How Tourism Drives Economic Growth, Competitiveness
Tourism serves as a powerful economic engine for Connecticut, functioning as an export industry by bringing billions of dollars into the state.
In 2023, Connecticut welcomed 67.9 million visitors, who spent $11 billion across restaurants, bars, theaters, museums, stadiums, and other attractions.
Sales tax revenues generated by the food and hospitality sector exceeded $1 billion last year, an increase of more than 72% over 2019.
Visitor spending supported 83,655 direct jobs, but its impact extends far beyond the tourism sector itself.
Through indirect and induced effects, tourism spending generated an additional $7.5 billion in economic activity and created 40,745 jobs across industries like finance and manufacturing.
That powerful multiplier effect demonstrates how tourism benefits ripple throughout the entire state economy.
Broader Payoffs
Tourism’s influence also motivates infrastructure investment and connectivity improvements that have broader economic payoffs.
For example, rising travel demand has spurred expansions at Connecticut’s airports.
Tweed-New Haven Airport, once a sleepy regional airfield, is adding new flights and a modern terminal. The Lamont administration notes that Tweed’s expansion will “increase the state’s economic viability” and its appeal to businesses.
Tourism’s influence motivates infrastructure investment and connectivity improvements.
Bradley International Airport is exploring new international routes and construction is underway on projects like a new baggage facility and additional gates to accommodate growth in passenger traffic.
These transportation upgrades, driven in part by tourism and travel needs, also benefit residents and businesses by improving mobility and access to the state.
Beyond dollars and cents, a strong tourism sector enhances local pride, community engagement, and statewide identity.
Building Connections
A robust tourism sector also promotes a region’s unique identity, fostering community pride, and making local residents feel more connected to their home.
Crucially, tourism’s community benefits can help Connecticut tackle its challenge of retaining young adults.
The state has struggled with youth out-migration—in 2023, young adults aged 18–24 made up the largest group leaving Connecticut (2,762 individuals, 70% of all out-migrants).
Many of our college graduates and young professionals have been lured away to places with a more dynamic reputation or lifestyle.
Building a vibrant tourism and hospitality scene is one way to counteract that trend.
In other words, the same qualities that attract weekend visitors—a lively restaurant scene, interesting attractions, a cool arts vibe—can convince a 22-year-old to stay in Connecticut after college.
By investing in things that make tourists and locals alike excited about Connecticut, we give young residents more reasons to build their future here.
Return on Investment
Given tourism’s multifaceted benefits, there are strong arguments for policymakers to elevate tourism in Connecticut’s economic strategy.
One implication is that investing in tourism promotion yields returns.
Connecticut’s marketing budget for tourism remains relatively low—about $7.6 million in fiscal 2024, down from $12.2 million in 2022, with spending in both years boosted by federal pandemic relief funds—and lags neighboring states.
Connecticut’s marketing budget for tourism remains relatively low and lags neighboring states.
As a share of their budgets—excluding federal funding—Massachusetts spends about 1.6 times more than Connecticut, Rhode Island 2.8 times more, while Maine’s spending is about 12 times greater.
Business leaders argue that Connecticut should boost its tourism funding to a competitive level.
The goal is to increase the state’s visibility and capture a bigger slice of travel spending.
‘Time Is Right’
The CBIA Foundation’s recently released economic action plan, Opportunity Connecticut: Reimagining our Workforce, Economy, and Quality of Life, identifies tourism as a key strategic catalyst for economic growth.
While tourism contributes 9% to U.S. GDP, Connecticut’s tourism sector represents just 3.7% of gross state product.
This gap should not be seen as a weakness, but as an opportunity for policymakers to invest in a sector that delivers proven returns and can address multiple economic challenges identified in the foundation’s plan, particularly around talent attraction and quality of life.
“The time is right for Connecticut to make strategic investments in tourism as part of our broader economic development strategy,” says foundation director Dustin Nord.
“The time is right for Connecticut to make strategic investments in tourism.”
CBIA Foundation’s Dustin Nord
“Through our Opportunity Connecticut plan, we’ve identified specific ways to leverage tourism not just for direct economic impact, but as a catalyst for talent attraction and retention.”
Nord recommends a three-pronged approach:
- Increasing the state’s tourism marketing budget to competitive levels
- Better integrating tourism initiatives with workforce development efforts
- Creating stronger partnerships between state agencies, tourism boards, and major employers
“By treating tourism as a strategic asset rather than just a seasonal industry, we can help create a more vibrant, prosperous Connecticut that attracts both visitors and long-term residents,” Nord said.
For more information, contact the CBIA Foundation’s Dustin Nord (860.244.8522).
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CBIA IS FIGHTING TO MAKE CONNECTICUT A TOP STATE FOR BUSINESS, JOBS, AND ECONOMIC GROWTH. A BETTER BUSINESS CLIMATE MEANS A BRIGHTER FUTURE FOR EVERYONE.