Wisconsin tourism scores another record-breaking year

Wisconsin’s tourism industry delivered to the state another record-breaking year in 2023, generating $25 billion in total economic impact, according to newly released state data.

The new record surpassed the previous record-breaking year of 2022, when the industry generated $23.7 billion in economic impact. Oneida and Vilas counties also continued to see growth in their tourism-generated economic numbers, though the growth for each county was generally below the state average.

Wisconsin Gov. Tony Evers said the numbers show what an important role the tourism economy plays in the state. 

“This didn’t happen by chance — this happens because of the hardworking folks in this critical industry who work day in and day out to make sure visitors enjoy their time here and come back year after year,” Evers said. “We’ve been proud to help support their good work by making smart, strategic investments over the last several years to support Wisconsin’s tourism industry, and our hard work together is clearly paying off.”

Statewide, in 2023, Wisconsin saw a $25 billion total economic impact, an increase of 5.4 percent from the previous year. The state’s 113 million visits shattered 2022’s record by 2 million visits, and the state recorded the most overnight visits ever, with nearly 46 million overnight stays.

The tourism growth was well-distributed: All 72 Wisconsin counties saw economic impact growth, and the industry supported more than 178,000 part-time and full-time jobs across various sectors, an increase of 2 percent. The industry generated $1.6 billion in state and local tax revenue, up 5.8 percent from 2022.

In Oneida and Vilas counties, the numbers continued to increase as well — in some cases also breaking previous records — though by several measures the growth was not as robust as elsewhere in the state.

In Oneida County, for instance, tourism’s overall impact grew from $363 million to $381 million, up 4.8 percent compared to the state average of 5.4 percent. In Vilas the total impact growth was 4.2 percent, from $365 million to $380 million.

Tourism-generated employment was stagnant in both counties, too, rising less than 1 percent in Oneida County from 2,124 to 2,144, while in Vilas County tourism-generated employment rose 1.3 percent from 2,111 to 2,138. 

Statewide, tourism employment grew by 2 percent.

The story was the same in direct visitor spending. Statewide growth was 5 percent. In Oneida County, the growth was 4.5 percent; in Vilas County, direct visitor spending grew by 3.8 percent.

A somewhat different narrative emerged in tourism-generated state and local taxes. Those grew by 5.8 percent overall, but in Oneida County the growth was 7.3 percent, up from $22 million to $23.6 million. In Vilas County, state and local taxes generated by the tourism industry grew by 4.8 percent, not a shabby number, either, but still behind the statewide average.

Multiple factors likely played a role in the numbers, not all of them long-term. For one, labor shortages continue to plague the state, especially rural counties, forcing some businesses to stay open for fewer days or hours, or forcing permanent closure.

For another, a crippling lack of winter weather beginning in December 2023 likely slashed year-over-year numbers to some degree and conversely boosted those numbers in southern counties. While the biggest impacts will likely show up in 2024 numbers, December holiday travel was likely impacted for 2023, with snowmobile trails opening in southern counties but remaining closed in northern Wisconsin.

At the end of this past January, a coalition of chambers and visitors’ bureaus in seven Northwoods counties estimated that the seven counties lost roughly $6.5 million in revenue in December and January due to the lack of adequate snow to open the trails. Many businesses reported 75-80 percent year-over-year losses during those months, the coalition reported.

If just a third of that loss occurred in December of 2023 — and holiday travel likely makes that number higher — losses in Vilas and Oneida counties, which account for three-quarters of those seven counties’ tourism revenue, would total about $1.6 million, making up a third of the lag behind the statewide average.

What the numbers will show in 2024 is so far anybody’s guess, given dramatic losses in January, February, and March. At first tourism leaders were gloomy that the numbers could be made up, though lately some have been heartened by numbers forecast for the summer season.

Then, too, in February Gov. Tony Evers announced that many Wisconsin businesses would be eligible for a federal disaster loan program for losses incurred as a result of the unusually mild winter. The governor said the Small Business Administration (SBA) confirmed that it would consider business losses from recent low snowfalls over the winter months to be related to the drought and eligible for assistance. 

The state is also prepared to plow more dollars in the state tourism budget. The 2023-25 biennial budget earmarked about $34 million over the biennium to raise Wisconsin’s profile across the country as a premier business, cultural, and recreational destination. According to the Evers’ administration, that is the largest increase in marketing and advertising funds for the Wisconsin Department of Tourism in state history.

In addition, Evers and the Wisconsin Economic Development Corporation (WEDC) requested the release of $10 million in already-approved funding for the Opportunity Attraction and Promotion Fund created in the 2023-25 biennial budget to bolster the recruiting and hosting of large-scale events, such as the 2020 Democratic National Convention, the 2021 Ryder Cup, the 2024 Republican National Convention, and the 2025 NFL draft. 

Last November, Evers also announced $36.6 million in grants using American Rescue Plan Act (ARPA) funds for building projects across the state, though most of the funds were directed downstate — in Janesville and Milwaukee — or Green Bay and Door County.

To date, the state has spent more than $200 million of ARPA funds on travel and tourism, hotels and lodging, and entertainment industries.

Richard Moore is the author of “Dark State” and may be reached at richardd3d.substack.com.