whether it be the cultural heritage, natural beauty of the landscapes, or the history that the area is founded on, there is a guarantee that your town possesses something unique to itself, that the community should be proud to exhibit. Developing marketing campaigns is the best way to promote these special selling points. Advertisements, especially on social media, are a fantastic way to reach a broad audience that may be magnetized by what makes your township so unique and inviting.

Learn How to Manage & Improve Local Public Meetings & Events with GovPilot. 

Host Events and Festivals

Organizing or offering sponsorship to existing local events is a great way for local governments to boost traction. Hosting festivals, cultural celebrations, or local events creates the perfect avenue for people to come join, especially from nearby cities. As the success of these events grows, as will the visitors. These events can be promoted through various channels, working to attract a diverse crowd, all interested in participating in the celebration of the community. 

Consider GovPilot’s Special Event Application here.  

Collaborate With Online Influencers and Bloggers 

Many have made a career out of seeking out new cities to explore, traveling and finding hidden gems within communities. Partnering with one of these influencers can provide an authentic review as they personally experience your town. Presenting your community to their audience will generate interest and some conversation, potentially inviting many more visitors seeking to emulate the experience of the travel blogger. 

Check out how social media can revolutionize your government’s communication to constituents!

Enhance Infrastructure and Accessibility

In the interest of welcoming tourists, you must be sure your community is prepared to accommodate those visiting. Improving transportation infrastructure boosts the accessibility of the area, making it much easier for tourists without a car to navigate the city. As the economy begins to grow, local governments should place an emphasis on upgrading local transportation options, not only making for comfortable accommodations for guests, but improving the quality for their residents. Public transit is essential for tourists as it fully immerses them in the local experience, reduces traffic stress for themselves and locals, and gives direct, convenient access to destination spots and attractions.

 Invest in Marketing and Advertising For The City

In order to maximize the efficacy of marketing efforts, it is imperative to strategically allocate resources to target specific demographics and geographic areas. Advertisers should work to understand the preferences, behaviors and needs of these distinctive consumer groups as to adjust and optimize outreach strategies. This will ensure that resources are utilized efficiently, resulting in an impactful reach to target markets. 

Check out tips and tricks for boosting your community’s publicity!

Create Visitor-Friendly Services 

As more and more people begin filtering through your town, it may become evident that you lack necessary amenities that cater to the needs of diverse visitors. Without a history of tourists, local governments may have never thought to instate information centers or host guided tours. Smaller communities may not yet have certain mobility modifications or multilingual assistance/translators available. As inclusivity and consideration for other increases, this will likely contribute to others' want and willingness to travel to your community. 

Learn all about Managing Local Holiday Events In Your Community here. 

Start Attracting More Tourists To Your Community Today

Local government officials are urged to recognize the immense potential that lies in boosting tourism within our communities. By strategically increasing efforts to attract visitors, we not only enhance the cultural vibrancy of our towns but also create substantial opportunities for increase in revenue generation . The economic impact of a thriving tourism sector extends beyond immediate gains, benefiting local businesses and fostering long-term growth. To embark on this journey towards a more prosperous future, consider booking a consultation with GovPilot .

Tourism In Government FAQs

How can local governments use tourism to drive city revenue .

Local governments can leverage tourism to drive an increase in city revenue by strategically promoting their unique attractions, cultural offerings, and events to attract visitors, thereby stimulating economic activities , supporting local businesses, and increasing revenue through tourism-related expenditures.

Why is tourism beneficial for local communities? 

Not only does this enrich the diversity and exposure of others to a culturally rich community, but it generates revenue, increased job opportunities, creates more community events, and stimulates a pride in residency in these areas. 

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How Travel Agencies Earn Money: A Complete Guide To Their Revenue Streams

Have you ever caught yourself wondering how travel agencies manage to stay afloat in this era of easy-peasy DIY trip planning? You’re not alone – it’s a question that has crossed my mind more times than I can count, especially after learning that travel agencies in the U.S. pulled in a whopping $17.3 billion in 2021! Like many of you, I was itching to peel back the curtain on this tenacious industry and get a glimpse at their revenue-generating magic tricks.

So buckle up and come along for the journey; our guide is your all-access pass to demystifying how these travel maestros keep their cash register singing.

Key Takeaways

• Travel agents get commissions from airlines, hotels, and other suppliers for bookings made for their clients. These commissions are a big part of how they earn money.
• Agencies also charge service fees for personalized itinerary planning and handle complex travel arrangements, adding another income source.
• Offering niche services like luxury eco – tourism or themed vacations allows travel agencies to attract specific types of travelers and create additional revenue opportunities.
• Big travel agencies use their size to negotiate better deals with suppliers and provide diverse services worldwide, helping them maximize profits.
• To increase earnings further, travel agents can promote exclusive deals on social media, network with local businesses for corporate arrangements, and consistently enhance their industry knowledge through training.

The Evolution of Travel Agencies

Travel agencies have evolved over time, from traditional storefronts to more modern and flexible home-based models. With the rise of online booking platforms, travel agents have had to adapt their business strategies to stay competitive in the industry.

A Brief History

I’ve seen the landscape of travel agencies transform over time. In their early days, these agencies operated as key gatekeepers between travelers and transportation providers like airlines and train companies.

They thrived on commissions from bookings, wielding exclusive access to reservation systems that were out of reach for the general public.

Over the years, travel agents have had to adapt quickly due to technological advancements. The internet burst onto the scene and suddenly, flight tickets and hotel rooms were just a click away for anyone with web access.

This revolution forced agencies to reevaluate their value propositions and dig deeper into personalized services where they still held an edge over digital platforms.

Shift in Business Models

Travel agencies have had to rethink their approach to stay competitive. In the past, they primarily earned from commissions on bookings for flights, hotels, and tours. Now, with the rise of online travel platforms and do-it-yourself booking options, traditional commission-based models don’t cut it anymore.

Agencies are turning towards more diverse business models that focus on value-added services. They’re charging service fees for personalized itinerary planning and leveraging relationships with providers to offer exclusive deals.

Some even create unique travel experiences that you can’t find elsewhere or cater to niche markets like luxury eco-tourism or adventure travel. By adapting in these ways, they keep their edge in a tech-driven market where travelers demand more control and customization.

Transition to Home-Based Agencies

Making the switch to home-based agencies marked a significant change in the travel industry. I traded my office for my living room, embracing flexibility and personalized service that clients love.

This move cut down on overhead costs dramatically, boosting profit margins without sacrificing quality. By leveraging technology and social media, I can connect with customers anywhere at any time.

Adapting quickly became crucial once I ditched the traditional storefront. Now, fostering relationships with clients and offering tailored experiences is at the core of what I do. It feels good to provide value that goes beyond just booking trips; from crafting unique itineraries to being there when plans go awry – nothing beats the personal touch I can give from my home setup.

Diversifying Income Streams

Diversifying income streams is essential for travel agencies to maximize their earnings and remain competitive in the industry. By offering a variety of services such as customized itineraries, niche travel packages, and corporate travel management, agents can tap into different market segments and revenue sources.

This not only increases their potential for earning commissions from airline and hotel bookings but also allows them to charge service fees or markups on specialized offerings. Moreover, exploring new sales strategies and partnerships with tour operators can further diversify income streams and create additional opportunities for generating profits.

In conclusion, diversifying income streams enables travel agencies to adapt to changing market demands and capitalize on various revenue sources beyond traditional booking commissions.

How Travel Agencies Make Money

Travel agencies make money through various revenue streams, including commissions from airlines and hotels, service fees, and custom itinerary services. To learn more about the different ways travel agents earn money, keep reading!

Breakdown of Revenue Streams

Travel agencies earn money through various revenue streams, including:

• Commission from Suppliers: Travel agents receive a commission from airlines, hotels, car rental companies, and other suppliers for bookings made on behalf of clients.
• Service Fees: They charge service fees for the time and expertise invested in creating customized itineraries and handling complex travel arrangements.
• Tour Packages: Selling pre-packaged tour deals gives them a margin on the price difference between what they pay the supplier and the package price sold to the client.
• Corporate Services: Business travel management generates income through negotiating corporate rates with suppliers and providing expense management solutions.
• Ancillary Products: Earning commissions from selling travel insurance, visa processing services, and other ancillary products adds to their revenue stream.
• Incentives and Bonuses: Some agents receive incentives or bonuses based on achieving sales targets set by suppliers or consortiums they are affiliated with.
• Group Booking Markups: Organizing group tours enables them to negotiate favorable rates with suppliers and earn markups on group bookings.

Corporate Travel Agencies

After understanding the revenue streams in travel agencies, corporate travel agencies stand out as a significant source of income. These agencies specialize in managing business-related travel for organizations.

They earn money through service fees charged to businesses for booking flights, accommodations, and other logistics required for corporate trips. Additionally, they often negotiate contracts with airlines and hotels to secure discounts or commissions on bookings made for their clients.

Moreover, corporate travel agencies can generate revenue from providing consultancy services that optimize their client’s travel spending through cost-saving measures like bulk purchasing deals and data analysis to identify better booking options.

Leisure Travel Agencies

Leisure travel agencies generate income through commissions on bookings, service fees, and markups on tour packages. They earn a percentage of the total cost when clients book flights, accommodation, or tours through them.

Additionally, travel agents may charge service fees for custom itineraries and specialized services such as destination weddings or adventure trips. Furthermore, leisure travel agencies often markup the price of tour packages provided by suppliers to achieve a profit margin.

By diversifying their revenue streams and offering niche services such as luxury travel experiences or themed vacations, these agencies can maximize their earnings in an increasingly competitive market.

Custom Itineraries and Niche Services

When creating custom itineraries and niche services, I focus on curating unique travel experiences tailored to each client’s preferences. By offering specialized packages such as adventure travel, culinary tours, or eco-friendly getaways, I can meet the specific needs of discerning travelers.

This personalized approach allows me to differentiate my services in a competitive market, attracting clients seeking exclusive and authentic experiences.

I leverage my expertise to craft bespoke itineraries that cater to niche interests like cultural immersion, luxury travel, or off-the-beaten-path destinations. By tapping into these specialized areas, I can provide added value and stand out from mass-market offerings.

Big Travel Agencies

Expanding beyond niche services, big travel agencies play a significant role in the industry. They often have a substantial market share and boast extensive networks with various suppliers such as airlines, hotels, and tour operators.

Scaling their operations to reach a broader audience, these agencies leverage their brand recognition to negotiate favorable terms with suppliers, which in turn impacts their revenue streams significantly.

By tapping into economies of scale and offering diverse services across different regions or continents, large travel agencies can maximize profits while providing comprehensive support to a wide array of clients.

Taking advantage of their size and resources, big travel agencies are able to offer competitive pricing on package deals due to wholesale buying power. Additionally, they can invest in cutting-edge technology solutions that streamline processes for both employees and customers – from booking platforms to customer management systems.

Maximizing Earnings as a Travel Agent

To maximize earnings as a travel agent, understanding the different types of travel agents and tips for increasing income are essential. Want to know more about how you can increase your revenue as a travel agent? Keep reading to learn all about it!

Different Types of Travel Agents

There are various types of travel agents, each specializing in different areas such as corporate travel, leisure travel, custom itineraries, and niche services. Corporate travel agents focus on providing business-related travel services such as booking flights and accommodations for employees attending conferences or meetings.

On the other hand, leisure travel agents cater to individuals seeking vacation packages, cruises, or adventure trips. Some agents specialize in creating customized itineraries tailored to clients’ specific needs and interests while others focus on niche services like destination weddings or eco-tourism.

Some big agencies offer a wide range of services; smaller home-based agencies often provide personalized attention to their clients by focusing on specific niches or customized offerings.

Tips for Increasing Income

To increase income as a travel agent, I suggest the following:

• Leverage social media to promote exclusive travel deals and engage with potential clients.
• Offer personalized services and carefully curated itineraries to attract high – paying clients.
• Network with local businesses to establish partnerships for corporate travel arrangements.
• Invest in ongoing training and education to stay updated on industry trends and destination knowledge.
• Implement a referral program to incentivize existing clients to recommend your services to others.

Understanding Commissions

As a travel agent, understanding commissions is essential for maximizing earnings. Commissions are the primary source of income for many travel agencies and agents. They are typically earned from booking flights, hotels, car rentals, and other travel services on behalf of clients.

These commissions can vary based on the travel provider and type of service booked. It’s crucial to have a clear understanding of commission structures offered by different suppliers in order to negotiate better deals and maximize profits.

Travel agents should also be aware of any incentives or bonuses offered by suppliers, as these can significantly boost earnings. Building strong relationships with preferred suppliers can lead to higher commission rates and exclusive offers for clients.

Creating Niche Services

As a travel agent, I develop niche services to cater to specific customer needs. This may involve creating specialized packages for unique destinations, such as eco-tourism adventures or culinary tours.

By offering niche services, I can differentiate my agency from competitors and attract clients seeking tailored experiences. Additionally, developing expertise in niche areas allows me to provide valuable insights and recommendations that set me apart as an industry expert.

My goal is to identify underserved markets and design custom itineraries that resonate with those audiences. This approach not only enhances customer satisfaction but also boosts my agency’s revenue potential through premium service fees and exclusive partnerships with niche suppliers.

In conclusion, travel agencies can generate income through various revenue streams, including commissions from bookings and service fees. They have adapted business models to diversify their earnings by offering custom itineraries and niche services.

Maximizing earnings as a travel agent involves understanding different types of agents and tips for increasing income. Overall, the profitability of travel agencies is dependent on their ability to adapt to changing market dynamics and offer unique value to clients.

1. How do travel agencies make money?

Travel agencies make money through commissions from airlines, hotels, car rental companies, and tour operators when they book travel services for clients.

2. Can I save money by booking directly instead of using a travel agency?

In some cases, you may find lower prices by booking directly; however, travel agencies often have access to special deals and can provide valuable expertise and support.

3. What are the different revenue streams for travel agencies?

Travel agencies earn revenue through commissions, service fees charged to clients, selling travel insurance or packages, and through partnerships with other businesses in the industry.

4. Do all travel agencies charge service fees?

Not all travel agencies charge service fees; it varies based on the agency’s business model and the complexity of the trip being planned.

5. How much commission do travel agents receive?

Commissions for travel agents vary but typically range between 10-15% of the total booking cost depending on the type of service booked.

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New Jersey Tourism Data Highlights Recovery With Increased Visitation and Spending in 2021

Annual visitor spending exceeds predictions; per-trip spending nears pre-pandemic numbers.

TRENTON, NEW JERSEY (May 5, 2022) – The New Jersey Division of Travel & Tourism today released the “2021 Economic Impact of Tourism in New Jersey” study at the New Jersey Tourism Industry Association’s (NJTIA) annual Advocacy Day event, signaling the strengthening recovery across key travel sectors with positive forecasts in the year ahead.

Visitation grows 14% over pandemic lows According to the state’s independent research partner, Tourism Economics, visitation to New Jersey increased over 14% from 2020, welcoming a total of 96.6 million visitors in 2021. Despite the additional 12 million visitors, visitation recovery was uneven, impacted by the delta and omicron COVID-19 variants during fall and winter travel. Visitation remained 17% below the record-breaking levels achieved in 2019.

Visitor spending surpasses 2020 predictions Visitor spending surged to $37.3 billion in 2021, surpassing 2020’s multiyear recovery predictions, to regain nearly a half of pandemic losses. Supplementing the 27% growth is an increase in per-traveler spending to $386 per trip, nearing pre-pandemic levels. Overall, visitor spending generated a total of $4.6 billion in state and local taxes.

As visitor volume continues to rebound with loosening travel restrictions and the re-opening of international borders, data reveals that visitors are spending more on trips to the Garden State.

“New Jersey is fortunate to welcome visitors from across the country and around the globe, in addition to providing an in-state travel destination for many residents. As the increase in visitor spending continues to re-stimulate the state’s economy, the fiscal contributions in 2021 represented a $1,400 in tax savings to New Jersey households,” said New Jersey Secretary of State Tahesha Way. “While spending across primary tourism categories increased in 2021, it’s equally important to emphasize that traveler activity benefits industries throughout the state with significant indirect and induced revenues.”

Lodging leads spending by category with 28% of visitor share All tourism and travel business sectors experienced a jump in spending in 2021, led by a 36% increase in lodging sales. Lodging businesses witnessed the largest spend by category at $10.5 billion, pushing ahead of food and beverage, as room demand surged, casinos re-opened, and the summer shore season remained actively strong.

Tourism and travel industry supports 430,000 state jobs “The overall impact of visitors is vital to New Jersey’s robust economy, and we see that clearly in how the industry supported one-in-12 jobs in the state last year, recouping close to a third of pandemic-induced job losses,” said New Jersey Division of Travel and Tourism Executive Director Jeff Vasser. “So much of our success is dependent on meeting and exceeding travelers’ expectations, and to that end, we have pivoted how our industry recruits, develops and retains employees to ensure a welcoming—and repeat—experience for both visitors and staff.”

Key findings from the “2021 Economic Impact of Tourism in New Jersey” study

• New Jersey welcomed 96.6 million visitors in 2021 with visitation growing over 14% from 2020; visitation remained 17% below 2019’s record-breaking levels.
• Visitors spent $37.3 billion in New Jersey in 2021, representing an $8 billion increase from 2020.
• Per-visitor spending for both overnight and day visitors recovered to near pre-pandemic levels with each traveler spending $386 per trip in New Jersey in 2021.
• Visitor spending generated $4.6 billion in state and local taxes in 2021, equivalent to $1,400 in tax savings for every household in New Jersey.
• Tourism supported over 430,000 New Jersey jobs (one-in-12) and nearly $20 billion in state gross domestic product (GDP) in 2021, representing 2.8% of the state economy.

New Jersey visitation and spend forecasts expect further rebound New visitation state forecasts predict 12% growth to 108 million person-trips in 2022, recovering about 75% of visitation losses from the pandemic. Visitation is estimated to reach pre-COVID levels in 2023. Additionally, visitor spending is projected to surpass $44 billion this year, which is a 19% increase, pushing it to 90% of pre-pandemic levels with full recovery achieved in 2023.

Important resources The “2021 Economic Impact of Tourism in New Jersey” study, prepared by Tourism Economics, can be found in its entirety at https://visitnj.org/economic-impact-report-2021 .

About New Jersey

New Jersey offers a wide variety of experiences to visitors all year long. Tourists and residents can enjoy outdoor adventures, renowned culinary offerings, educational opportunities, and a strong arts and cultural scene. With numerous state and national parks, beaches, skiing, tax- free shopping, historic sites, museums and more, New Jersey blends together its rich history and exciting present. Home to the nation’s first beach resort and the birthplace of major inventions, New Jersey offers a picturesque escape and dynamic opportunities for visitors from near and far. For more information, visit www.visitnj.org . Follow the New Jersey Division of Travel and Tourism on Facebook , Instagram , Twitter and YouTube for more events and news throughout the state.

Media Contacts: Lou Hammond Group Leslie Knobloch Jordana Oppenheim Tel: 212-891-0214 | 212-891-0219 Email: [email protected] | [email protected]

Visit Idaho releases new travel guide for 2023 as tourism numbers continue to grow

I'm is the Idaho News 6 neighborhood reporter dedicated to spotlighting stories and adventures from the Backroads of Idaho.

BOISE, Idaho — Idaho had a record year for tourism in 2021, this industry ranks third in the Gem State behind only agriculture and technology and it generates billions of dollars.

Every two years the Idaho Department of Commerce gets their tourism numbers, the department gets their statistics from lodging tax collections throughout the fiscal year, but it is no surprise the industry is growing in Idaho.

"We are blessed with rich assets across the state and we have a very defined marketing program that helps reach visitors in the west," said Diane Norton, the manager of Idaho Tourism. "We were also discovered during COVID."

Here are the numbers, in 2019 Idaho had 35 million visitors generating $3.4 billion, that amount grew by 11 percent from 2017.

In 2021, the numbers were at an all-time high with 37 million visitors with $3.7 billion spent by those travelers and in 2020 during the height of the pandemic Idaho the lodging collections were down four percent.

84 percent of the tourist spending generated comes from out of state visitors, the top three reasons people come to Idaho is to visit family and friends, tour the region and experience the outdoors.

"The industry is doing really well and it is healthy," said Norton. "What makes Idaho really unique is its people."

Vacation is more than just scenery; it’s about making lifelong memories. #visitidaho Quench your thirst for adventure and start planning your unforgettable getaway with the help of the Official 2023 Idaho Travel Guide. https://t.co/fESmdfzqh1 pic.twitter.com/h2EyXAmEi4 — Visit Idaho (@visitidaho) January 6, 2023

That's where the marketing aspect comes in with a new travel guide to showcase the people, the communities, the history and when I read it I discovered things about Idaho that I did not know.

The travel guide is part of the Visit Idaho umbrella, Andrea Rayburn spearheads this effort and as technology has changed the way we live our lives, this team decided to rebrand their tourism publication for 2019.

"The trend across the country has been inspirational strong editorials," said Rayburn. "That’s what everybody wanted to see because everything when it comes to booking is now online, so you no longer needed our travel guide to decide where to stay while you were driving through the state."

The travel guide showcases storytelling and what makes Idaho special from the wine and the cuisine, to the outdoor adventures, to the history and remembering the Minidoka where Japanese Americans where held during World War II.

"One of my favorite pieces in there is the story about Minidoka because so many people don’t realize it is there," said Rayburn. "I’ve been here my whole life and there are things that still surprise me like the Mackey mine hill tour and you think it just can’t get better and it does."

Visit Idaho has also moved to a digital focus with video and pictures to showcase different areas of the state, but they still work all year on a travel guide that goes to print in the beginning of December, click here to download a copy or receive one in the mail.

"We wanted to have something people can take with them, it's a fun way to engage," said Rayburn. "You read a piece differently when you hold it in your hands looking at the pictures as opposed to scrolling through something and in remote areas there's no guarantee of having cell service."

The marketing also focuses on helping rural communities in Idaho generate revenue with a program called beyond known destinations, and they also focus on responsible recreation with a program called travel with care asking people to care for themselves, others and Idaho.

"Care for Idaho is all about if you are out camping please pick up after yourself, if you are hiking be aware of all the hiking rules and regulations, if you are with your dog pick up after your dog and really just respect the local culture," said Norton.

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Hawaii Visitors by Island 2022

If it's Hawaii tourism data you're looking for, then you're in the right place. We'll cover the latest tourism trends (within the last 1-3 years) on the Hawaiian islands and provide a series of graphics and summarized data to give you a good idea of what's happening by the numbers.

The adjacent graph shows the  Total ARRIVAL Data in 2022  to each island (including multi-destination/island arrivals). You can also view our historical 2018 data graph ,  2016 data graph , and  2006 data graph  for comparison. A pie chart is not truly the best format to display the visitor totals for the various islands as the number of visitors shown in the chart is greater than the true total, as many visitors go to more than one island. However, for our purposes, it should give you an idea of how many visitors (percentage-wise) are arriving/visiting each island. Just keep in mind the actual arrival numbers are "inflated" a bit. A more accurate way to look at this is 'Visitor Days,' per island, but these percentages seen here provide an accurate overview of each island's visitation.

Latest DBEDT Tourism Updates

Department of business, economic development and tourism - monthly summary.

December 2023 Visitation & Spending

December 2023 Update

In December 2023, Hawaii marked the fifth consecutive month with declining visitor expenditures, experiencing a slight dip in both visitor arrivals (860,831 visitors, -1.3%) and spending ($1.96 billion, -1.2%) compared to December 2022. Despite this, the overall visitor spending for 2023 showed an increase from the previous year.

Visitor Arrivals and Spending : December 2023’s visitor count represented a 90.4% recovery from pre-pandemic levels in December 2019. The majority of visitors arrived by air service from the U.S. West and East, with a notable increase in arrivals by sea.

• U.S. West and East : Visitors from these regions showed a decrease in arrivals and spending compared to the previous year, but an increase from 2019.
• Japan and Canada : There was a significant increase in visitors from Japan compared to 2022, though numbers were still lower than in 2019. Canadian visitor numbers decreased from both 2022 and 2019.

Island-Specific Numbers :

    •     Oahu : Received 514,345 visitors with $885.1 million spent.     •     Maui : 196,402 visitors marked the highest number in five months post-wildfires, with $464.4 million spent.     •     Kauai : Saw 120,290 visitors, with spending reaching $266.0 million.     •     Hawaii Island : Welcomed 163,133 visitors and saw $309.5 million in spending.

The year 2023 concluded with an increase in total visitor spending to $20.78 billion, and total arrivals rose by 4.4% from 2022.

Official Press Release

November 2023 Visitation & Spending

November 2023 Update

Visitor Arrivals and Spending : In November 2023, Hawaii experienced a slight increase in visitor arrivals but continued to see a decrease in spending compared to the previous year. A total of 731,233 visitors represented a modest 0.3 percent increase over November 2022, yet spending decreased to $1.53 billion, down 2.4 percent from the previous year.

Source of Visitors : The majority of visitors came by air service, mainly from the U.S. West and East. There was a small increase in visitors from Canada, and a significant surge from Japan compared to 2022, though numbers remained much lower than in 2019.

Key details from the Island in November 2023 :

    •     Oahu saw a rise in visitors to 440,049 but a drop in spending to $652.9 million.     •     Maui had 161,522 visitors, recovering from wildfire impacts, with spending at $375.5 million.     •     Kauai hosted 106,907 visitors, with spending increasing to $212.7 million.     •     Hawaii Island welcomed 135,645 visitors with spending reaching $262.7 million.

Overall, there was a year-to-date increase in total visitor spending and arrivals, with $18.82 billion in spending and 8,783,688 arrivals, indicating growth from 2022.

October 2023 Visitation & Spending

October 2023 Update

In October 2023, Hawaii continued to see a decline in both visitor arrivals and spending compared to 2022, marking the third consecutive month of downturn following the Lahaina wildfires.

Visitor Arrivals and Spending : October 2023 saw 734,582 visitors, a 3.2% decrease from October 2022, but a 92.3% recovery compared to pre-pandemic October 2019. Total visitor spending was $1.51 billion, down from $1.54 billion in October 2022 but up from $1.33 billion in October 2019​​.

Source of Visitors : The majority of visitors arrived by air service, primarily from the U.S. West and U.S. East. The U.S. West contributed 362,258 visitors, a decrease from 2022 but an increase from 2019. U.S. East saw a decline in arrivals compared to 2022 but an increase from 2019. Visitors from Japan increased significantly from 2022 but were much lower than in 2019. Canadian visitor numbers decreased from both 2022 and 2019​​.

Numbers by Island :

• Oahu : Received 448,096 visitors, a 14.7% increase from October 2022, with spending reaching $673.3 million, slightly up from the previous year​​.
• Maui : After the wildfires, visitation dropped to 132,909, a 42.3% decrease from 2022, and spending fell to $326.2 million, down 25.2% from the previous year​​.
• Kauai : Saw a stable visitor count at 109,337, virtually unchanged from 2022, but spending increased to $233.2 million, a significant rise of 34.1% from the previous year​​.
• Hawaii Island : Had 133,081 visitors, a 6% decrease from October 2022, with spending of $246.1 million, an 8% increase from the prior year​​.

September 2023 Visitation & Spending

September 2023 Update

In September 2023, Hawaii experienced a decrease in both visitor arrivals and spending compared to the same period in 2022, partly due to the aftermath of the Lahaina fires on Maui. The total number of visitors was 651,286, marking a 7.4% decrease from September 2022, yet showing an 88.5% recovery from pre-pandemic levels of September 2019. Total visitor spending was $1.37 billion, a reduction from the $1.52 billion in September 2022 but an increase from September 2019's $1.25 billion.

The majority of visitors arrived by air, predominantly from the U.S. West and East. The U.S. West sent 329,187 visitors, a decrease from 2022 but an increase from 2019. U.S. East saw 153,635 visitors, down from 2022 but up from 2019. Visitors from Japan increased significantly compared to 2022 but were much lower than 2019 numbers. Canadian visitor numbers and spending also decreased compared to 2022 and 2019.

Visitor demographics varied across the islands. Oahu welcomed 433,209 visitors, Maui received 94,221 visitors, significantly impacted by the wildfires, Kauai hosted 115,305 visitors, and Hawaii Island saw 129,444 visitors. Each island exhibited unique trends in visitor arrivals and spending, reflecting diverse attractions and visitor experiences.

August 2023 Visitation & Spending

August 2023 Update

In August 2023, Hawaii's tourism was notably impacted by the Lahaina wildfires, leading to a 7.3% decrease in total visitor arrivals compared to August 2022. This figure represented an 83.0% recovery from the pre-pandemic levels of August 2019. The total number of visitors was 769,163, with a significant decline in arrivals to Maui due to the wildfires. Visitor spending for the month was $1.58 billion, lower than the $1.74 billion spent in August 2022, but still higher than the $1.50 billion from August 2019.

The majority of visitors, 766,023, arrived by air service, mainly from the U.S. West and U.S. East, with an additional 3,140 coming via a single cruise ship. The average length of stay for all visitors was 8.67 days, slightly less than in August 2022. The statewide average daily census was 215,020 visitors.

Visitor arrivals to different islands varied. Oahu saw an increase in visitors, with 507,702 arrivals. Hawaii Island and Kauai also experienced increases in visitor numbers. In contrast, Maui faced a significant drop in visitor arrivals, with only 112,259 visitors, less than half the volume of August 2022, primarily due to the Lahaina wildfires which led to the cancellation of 88 direct transpacific flights to Kahului.

Visitor demographics from different regions showed mixed trends. The U.S. West sent 392,427 visitors, a decrease from both 2022 and 2019. However, their spending, although lower than in 2022, was higher than in 2019. Visitors from the U.S. East also decreased compared to both 2022 and 2019, but their spending increased from 2019 levels. Visitors from Japan increased dramatically from 2022 but were much lower than 2019 figures. Canadian visitor numbers and spending decreased compared to 2022 and 2019.

There were 103,589 visitors from other international markets, including Oceania, Asia, Europe, Latin America, Guam, the Philippines, and the Pacific Islands. This figure was an increase from 2022 but a decrease from 2019.

July 2023 Visitation & Spending

July 2023 Update

In July 2023, Hawaii’s tourism showed a positive trend, with 932,713 visitors marking a 1.5% increase from July 2022 and representing a 93.7% recovery from July 2019. Visitor spending reached $2.05 billion, exceeding the figures from both 2022 and 2019. The majority of visitors, 929,386 in total, arrived by air, primarily from the U.S. West and East. The average length of stay for all visitors was 9.06 days.

From the U.S. West, there were 499,029 visitors, a decrease from 2022 but an increase from 2019, with spending of $972.1 million. Visitors from the U.S. East were comparable to 2022 numbers and higher than in 2019, with spending of $628.4 million. Visitor arrivals from Japan saw a significant increase compared to 2022 but were still lower than 2019 figures, with spending of $83.2 million. Canadian visitors slightly exceeded 2019 levels, with a total spend of $68.2 million.

The visitor count from other international markets, including Oceania, Asia, Europe, and Latin America, was 100,912, showing a modest increase from 2022 but a decrease from 2019. Total trans-Pacific flights servicing the islands were slightly fewer than in 2022 and 2019.

For the first seven months of 2023, total visitor spending amounted to $12.83 billion, showing an increase from both 2022 and 2019. Total arrivals during this period were 5,897,424, higher than in 2022 but lower than in 2019.

Island-specific details reveal that Oahu welcomed 528,585 visitors with a spending of $870.7 million. Maui received 293,681 visitors, with spending of $623.4 million. Kauai had 139,771 visitors and a spend of $264.5 million. Hawaii Island saw 171,957 visitors, with a spending of $263.0 million.

Visitor demographics varied, with a significant portion of U.S. West visitors being repeat visitors, and a majority staying in hotels. The first seven months of 2023 saw 3,110,046 visitors from the U.S. West, spending $6.05 billion. The U.S. East contributed 1,563,393 visitors, spending $4.05 billion. From Japan, there were 267,131 visitors, spending $427.5 million, and from Canada, 284,544 visitors, spending $726.2 million.

These statistics reflect a steady recovery in Hawaii’s tourism industry, with significant contributions from various international markets and a strong showing from U.S. visitors.

The tabular chart shown further below gives the breakdown of visitors in the islands on a month by month basis (color coded per island), based on data from 2019 & 2022 visitor reports.

Visitor Days & Visitor Expenditures

In considering the "health" of the tourism market, one must also put emphasis on the two factors that are the most important: "visitor days" and "visitor expenditures." 

Mahalo for the tip by 'amberloo' at TripAdvisor. In her words, " If there are more visitor days and more money being spent annually over the long-term, the industry is healthy regardless of any other factors; such as mere arrival totals. The goal of many government planners is to increase "days" and "spending" while limiting (or even decreasing) arrival counts. "

Why limit arrival counts you might ask? One has to consider tourism "capacities" of the islands and how that will affect future trends. Maui and O'ahu likely reached their carrying capacity (for visitors) years ago, thus have few remaining competitive development opportunities and will not have the statistical fluctuations or upside growth potentials seen on Kaua'i. In fact, due to growth in recent years, Kaua'i has now about reached its own carrying capacity pending completion of on-going development.

Estimated Hawaii Visitor Arrivals by Month 2019 & 2022

Individual Hawaiian Island Data

These statistics are "arrival" data - meaning visitors who arrived in the islands (either from the mainland US, abroad, or from another island).

When viewing these statistics, we encourage visitors to keep the geographic size of the islands in mind. For example, the Big Island and Kauai have very similar trends in arrivals. However, the Big Island is significantly larger geographically speaking than Kauai (in fact, it is larger than all of the other islands combined) so these visitor numbers alone cannot tell the complete story. Kauai and the Big Island may very well have the exact same number of visitors any given month, but the size of the island will also determine how "crowded" it feels.

Big Island of Hawaii Visitor Data

The largest in the chain typically ranges between 100,000-175,000 arrivals each month. Excluding the summer "hump" felt through all the islands, the number of arrivals fluctuates much less than some other islands in the chain, so visitation is usually about the same in Hawai'i. The events we noted on the  best time to travel to Hawaii  page, that are held each spring and fall, can increase visitor ratios on the island. The volcanic eruption that began in May 2018 is also to have likely affected arrival numbers for this period.

Maui Visitor Data

The second largest island in the chain typically ranges between 210,000-300,000 arrivals each month. The summer "hump" is by far the largest period of arrivals, but there are also significant spikes at other times during the year, most notably around the Christmas holidays.

Kauai Visitor Data

The fourth largest island in the chain typically ranges between 100,000-140,000 visitors each month. Kauai, in general, is a much quieter island (arrival wise) when compared to the likes of the other islands in the chain. But that may be due to its size and "theme" (all things green). The summer "hump" is the only really busy time on the island, though it's not as distinct as the "hump" Maui and Oahu experience. The 2018 winter and spring storms and subsequent closures on Kauai likely affected visitor arrivals after this period.

Oahu Visitor Data

The third largest island in the chain typically ranges between 450,000-570,000 visitors each month. As you can quickly see, that number quickly dwarfs the other islands arrival data. Oahu is widely popular with visitors abroad, and given that 75% of the state's population lives on this single island, the arrival data can skew accordingly.

Typical Hawaii Visitor Timeline

Typical Visitor Planning Timeline

More Information:

Hawaii Weathe r page or Selecting a Hawaiian island to visit

If you want even more detailed tourism specifications, please visit the Hawaii Department of Business, Economic Development & Tourism .

Molokai & Lanai Visitor Data

These two islands only make up slightly more than 1% of all visitor arrivals combined. If you're heading to either of these two islands and are curious about this data, we suggest you look at the detailed statistics provided on the  Hawaii Tourism Authority  website.

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Article Published/Updated: 03-18-2024

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Thriving Tourism Economy: Walton County Releases 2022 Annual Report

Walton County continues to thrive as a top-tier travel destination and tourism economy, according to the Walton County Tourism Department’s recently released 2022 Tourism Update .

“We were blessed with another strong year in 2022, which is a testament to the hard work that our accommodations, restaurant, and business partners put in throughout the year,” said Matt Algarin, tourism director for the Walton County Tourism Department. “Walton County is an incredible destination and we’re proud that we can share it with our visitors, all while supporting our community through job creation and visitor spending.”

The report underscores tourism as the number one economic driver in Walton County.

More than 5.3 million visitors spent an average of $889 each day, amounting to a staggering $4.8 billion in direct spending alone. All of that added up to a $7.2 billion economic impact for the county in 2022.

For Walton County residents, this visitor spending translated into an average of $2,109 in tax savings per household. It also supported more than 47,000 in tourism-related jobs. In fact, visitor spending accounted for 76 percent of all retail spending in Walton County.

Photo by Ragan Smith

The tourism department is funded by what’s commonly referred to as a “bed tax.” In Walton County, a 5 percent bed tax is collected on all short-term rental stays of six months or less in accommodations south of Choctawhatchee Bay , as well as a 2 percent bed tax on short-term rentals north of the Bay. Walton County residents do not pay a bed tax unless they are taking a “staycation” in a local accommodation.

Bed tax funds are also used to support various community organizations and programs, such as the South Walton Fire District’s Beach Safety / Lifeguard program , the Walton County Sheriff’s Office , turtle nest monitoring , the Cultural Arts Alliance of Walton County , International Coastal Cleanup , the South Walton Artificial Reef Association , and various programming through the local state parks .

While the State of Florida has strict rules governing how those funds can be spent, many of the activities and amenities they support – such as bike trails, public beach accesses, lifeguards, and special events – enhance the lives of residents as well as visitors.

The tourism department’s Beach Operations team was also busy in 2022, completing more than $3.9 million in destination improvements.

This hard-working crew also maintains and cleans 20 miles of beach, 42-miles of multi-use pathways, 10 regional beach accesses, 47 neighborhoods beach accesses and 11 bay and lake access points.

Overall, investments were made in 2022 to improve, protect and sustain our prospering county, which would not be possible without a thriving tourism economy.

For more info about the impact of tourism in Walton County and the full annual report, please click HERE .

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Pure Michigan Tourism Industry Update

Tourism news & trends.

Whitmer announces job expansion, $34.8 million investment WILX-TV | September 11, 2023 

Michigan State Capitol prepares to lower flags in remembrance of 9/11 WZZM-TV | September 10, 2023

AAA To Offer Roadside Services Through Apple's Roadside Assistance With Select iPhones Travel Pulse | September 13, 2023

U.S. Travel Association Welcomes Progress on FAA Chief Nomination U. S. Travel Association | September 7, 2023

Register Now for Exclusive Q3 Consumer Insights U. S. Travel Association | September 6, 2023  

9 family vacation ideas for families with neurodivergent kids USA Today | September 5, 2023

U.S. Travel Association Brings Travel Works for America Roadshow to Detroit, Sept. 5 Detroit Regional Chamber |August 29, 2023

U.S. Travel Honors Destination Marketers with Mercury, Destiny Awards at ESTO 2023 U. S. Travel Association | August 24, 2023

Virgin Galactic’s first space tourists had a ‘surreal experience’ CNN | August 12, 2023

MICHIGAN DESTINATIONS

DNR offering new interactive online hunter, boating safety courses MLive.com | September 15, 2023

Inaugural Milan Fall Festival aims to become a ‘legacy event’ for the city MLive.com | September 15, 2023

2024 Memorial Cup hockey teams will sleep in Frankenmuth when not competing in Saginaw MLive.com | September 15, 2023

Michigan’s massive, majestic wild elk are a must-see for your fall travel list MLive.com | September 15, 2023

The best beach towns in Michigan woodtv.com | September 11, 2023         

Your guide to ArtPrize 2023 MLive.com | September 10, 2023

Pigeon Hill: Another piece of West Michigan lost to time WOOD-TV | September 9, 2023

West Michigan Tourist Association shares ways to kickoff the season of cooler weather WXMI-TV | September 9, 2023 

2023 Michigan Underground Railroad Heritage Gathering Registration is Open Michigan History Center | September 6, 2023

25 best hiking cities in the US (Marquette) CNN | September 5, 2023

PURE MICHIGAN NEWS & UPDATES

Pure Michigan Campaign Targets Fall Tourism; U.P. Highlighted By National Geographic Radioresultsnetwork.com | September 11, 2023

Dave Lorenz, State Tourism Director Of The Year Brand USA | August 29, 2023

National recognition spotlights inclusive spirit and innovative marketing efforts of Pure Michigan campaign Michigan Economic Development Corporation (MEDC) | August 25, 2023

Michigan’s Dave Lorenz Named State Tourism Director of the Year U. S. Travel Association | August 21, 2023

State allocates $1M to help visitor bureaus improve accessibility for travelers Crain’s Grand Rapids Business | August 23, 2023

Dave Lorenz named State Tourism Director of the Year Grand Haven Tribune | August 22, 2023

Michigan’s Dave Lorenz Named State Tourism Director of the Year TravelPulse.com | August 21, 2023

Meet the new voice of 'Pure Michigan' campaign ClickOnDetroit | August 4, 2023

McDonald's launches 'Pure Michigan Mix' drink with exclusive offers Midland Daily News| July 25, 2023

McDonald's launches new frozen drink inspired by Michigan CBS News| July 12, 2023

Pure Michigan teams with Coca-Cola and Mcdonald's on new 'Pure Michigan Mix' drink Detroit Free Press| July 12, 2023

Q&A With Artist jessica Care moore Pure Michigan Article

I Am Detroit Summer Pure Michigan Podcast

BEYOND MICHIGAN

MGM Resorts Remains Operational in Wake of Cyber Attack Travel Pulse  | September 14, 2023

You can visit America’s national parks for free Sept. 23, but there’s a chance to do more USA Today | September 13, 2023

Long-awaiting Brightline train service between South Florida, Orlando starts next week USA Today | September 13, 2023

12 best mountain towns in the US to see fall foliage USA Today | September 6, 2023

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