MONTGOMERY – Tourists in Alabama spent $1 billion each year for four of the past five years, setting a new record at $23.9 billion spent in a single year.

Around 29 million guests, up 200,000 from the previous year, vacationed at Alabama beaches, hotels, state parks, and campgrounds in 2024, setting records for the fourth year in a row, according to Governor Kay Ivey. The record spending by tourists helped create an estimated 248,590 jobs, she said. Every $140,726 of travel-related expenditures creates one new direct job in Alabama.

The state’s travel industry expenditures represent 7.3 percent of Alabama’s overall production in 2024, with the industry being responsible for generating total impact earnings exceeding $7.9 billion, including $4.4 billion in direct earnings. The figures are from a study conducted for the Alabama Tourism Department to estimate the economic impact of the state’s travel and tourism industry.

Gov. Ivey said, “Alabama continued its streak of remarkable success in the tourism and travel industry,” marking yet another banner year. “Alabama’s tourism industry remained strong. Across all corners of the state, there was a notable increase in tourism-related benefits, demonstrating the industry’s capacity to thrive even amidst economic fluctuations.”

The governor said, “What sets Alabama apart as a prime destination is its wealth of natural wonders, cultural treasures, and enriching experiences awaiting exploration. From the scenic beauty of its landscapes to the richness of its cultural heritage, Alabama offers visitors an array of unforgettable experiences that leave a lasting impression.”

Economist Dr. Keivan Deravi, who conducted the study, said that the state’s eating and drinking establishments accounted for half of the tourism-related jobs in 2024. The food industry created 53 percent of the positions, with overnight accommodations providing 21 percent, his study revealed. Entertainment provided 12 percent of jobs, and general retail contributed 6 percent, he said.

Deravi said that the travel industry has a direct impact on the state’s total economy. State law requires that 75 percent of the 4 percent state lodging tax paid by all hotel guests goes directly into the state General Fund that the Alabama Legislature spends for services to all residents. The $88 million of the Legislature’s portion of the lodgings tax benefits all residents of the state, the economist said. Without those funds from tourism, each household in Alabama would have had to pay an additional $707 in taxes just to maintain current service levels. One cent of the state tax funds the Alabama Tourism Department, he said.

The amount spent in 2024 was more than double what travelers spent a decade ago in 2014, according to the report. To access the 2024 Economic Impact Report, please use this link. For more information on visiting Alabama, visit www.Alabama.Travel.