Centerville Ranch looking west toward the Collegiate Peaks, it borders the National Scenic Byway. Photo courtesy of Central Colorado Conservancy.
Tourism has Been and Continues to be a Major Economic Contributor to Colorado’s Economy, But Storm Clouds May be on the Horizon.
Today the Colorado Tourism Office (CTO), a division of the Colorado Office of Economic Development and International Trade (OEDIT), announced that tourism contributed $28.5 billion to the Colorado economy and supported 188,510 jobs across the state in 2024. But Colorado’s market share (of U.S. tourism) has decreased in recent years, as has its share of travel spending.
Annual research compiled by Dean Runyan Associates and Longwoods International Travel USA shows that tourism continues to be an important economic driver across Colorado. But when combined with early 2025 data, indicators suggest that increasing competition, and uncertainty related to federal policy changes, are putting pressure on Colorado’s thriving tourism industry.
“Colorado’s unparalleled beauty, endless adventure, and rich arts and culture offer something for everyone to love. When we welcome visitors to our state, we support the state’s thriving economy and the livelihoods of Coloradans,” said Governor Jared Polis. “Despite the dangerous federal tariffs and inconsistent federal policies, Colorado is open for business and visitors from across the world.”
According to Dean Runyan Associates, traveler spending in Colorado increased from $28.4 billion in 2023 to $28.5 billion in 2024. Direct travel-generated employment created approximately 4,020 new jobs.
Additionally, state and local tax revenue grew to a combined $1.9 billion in 2024. This is a 1.3 percent increase from the previous year. According to Longwoods International Travel USA, actual visitation to Colorado increased by 2.3 percent, from 93.3 million in 2023 to 95.4 million visitors in 2024.
That growth is primarily attributed to day travelers, not those arriving for continuous stays.
“The 2024 impact numbers underscore the importance of Colorado’s tourism industry as a vital economic engine, fueling communities across the state and supporting over 188,000 jobs,” said OEDIT Executive Director Eve Lieberman. “A thriving tourism industry translates to strong local economies across Colorado,”
To promote Colorado’s strong tourism economy, the CTO utilizes the landmark Destination Stewardship Strategic Plan and Do Colorado Right messaging to balance quality of life for residents with the visitor experience while safeguarding the state’s natural resources, cultural heritage and vibrant communities. Leading travel and market research company SMARI found that Colorado’s 2024 winter marketing campaign earned the highest return on investment ever for a winter campaign when compared to all destinations they evaluate across the United States.
But at the same time, competition for travelers and the associated traveler spending is increasing across the U.S. While travel-related spending increased 0.3 percent in Colorado in 2024, the same metric increased 4.2 percent nationally.
Colorado’s market share has also decreased in recent years, dropping from a high of 2.1 percen in 2019 to 1.8 percent in 2024. Visitors who stayed overnight in a hotel, motel, or short-term vacation rental spent a combined $17.6 billion in 2024; which was a decrease of 0.4 percent compared to 2023.
Additionally, federal policy changes in 2025 have created uncertainty related to the tourism industry.
So far, 2025 numbers indicate that the increasing competition and uncertainty are impacting the tourism industry. Year-to-date through June 2025, hotel occupancy has declined two percent, while total hotel revenues have decreased 2.7 percent.
At the same time, Colorado’s short-term rental occupancy also decreased nearly 10 percent during the first quarter of the year.
“Colorado’s 2024 tourism numbers demonstrate the strength of our industry and its importance to our economy,” said Colorado Tourism Office Director Timothy Wolfe. “However, we recognize that increased competition and uncertainty are impacting communities across our state in varied ways. We are committed to bringing forward innovative ways to mitigate these changes while continuing to inspire the world to explore Colorado responsibly and respectfully.”
Other notable results from the Longwoods International and Dean Runyan Associates studies included:
Every $1 million in traveler spending led to the creation of 7 jobs for the industry.
For 2024 overnight visitors, the average length of stay was 3.4 nights.
The top activities and experiences for overnight visitors were outdoor and entertainment activities, followed by cultural and sporting activities.
Also important to accommodate: 23 percent of travel parties had a member who required accessibility services, notably above the US norm of 18 percent.
Direct travel-generated earnings grew from $9.7 billion in 2023 to $10.4 billion in 2024, an increase of 7.2 percent.
Earnings from Accommodation & Food Services grew from $4.4 billion to $4.6 billion, an increase of 4.4 percent.
Travelers spent approximately $13.9 billion in the Denver region alone in 2024, making up 48.8 percent of the statewide total.
20 percent of visitors used electric vehicles to get to the state, double the US average of 10 percent.
This could reveal a few strategic opportunities:
Given the top activities and experiences for overnight visitors, the county could continue to expand the county’s entertainment offerings;
The predisposition for electric vehicles could be capitalized on by local tourism services;
Reviewing and addressing the county’s accessibility services could make for a more welcoming tourist experience. for those with disabilities.
To view the full reports for Colorado Travel Impacts 2024 (Dean Runyan Associates) and Colorado Travel Year Report 2024 (Longwoods International), visit https://oedit.colorado.gov/tourism-research.