How Tucson tourism is countering the cooling travel surge | News

As director of Film Tucson, the official film office for Tucson and Pima County, Peter Catalanotte has seen firsthand how major film productions can inject money into the local tourism economy.

“Our biggest recent heyday was in 2021 and early 2022, when the pilot episode of ‘Duster,’ a new HBO TV series being created by J.J. Abrams, was being filmed here,” Catalanotte said. Between the shooting of the pilot and the “wrap,” where the film company stored props and costumes while deciding where to film next, the production brought in a total of $11.8 million to the Tucson economy.

Catalanotte said the production generated nearly 10,000 room nights at local hotels for the visiting cast and crew and also hired local actors and technicians, rented dozens of vintage cars from local businesses and patronized small businesses such as Bella’s Gelato Shoppe, Pin-Up Pastries and Peddler on the Path (they rented all of their food trucks).

“There was one day when we were watching some filming happen downtown, and I saw J.J. Abrams slip into our famous Chicago Music Store and come out 15 minutes later with some effects pedals,” Catalanotte said. “These are just some small examples. There were just lots of little businesses that made tons of money from this gigantic show that came in.”

Inevitably, “Duster” passed on filming the rest of its first season here (set to air next year), moving operations to New Mexico, which has long offered a generous tax incentive for filmmakers. But in January 2023, the Arizona film tax incentive program finally went into effect, offering refundable tax credits to film and TV productions. 

Unfortunately, the program kicked off right before the four-month long actors’ strike and the following writers’ strike. But now that all that’s resolved, and with the state tax incentive for filmmakers firmly established (the cap increases from $75 million to $125 million in 2025), Film Tucson is ready for the anticipated increase in film activity.

“We’ve got everything the filmmakers will need,” Catalanotte said. “And as more filming comes in, we will get even more in place. A lot of union crew members are moving back now that we have incentives. Having their talent here is a fantastic thing.” 

More local filmmaking also results in “film-induced tourism,” when people visit locations that have been featured in movies or TV shows, boosting local economies as fans flock to experience the real-life settings of their favorite films or series.

“Warner Brothers gifted the bench that the cast of ‘Hangover 3’ used in Nogales, and now people visit just to sit on the bench and get their picture taken on it,” Catalanotte mused. “So the after-effects a film leaves boosts tourism, too. Old Tucson has built its entire business plan on this.”

Increased film-induced tourism is just one part of a larger set of strategies Tucson is employing to adapt to a changing travel landscape, now that the post-pandemic travel surge has cooled off.

“We were expecting it, we were anticipating it,” said Felipe Garcia, president and CEO of Visit Tucson, the region’s destination marketing organization. “2023 was phenomenal. We were seeing months with double-digit growth on hotel occupancy and rates.

“But now that rush of travel has kind of faded out,” he added. “People are a little bit more cautious with their expenditures, they’re being more selective of where they travel, and things are starting to slow down. We’re actually starting to see a decrease in hotel occupancy from the same month previous year.”

In response, the organization has been “fine-tuning” its strategies, focusing on niche markets and adapting its messaging to align with the more cautious and selective consumer behavior.

To attract more conventions and meetings, for example, Visit Tucson’s convention sales department has been following up on 2023’s standout year of activity, with significant increases in leads, bookings and room nights for large groups.

Garcia says hotels, which previously prioritized higher-paying leisure travelers over group bookings, are now more willing to entertain group reservations.

“Now that trend is starting to go in a different direction,” he said. “We’re starting to see that group activity return as hotels are becoming more willing to entertain selling blocks of rooms to groups.” 

The introduction of new downtown hotels and targeted promotions like the “Master Account Credit Promotion” played a key role in attracting more meetings and conventions to Tucson, boosting the local economy.

Tucson sports also secured several key events in 2023, including spring training for Korean Baseball Organization teams and major lacrosse and soccer tournaments. These events generated substantial economic impact and reinforced Tucson’s position as a prime destination for sports tourism, and the visitor’s bureau is capitalizing on that.

“Sports tourism, it’s fascinating, especially youth sports,” Garcia said, adding that even during economic downturns, families prioritize youth sports events, often making them the focus of family vacations. “Families will say, ‘OK, that Disney vacation, maybe we’re not going to do it this year. But hey, our daughter is in this volleyball league, and their tournament is happening in Tucson. Maybe we can make that the family vacation.’”

The city has also been pouring more resources into attracting Spanish-speaking visitors from Mexico and the U.S. Hispanic market. Last year’s “Tucson Es Tu Casa” campaign was particularly successful, leading to a 500% increase in traffic to the Spanish-language website. The department also engaged with potential Mexican visitors through festivals and media coverage, further solidifying Tucson’s appeal in this lucrative market.

“We market extensively in Mexico for that Mexico visitor,” said Garcia. “No. 1, we market Tucson as a place where they can come in the U.S. to celebrate their Hispanic identity, as a place that cares for them and where they can feel welcome and appreciated. And No. 2, we showcase our Mexican food, while also promoting our Asian food and Italian food and other kinds of gastronomy.”

Culinary tourism, of course, is another big part of the industry’s success here. Tucson’s fusion of Mexican, Native American and Western culinary traditions has become a major draw, with visitors eager to experience local flavors at restaurants, food festivals and wineries.

“Tucson is an amazing destination for foodie-driven tourism, especially with its status as the first UNESCO City of Gastronomy in the U.S.,” said Josh Coddington, communications director for the Arizona Office of Tourism.

“Food is an integral part of the authentic experience of Tucson, as it truly tells the story of the region going back 4,000 years. I always like to share that while Tucson is well-known as a place for Mexican food, its culinary heritage is a mix of both Mexican and Native American traditions. To harness these traditions, last year Visit Tucson launched its America’s Best Mexican Food campaign and digital guide, which gives visitors exactly what they’re seeking — lots of amazing food options!”

There’s also been an increased demand for outdoor and adventure tourism worldwide, which Southern Arizona has benefited from — although the increased visitor activity can put strains on public resources and infrastructure.

“With many people enjoying our outdoors, it’s also our responsibility to assist in educating our residents and visitors on how to enjoy Arizona’s outdoor spaces in a responsible manner, and with sustainability in mind,” Coddington said.

“We want visitors that come to Tucson to enjoy the region in a respectful manner,” Garcia added. “We want them to feel connected to it so that they will be helping us take care of the environment. One very specific initiative that we did is we launched a sustainability program, and contracted with an organization called Global Destination Sustainability, that actually checks us out and gives us a scorecard, and every year we have to update to see if we’re advancing or decreasing in our sustainability score. We’re one out of only three cities in the U.S. that are doing that.”

One ongoing challenge for the tourism industry is staffing. Many tourism-related jobs, particularly in service roles, are low-wage and seasonal, leading to economic instability for workers. But Garcia says Tucson has been staying ahead of that issue, too.

“It was hard to bring people back to work following the pandemic,” he said. “So they had to be offered more competitive wages. Maybe we’re not there yet, but I think that we’re making progress into making sure that people in the hospitality industry are well-compensated and offered opportunities for career advancement. 

“We have to offer better-paid positions so that people start seeing the hospitality industry not as a dead-end, but as something they can grow into a great career.”