Indiana’s tourism industry saw remarkable growth in 2023, with visitor spending reaching $16.2 billion and generating $3 billion in federal, state, and local taxes.
According to a new study (December 2024) commissioned by the Indiana Destination Development Corporation (IDDC), the state’s travel and tourism sector has not only rebounded to pre-pandemic levels but is now a major driver of economic vitality and job creation.
Total visitor volume in Indiana rose by 1.2%, increasing from 80.8 million to 81.7 million person-trips. This steady growth follows two years of strong post-pandemic recovery, indicating that Indiana’s tourism economy is stabilizing while continuing to expand. Visitors spent an average of $198 per trip, contributing significantly to local businesses, attractions, and hospitality services across the state.
Indiana’s travel sector played a crucial role in supporting 208,500 full- and part-time jobs in 2023. The industry’s impact was felt across various areas, from hotels and restaurants to transportation and entertainment. While business and international travel had initially lagged in recovery, both segments showed strong growth last year, helping Indiana stay on pace with national tourism GDP and job recovery trends.
“Indiana’s tourism industry has continued to be a powerful engine for our state’s economy, and this report highlights how significant its impact has become,” said Elaine Bedel, Secretary and CEO of IDDC.
“With several metrics reaching pre-pandemic levels, it is clear that tourism is driving growth in communities across the state, and we are excited to continue positioning Indiana as a premier destination.”
Breaking down the $3 billion in tax revenue, tourism contributed $1.293 billion to federal taxes, while state and local governments received $1.053 billion and $693 million, respectively. This revenue helps fund public services, infrastructure improvements, and local community projects, reinforcing tourism’s vital role in Indiana’s overall economic landscape.
The study, conducted by Rockport Analytics, relied on multiple data sources, including Longwoods International, Reach Market Planning, and the U.S. Commerce Department’s National Travel & Tourism Office. Researchers reconciled findings with employment statistics from the Bureau of Labor Statistics, tax receipts from the Indiana Department of Revenue, and industry insights from Smith Travel Research, ensuring a comprehensive and accurate assessment of Indiana’s tourism economy.
With Indiana’s domestic and international business travel rebounding at a faster pace than the national average, the state is well-positioned for continued tourism growth. Industry experts believe strategic investments in marketing, infrastructure, and attractions will further solidify Indiana’s reputation as a must-visit destination.
As tourism continues to fuel Indiana’s economy, local businesses, policymakers, and residents stand to benefit from increased visitor spending, job creation, and tax revenue. The future of travel in Indiana looks promising, with the potential for even greater expansion in the years ahead.
