Tourists in Alabama spent $1 billion more than in the previous record-breaking year of 2024, reaching a new record of $24.9 billion in 2025.
Around 29.2 million tourists vacationed at Alabama beaches, hotels, state parks and campgrounds in 2025, setting records for the fifth year in a row, according to Gov. Kay Ivey. Spending in Alabama has increased by almost $1 billion each year over the past five years, bringing the new record to $24.9 billion in a single year.
The tourism industry helped support 255,780 jobs in the past year, the governor said. For every $140,735 of expenditures in the travel industry, one new direct job is created. Economists estimate that for every two direct jobs created, the Alabama economy indirectly creates one additional job, according to a press release from the Alabama Tourism Department.
The hospitality industry generated $4.6 billion in direct earnings, with total impact earnings exceeding $8.2 billion. The state’s eating and drinking establishments accounted for more than half of the jobs in 2025. The food industry created 53 percent of the positions, with overnight accommodations providing 22 percent, the study revealed. Entertainment provided 12 percent of jobs, and general retail contributed an additional 6 percent.
The five counties of Baldwin, Jefferson, Madison, Mobile and Montgomery attracted the largest numbers of travelers. More specifically, 72.4 percent of the total number of travelers chose one of the top five counties as their destination.
The amount spent in the state has climbed for 14 of the past 15 years, only falling in 2020 during the height of the COVID pandemic. Over a decade ago, tourists spent $11 billion in one year, less than half the amount spent in 2025, State Tourism Director Lee Sentell said.
The travel industry directly benefits the state’s total economy, tourism officials said. State law mandates that three-quarters of the 4 percent State Lodging Tax goes directly into Alabama’s General Fund, which the Alabama Legislature provides for services to all state residents. In 2024, about $88 million was generated by tourists, which benefited all residents of the state, officials said.
To access the full 2025 Economic Impact Report, visit www.tourism.alabama.gov.
