Tempe welcomed 4.5 million visitors in 2024
Media Contact:
KJ Philp / Director of Communications / [email protected] / 480-305-1372
FOR IMMEDIATE RELEASE
Tempe, Ariz. (May. 14, 2025) — Tempe Tourism just released findings of its comprehensive research project, conducted by Tourism Economics, that details the economic impact of the tourism industry in Tempe.
The study, “2024: Economic Impact of Visitors to Tempe, AZ,” provides a detailed look at the positive effect of tourism in terms of visitor spending, income, employment and tax revenues in the calendar year 2024.
Research shows that 4.5 million visitors to Tempe in 2024 were responsible for more than $1.1 billion in direct spending on tourism.
“Tempe’s hospitality industry experienced another year of growth, demonstrating the importance of tourism in Tempe,” said Michael Martin, Tempe Tourism Office President and CEO. “Tempe’s hospitality industry represents our hotels, shops, restaurants and attractions, but it also impacts many other industries through indirect and induced spending. Tourism is a vital industry that generates jobs and revenues that support important services for our residents.”
Increases in Visitor Volume and Spending
According to the research, visitor volume and spending has continued increasing since 2020 — surpassing 2019 in both categories for the fourth consecutive year. In 2024, Tempe welcomed 4.5 million visitors, an increase of 2.1% over 2023. Additionally, visitor spending in Tempe saw a 3.4% increase in 2024.
The study further shows that 62% of Tempe visitors stay overnight and 38% 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. Meanwhile, international visitors to Tempe grew 5.1% in 2024 and accounted for 3% of total volumes.
Types of Visitor Expenditures
The study outlined annual Tempe visitor spending in the top five categories:
• $289 million on food and beverage
• $276 million on lodging
• $221 million on transportation
• $195 million on retail
• $143 million on recreation
According to the study, visitor spending on lodging climbed to $276 million in its third consecutive year of growth. Hotel room demand expanded 1.0% in 2024, but was offset by a 2.2% decline in average daily rates (ADR). In 2024, the average length of stay came in at 2.3 nights per visit.
Visitor spending on recreation (which includes entertainment) grew 9% in 2024, contributing an additional $12 million to Tempe’s visitor economy. Similarly, spending on food and beverage grew 6%, nearly $16 million more than the previous year.
Tax Revenues and Jobs
In 2024, visitor spending, tourism supported jobs and business sales generated $197 in federal, state and local taxes.
State and local governmental revenues supported by visitor activity alone tallied nearly $120 million in 2024. This total represents $60.6 million in state tax revenue and $59 million in local tax revenue. Various taxes include sales, lodging and property taxes.
Total taxes generated for state and local governments from tourism represent $1,563 in tax savings for every household in Tempe.
Employment directly supported by visitor spending increased 2.4%, adding 167 jobs in 2024.
“Tempe’s tourism industry continues to be a significant driver for Tempe’s economy,” said Tempe Mayor Corey Woods. “The 2024 study demonstrates that 4.5 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 2024 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 Tempe Tourism.
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 President and CEO, can be arranged upon request.
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Tempe Tourism 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.
