Kentucky’s tourism industry continues to be one of the Commonwealth’s strongest economic success stories. Throughout the 2020s, tourism has experienced remarkable momentum, with 2025 marking the state’s fourth consecutive year of record-breaking growth. The industry not only showcases Kentucky’s natural beauty, history, culture, and hospitality to millions of visitors each year, but it also serves as a powerful economic engine that supports communities in every corner of the Commonwealth.
Behind these record-setting numbers are the hardworking men and women employed throughout Kentucky’s tourism and hospitality industry. From hotel staff, restaurant employees, tour guides, and park rangers to distillery workers, retail merchants, event organizers, outfitters, and countless small business owners, these Kentuckians create the welcoming experiences that keep visitors coming back year after year. Their dedication helps strengthen local economies while preserving the unique character of Kentucky’s communities.
Tourism is especially important for many small businesses, which rely on visitor spending to grow and create jobs. Family-owned restaurants, locally owned shops, bed-and-breakfasts, outdoor recreation businesses, artisan markets, entertainment venues, and family attractions all benefit when travelers choose Kentucky as their destination. In many rural communities, tourism provides opportunities for economic development that might not otherwise exist.
A comprehensive analysis of visitor spending measures tourism’s impact on businesses, employment, personal income, and state and local tax revenues. The findings underscore just how significant the industry has become.
In 2025, approximately 81.1 million visitors traveled to Kentucky, spending $10.4 billion throughout the Commonwealth. That spending generated a total economic impact of $14.6 billion, benefiting businesses and communities across the state.
Visitor spending was concentrated in several major sectors:
Food and Beverage ($2.7 billion): Dining remained the largest category, accounting for 26 percent of all visitor spending.
Lodging ($2.4 billion): Hotels, cabins, campgrounds, and vacation rentals represented 23 percent of visitor expenditures.
Transportation ($2 billion) and Retail ($1.9 billion): Visitors invested heavily in transportation while traveling across Kentucky and purchased locally made products, crafts, and souvenirs unique to the Commonwealth.
Recreation and Entertainment ($1.4 billion): While the smallest spending category, recreation and entertainment experienced the fastest year-over-year growth, increasing by 5.6 percent.
Although international visitation declined by 13.9 percent in 2025, Kentucky’s growing popularity among domestic travelers more than offset that decrease. The Commonwealth welcomed 81.1 million domestic visitors, an increase of 1.1 million over the previous year.
Much of this growth reflects travelers’ increasing desire for authentic experiences. Kentucky offers an unmatched combination of outdoor adventure, rich history, culture, and hospitality. Visitors come to explore Mammoth Cave National Park, hike the trails of Red River Gorge, experience the state’s world-renowned bourbon industry, attend horse racing and equestrian events, enjoy festivals and live music, visit historic downtowns, discover museums and cultural attractions, fish and boat on Kentucky’s lakes and rivers, including Dale Hollow Lake, Green River Lake, and the Cumberland River in our district, and explore the Commonwealth’s award-winning state parks.
The economic impact of tourism can be viewed in three ways:
Direct impacts: Visitor purchases of goods and services, such as lodging, dining, retail, and attractions.
Indirect impacts: Businesses serving visitors purchase goods and services from suppliers, creating economic activity throughout the supply chain.
Induced impacts: Employees supported by tourism spend their wages within their communities, generating additional economic activity across the local economy.
The benefits of a thriving tourism industry extend well beyond the visitors themselves. In 2025, tourism supported 96,993 jobs across Kentucky, providing employment opportunities in communities large and small.
Visitor spending also generated approximately $1.1 billion in state and local tax revenue. Without that revenue, every Kentucky household would need to contribute an additional $581 annually to maintain current levels of public services and local government operations.
Kentucky’s tourism industry demonstrates that investing in the Commonwealth’s people, places, and unique experiences benefits everyone. As visitor interest continues to grow, tourism will remain an important driver of job creation, small business success, economic development, and quality of life for communities across Kentucky.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at amy.neighbors@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
(HD21 – News from the Office of Rep. Neighbors)