Report shows state’s tourism industry posting strong recovery

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Delaware’s tourism industry is thriving, posting a record economic performance as the state recovered from the Covid-19 pandemic.

That’s the finding from a report for 2021 released Tuesday from the Delaware Tourism Office with research conducted by Rockport Analytics and Longwoods International.

The industry contributed $4 billion to the state’s gross domestic product and created 47,760 jobs. Visitor spending topped $5.9 billion, a 30% increase from 2020. Tourism remains a larger contributor to the state’s gross domestic product than all sectors other than healthcare, finance, and retail, the report indicated.

The tourism industry’s rebound was due to a number of factors, including pent-up demand from travelers who had been unable to take vacations during the pandemic, the state’s lower cost of living and proximity to major metropolitan areas, and the continued growth of the state’s entertainment and dining scene.

The tourism industry is a major driver of economic development in Delaware. In addition to creating jobs and generating tax revenue, tourism also helps to support other businesses in the state, such as retail, transportation, and hospitality.

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“The tourism industry is vital to Delaware’s economy, providing thousands of jobs and millions in tax revenue,” said Jessica Welch, director of the Delaware Tourism Office. “As evidenced by this latest study, tourism is rebounding significantly after a tough year in 2020. This rebound would not have been possible without the work of our partners in the industry. Their collaborative efforts are paying off and will be instrumental in the continued growth of the travel and tourism industry in our state.”

Delaware and many other states have increased government funding for tourism promotion. The state has been criticized for not adequately funding tourism promotion efforts over the years.

A separate report from the U.S. Travel Association showed Delaware had not fully recovered from the 2109 peak year for tourism, based on preliminary figures from 2022, with tourism-related employment and overall spending still down from 2019. A long-running labor shortage has impacted tourism employment.

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