Economic Impact
Tourism plays a critical role in Minnesota—providing jobs and income
in many communities. It is important to get a handle on what tourism means
to a local economy. In 2005-2006, Minnesota comprehensively assessed the
economic impact of tourism (see state and regional reports on our Publications
page).
 Understanding
the Economic Impact of Tourism
The total economic impact of tourism is more than just the dollars a
visitor spends in a community. Tourism contributes to sales, income, jobs,
and tax revenues. Tourists spend money on a variety of things in a community—lodging,
attractions, food and other services—creating a direct effect on
the businesses and economy in the form of income that pays wages and taxes.
The tourism businesses in turn are buyers of goods and services required
to meet the needs of the visitors, and the direct tourism business receipts
are then spent on investments or purchase of goods and services. This
spending by tourism businesses as a result of increased tourist visits
creates indirect effects by contributing to wages and employment in other
local businesses that supply the goods and services to the tourism business.
For an overview of tourism’s economic impact and measurement we
recommend that you read two papers.
Additional resources
How to Measure Economic Impact
A number of tools are available that can be used to help estimate the
economic impact of tourism in your community. Below are links to resources
and tools to help you do this.
While these tools can help you develop estimates, conducting an economic
impact study is recommended to obtain a valid reflection of tourism’s
economic value in your community.
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