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Tourism generates income locally

A new report from the Pennsylvania Tourism Office shows the tourism industry in the Commonwealth generated $76.7 billion in economic impact, supported 486,871 jobs, contributed $4.7 billion in state and local taxes, and welcomed 192.4 million visitors in 2022.

The 2022 Economic Impact of Travel and Tourism report provides state, regional, and county level estimates that demonstrate the importance of the travel industry to Pennsylvania’s economy.

The report shows visitor spending across the commonwealth and in the following local counties: Lehigh, $1.36 billion; Northampton, $1.1 billion; Schuylkill, $257 million; Carbon, $564 million, and Monroe, $2.83 billion.

“Tourism is the number one industry here in the Poconos,” said Chris Barrett, president of the Pocono Mountain Visitors Bureau.

The Poconos encompasses Monroe, Carbon, Wayne and Pike counties, where 65% of the total labor income comes from the tourism industry.

Barrett said 35,000 people work in tourism-related jobs.

“It’s a significant part of the economy,” he said.

The report echoes Barrett, noting that “As in previous years, the Pocono Mountains region had the highest proportion (39%) of the region’s total employment count (i.e., intensity) tied to travel and tourism among Pennsylvania’s 11 tourism regions in 2022, while Philadelphia and The Countryside region had the highest number of employees tied to travel and tourism.”

The results were highlighted recently by Department of Community and Economic Development Deputy Secretary of Tourism Carrie Fischer Lepore.

Key 2022 results of the report include:

• 192.4 million visitors, an increase of more than 12 million from 2021.

• $76.7 billion in total economic impact.

• $4.7 billion in state and local taxes.

• 486,871 jobs supported, which equates to 1-in-16 jobs in the state.

• A $7.5 billion increase in direct visitor spending to reach $45.4 billion - including hotels, restaurants, retailers and other tourism related businesses.

Barrett said the Pocono region relies on tourism a little more than other regions do. The report breaks down the state into the regions of Pocono Mountains, Dutch County Roads, Philadelphia and the Countryside, Pittsburgh and Its Countryside, Upstate PA, the Alleghenies, Laurel Highlands, Lehigh Valley, Pennsylvania Wilds, Pennsylvania’s Great Lakes Region, and Valleys of the Susquehanna.

“All of them have varying levels of how (tourism) affects the local economy but in almost every case, it is a large portion of it,” Barrett said.

Also according to the report, “Pittsburgh and Its Countryside, Dutch Country Roads, and Pocono Mountains regions together accounted for 57% of traveler spending on recreation in 2022, well above their combined 49% share of Pa’s total visitor spending. Travelers spent more than $1 billion on lodging in the Philadelphia and The Countryside and Dutch Country Roads regions, which together accounted for close to 50% of the total amount of traveler dollars spent on accommodations in Pa in 2022.”

“This report clearly shows that tourism is a significant economic driver in Pennsylvania that injects billions of dollars into our economy and helps to fund transportation, infrastructure, education, public safety programs and other vital services provided by the Commonwealth,” Fischer Lepore said. “Each household in Pennsylvania would need to pay an additional $880 in taxes to replace the tax dollars generated by the tourism industry which were received by state and local governments in 2022. The Shapiro Administration realizes the crucial role that tourism plays in Pennsylvania’s economy, as evidenced by the proposed $15 million increase in funding in the 2024-25 budget proposal.”

Visitor spending - which supports jobs, income, and business sales - generated $9.6 billion in government revenues. State and local taxes alone tallied $4.65 billion in 2022, an increase of $458 million from 2021.

Overnight visitor spending increased by $4.8 billion, with more than 66 million trips resulting in $28 billion in spending. Overnight visitors spent $419 per person, a $31 increase from 2021; while spending on day trips grew to $17.3 billion.

The Economic Impact of Travel and Tourism report is compiled at the Pennsylvania Tourism Office at DCED with information provide by Tourism Economics, an Oxford Economics Company based in Wayne, with data supplied by Longwoods International and STR.

Shapiro’s 2024-25 budget calls for a $15 million increase in funding for tourism.