Tourism update: Summer headwinds

The latest tourism data from the University of Montana's Institute for Tourism and Recreation Research and data provided by the Whitefish Convention and Visitors Bureau offers an important reminder about the role visitors play in Whitefish's economy.  

In 2025, Montana welcomed slightly fewer visitors than the previous year, but those visitors spent significantly more money. Statewide visitation declined by 4%, while inflation-adjusted visitor spending increased by 11%, generating an estimated $5.64 billion in nonresident spending. 

That distinction matters for communities like Whitefish as local businesses face myriad challenges. Inflation continues to affect household budgets, and many business owners in Whitefish report softer spending from local customers. At the same time, operating costs continue to rise. Fuel prices, healthcare expenses, insurance, payroll, and other overhead costs are placing pressure on already tight margins. Food prices have increased substantially year over year with specifically steep increases for coffee (19%) and tomatoes (40%). Workforce recruitment remains difficult in one of the state's most expensive housing markets, where rapid population growth has increased demand for housing and pushed up rental costs.  

While the Flathead Valley has welcomed more than 10,000 new residents in recent years, population growth alone does not replace the economic impact of visitor spending. 

Tourism brings new dollars into the community; supporting restaurants, retailers, lodging properties, recreation businesses, service providers, and the employees who depend on them. When local spending slows, visitor spending often becomes even more important to maintaining business activity and employment.  

Looking ahead to summer, businesses are also navigating new travel headwinds. July, August, and September hotel occupancy pacing is down 8%. Glacier Park International Airport's planned runway rehabilitation project will temporarily limit operations in July, while rising fuel costs and airline capacity reductions are contributing to higher airfares nationwide. The Federal Aviation Administration has also reduced summer operations at Chicago O'Hare, one of Glacier Park International Airport's key connecting hubs.  

These factors will create additional challenges for local residents and visitors alike. Yet demand for Montana remains strong, and Whitefish continues to attract visitors from across the country. The broader lesson from the latest data is that visitor spending remains an essential part of the local economy at a time when many businesses are facing increasing costs and uncertain consumer spending patterns.  

In May, 47% of all spending in Whitefish was from visitors.  

This article is provided through the partnership between Explore Whitefish (the Whitefish Convention and Visitors Bureau) and the City of Whitefish Sustainable Tourism Management Plan Committee. The Committee, working closely with local stakeholders, is committed to sharing transparent and timely information on the state of tourism in our community. By communicating openly about challenges and opportunities, they aim to build trust, inform decision-making, and keep Whitefish on a sustainable path as both a vibrant community and a world-class destination.  

The most current community survey from the STMP is available at https://www.cityofwhitefish.gov/m/newsflash/Home/Detail/558