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 be ahead.
In 2025, the region experienced a strong year. Visitation levels increased, and as in prior years, our region welcomed over 4 million visitors, including 32% Oregonians, and 34% from Washington and California. Most notably, we saw increases in visitation during the shoulder and winter seasons, averaging an increase of 3.5% over that time. This closely follows changes to our marketing strategy, where 85% of our funds are focused on off-season months.
Air travel through Redmond Airport continues to soar, setting yet another record this year for passenger growth of 7% compared to 2024. With the expansion project well underway, those numbers are expected to continue to grow into the future. And, despite the turbulence in the economy, one trend has remained clear: people keep spending on travel. Overall visitor spending remained resilient, with preliminary data showing visitors spending roughly $1.3 billion in Central Oregon in 2025. Equally encouraging, we saw visitor spending increase 11% last winter, 9% in the spring, and 12% in the fall, again aligning with our focus of off-peak season growth.
Many of the travel trends we saw amidst uncertainty in 2024 continued to hold true in 2025: as costs increased, many travelers placed a greater emphasis on value. This was observed in the lodging sector, often seeing a shift to short-term rentals instead of hotel stays. Authentic, experiential travel and off the beaten path places in the great outdoors both remained popular, things Central Oregon is fortunate to have in abundance. Additionally, digital detoxes and wellness experiences emerged as greater priorities for travelers, particularly given the rise of AI and pervasiveness of technology as people seek an escape to the analog.
As it relates to Transient Room Tax, collections for Deschutes County increased 1.3% in FY25, a reversal of the decline in FY24, and have shown signs of continued growth so far in FY26 which is currently pacing well ahead of FY25.
Looking ahead to 2026, despite overarching concerns about the economy, there is much to look forward to. Consumer confidence has rebounded from earlier lows, and 93% of people report having travel plans in the next 6 months. Leisure travelers are committed but cautious, and wanderlusting for new experiences while wallet watching on costs. The United States will be hosting two global events between the World Cup and America’s 250th Celebration, and both are expected to bring new visitors. In the groups segment, Meet in Central Oregon is gaining real momentum as planners refocus on in-person, high-impact gatherings. This work is especially critical as group business increasingly drives midweek and shoulder-season demand, providing essential support for our resorts and the long-term health of the tourism economy. Group business for 2026 remains steady, and we see opportunities this year for attracting future-year business to decrease our future reliance on short-term bookings.
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 2024 Economic Impact Report, this visitor spending supports 10,730 jobs, lowers the average household tax burden by over $601, and supports local amenities and services such as public safety. This also allows Visit Central Oregon (VCO) to operate as both a regional marketing organization and a management organization that serves Deschutes, Crook, Jefferson, and southern Wasco Counties.
In its fourth grant cycle year, we continue the work of the Future Fund program and have now reinvested over $1.9 million lodging tax dollars back into 34 projects to date that support accessibility, sustainability, and cultural tourism throughout the Central Oregon region. New additions in 2025 Future Fund grantees included, among others, awards to Explore Prineville for the Adaptive Golf Project, Oregon Adaptive Sports for “Access, Elevated,” and Dirty Freehub for the High Desert Gravel Guide. Application information for 2026 is available on our website at visitcentraloregon.org.
We continue to focus on our core mission as a marketing-first organization, growing overall lodging tax collections for the benefit of all in Deschutes County and throughout the Central Oregon region. It is the success of our marketing that drives growth in revenue and jobs, supports public safety and grant programs, and any reductions from the legislature would likely have a negative impact on residents and our communities across the region.
Internally within the region, strong collaboration continues between our DMOs and Chambers. Visit Central Oregon approved its new five-year strategic plan, which calls for a greater focus on strengthening shoulder and winter seasons as well as a regional strategy for smoke and wildfire. VCO, through its partnership with Travel Oregon, continues to lead the Destination Management Studio programming, which incorporated feedback from a wide range of stakeholders. The program focuses on tourism management and sustainability in the future with grant funding to support the projects and outcomes. VCO and Visit Bend plan to partner closely again in 2026, not only on alignment in our marketing initiatives and grant cycles, but also in funding the Lava Lands Visitor Center internship program through OSU-Cascades and Discover Your Northwest. We believe that a rising tide raises all boats, and the current level of collaboration in the tourism sector of Central Oregon bodes well for the future health of our entire region.
With every new initiative, collaboration or partnership, Visit Central Oregon is focused on delivering on the objectives in our strategic plan, and with every marketing campaign, we are focused on introducing our communities and the businesses that support them to new visitors. As we look forward to 2026, I am optimistic about the opportunities that lie ahead. Despite many unknowns, our resiliency, creativity, and collaborative nature means that Central Oregon’s tourism economy remains well positioned and well-equipped for another 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.
