Southwest tourism spending climbs

Visitor spending in Southwest Virginia reached $766 million in 2023, a 12% increase from 2022, according to data from the Virginia Tourism Corp. The region also saw a 29% increase from 2019, a rise that puts it well above that of the state as a whole, which saw a 15% increase in tourism revenue from 2019 to 2023.

“Locally, it boosts revenue for small businesses, supports job creation and generates increased tax revenues that fund community services and infrastructure,” says Kim Davis, executive director of Friends of Southwest Virginia. “Regionally, it solidifies Southwest Virginia’s position as a key destination for outdoor recreation, music and cultural tourism, fostering partnerships, attracting investments and promoting the region’s unique heritage.”

Plus, she adds, “Southwest Virginia’s success enhances Virginia’s overall tourism economy by offering a distinct appeal that complements other regions, attracting diverse visitors and contributing to the state’s reputation as a destination rich in varied experiences.”

During the pandemic, the region suffered a 24% decline in visitor spending, dropping from $594 million in 2019 to $452 million in 2020. But that drop in tourism revenue was not as sharp as other regions, such as Northern Virginia, which saw a 49% decrease during the same time period, from $14.6 billion to $7.4 billion.

Southwest Virginia’s visitor spending managed to bounce back by 2021, while the overall state and its other regions took later to follow suit, says Dan Roberts, VTC’s vice president of research and strategy.

He attributed SWVA’s smaller downturn, swift recovery and continued growth to the fact that many of the region’s offerings took place outdoors, where people could escape the captivity of pandemic life.

Such offerings include outdoor activities like hiking and canoeing and musical and cultural heritage sites like the Birthplace of Country Music Museum and The Crooked Road music trail. Visitation for the region’s state parks was higher in 2020 and 2021 than in 2019, according to Roberts.

Aided by $50 million in American Rescue Plan Act funding, VTC also increased advertising spending in 2022 and 2023 to help Virginia recover, Roberts says.

“Traditionally, our marketing impact has been in five core markets: D.C., Philadelphia, New York, Baltimore, and Raleigh, [North Carolina],” Roberts says. “With that additional funding, we were able to market in Atlanta, Charlotte, [North Carolina], and Nashville, [Tennessee]. … Every single locality in Virginia received some assistance from us for tourism promotion or tourism development.”