State tourism builds the economy — and communities

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The 500-plus people who kicked off Explore Minnesota’s 2025 Tourism Conference at the Minneapolis Convention Center on Tuesday seemed to be the definition of optimists.

After all, they braved 15-below-zero temperatures to rally around encouraging visitors to Minnesota.

As residents already know, the state is indeed enticing — to an increasing number of wintertime visitors, even, as well as to those warmed by leafy trails or lively boulevards, images of which were projected Tuesday as key speakers, including Minneapolis Mayor Jacob Frey in person and U.S. Sens. Tina Smith and Amy Klobuchar via video, conveyed the importance and impact of tourism to the state and the nation.

They were followed by the executive director of Explore Minnesota, Lauren Bennett McGinty, who took to the stage to present a story, and statistics, about Minnesota tourism.

Such as the $24.2 billion in total economic impact for the state in 2023, made possible by the 80.2 million total visits by residents and nonresidents alike, activity that generates 180,473 jobs and $2.3 billion in state and local taxes. This, in turn, according to Explore Minnesota, saved each Minnesota household $1,002 in state and local taxes.

That last stat is “the way to really sell tourism,” said David Vang, a professor of finance at the Opus School of Business at the University of St. Thomas. “You may not be directly involved in the tourism industry yourself, like renting cabins on Lake Mille Lacs, or something that is obviously your bread and butter. But to actually see that even if you’re not directly involved in tourism, the taxes that visitors pay is very, very substantial, and does have an impact on Minnesotans’ household budgets.”

To be sure, the economic impact is significant. But so is the social impact, since tourism encompasses not just Minnesota’s varied geography but various communities at a time when political forces often pull them apart.

“Tourism creates a sense of community,” Bennett McGinty said in an interview. “Our neighbors, our friends, are working in businesses like restaurants and boutiques and hotels, and they are impacted by us bringing visitors to the state. But it also brings in visitor dollars that allow communities to build and grow and invest in the people who are living there and attracting new people, attracting new businesses.”

Attracting new people not just to visit but to live is increasingly an Explore Minnesota objective, and “one of the benefits of tourism messaging is it does a lot of that heavy lifting for us,” said Bennett McGinty. Part of that messaging was in its marketing campaign called “Star of the North,” which was viewed positively by 84.2% of those surveyed, according to Explore Minnesota. Efforts like this are amplified by studies like the one from Wallet Hub this week that ranks Minnesota as the second-best state to raise a family and retire.

“Our biggest messages are that you can come here and feel welcome and belong,” said Bennett McGinty.

Another salutary effect of tourism is it can increase support to preserve and protect the natural resources that draw so many to visit — and live in — Minnesota. To further that effort, Explore Minnesota, in collaboration with the Department of Natural Resources, the Department of Employment and Economic Development, and Iron Range Resources and Rehabilitation formed the Outdoor Recreation Industry Partnership in 2023 with the goal of supporting “the growth of a diverse and sustainable outdoor recreation industry and economy for the benefit of all Minnesotans.”

Explore Minnesota cites data from the Bureau of Economic Analysis that quantifies $13.5 billion generated by the outdoor recreation industry in Minnesota in 2023, supporting 96,000 jobs with an average salary of more than $61,000 — numbers that give an added dimension to the definition of the green economy.

“Minnesota is blessed with differences in geography and a very diverse economy, and tourism is certainly an important piece here,” said Vang.

Most profoundly, as the virtual world seems to invade every aspect of modern-day life, the real-life, natural experience of the outdoors becomes even more invaluable, as screens can’t capture the awe of the North Shore, northern lights or other Minnesota marvels.

Despite the momentum, there are challenges, however, including changing global perceptions about America’s openness, an issue flagged by Klobuchar in her video address and in her role as the co-chair of the Senate Travel and Tourism Caucus.

There are also issues about America’s figurative openness.

Take the case of Canada. Its proximity means Explore Minnesota treats the neighboring nation as a domestic market, Bennett McGinty said. But that welcome is compromised by President Donald Trump insulting the country by calling it the “51st state” and referring to its prime minister as “governor,” creating strains that are already apparent in what was historically a warm bilateral relationship.

Back home, as with so many entities, funding from state government will determine the ability of Explore Minnesota to build upon the momentum.

“Even with all the different things that are happening in our Legislature right now, it’s clear that people want to find common ground in Minnesota, and I think more tourism is one of those things that can bring people together,” said Bennett McGinty, who like other attendees projected optimism, even on a day when the glass half full would have frozen over.