Visit Truckee-Tahoe hired Dean Runyan and Associates to prepare the annual report on the Economic Impact of Travel in Truckee. The report, which was published in August, 2024 looked at data from 2023 to measure direct and total travel impacts including visitor spending, employment and earnings, taxes and fees, travel activity trends and overnight visitor details.
Economic Impact of Travel in Truckee in 2023
Travel and tourism continue to play a pivotal role in Truckee's economy, significantly contributing to local revenue, employment, and overall economic health. The recent report on the economic impact of travel in Truckee for 2023 highlights the following key insights and trends:
Visitor Spending:
- Total Spending: The past year brought challenges, with a 4.5% decrease in travel spending (lodging, groceries, gas, dining, retail), from $255.5M in 2022 to $243.9M in 2023.
- Lodging Revenue: During the COVID-19 pandemic, Truckee saw unprecedented visitation, with lodging revenue peaking at $66.8M in FY 21/22. Since then, lodging revenue has steadily ticked downward to $66.1M in FY 22/23 (1% decline) and is forecast by the Town of Truckee to be $61.12M in FY 23/24 (7.98% decline). While we are still significantly higher than $42M in pre-Covid FY 18/19, this market leveling underscores the importance of a strong strategic plan.
Lodging and Accommodations:
- Total Taxable Lodging Sales (aka Gross Lodging Revenue): Taxable lodging sales fell by 7.2%, from $68.4 million in 2022 to $63.4 million in 2023.
- Spending by Accommodation Type: Visitors staying in hotels, motels, or STRs spent $171.5 million, a decrease of 6.2% from the $182.8 million reported in 2022. In contrast, visitors staying in private homes (visiting friends and relatives) and second homes saw a slight increase in spending.
Overnight Visitor Volume:
- Overnight Stays: The volume of overnight visitors declined by 3.5%, with person-trips dropping from 526,000 in 2022 to 507,000 in 2023. The total number of person-nights spent by visitors also decreased by 3.0%, from 1,229,000 to 1,192,000.
- Tourism remains a cornerstone of our local economy. In 2023, overnight visitors contributed $171.5M (70% of $243.9M) outspending day visitors fivefold, demonstrating the vital role of lodging in driving economic benefits.
Employment and Earnings:
- Employment: The travel industry in Truckee supported 1,600 jobs in 2023, an increase of 2.0% from 1,570 jobs in 2022. The majority of these jobs (61.9%) were in accommodations and food services.
- Earnings: Direct earnings from travel-related spending increased by 4.5%, from $56.6 million in 2022 to $59.1 million in 2023. Retail sectors experienced the largest growth in earnings, rising by 12.0%.
Tax Revenue & Fees (Sales Tax, Transient Occupancy Tax (TOT), Tourism Business Improvement District (TTBID) Tourism Fee:
- Total Taxes and Fees: Taxes and fees generated by visitor spending decreased by 5.6%, from $19.8 million in 2022 to $18.7 million in 2023. Local tax (Town of Truckee) revenue saw a 6.4% decline, while state tax revenue decreased by 4.3%.
These trends underscore the importance of our strategic efforts to attract and retain visitors, particularly in the lodging sector, which remains a cornerstone of the Visit Truckee-Tahoe's Two Year Strategic Plan. By focusing on promoting longer stays and targeting higher-yield, sustainability-minded travelers, Truckee can enhance its economic resilience and continue to thrive as an authentic mountain town.
Open the Truckee Travel Research Dashboard for an overview of spending by sector (lodging, retail, restaurants, gas), employment, earnings and taxes.
Read the detailed Dean Runyan & Associates 2023 Economic Impact of Travel report.
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What’s Coming to Ski California in 2024-25
See how Ski California’s 36 resorts and $3.2 billion total economic impact, contribute to travel spending in Truckee and across the state in this infographic.
Ski California's 36 member resorts are gearing up for an exciting 2024-25 winter season, featuring new lifts, innovative dining options, expanded lesson programs, and popular events. Safety is a top priority, with Ski California launching gear giveaways and promoting its Mountain Safety Guide. Building on last winter's snowfall and strong visitation, this season will also see enhancements like expanded backcountry access and improved snowmaking systems.
Read Ski California's full press release.
Economic Impact of Travel in California Prepared for Visit California in 2023
- California visitor spending soared to an unprecedented $150.4 billion in 2023, surpassing the pre-pandemic 2019 record. Spending exceeded 2019 levels in 34 out of 58 counties.
- The industry’s remarkable recovery was accompanied by the creation of an additional 64,900 jobs in 2023, bringing the total number of California hospitality workers to 1.2 million
- Tax revenue generated by visitors reached $12.7 billion, funding vital local services for all Californians and marked a 3% increase over 2019
Read the 2023 Economic Impact of Travel recap report from Visit California.
