Tourism: Game on

According to the state government, visitor spending across Virginia surpassed $30 billion in 2022, exceeding 2019 expenditures by 4.4%. Nevertheless, business travel still hasn’t returned to pre-pandemic levels, particularly in Northern Virginia. But leisure travel is back and booming.

Hotel revenues were up 13% statewide in 2023, compared with 2019, with more rooms sold at higher prices, due to inflation. Charlottesville saw room revenue rise 30% over pre-pandemic numbers, while Hampton Roads room revenue was up 22.6%.

Not surprisingly, the beach, Virginia’s historic attractions, sporting events and outdoor activities were big draws last year, as were the state’s three new casinos in Bristol, Portsmouth and Danville.

The three casinos brought in $58.5 million in December 2023, up from $51.9 million in November. The temporary Hard Rock casino in Bristol reported $157 million in net gaming revenues in its first year of operation, while Rivers Casino Portsmouth, the state’s first permanent casino, racked up almost $250 million last year. Danville’s Caesars Virginia casino, meanwhile, which opened in a temporary space in late May 2023 while a permanent casino is under construction, generated about $145 million for the six months it operated last year.

The permanent casinos in Bristol and Danville are expected to be completed by the end of this year, although the clock is ticking on Norfolk’s casino, a joint venture between the King William-based Pamunkey Indian Tribe and Tennessee billionaire Jon Yarbrough. Its plans have still not met local officials’ approval.

The casino’s developers submitted new plans late last year to the city government, aiming to start construction this spring, with completion planned by November 2025, the statutory deadline. Meanwhile, Richmond voters said no a second time to a casino, and now talk about a possible fifth casino in Petersburg or Fairfax County is building, although a General Assembly bill proposing a referendum in Fairfax has been tabled until 2025.

Another major deal waiting on General Assembly approval is a proposed $2 billion entertainment complex in Alexandria that would include a new arena for the Washington Wizards NBA team and the NHL’s Washington Capitals. Although it has the full backing of Gov. Glenn Youngkin and some Northern Virginia officials, many residents and some state legislators have expressed wariness and even strong opposition. If the General Assembly and Youngkin sign off on plans for a proposed sports and entertainment district in Alexandria, it would bring a 9 million-square-foot project to the Potomac Riverfront in National Landing, very close to Amazon.com Inc.’s HQ2 East Coast headquarters

Youngkin calls it a “once-in-a-generation historic development,” but Senate Democrats put the brakes on a bill that would create an authority for the project. A House bill was still alive in mid-February.

In other tourism and hospitality news, Kings Dominion’s parent company, Cedar Fair Entertainment, announced in November 2023 an $8 billion merger with Six Flags Entertainment that is expected to close in the first half of this year. And in York County, Princess Cruise Lines aborted its plans for making it a port of call this year and instead plans to stop in Norfolk. The proposal to bring in cruise line passengers had encountered opposition from local residents, some of whom expressed concerns regarding the potential environmental impact.

Also, Kalahari Resorts broke ground in Spotsylvania County in October 2023 for its $900 million destination water park resort, planned to include a 907-room hotel and 150,000 square feet of convention space. (See related story.) Local officials are bullish about the project, which is expected to bring in $83 million in tax revenue over its first 20 years and create up to 1,400 jobs when it opens in 2026.  

This story has been updated from an earlier version.