VIRGINIA BEACH, Va. (WAVY) — A record-breaking $3.8 billion flowed into Virginia Beach’s economy in 2023, according to the city’s latest tourism report, solidifying tourism as one of the city’s largest economic drivers.
The new report, an economic impact study by Tourism Economics, shows this is an increase from 2022 when visitors contributed to $3.7 billion.
The report highlights the daily impact of tourism dollars, with visitors spending nearly $7 million per day in 2023. Key spending areas include food and beverages, which accounted for 42%, or about $1.1 billion, and lodging, which contributed $678 million, or 27% of the total tourism revenue. To take a closer look at those numbers, click here.
While the tourism sector has seen rapid growth, questions linger about how potential changes in economic policy — particularly with President-elect Donald Trump —might affect the local economy.
Adam Sacks, president of Tourism Economics, said there are positive and negatives, “particularly corporate income tax, perhaps at least extending those lower taxes or perhaps even lowering them further would be pro-growth. … On the downside, we would say the tariffs are not pro-growth, that they would raise prices, that they would invoke a trade war.”
Sacks added that Virginia Beach benefits from its East Coast location, which makes it easily accessible by car. This is a factor that helps the city attract a range of tourists despite rising costs.
The report also found that high-income households made up a significant portion of tourism spending in Virginia Beach, accounting for 60% of hotel revenue.
While tourism helps fund many local needs, Virginia Beach — like much of the country — faces challenges with rising housing costs. Mayor Bobby Dyer acknowledged the need for more affordable housing options to ensure the city’s quality of life remains accessible to all residents.