Business

Last year was Kentucky’s best for tourism economy and jobs, governor says

Kentucky has broken its record for tourism four years in a row.

In 2025, tourism across the Bluegrass State generated more than $14.6 billion in economic impact and supported nearly 97,000 Kentucky jobs, Gov. Andy Beshear announced June 10 in Frankfort.

Each household in Kentucky would have needed to be taxed an additional $581 in 2025 to replace visitor-generated local and state taxes, according to a report commissioned by a global travel company.

According to a Tourism Economics report, more than 81 million visitors — almost all of them visiting from within the U.S. — came to Kentucky last year, and they spent more than $10 billion supporting local businesses and attractions. Of the money spent, more than a quarter was on food and beverage purchases.

Compared to 2024, that’s an increase of more than 1 million visitors and an increase of about $300 million in spending.

“In 2024, we announced that we broke an all-time record with 10 new tourism development projects, and in the last six years, we’ve announced 37 tourism development projects totaling an estimated $1.1 billion in investment and 5,000 new jobs,” Beshear said. “We see and we recognize the importance that tourism plays in our success, and that’s why we invest where it counts.”

Economic impact, in the report and others like it, is a measure of direct, indirect and induced spending, wages and taxes.

More than $14 billion in economic impact was generated from $10 billion in direct sales, more than $2 billion in indirect sales and about $2 billion more in induced sales, or the business activity created by someone spending money they earned due to visitor activity.

Visitor spending is spread across all 120 counties, with several seeing significant increases, Beshear said.

Caldwell County saw a 23.5% increase in visitor spending and reached $22 million in economic impact.

In Henderson County, tourism supported more than 580 jobs and brought $98 million in impact. Pulaski County brought in $153 million in economic impact and supported 1,100 jobs. In Boyd County last year, there was $161 million in economic impact from tourism and 1,100 jobs in the industry.

The governor launched the New Kentucky Home initiative at the end of 2024 to unify economic development, talent attraction and tourism. It’s supported and uplifted the state’s bourbon industry as well as funded restoration projects at historic sites, coordinated a dining guide and added sites to the Kentucky African American Heritage Trail.

“Tourism is building pride within our communities. It helps preserve our heritage, fuel innovation and shines a spotlight on the diverse stories and destinations that make Kentucky truly unique,” said Kentucky Tourism Commissioner Mike Mangeot.

Cleo Battle, president and CEO of Louisville Tourism, highlighted one of last year’s biggest tourism announcements: the River City will host of the 2028 U.S. Olympic Gymnastics Team Trials, the two-week qualifying event for gymnasts to secure a spot to compete in the Los Angeles Olympic Games.

“Tourism is more than welcoming visitors, it’s about creating opportunity for new jobs, local businesses to grow and small businesses to be created,” Battle said. “Tourism brings energy to communities of all sizes, from rural towns to urban centers. Tourism drives investment, preserves our unique heritage and enhances quality of life for residents and visitors alike. In other words, when tourism thrives, communities thrive.”

Piper Hansen
Lexington Herald-Leader
Piper Hansen is a local business and regional economic development reporter at the Lexington Herald-Leader. She previously covered similar topics and housing in her hometown of Louisville, Kentucky. Before that, Hansen wrote about state government and politics in Arizona.
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