Tempe welcomed 4.5 million visitors in 2025
Media Contact:
KJ Philp / Director of Communications / kj@tempetourism.com / 480-305-1366
FOR IMMEDIATE RELEASE
Tempe, Ariz. (May 29, 2026) — 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, “2025: 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 2025.
Research shows that 4.5 million visitors to Tempe in 2025 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 fifth consecutive year. In 2025, Tempe welcomed 4.5 million visitors, an increase of .4% over 2024.
Additionally, visitor spending in Tempe saw a .7% increase in 2025. The study further shows that 61.7% of Tempe visitors stay overnight and 38.3% 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 fell 0.3% in 2025 and accounted for 3.2% of total volumes.
Types of Visitor Expenditures
The study outlined annual Tempe visitor spending in the top five categories:
• $298 million on food and beverage
• $276 million on lodging
• $216 million on transportation
• $197 million on retail
• $145 million on recreation
According to the study, visitor spending on lodging matched its 2024 rate of $276 million, holding steady after three consecutive years of growth. Hotel room demand edged down 0.3% in 2025, accompanied by a modest 0.2% decline in average daily rates (ADR).
The average length of stay increased to 2.4 nights per visit, up from 2.3 nights in the prior year Visitor spending in Tempe grew 0.7% to $1.1 billion in 2025, with gains across most sectors driven by price increases and growth in day visitation, offsetting declines in international and overnight demand.
Food and beverage spending led gains in 2025, rising 2.9%, with recreation also increasing 1.8% year-over-year. In contrast, transportation spending fell 2.3%, driven by declining gas prices.
Tax Revenues and Jobs
In 2025, visitor spending, tourism supported jobs and business sales generated $198 in federal, state and local taxes. State and local governmental revenues supported by visitor activity alone tallied nearly $120 million in 2025. This total represents $61 million in state tax revenue and $60 million in local tax revenue. Various taxes include sales, lodging and property taxes. Total taxes generated for state and local governments from tourism represent $1,550 in tax savings for every household in Tempe.
Visitor activity sustained 7,150 direct jobs in 2025, with an additional 1,751 jobs supported from the indirect and induced impacts of visitor activity. Total employment impacts tallied 8,900 in 2025, translating to one-in-seventeen jobs in Tempe.
“Tempe’s tourism industry continues to be a significant driver for Tempe’s economy,” said Tempe Mayor Corey Woods. “The study demonstrates that 4.5 million visitors enjoyed time in our community and spent more than $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 2025 was collected from several sources, including:
• Bureau of Economic Analysis and Bureau of Labor Statistics: Employment and wage data, by industry
• STR & AirDNA: Lodging performance data, including room demand, room rates, occupancy, and room revenue, for hotels performance data, including room demand and revenue for hotels and short-term rentals
• Datafy: Mobile geolocation data
• U.S. Census Bureau: Economic Census data, in addition to population, household, second homes and median real estate tax data
• Tax Collections: Lodging and sales tax collections for Tempe
• Tourism Economics: international travel data for overseas, Canadian, and Mexican arrivals 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 480-305-1366 or kj@tempetourism.com. 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.
