2024 Phoenix Tourism Economic Impact Report: A Sustainable Development Perspective

Executive Summary

A 2024 report by Tourism Economics, a division of Oxford Economics, details the significant economic and social contributions of tourism to the city of Phoenix. The findings indicate that the sector is a primary economic engine, aligning closely with several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities). In 2024, Phoenix hosted 20.8 million visitors, generating approximately $5 billion in economic impact, thereby fostering job creation and providing substantial fiscal revenue for community development.

Economic Impact and Contribution to SDG 8: Decent Work and Economic Growth

The tourism sector’s performance in 2024 directly supports the objectives of SDG 8 by promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The economic activity generated by visitors provides a stable foundation for local prosperity.

• Total Economic Impact: Visitor spending reached approximately $5 billion.
• Daily Contribution: Visitors injected an average of $13.7 million into the local economy each day.
• Employment Generation: The tourism industry was instrumental in supporting a significant portion of the local workforce.
  1. Directly supported 35,821 jobs.
  2. Indirectly supported an additional 20,778 jobs through related economic activities.

These figures underscore tourism’s role in creating employment opportunities and driving business growth, which are central tenets of SDG 8.

Fiscal Benefits and Support for SDG 11: Sustainable Cities and Communities

The revenue generated from tourism is a critical component in advancing SDG 11, which aims to make cities and human settlements inclusive, safe, resilient, and sustainable. The taxes collected from visitor spending directly fund public services and infrastructure, enhancing the quality of life for residents and preserving the city’s unique cultural and natural heritage.

• Total Government Revenue: The sector generated $1.5 billion in overall government revenue.
• State and Local Tax Revenue: Of the total, $703 million was collected in state and local taxes.

This substantial fiscal benefit enables investment in public infrastructure, cultural attractions, and the preservation of natural landscapes, contributing to a sustainable and resilient urban environment.

Visitor Metrics and Global Engagement

The growth in visitor numbers, particularly from international markets, highlights Phoenix’s increasing global appeal and contributes to the spirit of SDG 17 (Partnerships for the Goals) by fostering international exchange and understanding.

• Total Visitors: 20.8 million visitors were welcomed in 2024.
• Year-Over-Year Growth: The total number of visitors increased by 2.2% from 2023.
• International Visitor Growth: A significant increase of 11.1% in international visitors was recorded, demonstrating the city’s expanding global reach.

Conclusion: Aligning Tourism with Sustainable Development Goals

The “2024 Economic Impact of Visitors to Phoenix” report confirms that the city’s tourism industry is a powerful driver of economic vitality and a key partner in achieving sustainable development objectives. By creating tens of thousands of jobs (SDG 8) and generating hundreds of millions in local tax revenue for community investment (SDG 11), the sector proves its essential role. As noted by city leadership and Visit Phoenix, this momentum provides a foundation for continued investment in community and destination enhancement, ensuring that tourism growth remains aligned with long-term sustainability goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  The article directly addresses this goal by focusing on the economic benefits of tourism in Phoenix. It highlights how the tourism sector acts as a significant “economic engine,” contributing to the city’s overall economic growth through visitor spending and revenue generation. The creation of jobs is a central theme, aligning with the “decent work” aspect of the goal.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

  The article implies this target by mentioning Phoenix’s efforts to offer “future-forward experiences, like an autonomous taxi ride.” This points to technological upgrading and innovation within the tourism sector to attract visitors and enhance their experience, thereby boosting economic productivity.

• Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.

  This target is central to the article. The entire piece serves as a report on the success of Phoenix’s tourism policies. It explicitly states that tourism “directly support 35,821 jobs.” Furthermore, it mentions the promotion of local culture and products through “vibrant cultural attractions and beautiful desert landscapes, world-class hospitality and recognized culinary menus,” which are key components of the city’s tourism appeal.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.

  The article provides several data points that serve as direct measures for this indicator. These include:

  • Total visitor spending: “$5 billion last year.”
  • Average daily spending: “$13.7 million per day.”
  • Growth in visitor numbers: “International visitors increased by 11.1%, driving up the total number by 2.2% from 2023.”
  • Total visitors: “20.8 million visitors in 2024.”
  • Government revenue generated: “$1.5 billion,” with “$703 million… through state and local taxes.”
• Indicator 8.9.2: Proportion of jobs in sustainable tourism industries out of total tourism jobs.

  The article provides a direct measure for this indicator by stating the number of jobs created by the tourism sector: “Tourism also helped directly support 35,821 jobs and another 20,778 through indirect impact.” This quantifies the employment contribution of the tourism industry.

4. Summary Table of SDGs, Targets, and Indicators

Source: ktar.com