Arizona is known for its more than 300 days of sunshine, world-class golf courses, spectacular hiking trails, vibrant culinary scene, rich cultural heritage and large-scale events that attract visitors from around the globe. 

These attributes certainly bring people to Arizona. But once here, the hospitality industry plays a critical role in turning that appeal into economic opportunity. The industry, especially local hotels and resorts, is the backbone of Arizona’s tourism economy, supporting hundreds of thousands of jobs, generating billions in tax revenue and strengthening communities throughout the state.

Consider the numbers. Arizona’s hotel industry supports more than 222,000 jobs, including more than 51,000 direct hotel positions, and generates nearly $12 billion in wages and salaries. Hotel guests spend more than $18 billion annually, and for every dollar spent on lodging, visitors spend another $2.34 at restaurants, shops, attractions and other businesses.

The industry also generates more than $5 billion in federal, state and local taxes annually, helping fund infrastructure, public safety and essential services that benefit Arizona residents.

The economic impact is particularly significant in Phoenix, where hotel operations and visitor spending generate approximately $7.2 billion in economic activity and support more than 42,000 direct and indirect jobs.

The Valley’s continued growth in semiconductors, advanced manufacturing, artificial intelligence and other industries is creating new opportunities for business travel, while conventions, sporting events and leisure tourism contribute to an increasingly diverse visitor economy.

That growth is reflected in the more than 16,000 hotel rooms currently in the Valley’s development pipeline. However, construction alone does not guarantee long-term success. Hotels depend on reliable transportation, effective destination marketing and a skilled workforce to meet future demand. 

Recent attention surrounding Destination PHX 2050, Phoenix Sky Harbor International Airport’s long-term development plan to accommodate an anticipated 90 million annual passengers by 2050, reflects a broader recognition of tourism’s importance to the region’s future. Such conversations are valuable because decisions about infrastructure, economic development and community investment affect Arizona’s competitiveness as a travel destination.

Despite these opportunities, the industry faces challenges worth considering.

Hotels operate around the clock, making utilities, insurance, labor and maintenance significant expenses. Rising operating costs can place pressure on businesses even when visitor demand remains strong. Predictable regulations, efficient development processes and a stable business environment are important to protecting existing investments and encouraging future development.

International tourism represents another significant opportunity. Canada and Mexico remain key visitor markets for Arizona, and stronger international connectivity can attract additional spending across the state. Every 1% increase in visitor volume represents approximately $300 million in additional visitor spending. 

With the election approaching, policies affecting Arizona’s hotel industry deserve attention. Candidates may differ on issues such as tourism funding, infrastructure investment, workforce development, labor regulations and the business environment for hotels. Understanding where candidates stand on these matters, and how their proposals could affect hospitality workers, local businesses and Arizona’s economy, is an important part of an informed public discussion. These are issues with consequences that extend well beyond the hotel industry itself.

The benefits of a thriving visitor economy extend well beyond the hotel lobby. They reach neighborhood businesses, working families and communities across Arizona. That’s why voting for the right candidate matters.

Rosanna Maietta is President & CEO of the American Hotel & Lodging Association, which focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.