Record 46.3 million visitors fuel $7.6 billion in spending and $1.2 billion in state and local tax revenue as Iowa’s tourism industry continues its economic growth.

DES MOINES, Iowa (October 23, 2026) — Iowa’s tourism industry generated an impressive $11.3 billion in total economic impact in 2025, fueled by record visitor numbers, increased travel spending and sustained growth across the hospitality and recreation sectors.

According to a new economic impact study conducted by Tourism Economics, an Oxford Economics company, travelers spent $7.6 billion throughout Iowa in 2025, supporting 72,196 jobs and generating approximately $1.2 billion in state and local tax revenue.

The findings, announced by the Iowa Tourism Office and Iowa Economic Development Authority (IEDA), highlight tourism’s expanding contribution to Iowa’s economy and its role in supporting local businesses, workforce opportunities and community development.

With a record 46.3 million visitors in 2025, Iowa continued its streak of annual tourism growth that began in 2021.

Iowa Tourism Economic Impact Reaches $11.3 Billion

Tourism continues to serve as a significant economic driver for communities across Iowa, supporting employment, business revenue and public services through visitor-generated spending.

The latest report demonstrates the industry’s contribution to the state’s economy, with visitor spending averaging approximately $20.8 million per day.

Iowa Tourism by the Numbers: 2025

Tourism-supported employment accounted for approximately 5.5% of all jobs in Iowa, according to the report.

The industry also generated approximately $1,947 in personal income per Iowa household, while visitor-related state and local taxes represented the equivalent of $885 per household.

These revenues help fund public services and infrastructure while reducing the amount of revenue that would otherwise need to be generated from residents and businesses.

Visitor Spending Increases Across Iowa’s Hospitality and Recreation Industries

Visitor spending increased across several major tourism-related industries during 2025, reflecting continued demand for travel experiences, accommodations, dining and recreational activities.

Food and beverage businesses experienced the largest reported percentage increase among the categories highlighted, with spending rising 3.4% compared to the previous year.

Retail spending increased 2.5%, followed by recreation spending at 2.1% and lodging expenditures at 1.3%.

Overnight tourism also recorded gains, with overnight visitation increasing 0.6% to 22.3 million travelers.

Overnight visitors typically contribute more to local economies because their trips frequently include lodging, restaurant visits, entertainment and additional retail purchases.

For hotels, restaurants, attractions and small businesses, this continued increase in travel activity represents an important source of customer demand and revenue.

Iowa Tourism Industry Records Sustained Growth Since 2021

The 2025 results reflect several years of consistent expansion in Iowa’s tourism economy.

Since 2021, visitor volume has increased approximately 11%, while visitor spending has grown about 23%.

State and local tax revenue attributable to tourism also increased approximately 16% during the same period.

In 2021, Iowa welcomed approximately 41.8 million visitors and generated $6.1 billion in traveler spending. By 2025, those figures had reached 46.3 million visitors and $7.6 billion in spending.

Visitor-generated state and local tax revenue increased from approximately $1 billion to $1.2 billion during the same period.

“In 2021, we established a five-year strategic plan to strengthen and grow Iowa’s tourism industry in collaboration with local, regional and state partners,” said Amy Zeigler, State Tourism Manager for the Iowa Tourism Office. “Every year since then, steady growth in visitor volume, spending and tax revenue shows that our approach is paying off. Tourism is now one of the major economic pillars of our state.”

The sustained gains demonstrate the importance of partnerships among tourism organizations, local communities, attractions and private businesses in promoting Iowa as a travel destination.

Iowa Tourism Growth Continues into 2026

Preliminary tourism indicators for 2026 suggest the industry is maintaining its positive momentum.

Through the first nine months of 2026, statewide hotel revenue increased 11.3% compared with the same period in 2025.

Short-term rental revenue also recorded strong growth, climbing 12.5% year over year.

Employment in Iowa’s lodging and food service sectors increased 2.6% in 2026, further reflecting the industry’s importance to the state’s workforce.

Additional momentum came from the 2026 Iowa State Fair, which attracted more than 1.2 million visitors in August, establishing a new attendance record.

These developments point to continued demand for Iowa’s attractions, events, accommodations and hospitality services.

“These numbers reflect what Iowans already know: Iowa offers a dynamic travel experience for everyone whether you’re seeking outdoor adventure, world-class dining, culture and so much more,” Zeigler said. “We’re pleased to see continued growth as a result of strong partnerships and smart marketing.”

Tourism Strengthens Iowa’s Communities and Economic Development

Beyond its direct economic contribution, Iowa’s tourism industry supports a wide network of businesses and employment opportunities throughout the state.

Visitor spending benefits hotels, restaurants, retail establishments, transportation providers, entertainment venues, outdoor recreation businesses and local attractions.

The economic benefits extend into rural communities and smaller towns, where tourism can provide an additional source of revenue for independently owned businesses and help sustain community amenities.

For economic development organizations, a growing visitor economy can complement broader efforts to attract investment, support entrepreneurship and improve quality of life.

Tourism-related amenities, cultural destinations, recreational opportunities and community events can also contribute to a region’s appeal to prospective residents, employers and workers.

As Iowa continues strengthening its tourism sector, the combination of sustained visitation growth, expanding hospitality employment and increased tax revenue reinforces travel’s place in the state’s economic development strategy.

Iowa Tourism Office Advances Statewide Travel Promotion

The Iowa Tourism Office, part of the Iowa Economic Development Authority, works with communities, attractions, events and regional tourism partners to promote travel throughout the state.

Its efforts highlight Iowa’s outdoor recreation opportunities, cultural attractions, culinary experiences, historical destinations and community events.

The 2025 economic impact analysis was conducted by Tourism Economics, part of Oxford Economics, and examined the broader economic contributions of visitor spending, including employment, personal income and tax revenues.

For additional information about Iowa tourism destinations and experiences, visit Travel Iowa.