Arizona tourism tax revenue surpasses $4 billion for first time in 2023
Sep 4, 2024, 4:35 AM
Arizona's tourism tax revenue finished above $4 billion in 2023, the first time the mark had been surpassed in state history. (Photo by John Moore/Getty Images)
(Photo by John Moore/Getty Images)
PHOENIX — Arizona’s tourism tax revenue finished above $4 billion in 2023, the first time the mark had been surpassed in state history.
The record $4.2 billion generated, which is comprised of local, state and federal taxes, was a 7% increase over a record-setting 2022, according to data from the Arizona Office of Tourism.
Tourism tax revenue supports services such as health care, transportation and public safety.
“The data is in: people love coming to Arizona and our economy is growing because of it,” Gov. Katie Hobbs said in a press release. “Tourism supports critical services for Arizonans, and our work to build an Arizona for everyone translates to more visitors and more jobs for our great state.”
Arizona tourism tax revenue: Why was 2023 a record year?
Arizona saw a hefty jump year-over-year in its overnight international visitors, which contributed to the record mark.
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In 2023, the Grand Canyon State welcomed 4.2 million international overnight visitors, a 20% increase from 3.6 million in 2022. Mexico, Canada, United Kingdom, Germany and France were the top five countries for international visitors.
Domestic overnight visitors slightly grew from 40.19 million to 40.88 million. California, Texas, New York and Florida were the most popular for out-of-state visitors.
As a result, visitor spending was up 4.3% from 2022, ending at $29.3 billion.
“Our strong 2023 shows how placing Arizona’s majestic beauty, welcoming warmth and abundant diversity at the forefront of our visitor attraction efforts continues to deliver,” Lisa Urias, CEO of the Arizona Office of Tourism, said in the release.
“Whether you’re an Arizonan on an in-state road trip, joining us from across the country for Cactus League Spring Training or an international visitor seeing the Grand Canyon for the first time, we always appreciate that Arizona remains a top choice.”
What other statistics influenced Arizona tourism in 2023?
Here are some other changes in Arizona tourism, according to the 2023 report:
- $1.15 billion in state tourism tax was collected, making up about 10% of the state’s operating budget for the year.
- Tourism job growth was at 4.4%, up to 187,000 in 2023 from 179,100 in 2022.
- 86% of 2023 visitors were repeat visitors.
