Distilling tourism created jobs, generated consumer spending and resulted in millions in tax revenue for Texas
Researchers at Tourism Economics, a subsidiary of Oxford Economics, today released “Economic Impacts of Distillery Tourism in Texas,” a new study highlighting the significant economic impact tourism to Texas’ 188 distillers made in 2022 (most recent available data).
The results of this study show the scope of the impacts of distillery tourism in terms of on-site and off-site spending by distillery visitors, as well as the total economic impacts of distillery tourism, including total business sales, employment, labor income and fiscal (tax) impacts.
“The booming growth of Texas distilleries in the last decade has contributed significantly to local and state economies,” said Michael Mariano, head of economic development at Tourism Economics. “Texas distillers are playing a critical role in the state’s economy not only by generating sales, but by increasing tourism and the many industries positively impacted by visitors.”
Key findings from the study show Texas distillery tourism generated:
- A total economic impact of $831.7 million in the statewide economy
- 2,089,000 visits to Texas distilleries
- $459.4 million in total on-site and off-site spending by non-local distillery visitors
- 7,700 total jobs
- $42.5 million in total state & local tax revenues
“The COVID-19 pandemic was tough on Texas distillers and the Texas tourism industry as a whole,” said Mike Cameron, president of the Texas Distilled Spirits Association. “Still, Texas makes terrific spirits and that draws visitors from near and far to the state. We are ecstatic that consumers are visiting our distilleries, sampling our products and falling in love with Texas distilled spirits. Supporting our local distilleries by supporting laws that help us compete in the marketplace has great benefit for the state.”
The study estimates non-local distillery visitors spent $112.8 million on food and beverage, $106.9 million on lodging, $91.0 million on retail, $78.7 million on entertainment and recreation, and $69.9 million on transportation (including gasoline purchases).
“This study makes clear that continued growth of the Texas distilling industry presents great opportunities for the state, and that the collective economic contributions of these small businesses could be even greater if antiquated laws restricting spirits sales were updated,” said Andy Deloney, senior vice president & head of state public policy at the Distilled Spirits Council of the United States. “Unfortunately, there are many obstacles Texas distillers face when operating in the state with less market access, restricted sales days and higher taxes. Given the popularity of Texas distilleries and their important role in the state’s economy, these outdated laws simply don’t make sense. It’s time to modernize Texas alcohol laws to help support this growing industry and spirits consumers throughout the state.”