Colorado Tourism Spending Hits Record $29.2 Billion

Glenwood Springs —Does the roar of the ski lifts and the clatter of hotel breakfast buffets still feel like the heartbeat of our economy, or are we hearing the first cracks in the foundation? That is the question hanging over Colorado’s tourism sector as we look toward 2026. The state just celebrated a record-breaking year, with traveler spending hitting $29.2 billion in 2025, a figure that sounds like pure victory lap material. But if you look closely at the numbers, there’s a warmth to the celebration that is quickly cooling into caution.

The story, as reported by the Post Independent, is one of record highs meeting rising friction. Governor Jared Polis and the Colorado Tourism Office announced the figures on Tuesday, celebrating a 1.4% increase in visitor numbers to over 96 million. It’s easy to get swept up in the volume. But the real story isn’t just how many people showed up; it’s how much they spent compared to their neighbors, and whether that spending power can hold steady when the weather turns and the federal policy dice are rolled.

Denver remains the undisputed king of the travel economy, pulling in roughly $14.2 billion, which is nearly half of all travel spending in the state. It’s a massive engine, fueled by visitors from California, Texas, New York, and Florida. But for those of us on the Western Slope, the headline isn’t just about the capital. It’s about the competition. Colorado’s domestic overnight market share has been slipping, dropping from a high of 2.3% in 2019 to just 1.79% in 2025. We are still welcoming people, but we are losing ground to the rest of the country, where the number of people traveling more than 50 miles continues to grow.

Tim Wolfe, director of the Colorado Tourism Office, put it plainly during a virtual presentation. “We have been on a continuous decline,” Wolfe said, noting that while visitor numbers have leveled off, the sheer volume of American travelers is outpacing us. He forecasted 2026 to be relatively flat, a stark contrast to the boom years. This isn’t just a prediction; it’s a reflection of what’s already happening in the hotels. For at least the second year in a row, Colorado hotels have recorded lower occupancy, lower rates, and lower revenue per available room. The rooms are there, but the premium pricing power is fading.

There’s also the matter of jobs. The industry supported roughly 187,860 jobs last year, generating $1.91 billion in state and local tax revenue. Worker earnings rose 1.6% to $10.5 billion, which is a positive note. But Leon Aliski, Senior Project Manager at Dean Runyan Associates, pointed out a subtle but significant shift. “Not a big loss of jobs, but it’s the first year that we’ve seen since COVID where the jobs have actually ticked down,” Aliski said. A decline of 1,160 jobs might seem small in the grand scheme, but it’s the first time we’ve seen that contraction in the post-pandemic era.

What’s driving this deceleration? It’s a mix of factors. Increased competition from other Western states, like California, which saw a 1.7% increase in spending, means Colorado is no longer the undisputed winner in the West. Federal policy uncertainty looms large. And then there’s the weather. So far in 2026, fluctuations in visitation have been linked to weather challenges, including historically low snowpack in some areas and erratic temperatures that disrupt the classic mountain experience.

The research compiled by Dean Runyan Associates and Longwoods International Travel USA highlights that this isn’t just about one bad season. It’s about a structural shift in how travelers choose their destinations. We are still a top draw, but we are no longer an automatic one. The friction is real, and it’s coming from every direction.

As you drive down Highway 6 or wander through the historic district, you might not feel the 1.79% market share drop. But the hoteliers and the restaurant owners are feeling the squeeze. The record spending of 2025 was a gift, but it came with a warning label. The road ahead for 2026 looks flat, and the wind is picking up.