Author: TTW News Desk

As popular destinations like Las Vegas, Florida, Nevada, and New York City aggressively market to American travelers with deep discounts, flashy campaigns, and high-value experiences, Colorado is feeling the pressure. The state, which saw a record 95.4 million visitors in 2024, is now grappling with a 2% dip in hotel occupancy and a noticeable decline in short-term rental bookings in the Western Slope region. This shift is largely tied to increased competition for domestic tourism, especially as international travel remains sluggish post-pandemic. While Colorado’s scenic landscapes and mountain towns remain attractive, the pull of urban excitement and promotional deals from competing states is luring travelers elsewhere in 2025.

This year, a 2% drop in hotel occupancy across Colorado signals a modest decline in tourist activity. While the dip isn’t drastic, it reflects a subtle shift that state tourism officials are monitoring closely. The slowdown is not uniform, however—some regions are outperforming others. Cities like Grand Junction are holding stronger occupancy numbers, suggesting that localized efforts and regional appeal continue to influence travel demand positively.

Meanwhile, short-term rental properties, especially in the Western Slope, are seeing fewer bookings compared to last year. This change could be influenced by increased competition, price sensitivity, or travelers favoring other types of accommodation. As rental platforms like Airbnb and Vrbo continue to evolve, their performance remains a key indicator of broader visitor trends.

International Tourism Recovery Still Unfinished

Despite open borders and increased air connectivity, international tourism has not fully rebounded in Colorado. Overseas visitors—who typically stay longer, travel more widely within the state, and spend significantly more than domestic travelers—remain notably fewer in number than in the pre-pandemic years.

This gap in international arrivals presents a unique challenge. These travelers not only contribute more to the local economy but also align closely with Colorado’s goals around sustainable tourism. They often engage in eco-conscious activities and explore rural and lesser-visited areas. Their delayed return limits some of the potential economic gains from long-haul travel.

Efforts to re-engage international markets are ongoing, with targeted marketing campaigns aimed at rebuilding awareness and interest in Colorado abroad. Still, competition from other global destinations and evolving travel regulations continue to slow the pace of recovery.

Growing Competition for Domestic Tourists

With international visitor numbers still lagging, many U.S. destinations are turning their focus inward. States such as New York, Florida, Las Vegas and Nevada are launching bold campaigns to attract American travelers, offering discounted packages, seasonal promotions, and city-focused experiences. These moves create heightened competition for domestic tourism dollars, especially among leisure travelers looking for value.

Colorado, known for its outdoor adventures and natural beauty, must now compete more directly with these large urban centers and coastal attractions. Maintaining visibility, offering memorable experiences, and promoting unique aspects of the state are crucial for drawing domestic visitors amid a crowded national landscape.

Wildfire Concerns and Tourism Perception

Colorado’s natural environment, while a major draw for tourists, also poses challenges—particularly when wildfires strike. Several areas have experienced fire activity during the 2025 travel season, leading to concerns over air quality, road access, and traveler safety.

Even when fires are localized and well-managed, the perception of risk can influence decisions, especially for families or international visitors unfamiliar with the region. In response, recovery efforts and public communications are being aligned to ensure that travelers feel confident and informed about where and when it’s safe to explore.

Tourism organizations are working hand-in-hand with local communities to support post-fire recovery, including marketing support, infrastructure guidance, and readiness tools for future travel seasons.

Strategic Tourism Initiatives and a Milestone Year Ahead

As part of its ongoing tourism push, Colorado continues to spotlight responsible travel through initiatives like “Do Colorado Right” and its Stewardship program, both designed to balance tourism growth with environmental care and community respect. These campaigns aim to educate visitors while showcasing the vast diversity of experiences across the state—from national parks and hiking trails to arts districts and culinary hubs.

Looking toward 2026, Colorado is preparing to celebrate its 150th anniversary, a milestone that presents an ideal moment for locals and tourists alike to rediscover the state’s rich heritage. While a massive tourist surge tied to the celebration isn’t guaranteed, it offers an excellent opportunity to promote in-state travel, local storytelling, and historical exploration.

Residents are being encouraged to venture beyond their own cities, explore regions they may have overlooked, and engage with Colorado in new ways. Whether it’s a road trip through the Rockies, a stay in a historic mining town, or a food tour through Denver’s neighborhoods, there’s never been a better time to reconnect with Colorado’s soul.