Adirondack Region Visitor Spending Increases By 6.6% In 2023

11 Sep Adirondack Region Visitor Spending Increases By 6.6% In 2023

Essex, Franklin and Hamilton Counties lead the boost in spending

The New York State Governor’s office released its annual Tourism Economic Impact Report, which analyzes the economic impact of tourism throughout New York state. The Essex County and Regional Office of Sustainable Tourism (ROOST) officials have reacted to the Adirondack-focused section of the report which includes Essex, Warren, Franklin, Hamilton, Clinton and Lewis counties.

The 2023 NYS Tourism Economic Impact Report, compiled by Tourism Economics, showcases significant statewide gains over the then-record-setting numbers from 2022; far surpassing the highest numbers achieved prior to the COVID-19 pandemic. 

The Adirondack-focused section of the report indicates that the Adirondack region has experienced significant increases in economic benefits generated by tourism. Direct visitor spending increased by 6.6% overall with especially strong growth in Essex, Franklin, and Hamilton Counties.  Essex County experienced an 11.2% jump in visitor spending, followed by Franklin County at 7.2% and Hamilton County at 6.7%. Direct spending contributes to indirect impacts throughout the region such as business-to-business spending, employment and other fiscal contributions related to the tourism industry. It also positively impacts tax revenue generated within the local counties.

According to ROOST CEO Dan Kelleher, the report’s findings underscore the vital role that tourism plays in the region’s economy, particularly in sectors like lodging, food and beverage, retail and second-home spending. “Tourism is a major driver of employment and tax revenue across the region, generating over 44% of all labor income in Essex County and 37% in Hamilton County, ” he commented. “ROOST supports the local economy through tourism promotion; by encouraging visitation, we are directly impacting the numbers of visitors and how they spend their vacation dollars while within the region,” he said. “ROOST is consistently pleased with the results of this annual survey. This most current report indicates that spending is up across the board with an exceptional 11.2% increase in visitor spending in Essex County, along with market-beating results in Hamilton and Franklin counties.”

The Adirondack-focused section of the report outlined the following key findings:

• Visitor Spending: The Adirondacks experienced $2.3 billion in visitor spending, a 6.6% increase from 2022. Spending was spread across multiple sectors, with 46% on lodging (including second homes), 21% on food and beverages and 13% on retail and services.
• County Breakdown: Essex County led the region, representing 39% of total visitor spending. Essex County also saw the highest growth in visitor spending, with an 11.2% increase compared to 2022. Visitor spending increased 7.2% in Franklin County and 6.7% in Hamilton County.
• Tourism Employment: The Adirondacks supports 19,844 jobs related to tourism, accounting for 18.2% of the region’s employment. Tourism employment was particularly significant in Hamilton and Essex counties, where it constitutes 44.4% and 37.3% of all jobs, respectively.
• Tax Revenue: The tourism industry in the Adirondacks generated $268 million in state and local taxes in 2023. Were it not for tourism-generated tax revenue, the average household in the Adirondack region would have to pay an additional $2,447 to maintain the same level of government revenue.
• Economic Contributions: Tourism in the Adirondacks generated $576 million in direct labor income and $894 million in total labor income (direct, indirect, and induced impacts). The sector’s influence on local economies is significant, especially in counties like Essex, where 44.2% of total wages come from tourism-related activities.

According to Essex County Board of Supervisors Chair Shaun Gillilland, the report’s findings support the investments made by Essex County with regard to marketing, events, infrastructure and downtown development. “Tourism is vital to our local economy with more than 44% of wages in Essex County generated by tourism-related activity,” he said. “Our robust tourism economy helps with many initiatives that support the county’s communities.”

ROOST uses research, conducted throughout the year to identify visitor preferences and industry trends, to inform and plan various marketing initiatives, and assess the impact of marketing initiatives over time. According to ROOST COO Mary Jane Lawrence, this offers important information for both planning and assessment of marketing initiatives. “Our team reviews industry trends, visitor surveys and data collected while visitors are in the region and uses that information when developing marketing campaigns, messaging and specific tactics; the work is incredibly data-driven,” she said. “This economic impact study showcases the results of our work – increases in visitation and spending during their stay. A 6.6% increase in visitor spending across the Adirondacks is incredibly significant.”

Tourism Economics’ expertise includes tracking visitor spending, employment impacts, and fiscal contributions related to tourism. Key data sources include surveys from Longwoods International, lodging performance data from short-term rentals, and employment/wage data from the Bureau of Economic Analysis and Bureau of Labor Statistics.

The 2023 Adirondack Economic Impact Report can be found at ROOSTAdk.com/research.