Explore Minnesota, the state’s marketing and promotion agency, released its 2023 tourism industry research findings in mid-December, revealing a historic year for Minnesota tourism. Visitor spending reached a record $14.1 billion last year, marking an increase of $1 billion over 2022 and surpassing pre-pandemic levels in 2019 by 7.8%. Minnesota also welcomed 80.2 million visitors in 2023, a 4.6% increase from the previous year.
Visitor spending generated a total economic impact of $24.2 billion, including $8.1 billion in labor income and $2.3 billion in state and local tax revenues, and 180,473 jobs were supported by the tourism industry.
“Minnesota’s tourism industry has not only recovered but reached new heights,” says Minnesota Gov. Tim Walz in a prepared statement. “The record-breaking spending, visitor volume, and economic impact underscore the resilience of our state and its appeal as a destination. We will continue working to ensure Minnesota remains a vibrant, welcoming place for visitors while also prioritizing quality of life for residents.”
“Breaking records in both visitor spending and volume showcases Minnesota’s unique appeal as a travel destination for all four seasons,” says Lauren Bennett McGinty, Explore Minnesota’s executive director. “Growth across day, overnight, and international travel markets points to the effectiveness of our strategic marketing efforts and partnerships across the state, nation, and around the world.”
Explore Minnesota Sector-Specific Growth Highlights
- Lodging and Transportation: Statewide spending on lodging grew 8.5% year over year, bolstered by a 2.8% increase in room demand and 5% growth in average daily room rates. Short-term rental revenue surged by 14.2%, contributing to a 16% increase above pre-pandemic levels. Transportation spending also rose, fueled by strong air-travel demand.
- Recreation and Events: Demand for live events and unique experiences drove significant growth in recreation spending, reflecting Minnesota’s rich array of sports and musical attractions as well as well-attended activities like the Twin Cities Pride Festival and the Minnesota State Fair.
- International Visitors: Although international arrivals have not yet reached pre-pandemic levels, recovery continues with a 36% increase year over year compared to 2022. Similarly, in 2023 international visitors spent $501 million in Minnesota, a 35% year-over-year increase from 2022.
Hennepin and Ramsey counties dominated visitor spending and impacts for Minnesota, accounting for 37% and 8% of the state total respectively, the Explore Minnesota report notes. Visitor spending throughout other counties was relatively well-dispersed, reflecting year-over-year growth trends in other states. Smaller and more rural counties recovered quickest after the pandemic, while larger counties and those reliant on events took longer, catching up to pre-pandemic levels last year.
However, even with record growth, Minnesota and metro-area hotel performance metrics continue to lag behind national hotel performance metrics, demonstrating the need for continued efforts to sustainably grow the visitor economy in Minnesota.
