SEATTLE (May 1, 2026) – Figures released today by State of Washington Tourism (SWT) reveal that Washington State’s visitor economy achieved only small gains driven by domestic day trips in 2025 while more lucrative overnight stays and international visitation declined and trailed national industry performance.
The annual Economic Impacts of Visitors in Washington State, compiled for SWT by national travel research firm Tourism Economics, was released today during National Travel and Tourism Week, May 3-9.
According to the report, total visitor expenditures increased just 0.9% to $25.3 billion in 2025, the smallest rate of growth since the post-pandemic recovery began. Visits to Washington held nearly flat at 111 million, a gain of only 0.1% over 2024. Growth was fueled entirely by the domestic day visitor market, masking declines in higher-value overnight and international segments.
Leisure visitation in Washington declined 0.8% in 2025, and its share of total international visitation fell from 2.2% to 1.9%. International arrivals (representing combined overseas and Canadian markets) fell 16.5% in Washington while International inbound visits to the U.S. declined 5.5%. In Washington, Canadian visits dropped more than 26%, a sharp reversal from the strong international recovery trend reported just one year ago. Nationwide hotel demand was down 0.4%. In Washington State, hotel demand was down 1.1% in 2025, exceeding the national average, according to STR data.
Direct state tourism employment declined 1.1% to 152,186 jobs in 2025. The food and beverage sector remained the largest employment segment with 61,236 total jobs, followed by recreation and entertainment with 27,379 and lodging with 26,119.
“A combination of geopolitical and economic factors made 2025 a tough year for the national tourism industry and those factors continue this year,” said David Blandford, SWT CEO. “However, we’re concerned by indications that Washington will have more ground to make up than competing western states with larger and more stable tourism marketing resources. Through pandemic recovery, Washington’s state tourism budget has dropped incrementally and data from Tourism Economics has documented comparatively slower rates of recovery than other western states in hotel performance, international tourism and employment.”
In March, Gov. Bob Ferguson signed a bill that could sustain Washington’s annual tourism budget at competitive levels in years to come. The bill, which becomes law on June 11, will allow the state’s private sector to establish and oversee an industry supported self-assessment that could yield as much as $25 million annually once the assessment program is ratified by its statewide industry participants.
“We’re hopeful that this funding mechanism will help us restore lost destination market share as well as offer critical resources during economic downturns so we can recover sooner and more fully across our state,” Blandford said.
Tourism is the state’s fourth-largest industry, and data suggests it holds greater potential as an economic engine. According to the Tourism Economics report, direct state and local tax revenue generated by visitors reached $3.5 billion in 2025, a 2.3% increase over 2024. While modest in growth, this figure offset the average annual Washington resident tax burden by $1,145 per household. Total government revenues attributable to visitor activity, including federal taxes, tallied $6.9 billion.
Business travel in Washington showed continued momentum in 2025, growing 13.9% for a second consecutive year. And average per-person spending edged up to $228, though international visitors continued to spend at dramatically higher rates, averaging $1,084 per visit compared to $212 for domestic travelers.
The total economic impact of Washington’s visitor economy reached $41.6 billion in 2025, encompassing direct visitor spending of $25.3 billion plus an additional $16.3 billion in indirect and induced economic activity.
Economic Impacts of Visitors in Washington State compiles survey data from Longwoods International; Bureau of Economic Analysis and Bureau of Labor Statistics by industry; STR lodging performance data; Washington Department of Revenue tax collections including lodging and sales tax receipts; and international travel data for overseas, Canadian, and Mexican travel to Washington based on aviation, survey, and credit card information.
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About State of Washington Tourism
State of Washington Tourism (the recently rebranded Washington Tourism Alliance) is a 501(c)(6) organization established by industry stakeholders with the sole mission of developing and sustaining Washington State destination tourism marketing. SWT procures and administers funds for state destination tourism marketing activities and creates and implements the strategic statewide destination marketing plan. Visit the destination website at www.stateofWAtourism.com or the tourism industry site at www.industry.stateofWAtourism.com.
MEDIA CONTACT:
Michelle McKenzie
Director of Marketing, State of Washington Tourism
E: michelle@stateofwatourism.com
P: 360-931-4806