How tourism ‘opens doors’ to economic development in Houston
Writer: Andrea Teran
June 2024 — In Houston, a city known for its dynamic economy and rapid growth, the tourism and sports sectors are driving forces behind the region’s vibrancy and economic health.
Recent data presents a nuanced picture: Houston’s travel and hospitality sector set new records in 2023, with over 51 million visitors, marking a 5% increase from 2022. This surge is attributed to high-profile events such as concerts by Taylor Swift and Beyoncé, which significantly boosted hotel occupancy rates and overall tourism revenue. More than 23 million hotel room nights were booked, reflecting a 5.2% increase from the previous year, with the average daily rate and revenue per available room rising 6.3% and 12.3%, respectively.
The 2024 Houston Livestock Show and Rodeo (HLSR) welcomed over 2.5 million guests to NRG Stadium during its 23-day run, marking the highest overall attendance since 2017. This surge in participation was highlighted by standout moments, including Jonas Brothers all-time paid concert attendance record with 75,600 attendees and World’s Championship Bar-B-Que Contest, which alone attracted 234,456 viewers, setting a new benchmark for the event.
Read more: Houston Livestock Show and Rodeo gives a welcomed economic boost
To address the influx of visitors and enhance infrastructure, Houston First Corporation and the Harris County-Houston Sports Authority have been instrumental in attracting and hosting large-scale events. Houston was selected as one of the host cities for the 2026 World Baseball Classic, expected to bring an economic impact of between $50 million and $60 million and more than 350,000 visitors. Additionally, Houston’s NRG Stadium will host seven matches of the 2026 FIFA World Cup, underscoring the city’s reputation as a premier destination for international sports events.
Invest: caught up with leaders in tourism and sports to discuss their experiences and strategies in these booming sectors.
Michael Heckman, President & CEO, Houston First Corporation
Tourism, conventions, and meetings open doors to economic development. Business leaders often consider cities they’ve visited for expansions. We strive to secure such events, which are planned years ahead. The Republican National Committee’s selection of Houston, for instance, was based on our business-friendly environment, organized convention campus, and strong public safety. We’ve also secured nearly $2 billion from the state of Texas for transforming our Convention District. This will include new amenities, entertainment options, and a comprehensive renovation of our Convention Center, which hasn’t been fully updated since 1997. This project will be transformative for Houston’s competitiveness.
Jonathan Horowitz, President, Greater Houston Hospitality & Tourism Alliance
There has been a tremendous amount of growth in Houston over the past few years. The hospitality industry specifically has gotten so much well-deserved exposure and recognition, particularly in our restaurant scene. Houston just hosted the college football championships, FIFA’s World Cup is coming in 2026 and the Republican National Convention is coming in 2028. In addition to Houston’s booming business activity, the hospitality industry has grown dramatically. We are optimistic and excited about everything happening in the Houston hospitality sector with the understanding that our industry members are still facing challenges.
Greg Grissom, President, Houston Texans
Two factors make Houston a fantastic international hub for sports and entertainment. On one hand, we are the most diverse city in the U.S., so we represent the different cultures of the world. On the other hand, Houston is an amazing city from a hospitality standpoint both functionally and mindset-wise. We have some of the best restaurants and more Broadway seats than any other market besides New York. Additionally, Texas hospitality means a willingness to welcome people, take care of them, and ensure they have a great time. These factors make it a win-win for major events. We hosted the 2024 College Football National Championship at NRG Stadium and will host three Copa America soccer matches, including the quarter final, this summer.
Jessica O’Neill, President of Business Operations, Houston Dynamo Football Club
It starts with the experience for our staff, our fans, and our players. There is a significant investment across those three pillars in a tangible way. We think a lot about the fan experience and what that feels like in the stadium. To that end, there were three major projects that we undertook prior to the 2023 season. One was overhauling all of our stadium seats, removing every single seat in the building, taking out the hard plastic and replacing them with fully mesh seats, which makes a big difference in a city with a heat index that is often over 100 degrees. The second was to unveil a new 15,000-square-foot, climate-controlled, premium club. The third was an overhaul in the stadium experience, where we replaced 10 of our concession offerings with 10 local food partners.
Aside from the league soccer matches and the various tournaments that feature an MLS or an NWSL team, we also play host to many different international soccer matches that come through Houston. Our priority is ensuring that we are driving as many events as possible through our stadium or in and around the building.
Chris Boleman, President & CEO, Houston Livestock Show and Rodeo
This year, as we finish up and close the books on the 2024 Rodeo, we are very confident and proud to say we will be able to make a $27 million educational commitment through grants, scholarships, and exhibitors. Making sure we can do that is just one piece of the puzzle. Secondly, this really is a community event. During COVID, when we were shut down, it resonated how important this organization is to this community, and how proud they are of the event. We have 35,000 volunteers who work every day during the Rodeo and year-round to make sure we can do what we do.
There is a strong cultural commitment that resonates across the community. We have 2.5 million guests, and everyone is so proud of that here in Harris County and in Houston. First, we make educational commitments that make a difference in the lives of young people. Secondly, it is about the economic impact. We recently released the data from our latest economic impact report, which highlights the substantial contributions of the Rodeo to the Greater Houston area. According to the report, the Rodeo generated more than $300 million in direct economic impact. Additionally, the overall direct economic activity spurred by our event reached an impressive $590+ million. This data underscores the significant role the Rodeo plays in boosting the local economy and supporting community growth. Third, it is about cultural impact and how most people love and own what we do here.
Top image provided by Houston Texans
For more information, please visit:
https://houstonhospitalityalliance.com/
https://www.houstontexans.com/
