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Chicago sees record tourism numbers in first half of 2023, but slower years ahead

By Chris Tye

August 2, 2023 / 4:25 PM CDT / CBS Chicago

CHICAGO (CBS) -- Lollapalooza returns to Grant Park on Thursday, and as music fans flock to Chicago, the city is already having a banner year for visitors, but a slight slowdown might soon be coming.

NASCAR, Beyonce, Taylor Swift, Ed Sheeran, and small armies of conventioneers that are back have helped Chicago shine in a post-COVID spotlight.

Like a mega-watt musician, Chicago is topping the charts this summer, with the city ranking the #1 American city for meetings and events volume for the months of April, May, and June, according to hospitality industry tracker Knowland.

"So that means we're beating Las Vegas, Orlando, all our major competitors; and that's just really encouraging," said Lynn Osmond, president of Choose Chicago, the city's tourism agency.

From January to June, hotel revenue in Chicago hit $1.12 billion, up 24% from last year, and 102% from pre-pandemic 2019, setting a new record for the city.

Over that period, Chicago's hotel tax generated $62 million in revenue, also a record breaker.

But the artists who sell records aren't the only ones fueling this surge in visitors. At the same time Swifties were jamming at Solider Field, approximately 44,000 oncologists were in Chicago for an annual conference at McCormick Place.

"So it was pretty interesting seeing the Swifties and the oncologists mix around Soldier Field or throughout the city," Osmond said.

And this is before Lollapalooza begins the first festival of a new 10-year commitment to Chicago.

"The cumulative effect is over $2 billion in economic activity, based just on Lollapalooza being in Chicago," said Matt Patton, Ph.D., executive vice president of Angelou Economics.

Patton studied Lollapalooza's impact on Chicago over the last 12 years.

"Over that same period of time, we looked at over 22,000 jobs being created or supported because of Lollapalooza," he said.

But for a city firing on all entertainment cylinders, expect a gear shift and a slower few years ahead.

Since Illinois was largely shut down during COVID, while other states remained open, some conferences looking to secure 2025 and 2026 venues passed on Chicago.

"In Chicago, we'll see a few softer years coming up ahead in 2025-26, because we were closed and didn't have staff when other states like Las Vegas and Florida were still open and selling," Osmond said

Will NASCAR come back to Chicago next year for a second run of its first-ever street race?

The city and NASCAR have a contract to bring the race back to Grant Park next year, but both sides have the option to terminate the agreement within 180 days after the end of this year's race. Mayor Brandon Johnson, who inherited the NASCAR deal from predecessor Lori Lightfoot, has said he will evaluate the impact of the event, and on Wednesday said he has yet to make a decision on the future of NASCAR in Chicago.

As for Lollapalooza, where 15,000 more people are expected this year than last, stages are being set, and many street closures have begun in and around the South Loop, with 115,000 people expected for each day of the festival Thursday through Sunday.

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Chris Tye is a reporter and fill-in anchor at CBS2 Chicago.

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New figures show tourists flocked back to chicago in 2022.

Danny Ecker is a reporter covering commercial real estate for Crain's Chicago Business, with a focus on offices, hotels and megaprojects shaping the local property sector. He joined Crain’s in 2010 and previously covered the business of sports, as well as the city's convention and tourism sector.

Nearly 49 million visitors came to Chicago last year in a mammoth comeback from the COVID-19 pandemic for the city's hospitality industry. But there is still plenty of road ahead on the path to a full recovery, which the city's tourism arm doesn't expect until 2025. Officials from Choose Chicago announced today that visitation to the city during 2022 was up 60% from 2021 as public health restrictions faded and a surge of leisure travelers poured in during peak tourism months. The total, reported by the city's official destination marketing group using data from travel research firm DK Shifflet, was roughly 80% of the 2019 figure, when the city boasted a record 60.8 million visitors.

The numbers reflect an important bounceback in travel demand last year that pulled in crucial tax revenue and began lifting local hotels out of a historic pandemic-induced hole. Choose reported that tourists spent $16.9 billion in the city last year, or 89% of their collective 2019 outlays, and noted that the city's hotels averaged 60% occupancy last year, up from 43% the year before but still below the 74% average in 2019. 

Resurgent tourism also suggests Chicago can still attract visitors despite public safety concerns, which carried over into this year after widely publicized outbreaks of violence last weekend and in April.

The continued recovery is vital for a city and state that have leaned harder on taxes tied to tourism and the convention business over the past decade, yet were slower than most other parts of the country to lift COVID-related bans on large group gatherings. Chicago is slightly behind other major urban centers like New York City and San Francisco, which reported that 2022 visitation was 85% and 84% of 2019 totals, respectively. Los Angeles' tourism promotion arm said the city pulled in 91% of its pre-pandemic tourism total last year, while Orlando, Fla. — one of Chicago's top competitors for large conventions — said visitation was 98% of its 2019 figure.

Choose Chicago CEO Lynn Osmond, the longtime Chicago Architecture Center top executive who took the reins of the tourism organization just more than a year ago, called 2022 a "really good recovery year" for the city's tourism sector and said the city is on track to reach its 2023 goal of 54 million visitors.

"The energy we're seeing of people returning to travel is really significant," Osmond said.

In addition to her 2023 target, Osmond today released a strategic plan for Choose Chicago laying out a goal of drawing at least 61 million visitors in 2025. The plan also sets other planned benchmarks by then, such as increasing the economic impact of leisure travel by 20% and growing the number of international travelers to Chicago to 1.8 million. That would be up from nearly 1.5 million last year but still below the 2.2 million that came to Chicago from outside the country in 2019, Choose Chicago data shows.

Business travel has been slower to come back than the leisure set as virtual meetings have replaced a segment of travel that used to fill many downtown hotel rooms midweek. Choose hopes to offset some of that slow recovery with new group business, working with companies on regular corporate gatherings in the city. "That's a market opportunity we're exploring," Osmond said.

Helping her cause this year are some extra financial resources. Choose said its 2023 budget, which relies heavily on pandemic-hampered hotel tax proceeds, is up 10% year-over-year to $29.1 million. On top of that, the group recently got another $3.5 million boost from the state of Illinois under the budget passed last week. That one-time grant, which will be put to use during the second half of this year and the first half of 2024, will be primarily dedicated toward international and domestic marketing campaigns.

Chicago hasn't had billboards and ad campaigns in other markets in recent years because of Choose's reduced budget, Osmond said. "We need the additional funds to spread the word across the country (and) to have more people in our global tour department," she said. While some large cities have more than half a dozen staffers who work directly with tour operators to attract them to the city, Choose Chicago has two.

Choose and the Metropolitan Pier & Exposition Authority — the agency that owns and operates McCormick Place — also recently got some breathing room on using up the nearly $10 million that remains in an incentive fund to help recruit conventions. The fund, which the state legislature approved during the pandemic to help McCormick Place compete with rival cities, previously needed to be used only on conventions that would be coming by 2026. The group recently won approval to dole out those funds for events that would come later than that, though all the money must be used by the end of 2026, according to a Choose spokesman.

Choose faces a challenge rebuilding a convention lineup depleted by high-profile defections like the Sweets & Snacks Expo, which recently staged its last confab in Chicago after meeting here for 25 of its 26 years.

One key win on the horizon is the 2024 Democratic National Convention, which Osmond said the city needs to leverage as a brand-builder coming out of the pandemic. The same goes for a crucial conference coming in 2025 known as IPW, a gathering of international tour operators that hasn't been held in the city since 2014.

Osmond has added 14 people to the Choose Chicago staff since taking over as CEO, bringing the organization's full-time headcount to 62, down from 75 before the pandemic. Choose is close to hiring a new chief marketing officer to help align its various departments "so we're all singing from the same choir book," said Osmond, who spent the early part of her career programming for symphonies in California, New York and her native Canada before moving to Chicago.

Choose intends to maintain its "When You Go You Know" marketing campaign through at least the end of this year, a tagline it has used mostly on social media. For traditional ad campaigns planned nationally and internationally, Osmond also plans to promote Chicago's "Best Big City in the U.S." title bestowed by Condé Nast Traveler in 2022, the sixth consecutive year the city has enjoyed the recognition.

"We're going to market the heck out of it," Osmond said.

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Chicago officials point to signs of a tourism rebound

Chicago reported an 86% increase in visitors last year compared with 2020, while a downtown business group said trends for 2022 are positive..

Choose Chicago and the Chicago Loop Alliance have released reports showing substantial increases in tourism and in downtown activity since COVID-19 hit in 2020.

Anthony Vazquez/Sun-Times file

Chicago recorded an 86% increase in visitors last year compared with 2020, a result that shows pent-up tourism demand, city officials said Wednesday.

The 30.7 million domestic and international travelers who came to Chicago in 2021 represent a healthy business comeback that has continued through this year as pandemic restrictions ease, said Mayor Lori Lightfoot and leaders of Choose Chicago, the city’s tourism promoter. In 2020, amid a broader economic shutdown, the city reported just 16.3 million visitors.

But the new tourism count represents only half of the nearly 61 million visitors the city reported in 2019, before the onset of COVID-19.

Lightfoot said the 2021 data “show that visitors throughout the United States and world are hungry to return to our incredible city.”

Lynn Osmond, the CEO of Choose Chicago, called it “a true testament to Chicago’s resilience and strength as a top destination for tourists, businesses and events. I have never been more confident in our ability to make a full recovery.”

She said the improvements came even though Chicago didn’t reach a Phase 5 economic reopening until June 2021 and the international travel ban lasted until November. Total tourism spending here was estimated at $9.8 billion in 2021, about half the total from 2019.

The 2021 report was released at Choose Chicago’s annual convention. The report cited other evidence of the sector’s recovery, such as tourism-related employment returning to 60% of pre-pandemic levels.

It also reported a sharp turnaround in bookings at the city’s hotels, which yielded a 163% increase in tax revenue compared with 2020. By the end of 2021, average room rates were 90% of pre-pandemic levels, the report said.

Meanwhile, research by the Chicago Loop Alliance, representing downtown businesses, showed a continued pickup in activity this year. In its report covering May, the group said hotel occupancy reached its highest level since the pandemic began and pedestrian counts came close to pre-pandemic levels.

The only indicator that dipped slightly from April’s data was office occupancy, at 44% in May. The alliance reported continued strong demand in Loop parking garages, while ridership rates for Metra and the CTA still lag pre-pandemic levels.

Chicago’s record tourism numbers in first half of 2023

Thursday, August 3, 2023 Favorite

Lollapalooza returns to Grant Park on Thursday, and as music fans flock to Chicago, the city is already having a banner year for visitors, but a slight slowdown might soon be coming.

NASCAR, Beyonce, Taylor Swift, Ed Sheeran, and small armies of conventioneers that are back have helped Chicago shine in a post-COVID spotlight.

Like a mega-watt musician, Chicago is topping the charts this summer, with the city ranking the #1 American city for meetings and events volume for the months of April, May, and June, according to the hospitality industry tracker.

From January to June, hotel revenue in Chicago hit $1.12 billion, up 24% from last year, and 102% from pre-pandemic 2019, setting a new record for the city.

Over that period, Chicago’s hotel tax generated $62 million in revenue, also a record breaker.

But the artists who sell records aren’t the only ones fueling this surge in visitors.

And this is before Lollapalooza begins the first festival of a new 10-year commitment to Chicago.

Since Illinois was largely shut down during COVID, while other states remained open, some conferences looking to secure 2025 and 2026 venues passed on Chicago.

Will NASCAR come back to Chicago next year for a second run of its first-ever street race?

The city and NASCAR have a contract to bring the race back to Grant Park next year, but both sides have the option to terminate the agreement within 180 days after the end of this year’s race.

Mayor Brandon Johnson, who inherited the NASCAR deal from predecessor Lori Lightfoot, has said he will evaluate the impact of the event, and on Wednesday said he has yet to make a decision on the future of NASCAR in Chicago.

As for Lollapalooza, where 15,000 more people are expected this year than last, stages are being set, and many street closures have begun in and around the South Loop, with 115,000 people expected for each day of the festival Thursday through Sunday.

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Business | Chicago tourism could return to pre-pandemic levels by 2024, industry leaders say

Antonio Perez / Chicago Tribune

A person takes a photo while visiting the London House in Chicago on July 13, 2022.

A person takes a photo in front of the Cloud Gate sculpture in Chicago's Millennium Park on July 13, 2022.

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In the four weeks ending July 9, hotel occupancy in the central business district was 75%, compared with 81% during the same time in 2019, according to research firm STR. And, in the first six months of the year, hotel stays generated 82% of the tax revenue they did during the same time pre-pandemic, according to Choose Chicago.

Industry leaders expressed optimism at a news conference Wednesday about the pace at which tourism is returning. In the week leading up to the July 4 holiday, hotel occupancy exceeded 2019 levels for the first time since the start of the pandemic, said Michael Jacobson, CEO of the Illinois Hotel and Lodging Association.

The recovery will be significant as a bellwether for Chicago’s economy as a whole.

“Travel and tourism is at the epicenter of this vital hub and spoke model, and a true economic engine of our entire region,” said Jack Lavin, CEO of the Chicagoland Chamber of Commerce.

Chicago’s hospitality industry, battered by the pandemic, has been slower to come back than in other cities , the CEOS of Hyatt Hotels and American Airlines have said. The return of international and business travelers, traditionally a key piece of the city’s hospitality industry, has been slower than the return of leisure travelers. Industry leaders have also been tasked with overcoming concerns about downtown crime, both real and perceived.

In one sign of the distress of the industry, Wells Fargo Bank recently took control of the JW Marriot Chicago hotel at a foreclosure auction .

The foreclosure likely will not lead to noticeable changes for travelers at the hotel this summer, but it’s not likely to be the last hotel foreclosure, Jacobson said.

“I think when you look at the damage that was done to our industry, you’re not going to, as good as the numbers are this summer, you’re not going to make up for the losses with one strong summer,” he said. “There is still a lot of hurt amongst hotel owners.”

Still, Glenn Eden, board chair for Choose Chicago, said he was optimistic not only that travel would return full force to the city, but that the city could reimagine what travel to the Midwest looks like.

He attributed the city’s lagging recovery partly to an unfair comparison with smaller cities. It’s reasonable smaller cities would come back quicker than Chicago because there were fewer travelers to bring back in the first place, he said.

Another factor likely at play is the city’s now-lifted COVID-19 mask and vaccine policies. Travelers, especially business travelers, might have chosen not to come to Chicago when booking earlier this year or in previous years, while the mandates were in effect, because they weren’t sure how open the city would be by their scheduled travel, Jacobson said. One example, he said, was the Sweets & Snacks Expo, which went to Indianapolis in 2021 while McCormick Place was closed due to COVID-19 restrictions, and beginning in 2024 is set to rotate over 10 years between Indianapolis and Las Vegas.

But the city’s virus policies likely brought other business meetings to Chicago, helping them feel safer, he said. And states’ policies on political issues like gun control and abortion rights are likely to play an increasing factor in bringing more business meetings and conventions to the city, he said.

Convention attendance has recently been around 70% of pre-pandemic levels, and he expects it to grow, Jacobson said. In the first six months of 2022, hotel bookings for leisure travel were at 76% of 2019 levels, and business travel was at 71%, according to Choose Chicago.

“Should politics play a role in where a big event takes place? I can’t say that,” Jacobson said. “But it does play a role, and in many ways Chicago is now beginning to capitalize on that.”

Crime remains a concern for tourism agencies, but it hasn’t led to any large changes in where visitors are booking hotels, Jacobson said.

Despite their optimism, the industry leaders cautioned against new regulations at an industry turning point. Lavin, with the chamber of commerce, called for policies to help with job training and retention, and incentives to attract conventions.

“This is still very much an urgent time for this critical element of our city’s economy,” he said.

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Our Chicago: How tourism is recovering nearly 3 years after start of pandemic

CHICAGO (WLS) -- Last spring, Lynn Osmond became the new President and CEO of Choose Chicago, the city's tourism arm.

She stepped into the role two years into the pandemic, which had a huge impact on the city's hospitality industry.

According to Choose Chicago, more than 60 million tourists visited the city in 2019. That fell to fewer than 17 million in 2020. As we wrap up 2022, we're looking at how those numbers are rebounding and what's ahead for 2023.

"Well we had a fabulous summer. We had about a 90% recovery rate in the summer," Osmond said. "The hotels were packed, the streets were full, the attractions were busy. And this fall we're actually doing very well. We'll probably end the year somewhere around 82% of 2019, and 2019 was the most successful year that we'd ever had."

She said that's 9 million room nights were filled. Her hope is that 2025 will be the final year that we come out of the pandemic tourism losses.

As for how the recovery has come about, "Well there are two arms that we really focus on, getting conventions to return and we've had a very successful year with that because we had a lot of conventions that were already booked," Osmond said. "And then we had a few of them that had to reschedule from the COVID years. And so they were back. So we had a lot of conventions coming back, their numbers were very strong. They were looking at as high as 80-85 percent recovery many of them. And so that was great to see them coming back. Then with leisure, we've certainly had a lot of dynamism with leisure and really pushing the city, its incredible architecture, its lakefront, its positioning. We had best big city for the sixth year in a row by Conde Nast Traveler. But really talking about all we have to offer, the cultural attractions, the sports, the restaurants, it's just really an exciting place to be."

In 2023, one of the first big events is Chicago Restaurant Week which begins January 20 and runs for two weeks. It will feature more than 300 of the city's top restaurants.

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Chicago Voted Best Big US City For 7th Straight Year

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CHICAGO — The city has been named the best big city in the United States for the seventh year in a row. 

The results of Condé Nast Traveler magazine’s Reader’s Choice Awards were announced Tuesday. More than 520,000 readers submitted their input this year, according to a news release from Choose Chicago, the city’s tourism arm. 

“We have something for everyone — 77 amazing communities, beautiful parks and lakefront, world class arts, culture and food, and much more,” Mayor Brandon Johnson said in the release. “This is a distinction to be proud of, and we will continue to welcome travelers from all over the world to experience all our city has to offer and the soul of Chicago.”

Summer 2023 performance data from Choose Chicago shows the city is on track to surpass last year, when almost 50 million visitors came to town.

The city is also becoming more popular for tourists worldwide — international visitation this summer increased by 13% from last year, Choose Chicago data shows. 

Condé Nast Traveler has surveyed readers on the best big U.S. city since 2015. Chicago beat out New York City in 2017 and has held the title ever since. 

“Winning this award seven straight years is a recognition of the resilience of Chicago’s tourism and hospitality sector and the unwavering affinity that travelers have for our city,” said Glenn Eden, chairman of the Choose Chicago Board of Directors. “It gives me confidence that we are going to see continued growth in our local visitor economy for years to come.”

Chicago also broke its all-time record for hotel revenue this summer, raking in $825 million between June and August, according to Choose Chicago. 

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Illinois Office of Tourism Announces International Visitor Growth in 2023

Illinois Experienced 39 Percent Increase in International Visitors from 2022 - Highlighting State’s Rising Global Appeal

CHICAGO – The Illinois Department of Commerce and Economic Opportunity (DCEO), Office of Tourism, is proud to announce a significant increase in international visitors to the state in 2023, marking a momentous milestone in tourism growth for Illinois.

Illinois welcomed 2.16 million international visitors in 2023, reflecting a substantial 39% increase from the previous year, according to data provided by Tourism Economics. This surge in international visitation showcases Illinois as an increasingly sought-after global destination. Additionally, international visitors injected nearly $2.7 billion into Illinois' economy in 2023, representing a 47% increase in spending compared to the previous year. 

“This significant achievement highlights the growing global appeal of our great state and the hard work of our tourism and hospitality industry partners to make Illinois a world-class destination,” said Governor JB Pritzker . “Whether you call the Land of Lincoln home or are visiting from afar, we welcome everyone looking to discover all the amazing things that our state and cities have to offer.”

“Illinois is thriving! The growing interest in our state as a destination showcases the unique experiences we offer,” said Lt. Governor Juliana Stratton . “From our vibrant landscapes and iconic Chicago skyline, there is something for everyone to enjoy. As we continue to welcome visitors from around the world, we invite them to immerse themselves in the rich tapestry of experiences that make Illinois truly extraordinary.”

“The tourism sector plays a vital role in Illinois’ economy, driving job creation, economic growth and supporting our small businesses and communities across the state,” said DCEO Director Kristin Richards . “The record growth in international visitors is a testament to the strength of Illinois' tourism industry and its ability to attract visitors from around the globe.”

“Illinois is truly in the Middle of Everything, and there’s no better place for international travelers to visit,” said Sen. Sara Feigenholtz (D-Chicago) . “The significant growth among Illinois’ tourism sector solidifies our state’s position as a welcoming, world-class destination for visitors from near and far.”

The top five markets for visitation to Illinois in 2023 include Canada, Mexico, India, the U.K. and Germany.

• Canada emerged as the leading market for international visitation, with an impressive increase from 425,000 to 627,000 visitors, representing a substantial 48% growth.
• Overseas visitors (defined as visitors not from Canada and Mexico) also showed significant growth, surging from 963,000 visitors in 2022 to 1,347,000 in 2023, marking a 40% increase.
• India demonstrated substantial growth in visitors to Illinois, with an increase of 55% from 2019 to 2023.
• Mexico contributed to the upward trend, with visitation numbers climbing from 164,000 to 183,000, reflecting a notable 12% rise.

Today's announcement of international tourism growth comes on the heels of IPW 2024 in Los Angeles, the largest annual travel trade show in the U.S. Next year, Chicago will host IPW 2025, June 14-18, 2025.

The Illinois Office of Tourism attributes this growth to strategic marketing initiatives, enhanced partnerships and a wide array of unique attractions and experiences that appeal to international travelers. The Illinois Office of Tourism partners with offshore offices in the U.K., Germany and Mexico to promote and market Illinois to international travelers.

Illinois welcomed a total of 111 million visitors who spent $44 billion in 2022 (the latest data available) – representing 14 million additional travelers spending $12 billion more than calendar year 2021.

About the Illinois Office of Tourism The Illinois Office of Tourism leads tourism industry efforts to inspire visitation to, and within Illinois, resulting in significant economic impact and quality-of-life benefits for all Illinois residents. We are committed to making Illinois a model of inclusivity and celebration of diversity.

Illinois is a state that embodies innovation, craft, surprise and creativity. Whether domestic and international visitors are traveling for business or leisure, the Illinois Office of Tourism is their trusted guide in crafting an unforgettable experience. To learn more visit EnjoyIllinois.com .

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Illinois sees increase in international tourism

SPRINGFIELD, Ill. (WCIA) — State leaders are celebrating Illinois seeing an increase of more visitors from other countries.

More than 2.16 million international visitors came to the state in 2023, up 39% from the previous year. Those visitors stimulated the economy with nearly $2.7 billion of spending into Illinois’ economy.

Leaders with the Illinois Office of Tourism said the growth in tourism is from strategic marketing initiatives, enhanced partnerships and a wide array of unique attractions and experiences that appeal to international travelers.

“This significant achievement highlights the growing global appeal of our great state and the hard work of our tourism and hospitality industry partners to make Illinois a world-class destination,” Governor J.B. Pritzker said. “Whether you call the Land of Lincoln home or are visiting from afar, we welcome everyone looking to discover all the amazing things that our state and cities have to offer.”

The top five countries visitors came from include Canada, Mexico, India, the U.K. and Germany. Illinois saw a 40% increase in overseas visitors.

“The tourism sector plays a vital role in Illinois’ economy, driving job creation, economic growth and supporting our small businesses and communities across the state,” DCEO Director Kristin Richards said. “The record growth in international visitors is a testament to the strength of Illinois’ tourism industry and its ability to attract visitors from around the globe.”

Overall, 111 million visitors came to the state for 2022 to spend $44 billion dollars.

Officials also note IPW 2025, the largest travel trade show, will also be hosted in Chicago next year.

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