1. Ouray, Colorado
Tourism fuels Ouray’s local economy—advertised as the “Switzerland of America,” it attracts ice climbers and outdoor adventurers year‑round. The town’s tourism revenue per resident far exceeds its small population thanks to attractions like the Ouray Ice Park and hot springs. Their winter festival and constant visitor influx support businesses that otherwise couldn’t survive in a town of fewer than 1,000 residents. It’s a community whose entire infrastructure—hotels, restaurants, adventure guides—is funded by tourists.
The scale of investment in trails, town events, and infrastructure is justified by tourist dollars that dwarf what the resident tax base alone could provide. From ice‑climbing competitions to the Million Dollar Highway drives, Ouray’s tourism ecosystem generates revenue that easily outpaces its population base. Locals rely on sales tax, lodging tax, and admission incomes—all visitor‑funded. This consistent external inflow means tourism budgets are effectively larger than what could be funded per resident.
2. Tombstone, Arizona
Tombstone has fewer than 1,500 year‑round residents but attracts roughly 450,000 visitors annually—around 300 tourists per resident. The town exists today because of its tourism economy built around historical reenactments, the OK Corral, and the famous rose tree museum. Tourism spending per capita is astronomical compared to the tiny population, making the visitor budget dominate the town finances. Small local budgets (like for maintenance, street facades, museums) are funded almost entirely through tourist fees and tax.
Every business—from saloons to souvenir shops—depends on the tour‑price economy. Town services like museums, boardwalk maintenance, even event staffing are financed with visitor fees. In short, local budgets are driven by tourism, meaning the town’s tourism revenue per resident overshadows anything funded by resident population. Tombstone is a living example of how heritage tourism can bankroll a town.
3. Saugatuck, Michigan
With about 1,000 permanent residents swelling to around 3,000 in summer, Saugatuck derives most of its income from weekend tourists from Chicago and Detroit. Summer arts festivals, boat tours, ferry rides, and art galleries bring in far more per capita revenue than residents alone would generate. The town’s revenue from visitor lodging taxes, festival passes, and local eateries dwarfs the small permanent population. It’s clear that tourism budgets easily surpass the resident‑based fiscal resources.
Local infrastructure—shops, galleries, festivals, ferry operations—are scaled for visitors, not locals. Sales and lodging tax from thousands of non‑residents keep lights on in a town that otherwise would struggle with basic services. All cultural and event investments reflect tourist revenue, not local contributions. Thus Saugatuck easily qualifies as a town where visitor‑driven budgets exceed the population base.
4. Hill City, South Dakota
Nestled near Mount Rushmore and Custer State Park, Hill City is a tiny community whose economy depends heavily on tourists. The town imposes a 2% general sales tax plus 1% extra on lodging, restaurants, alcohol and ticket sales—all aimed at visitors. Tourists stream through for memorials, galleries, and the Sturgis Rally, generating fiscal flows far beyond what the small resident population produces. That extra tax revenue funds public services, making the tourism budget effectively larger than population‑funded reserves.
Tourism supports nearly every business in town—from souvenir shops to Indian art galleries and lodge accommodations. The tax revenue from visitors is a multiple of what residents would pay alone. Public infrastructure and marketing are funded through that visitor stream. All told, Hill City’s visitor income powerfully surpasses what its small population base could provide on its own.
5. Ketchikan, Alaska
Ketchikan sees well over a million cruise ship visitors annually, while having a resident population of just around 8,000. The town’s tourism revenue—through port fees, excursions, shops, and cultural events—vastly outstrips what the local population could support. That visitor spending funds most of the city’s services and economic activity. Essentially, the tourism budget is many times larger than what could be funded per capita by residents.
Everything from the lumberjack show to Creek Street tours is run with tourist dollars in mind. Public infrastructure and retail in town are sized for 500,000–1 million visitors, not inhabitants. Taxes and fees from tourism support local government budgets far beyond the resident-generated tax base. Ketchikan is a classic case where visitor revenue dwarfs population‑derived funding.
6. Jackson, Wyoming
Although Teton County counts fewer than 25,000 full‑time residents, Jackson Hole draws over 2.5 million visitors annually. Tourism generates over a billion dollars in local revenue, supporting roughly 30% of jobs in the region. The per‑capita visitor spending massively outweighs resident earnings. Local government budgets and infrastructure investment lean heavily on tourism income rather than population taxes.
Ski resorts, hospitality, guiding services, and event hosting all depend on visitor dollars. County services—from roads to emergency response—are funded on revenues shaped by tourism. Municipal spending is geared toward serving non‑residents. It’s a region where tourism revenue per resident eclipses any resident‑funded budget.
7. Baker, Nevada
Baker is a tiny town on the edge of Great Basin National Park and depends almost entirely on seasonal tourism. When park staff cuts slashed services, local businesses panicked because tourism revenue is the lifeblood of the town. Visitor spending during peak months funds hotels, restaurants, and basic infrastructure. Essentially the tourist budget drives local fiscal health more than resident contributions.
Without tourists, the town would struggle to host community events, maintain roads, or support local staff. Even fundraising by the Great Basin National Park Foundation underscores how tourism income is critical. Budgets hinge on visitor access and services, not local tax base. Baker exemplifies a town where tourism funding outweighs what its population alone supports.
8. Julian, California
This historic gold‑rush town of about 1,500 residents sees tens of thousands of visitors each fall for its apple festivals and charming downtown. Visitor spending during event season supplies most of the annual operating budgets for local museums, trail upkeep, and town marketing. The fiscal flow from tourism—hotel stays, tasting rooms, seasonal shops—surpasses what locals pay in taxes. In effect, tourism dollars dominate the town’s financial resources.
Julian’s calendar, staffing, and infrastructure are built around the influx of tourists rather than resident needs. Festival revenue funds year‑round maintenance and public services. The town’s brand as a visitor destination is its primary economic engine. Resident‑based funding is a minor part of the local budget.
9. Bar Harbor, Maine
Bar Harbor supports just over 5,000 permanent residents but attracts roughly 3 million visitors annually, many to Acadia National Park. Tourism revenue from lodging, ferry rides, dining, and parks fees is immense. Local budgets for infrastructure, parks maintenance, and cultural sites rely critically on visitor spending. Tourism funding per capita soars well above what residents contribute.
Everything from shuttle services to harbor improvements is paid for by tourist income. Seasonal workers and venues depend almost entirely on tourist volume. Town planning and budgets pivot around the visitor economy. Its residents are the minority of funders to municipal operations.
10. Glenwood Springs, Colorado
With under 10,000 residents, Glenwood Springs sees hundreds of thousands of tourists drawn to its hot springs, ski access, and adventure offerings. Tourism supports more than half of local business revenue and most events infrastructure. Sales and lodging taxes from visitors form the bulk of municipal funding. The effective tourism budget per local dwarfs the contribution from residents.
Visitor‐center operations, event festivals, and park services are all financed via tourism income. Local government planning revolves around hosting, not community resident needs. That makes the tourism‐driven budget frankly larger than what resident numbers imply. Glenwood Springs is clearly tourism‑financed.
11. Mackinac Island, Michigan
A seasonal island town with fewer than 1,000 permanent residents, Mackinac hosts over a million visitors each summer. Tourism income funds everything: ferry services, historic site upkeep, town sanitation, and public safety. The scale of tourism dollars per resident far exceeds what the population base alone could support. Residents literally pay via visitor taxes and service fees.
Municipal operations—even policing and road maintenance—are scheduled for peak tourist season. The island’s budget is built on lodging, museum tickets, and taffy fans. Without visitor spending, the town couldn’t afford basic public services. Tourism is its economic backbone.
12. Sedona, Arizona
Sedona’s dramatic red‑rock scenery and art and spiritual tourism draw hundreds of thousands of visitors each year despite a resident population of just over 10,000. Local revenue from lodging tax, gallery admissions, tours, and dining overwhelmingly outpaces resident‐funded revenue. Tourist dollars finance infrastructure upgrades, trail systems, and town marketing. Tourism spending per resident significantly outstrips what the population could provide.
The heavy saturation of Airbnb and short‑term rentals (after local bans were lifted) underscores how visitor income drives property values and municipal tax income. Town budgets and services are tuned toward serving tourists rather than locals. Festival funding and city planning revolve around the flow of non‑residents. Sedona’s fiscal model depends on visitors.
13. Telluride, Colorado
Tiny Telluride (about 2,500 residents) is a high‑end ski resort that sees massive visitor spending in winter and summer. Revenue from ski passes, lodging, summer festivals, and outdoor recreation generates far more income per resident than the town could muster alone. Local taxes and fees tied to visitors support road services, cultural programming, and trails maintenance. Tourism budgets dwarf what a small population base could contribute.
Town planning prioritises resort access and visitor amenities over resident needs. Accommodations and infrastructure are scaled to tourist volume. Local business hours and staffing are designed around seasonal demand. Tourism inexorably funds the town’s economy.
14. Ogunquit, Maine
With fewer than 1,000 year-round residents, Ogunquit draws hundreds of thousands of beachgoers every summer. This small seaside town thrives on tourism income from lodging taxes, beach fees, and packed restaurants and art galleries. The town’s nickname—“Beautiful Place by the Sea”—isn’t just for postcards; it’s a brand that pulls in outsize revenue. Per capita, the tourism-related income here far exceeds what residents could contribute through local taxes alone.
Summer crowds fund the infrastructure: boardwalk upkeep, lifeguards, trolley services, and town beautification projects. Events like the Ogunquit Playhouse season and the Marginal Way trail depend on visitor support. Public services are ramped up each May through October to accommodate tourists, not locals. It’s a perfect example of a town where the tourism budget dwarfs the population.
15. Deadwood, South Dakota
Deadwood—population around 1,500—thrives on casino tourists, history buffs, and Gold Rush reenactments. Visitor spending on gaming, lodging, museums, and festivals is a multiple of what locals contribute. Municipal budgets, public safety and heritage maintenance are funded through tourism revenues. The per‑resident tourism budget is far larger than population‐based incomes.
Town signage, re‑enactment staging, and local events are funded via visitor fees. Public services align with nightly tourist counts more than residents. It’s a former frontier town whose survival depends on visitor economy. Deadwood’s citizen funding is overshadowed by tourism income.
16. Leavenworth, Washington
This Bavarian‑themed alpine village of approx. 2,000 residents hosts hundreds of thousands of visitors annually—especially during Oktoberfest and winter lights. Tourism revenue from festivals, lodgings, shops, and attractions is huge relative to the resident population. Public improvements, event programming, and visitor services are funded largely from tourism taxes and spending. The budget fueled by visitors trumps any funding derived from locals.
Streetscaping, holiday decor, and marketing dollars come from hotel and sales tax tied to tourists. Seasonal staff, performance stages and shops operate primarily for visitor traffic. Town planning and budgets revolve around non‑resident demand. Tourism income per capita outpaces what a small population alone could finance.
This post 16 Towns in the U.S. Where the Tourism Budget Is Bigger Than the Population was first published on American Charm.
