During the past two years, nonresident tourists visiting Montana spent an estimated $5.28 billion in the Treasure State annually, a roughly 9% decrease from the previous two years but one of the highest estimates on record.
That’s according to a new report by the Institute for Tourism and Recreation Research (ITRR) at the University of Montana, which examined nonresident spending during 2023 and 2024. Compared to the last two-year study, covering 2022 and 2023, average annual nonresident spending at gas stations, local restaurants, hotels and other tourism-oriented businesses decreased by roughly $540 million.
The latest data release tracks with an earlier report this year that showed Montana welcomed an all-time record number of tourists in 2024 — by a million — but saw a roughly 10% decrease in how much money those tourists spent in the state.
The Daily Montanan reports that among the state’s five designated tourism regions, Glacier Country, comprising the western portion of Montana, saw a two-year average of $1.8 billion in annual nonresident spending, accounting for a third of all traveler expenditures, holding its position at the top. Yellowstone Country, which includes Bozeman, Big Sky, and Red Lodge was next with $1.3 billion in average annual spending.
The institute has collected nonresident spending data since 2009, giving researchers a long dataset to observe trends in spending habits.
“It’s a consistent method we’ve been using for a very long time,” Kara Grau, the report’s author, said. “I feel good about the history of this data.”
The data is collected through in-person interviews with travelers, as well as data from secondary sources. Grau notes that while there is high confidence in the statewide estimates, the modeling estimates for the region and county-level data is drawing from increasingly smaller pools of data, so there is more variation year-to-year.
In the 2022-2023 report, Glacier Country and Yellowstone Country accounted for 33.6% and 23.4% of the state’s nonresident spending, respectively. In the latest report, those proportions held steady, with 33% and 25% respectively, while the southwest region ticked up from 15% to 17%.
Among counties, Gallatin County saw the highest annual average of $887.3 million in spending, while Flathead County was close behind with $850.3 million, down 8% and 15% respectively.
“They seem to just jockey for first and second position each year,” Grau said. “They’re relatively close in spending. They both have the big national parks right in their vicinity. I think the visitation to those parks is a big contributor to which county jumps into the first or second place spot.”
In 2022, Yellowstone National Park’s northern entrance and the Livingston area saw catastrophic floods which closed portions of the road for months, leading to a drastic drop in visitation that year. Grau said some of the increased visitation to Gallatin County and the Yellowstone Country region in the latest report can be attributed to Yellowstone being reopened for the full season.
Twenty-seven Montana counties drew at least $20 million in out-of-state tourism-related spending.
Gas, guides and gambling
Gas and diesel were the top spending categories statewide, as well as in four travel regions in Montana — Glacier and Yellowstone’s travel regions saw spending in restaurants and bars take the number-one spot. The two categories combined for 40% of traveler spending, followed by lodging at 22%.
Retail sales, a $413 million category for visitors in 2023 and 2024, showed a decrease in the latest report, as did some categories that capture snapshots of discretionary or high-budget expenditures.
According to ITRR, roughly 5% of out-of-state visitors hire outfitters and guides, which accounted for $412 million in visitor expenditures, while tourists spending money in casinos accounted for $27 million, both declines from the previous year.
“I do think in 2024 we saw a little less spending on the more flexible kinds of spending that travelers do, in terms of ‘I’ll spend more on groceries and less on going out to eat.’” Grau said, also highlighting the declines in retail and guiding services.
One spending category that bucked the trend was money spent on Made in Montana products, a separate category from regular retail expenses for products carrying a Department of Commerce designation as locally sourced. The ITRR questionnaire didn’t ask about locally-sourced products in its first few iterations, but as the state has emphasized products made or grown in the state, it has emerged as a profitable economic sector that keeps growing.
Visitors spent an average of $184 million on Made in Montana products in 2023 and 2024, up more than $20 million from the previous years.
The ITRR analysis of nonresident economic contribution examines visitor spending by Montana’s travel regions and counties. Check out the ITRR’s new interactive dashboard to explore more specific region and county spending data.
Here’s a breakdown of the report’s estimate of 2023/2024 visitor spending and the economic ripple effects across the state.
Average Annual nonresident spending by travel region:
- Central Montana — $370 million
- Glacier Country — $1.76 billion
- Missouri River Country — $252 million
- Southeast Montana — $713 million
- Southwest Montana — $882 million
- Yellowstone Country — $1.30 billion
$5.28 billion: Average overall nonresident traveler spending in Montana during 2023 and 2024
$1.206 billion: Spending on gas and diesel across the state
20: Counties saw more than $50 million in average annual spending
$887,280: Money spent in Gallatin County averaged between 2023/2024, the highest in the state
$640.1 million: Spending in Gallatin County that had a direct economic impact, such as purchases of goods and services
$197.6 million: Spending in Gallatin County that had an indirect impact on the economy, such as purchases made by travel-related businesses or purchases by those employed in travel-related occupation
$992.6 million: Total economic impact of nonresident spending in Flathead County to the regional economy, including direct and indirect categories
$184.1 million: Amount spent by visitors on “Made in Montana” branded retail goods
$42.3 million: Amount spent by visitors statewide on vehicle repairs
$33.6 million: Amount spent at local farmers markets throughout the state
Daily Montanan is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Daily Montanan maintains editorial independence. Contact Editor Darrell Ehrlick for questions: info@dailymontanan.com.
