Tempe welcomed 4.4 million visitors in 2023

Media Contact:
KJ Philp / Director of Communications / [email protected] / 480-305-1372

FOR IMMEDIATE RELEASE

Tempe, Ariz. (Aug. 12, 2024) — The Tempe Tourism Office just released the findings from a comprehensive research project, conducted by Tourism Economics, that details the economic impact of the tourism industry in Tempe. 

The study, “The Tempe Visitor Economy 2023,” provides a detailed look at the positive effect of tourism in terms of visitor spending, income, employment and tax revenues in the calendar year 2023. 

Research shows that 4.4 million visitors to Tempe in 2023 were responsible for $1.1 billion in direct spending on tourism.

“We are pleased to announce that Tempe’s hospitality industry had a banner year in 2023,” said Michael Martin, Tempe Tourism Office President and CEO. “Our tourism partners represent a vital part of Tempe’s economic success through jobs, tax revenues and supporting a strong quality of life for Tempe’s residents.”

Increases in Visitor Volume and Spending 

According to the research, visitor volume and spending continued increasing steadily from 2020 through 2023 — surpassing 2019 in both categories for the second consecutive year. In 2023, Tempe welcomed 4.4 million visitors in 2023, an increase of 3.2% or 130,220 visitors over the prior year. Additionally, visitor spending increased by 6.9% over 2022. 

The study further shows that 63% of Tempe visitors stay overnight and 37% are day trippers. On average, overnight visitors stay up to three nights in Tempe. Day trippers account for visitors who travel at least 50 miles to Tempe, but do not stay overnight. 

Types of Visitor Expenditures 

The study outlined annual Tempe visitor spending in the top five categories:  

• $273 million on food and beverage 
• $271 million on lodging 
• $224 million on transportation 
• $187 million on retail 
• $131 million on recreation 

According to the study, visitor spending on lodging saw a third consecutive year of double-digit growth climbing to $271 million.  

After two consecutive years of double-digit growth, hotel room demand moderated in 2023, increasing 0.6% to reach 1.72 million room nights. However, average daily rates (ADR) growth saw a second consecutive year of double-digit growth in 2023, rising 11.1% to reach $150.

Visitor spending on recreation and entertainment grew 8.4% in 2023, contributing an additional $10 million to Tempe’s visitor economy. Similarly, spending on food and beverage grew 7.3%, nearly $19 million more than the previous year.

Tax Revenues and Jobs 

In 2023, visitor spending, tourism supported jobs and business sales generated $191.7 million in federal, state and local taxes.  

State and local governmental revenues supported by visitor activity alone tallied $116.7 million in 2023. This total represents $59.2 million in state tax revenue and $57.5 million in local tax revenue. Various taxes include sales, lodging and property taxes. 

Total taxes generated for state and local governments from tourism represent a $1,505 in tax savings for every household in Tempe.  

Additionally, the tourism sector supported 8,969 jobs in Tempe — most of these positions are found in lodging, recreation, food/beverage and retail.

“Tempe’s tourism industry continues to be a significant driver for Tempe’s economy,” said Tempe Mayor Corey Woods. “The 2023 Tourism Economic Impact study demonstrates that 4.4 million visitors enjoyed time in our community and spent more $1 billion while here. That creates jobs, supports local businesses and improves the quality of life for people in our community.”

Methodology 

The research was conducted by Tourism Economics, an Oxford Economics Company based in the U.K. and Pennsylvania. Data for 2023 was collected from several sources, including: 

• Bureau of Economic Analysis and Bureau of Labor Statistics: employment and wage data, by industry. 
• STR: lodging performance data, including room demand, room rates, occupancy, and room revenue, for hotels. 
• Datafy: mobile geolocation data. 
• Tax collections: Lodging and sales tax receipts. 
• Tourism Economics: international travel data for overseas, Canadian, and Mexican travel to Tempe based on aviation, survey, and credit card information. 
• Bed tax data from the Tempe Tourism Office.

For more information on the economic impact of tourism in Tempe, please contact KJ Philp, at 480-305-1372 or [email protected]. Interviews with Michael Martin, Tempe Tourism Office President and CEO, can be arranged upon request. 

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The Tempe Tourism Office is a nonprofit organization devoted to marketing Tempe, Arizona, as a desirable visitor and group destination site. To learn more about Tempe, please call 480-894-8158 or visit us at TempeTourism.com.