Explore the impact of tourism in North Iowa and emerging opportunities

Tourism is a strategic driver of economic growth, regional identity, and community development across the state. North Iowa plays an important role in attracting visitors to the state each year and encouraging them to explore local communities as a final destination or an overnight on a longer excursion. Emerging opportunities in sports tourism and other areas are also picking up steam in the state and region.

At the heart of exploring these and other new economic opportunities is iTIP, or Iowa Travel Industry Partners, the statewide tourism association helping communities, travel organizations, and economic development organizations like Winn-Worth Betco explore the full potential of the tourism economy.

Iowa tourism by the numbers

The economic impact of tourism in Iowa is significant. In 2023, visitors spent over $7.3 billion in the state, marking the first time Iowa crossed the $7 billion threshold. Statewide, this spending supported over 71,000 jobs and contributed $2.5 billion in labor income and $1.1 billion in state and local taxes. In North Iowa specifically, covering counties like Winnebago and Worth, visitors spent a combined $28.7 million, generating over $42 million in business sales, supporting more than 200 jobs, and contributing $6 million in taxes.

What’s fueling this growth? Lerud credits Iowa’s position as a “drive-to” state, particularly after the COVID-19 pandemic.

“We are also a large outdoor recreation haven,” Chelsea Lerud, Executive Director of iTIP, said. “People were looking for wide open spaces, and we could offer them.”

The return of the road trip, and a shift in tourism toward outdoor activities like hiking, kayaking, and archery, have also boosted interest in more rural corners of the state.

Helping local organizations capitalize on tourism

“At iTIP, we operate in five key pillars: development, resources, education, advocacy, and marketing,” Lerud, said. The organization is starting its fifth year and has 140 member organizations ranging from convention and visitors bureaus to lodging properties, museums, local attractions, and casinos.

By providing educational services, such as webinars, online resources, and member toolkits, iTIP strives to equip members with effective tools for expanding and maintaining tourism efforts in communities of all sizes. One of its most innovative resources is an economic impact calculator developed in partnership with Iowa State University’s CyBiz Lab. With the tool, small communities can assess the financial impact of local events without the burden of survey collection.

The calculator can provide data based on anecdotal evidence gathered about an event, such as the number of attendees expected, an estimate for out-of-town visitors, and an estimate of overnight guests. From there, the tool uses standardized values for other spending categories and projects the return on investment. This data can be crucial for event organizers and attractions to share with community leaders and other stakeholders. On average, 300 events are run through the calculator each year, and the data can help time-limited entities determine where best to deploy resources and funding.

“It’s kind of a way to give a ‘taste test’ to a visitor,” Lerud said. “You’re throwing a big event, your best foot is forward, and it’s a way to invite that visitor back.” 

A view toward the future

Looking ahead, group tours and nontraditional amateur sports are two tourism segments where Iowa enjoys a unique growth position. For example, Lerud notes smaller rural communities can target attracting group tours for a day visit or an overnight stay to support local businesses.

While tourism revenue is clearly growing, sustainable funding remains a key concern. Advocacy efforts for iTIP in the coming year will focus on protecting critical funding sources and supporting school start date policies that allow for a full summer visitor season.

“Iowa is not a flyover state. We are a destination,” Lerud said. “We just need to be proud of what we have to offer and promote it. Tourism is a huge economic benefit for the state, and we need to keep doing the work we are doing.”

To learn more about recreation opportunities in Winnebago and Worth Counties, visit our website here.