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How Does Tourism Support Small Businesses?

May 7, 2025 ·Small Business How-to, Tourism

Small Business + Tourism: A Powerful Partnership Driving Cumberland Valley’s Economy

This week, we proudly recognize Small Business Week and National Travel & Tourism Week — a perfect moment to celebrate the powerful connection between tourism and the small businesses that define our community.

The latest data from the World Travel and Tourism Council’s 2024 Economic Impact Research confirms what many in our region already know: tourism is big business. In 2023, the U.S. travel and tourism sector reached a record-breaking $2.36 trillion in GDP contribution, with $1.37 trillion in domestic visitor spending alone — a 9% increase from pre-pandemic highs.

But what does that mean for Cumberland Valley?

It means visitors aren’t just coming—they’re spending in our communities and generating a significant economic impact that helps build a stronger Cumberland Valley for all.

The 2023 Economic Impact of Visitors in Pennsylvania Report (prepared by Tourism Economics for the Pennsylvania Office of Tourism and released in March 2025) shared that visitors to Cumberland Valley:

  • Accounted for $955.6 million in spending
  • Generated $46.7 million in state and local tax revenue
  • Supported 6,474 local jobs

Tourism isn’t just about visits—it’s about value for both the visitors who spend time in Cumberland Valley and the local businesses they support.

Tourism: Essential for Small Businesses

While tourism may conjure images of big attractions and events, its true power lies in the local economic engine it fuels—especially for small businesses. In Cumberland Valley, these businesses—local farms, shops, restaurants, and more—are the heart and soul of our downtowns, and tourism is essential to the health and growth of these enterprises.

Promoting Local Culture

Tourism introduces new people to what makes Cumberland Valley unique — its history, its charm, and its small business enterprises. When visitors patronize locally owned businesses and are welcomed by our friendly residents, they

  • Experience the richness of our local culture
  • Create emotional connections that encourage repeat visits
  • Spend money that stays in the community

Tourism gives us the opportunity to share what makes Cumberland Valley special.

Increasing Local Employment

Every dollar spent by visitors ripples through the economy. Local businesses gain revenue, which translates into:

  • New jobs
  • Greater demand for local suppliers and services
  • Increased wages and reinvestment into the community

This cycle is how tourism supports sustainable economic growth—not just for those in the hospitality sector but also for mechanics, farmers, artists, and more. These jobs create employment pathways for people of all ages and experience levels and provide diverse opportunities across a wide range of sectors.

Sparking New Business Creation

Tourism doesn’t just support existing businesses — it creates fertile ground for new ventures. Here’s how:

  • Boosts the local economy: Visitor spending strengthens demand for new products and services.
  • Generates tax revenue: This helps fund public infrastructure and reduces the local tax burden.
  • Encourage exploration: When tourists visit a small business, they’re more likely to purchase unique items such as souvenirs or food products made by local suppliers. This sparks further interest in exploring the region, resulting in increased spending.

From food trucks and farm stands to boutique lodging and guided tours, tourism cultivates entrepreneurial opportunity and supports businesses that employ our friends, neighbors, and families.

Support Small Business, Support Tourism with CAEDC

At the Cumberland Area Economic Development Corporation (CAEDC), we understand that strong communities are built on the success of small businesses. We work closely with local businesses to promote local attractions, restaurants, shops, lodgings, and more. As an economic development organization and the official Destination Marketing Organization (DMO) for Cumberland County, our mission is to ensure all local businesses succeed so they can thrive long-term, create jobs, and contribute to the community’s economic growth and vitality.

Visit our tourism site to explore and share what makes our region special, or contact us to learn more about how CAEDC can support your small business.

Together, we make Cumberland Valley a place where small businesses thrive.