Travel Powers $11.3 Billion in Economic Impact for Iowa, Sustaining One in 18 Jobs
A record 46.3 million visitors generated $1.2 billion in state and local taxes in 2025; continued annual growth since
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Visitors spent $7.6 billion in Iowa in 2025, driving a total economic impact of $11.3 billion and supporting more than 72,000 jobs, according to a new study by Tourism Economics, an Oxford Economics company. The Iowa Tourism Office announced the findings today that show continued sector growth year over year since 2021.
Iowa travel impact by the numbers (2025)
- 72,196 jobs supported, or 5.5% of all Iowa jobs.
- $2.6 billion in personal income for Iowans, about $1,947 per household.
- $1.2 billion in state and local tax revenue – the equivalent of $885 per household.
- $20.8 million spent by visitors each day.
- 46.3 million visitors – a record high volume.
In 2025, tourist spending grew year over year in food and beverage (+3.4%), retail (+2.5%), recreation (+2.1%) and lodging (+1.3%) categories. Overnight visits grew 0.6% to 22.3 million. Overnight visitors typically spend more per trip.
“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, 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.”
Sustained tourism sector growth since 2021:
- In 2025, visitor volume was up about 11%, from 41.8 million to 46.3 million. It has increased every year since 2021.
- Visitor spending was up about 23%, from $6.1 billion to $7.6 billion. It has also increased every year since 2021.
- Visitor-generated state and local tax revenue increased about 16%, from $1.0 billion to $1.2 billion.
Momentum continues in 2026
Early 2026 results signal continued growth. Hotel revenue (Jan. – Sept. 2026) across the state is up 11.3% compared to the same period in 2025. Short-term rental revenue increased 12.5% year over year and the state experienced a 2.6% increase in employment in both the lodging and food service categories this year. Additionally, the annual Iowa State Fair drew record attendance this August with more than 1.2 million visitors.
“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 continued. “We’re pleased to see continued growth as a result of strong partnerships and smart marketing.”
Every dollar a visitor spends supports Iowa businesses and workers, helping to fund the services on which residents rely.
The study was conducted by the Tourism Economics group within Oxford Economics. To learn more about the data and methodology, please visit: 2025_-_iowa_tourism_economic_impact_-_final.pdf.
About the Iowa Tourism Office
The Iowa Tourism Office, part of the Iowa Economic Development Authority, works closely with community partners, attractions and events, to promote the state’s beautifully vast scenery and unique history. For more information on everything Iowa has to offer tourists, visit traveliowa.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261022362001/en/
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