On the surface, tourism is an industry that allows others to immerse themselves in diverse cultures, explore new or familiar places, and experience the welcome hospitality of the destination’s residents. On the inside, tourism is a powerful force that drives local economies and creates jobs.
From the serene atmosphere of its lush state parks to the heart-thumping roar at America’s largest speedway, Indiana’s tourism offerings have created an industry that has been a vital foundation in development. A new study released by the Indiana Destination Development Corporation (IDDC) shows that the industry is growing even more.
The IDDC commissions the study annually from the independent market research company Rockport Analytics.
“This data has been vital to evaluating our marketing strategies and gives us the opportunity to find more avenues to innovate as an organization,” said IDDC Secretary and CEO Elaine Bedel.
Among the highlights from the study, which researched tourism in Indiana for 2023, total Indiana visitor volume grew 1.2% from 2022 with 81.7 million person-trips to the state. The IDDC said these numbers show growth after the slowdown in tourism following the pandemic in 2020. Visitor spending was also up, growing another 7% to $16.2 billion.
In total, tourism generated nearly $3 billion in federal, state, and local taxes to Indiana’s economy. In terms of employment, jobs increased by 4.1% and wages rose by 5.8%. Economic impact grew 5.8% from $9.9 billion in 2022 to $10.4 billion in 2023. A major note in the study is that Indiana’s domestic and international business spending has recovered faster than the national average.
To keep that momentum going, the IDDC has implemented several new programs including $450,000 in grant funding for tourism projects in Fort Wayne, Evansville, Vincennes, Madison, Danville, DeKalb County, Spencer County and Lagro. The organization has also developed an open-source campaign that supplies a free toolkit of photos and videos for use by entities throughout the state to enhance their marketing efforts.
Building Indiana Business asked economic development leaders around the state to discuss their strategies for tourism and how the industry impacts their areas. Here are their responses:
Brian Asher, Executive Director
Shelby County Development Corporation
In Shelby County, tourism presents various opportunities in sectors such as hospitality, transportation, retail, and entertainment. This helps support the livelihoods of many businesses and individuals. In recent years, the NCAA Division 3 regional championship and youth national championship cross country meets have been held at the Blue River Cross Country course in Shelbyville. Last year, the youth national championship meet attracted 2,300 athletes to the community. Visitors who attend local events and festivals typically spend money in the community for accommodations such as hotels, food, and other services. This inflow of spending stimulates the local economy and boosts business revenues.
Tourism attracts visitors, and as visitors spend money, the increased tax revenue can be reinvested. Our community continues to add amenities, such as a new amphitheater that is being constructed at Blue River Memorial Park. The new amphitheater will serve as a venue for future events, increasing opportunities for tourism in Shelby County. These improvements also benefit local residents and enhance the overall quality of life in the community. Essentially, tourism is a powerful tool for economic development, as it helps to foster growth, stability, and prosperity in both local and state economies.
Jennifer L. Rubenstein, VP of Marketing & Communication
Boone Economic Development Council
Tourism plays a vital role in elevating economic development and strengthening the business community in Boone County, Indiana. A thriving tourism sector not only brings new visitors and dollars into our communities but also supports local businesses, attracts talent, and enhances the overall quality of life—key factors in economic growth and business attraction.
At Boone EDC, we’ve seen firsthand how tourism contributes to the financial strength of economic development by creating opportunities for small businesses, increasing foot traffic in downtown districts, and supporting hospitality, retail, and service industries. Discover Boone County, our county’s tourism initiative, plays a critical role in showcasing the unique experiences, attractions, and businesses that make our community a destination for visitors and new residents alike.
Boone County hosts a diverse array of events that drive tourism and business growth. The Best Day in Boone Community Day has become a signature event, mobilizing businesses, volunteers, and visitors to engage in service projects that enhance our communities. Annual festivals such as the Thorntown Festival of the Turning Leaves, the Zionsville Fall Festival, and Whitestown’s Viking Fest attract thousands of visitors, supporting local vendors and artisans. Lebanon’s Fourth of July Parade and Fireworks and Back to the Fifties Festival celebrate the county’s rich traditions, while Christmas in the Village in Zionsville and the Whitestown Holiday Market bring festive cheer and economic activity to local businesses during the holiday season.
Additionally, Boone County’s focus on public art and placemaking continues to evolve. Investments in creative projects, such as Boone EDC’s 180 in Color program, enhance the visual appeal of our towns and create new attractions that draw visitors. Outdoor recreation also plays a role in tourism, and community markets, encouraging both residents and tourists to explore our trails, parks, and small businesses.
Looking ahead, our hope is to continue developing a deeper partnership with Discover Boone County as a key driver of economic development by leveraging our community’s cultural, historical, and recreational offerings. Investments in placemaking, outdoor attractions, and arts initiatives will further position Boone County as a destination where people want to visit, live, and invest. By aligning tourism with economic development strategies, we can ensure long-term prosperity, making Boone County an even better place to do business.
John Launius, Vice President, Director of Economic Development
Tourism has a uniquely high impact on our local southern Indiana economy as Clark, Floyd, and Scott counties individually garner visitor interest while also leveraging their position within the Greater Louisville (KY-IN) bi-state region. Southern Indiana’s thriving arts scene, abundant recreation, top-notch dining, endless festivals, and authentic hospitality are mere minutes away from the historic Churchill Downs, Louisville Slugger Factory, and the Bourbon Trail to name a few.
Our local and regional tourism attractions and ecosystem not only create real and recurring revenue for local government, businesses, and households through significant spending and employment, but they also enhance our collective ability to maintain and grow industry and workforce through quality of place. Southern Indiana is well-positioned to maintain its tourism growth with several transformational projects underway such as establishing the 400+ acre Origin Park and Jeffersonville’s mixed-used redevelopment of a prime 80-acre shoreline site.
Julia Leahy, Community Development Director, City of Delphi
Board Member, Carroll County Economic Development Corporation
Tourism has played a huge role in growing the local economy in Carroll County. We are known for our heritage tourism as a hub for historic preservation and transportation assets. As the home of the only 1-mile working section of the Wabash and Erie Canal in the state of Indiana, people can experience Canal Life from the 1850s with a ride on a replica canal boat, a tour of the pioneer village, as well as experiencing the Canal interpretive museum. In addition, Carroll County is home to several historic bridges that have been relocated and rehabilitated in their new homes around the county.
Culturally, in addition to the historic value, the Delphi Opera House is home to several concerts and performances every year after being closed for most of the 1900s. From the sports and rec side of things, Delphi and all of the municipalities have walking trails, and many have bike trails. Delphi’s trail system generates hundreds of visitors each year. The Wabash and Erie Canal Park sees thousands of visitors annually from all over the United States. With our close proximity to Purdue University, it’s not unusual to have visitors from over a dozen countries each year.
Tourism supports nearly 200 jobs in Carroll County with a total economic impact of $6.8 million, according to the tourism impact study from 2023. Visitors spent over $24 million dollars, which is a significant amount for a small, rural county. All of our small retailers and restaurants rely on visitors for support as most could not survive with only 20,000 residents in the entire county.
One major impact has been the opening of the Hoosier Heartland Highway. For decades, St. Rd. 25 was only a two-lane highway that was dangerous and wasn’t the safest or fastest way to get to Delphi. Now, we have a four-lane highway in its place making it faster and safer for people to travel to Delphi and Carroll County. With 9% of the storefronts occupied, this community is thriving. Just in the last 10 years, tourism continues to spark new investment, new business, and new lodging opportunities. Breweries and wineries have opened, several short-term vacation rentals are now being utilized, and a number of new restaurants have opened. While Carroll County doesn’t (YET) have a hotel, the growth we’ve experienced has been amazing.
When your county is known as the #1 hog capital in the state of Indiana, you embrace that and celebrate. Delphi is now home to the Indiana Bacon Festival every fourth Saturday in August celebrating Bacon, Bands & Brew. Over the last 11 years, the small community of only 3,000 people experiences an influx of more than 10,000 visitors from all over the state of Indiana and the Chicago Region. It truly is an amazing thing to witness so many people from all over enjoying the day in Delphi.
Karen Radcliff, Vice President/Chief Strategy Officer
Tourism helps improve our community’s quality of life, directly supporting over 10,000 jobs and generating $1 billion in spending throughout Hamilton County. We elevate our incredible tourism businesses and events with annual marketing and sales efforts, and we shape the development of future tourism attractions and amenities through our collaborative research and planning program along with a capital grant fund called BEST — The Business of Entertainment, Sport and Tourism.
Kenneth Kosky, Executive Director
Festival Country Indiana
A just-released Rockport study of tourism’s economic impact in Johnson County during 2023 showed tourism is the 13th largest industry in our county. Our tourism agency works closely with our economic development and business leaders because we know our roles are interconnected. If we create a place that people want to visit and develop marketing that will get them here, they may choose to move here, look for jobs here or start a business here. Tourism is all about growing and promoting a strong quality of place, including small businesses, attractions, events and more. Today’s consumers and businesses are increasingly locating where there is a strong quality of place.
It is quite common for people from outside of our area to see our Festival Country billboards and signs and stop by our visitor center in downtown Franklin. Then, when we help them enjoy a day in our communities, many of them like it so much that they return to tell us that they decided to start looking for houses here. Another example of tourism’s influence is when Aspire was working to bring a Milwaukee Tool facility to our county. They enlisted tourism folks to lead a bus tour of the quality of life that employees and managers would enjoy here, and that helped seal the deal.
Our hopes for tourism are to work with our partners to attract new tourism-related businesses and attractions, to help create new festivals and events, and to attract more visitors and show them why the communities of Johnson County are so special.
Mitchell Kirk, Communications Director
Hancock Economic Development Council
Tourism has a powerful impact on elevating economic development and the business community in Hancock County and plays a significant role in the financial strength of both. Folks flock to Hancock County for recurring events like an annual festival honoring hometown hero poet James Whitcomb Riley, a yearly cross-county bike ride drawing cyclists from across the nation, and an outdoor summer concert series.
Businesses and organizations in the county also benefit from tourism by taking advantage of rare spectacles like being in the path of last year’s total solar eclipse. These visitors are a boon to the local economy by eating at local restaurants, shopping at local businesses, and staying at local hotels.
And speaking of Hancock County’s hotels –- they’re just a half-hour from downtown Indianapolis, making them excellent lodging options for all of the major events that the great city hosts.
The future of tourism in Hancock County is very bright as well, especially after ground broke in late 2024 on a conference center that will have a capacity of over 600 connected to a dual-brand hotel.
