Kings Dominion, a sprawling amusement park in Hanover County, is a key driver of tourism spending in the region. (Photo courtesy Richmond Region Tourism)
Notice a lot of out-of-town license plates lately?
It’s not necessarily because metro Richmond is getting an influx of new arrivals. All those drivers could be heading to one of the many events, conventions or attractions that have drawn tourists from all over the state and beyond.
Tourism spending in the Richmond region has increased 98% over the last five years, jumping from $1.9 billion in 2020 to $3.8 billion in 2024. And the numbers aren’t just skewed by the drop in travel during the COVID-19 pandemic; since 2019, tourist spending is up more than 20%.
“What is surprising is that the trend we are seeing is not tied to one specific type of traveler,” says Dan Roberts, vice president of research and strategy for Virginia Tourism, which looks at numbers across the commonwealth. “What stands out is the overall strength of the entire Richmond metro area. The region is outperforming both statewide and national benchmarks.”
Roberts says that through the end of October, hotel demand across the region was up more than 7% over 2024. “That is remarkable in a year when national demand is essentially flat. The commonwealth as a whole is growing at about 1.8%,” he adds. “We’re seeing that growth on weekdays and weekends and on large event and tournament weekends, indicating that the growth is broad-based across segments, including leisure, business groups and meetings, and sports.”
Neil Amin, chief executive of Shamin Hotels, the region’s largest hotelier, says the biggest spikes have come from regional sports events and other meetings and conventions, along with new businesses and corporate relocations.
Meanwhile, a 2% lodging tax that went into effect in 2023 is generating substantial funds for tourism marketing and a new incentive program that hotel operators can utilize to entice larger groups and conventioneers to the region. In fiscal year 2025, the committee that distributes the funds doled out $2.5 million for 57 “event incentives” through fiscal year 2031, representing an estimated $85.7 million in economic impact.
“We’re finally seeing the benefits from all of those incentives,” Amin says, in addition to “all the economic investment that’s coming into the region, whether it’s CoStar downtown, Lego in Chesterfield, White Oak in Henrico … more demand is coming online for hotel assets.”
Katherine O’Donnell, president of Richmond Region Tourism, says the tourist numbers have been shooting upward since 2021 and have now surpassed prepandemic figures. “There’s a whole other segment of people who are coming here for leisure vacation,” O’Donnell says, noting the appeal of the city’s vibrant restaurant scene, history and art venues, and athletic attractions. “We can have a tournament at River City [Sportsplex, in Chesterfield], we could have something happening in Henrico all on the same weekend because we have such a large geography. When you layer all that together, that’s how we have the most productive sports tourism system.”
What is even more notable, Roberts says, is how broad the growth is. “It is not just one locality or one visitor segment driving the gains. The demand is widespread and consistent throughout the region,” he says. “In a challenging and unpredictable year, the region is not only pulling ahead of national trends, it is pushing Virginia’s overall performance and helping the commonwealth compete effectively versus neighboring states and the broader nation.”
The more tourist dollars the region collects, the better it is for every resident, Roberts adds. Tourism spending generates both state and local tax revenue — $264 million worth in Richmond, Henrico and Chesterfield in 2024, according to Virginia Tourism’s annual economic impact report.
“Ultimately, growth in visitor spending acts as an accelerant for local quality of life,” Roberts says. “Visitors bring in outside dollars that support restaurants, retail, recreation and entertainment — industries that residents rely on and that make a place feel vibrant.”
O’Donnell says many people are also coming to the city for meetings and conventions, noting that the Greater Richmond Convention Center downtown is the largest in the state. “We’re a great location. Conventions often see record attendance when they come here because of our proximity to so many people.”
Some jurisdictions are benefiting more than others. “Henrico County traditionally has the highest visitor spending because they have the lion’s share of the hotel rooms,” O’Donnell says. The county is also home to Richmond International Airport.
Henrico saw tourists spend roughly $1.9 billion in 2024, according to the state report; Richmond garnered $982 million and Chesterfield pulled in $640 million. The numbers include spending on lodging, meals, retailers and employment in tourism-related sectors, Roberts says, adding that tourists are fluid in where they spend their money. “A visitor might play in Chesterfield, eat and shop in Richmond, and sleep in Henrico,” he says. “So, the estimates reflect where spending occurs, not rigid boundaries around visitor behavior.”
This is one reason why the Richmond region created a tourism board more than 40 years ago, O’Donnell says. The regional tourism office covers seven jurisdictions: Chesterfield, Hanover, Henrico and New Kent counties, the cities of Richmond and Colonial Heights, and the town of Ashland.
Photo courtesy Short Pump Town Center
In the last fiscal year, the nonprofit and its partners booked 21 more events using the district’s newly available resources, showing a 12% increase in contracted room stays and a $17 million bump in estimated economic impact. “We know that visitors do not understand or care about geographic boundaries when they’re here,” O’Donnell says. “They might fly in at the airport, visit a museum, play on a field in Chesterfield [or] go to Kings Dominion. When they go home, they [say] they went to Richmond.”
Roberts says that when visitor spending grows, it reinforces the community’s identity. “That’s why tourism complements traditional economic development. It powers jobs and revenue, but it also lifts the experiences that make communities livable for the people who call them home.”
