As we look forward to the new year and what it might hold for tourism in Central Oregon, it’s important to reflect on the prior year to know what may lie ahead.
In 2024, the region fared well despite unknowns and headwinds, while some of the key tourism agencies experienced many internal changes. Central Oregon welcomed 4.1 million total visitors as compared to 2023 while the Redmond Airport saw passenger growth of nearly 8%. Travelers continued to seek new adventures, authentic and experiential travel, and the desire to get out and explore with a focus on keeping costs lower as our economy wrestled with historically high levels of inflation and the tumult that occurs during election years.
However, despite some of these overhanging challenges, our industry continued to make great strides. While visitation remained steady, overall visitor spending increased. As a way to offset the rising costs of travel, we witnessed a shift toward multiple, shorter stays rather than fewer, longer stays per travel party. We continued to see travelers who were seeking open spaces and the great outdoors, things Central Oregon has in abundance, as they looked for ways to continue to travel with an eye toward expenses. As it relates to Transient Room Tax, collections for Deschutes County were down less than 1% year over year, roughly flat compared to prior years in FY24 and a sign that things have started to balance out post-pandemic before another period of growth.
Looking ahead to 2025, the election season is now in the rearview mirror and consumer confidence continues to trend up while inflation expectations have started to trend down. At a macro level, the economy shows many signs of strength. Corporate and wedding bookings are both pacing ahead of prior years for many of our resort partners. Air travel is seeing record numbers, and 92% of people have travel plans in the next six months according to Longwoods International.
As travel spending increases, so does the tax revenue that is generated. This revenue serves Central Oregon in many ways beyond just the lodging tax. Per Dean Runyan’s 2023 Economic Impact Report, this visitor spending supports 10,650 jobs, lowers the average household tax burden by over $600, and supports local amenities and services such as Police, Sheriff, and Fire. This also allows Visit Central Oregon to operate as both a regional marketing organization and a management organization that serves Deschutes, Crook, Jefferson, and southern Wasco Counties.
In its third grant cycle year, we continue the work of the Future Fund program, reinvesting over $1.46 million lodging tax dollars back into projects that support accessibility and inclusion, sustainability, and cultural tourism. New additions in 2024 Future Fund grantees included awards to the South Wasco Alliance for the Simnasho Tribal Market, the Diverse Stories Exhibition Series at the High Desert Museum, and Central Oregon Trail Alliance to enhance the Cline Butte Mountain Bike Trail. Application information is available on our website at visitcentraloregon.org and applications close on February 14, 2025. We continue to focus on our core mission as a marketing organization first and foremost, growing overall lodging tax collections for the benefit of all in Deschutes County and throughout the Central Oregon region.
Internally within the region, there were multiple leadership transitions. The Visit Central Oregon team welcomed me as our new CEO, moving from Laramie, Wyoming, while the Visit Bend team welcomed their new CEO Jeff Knapp from McMinnville, Oregon. The close timing of these events is fortuitous for the region, ushering in new ideas, perspectives, and a renewed focus on collaborative partnerships between the region’s two largest destination marketing and management associations.
The Visit Central Oregon team continues to do great work throughout the region and this year will complete the Central Oregon Destination Management Studio. This program has had high levels of engagement and input from stakeholders throughout the region along with support from Travel Oregon. The program focuses on tourism management and sustainability in the future with grant funding to support the projects and outcomes.
Additionally, the Visit Central Oregon board and team will complete a multi-year year strategic plan this spring. This process allows our board to identify key organizational pillars and one-year initiatives with action steps to achieve them while the team puts together a plan for work to ensure success. Likely outcomes of this plan will include a greater focus on strengthening shoulder seasons, increased winter marketing, growth in southern Deschutes County, and messaging with a regional focus around smoke and wildfire season.
Every marketing project, strategic initiative, or enhanced partnership that we put forward is focused on putting our tourism businesses and communities in front of new, potential visitors at the right time with the right content. As we turn the page to 2025, I am optimistic about the year ahead. Despite the challenges and turbulence we faced in 2024, Central Oregon continues to be well positioned and well equipped for growth and a successful year ahead.
Please reach out with any questions regarding Visit Central Oregon programs and initiatives by emailing scott@visitcentraloregon.com or calling 800-800-8334.
