Colorado saw tourism bring in a record $29.2 billion for the state in 2025 but tourism is slowing, according to a new report.

Gov. Jared Polis and the Colorado Tourism Office on Tuesday released its annual report put together by travel consulting agencies Dean Runyan Associates and Longwoods International Travel USA.

The report found tourism grew in 2025, but the state is facing several challenges such as more competition, federal policy changes and weather impacts.

Colorado saw more visitors in 2025 compared to 2024 by 1.4%, according to Longwoods International Travel USA. Nearly 97 million people visited the state last year.

“With over 96 million visitors, Colorado’s tourism industry proved its resilience in 2025,” said Eve Lieberman, executive director of the Colorado Office of Economic Development and International Trade, in a press release.

She added the data shows how Colorado is a top destination for travelers, but the state needs to continue coming up with “innovative strategies” to keep attracting more tourists and growing the state’s economy.

Travelers spent more than $29.2 billion last year, up 2% from 2024’s revenue. The state generated $28.5 billion in 2024. Meanwhile, the number of jobs supported by tourism fell in the state by 0.6% to less than 188,000 jobs.

State officials are growing worried about the impact more competition will have on Colorado’s tourism economy.

Colorado saw 2% growth in visitor spending — which is in line with similar states like California at 1.7% — but is below the national travel spending growth of 4.2%, the report found. The state’s market share fell to 1.79% in 2025, down from its height in 2019 of 2.3%.

While the report doesn’t cover the time period for the record dry winter that hit ski resorts hard, officials mentioned concern over weather challenges like low snowfall and wildfires impacting the state’s tourism economy.

Competition for travelers and the associated traveler spending is increasing across the U.S. Colorado’s 2% growth in visitor spending is consistent with peer states like California, which saw an increase of 1.7%. However, U.S. travel spending grew by 4.2% in 2025, more than double Colorado’s growth. Colorado’s market share has also continued to decrease, dropping from a high of 2.3% in 2019 to 1.79% in 2025.

In addition to increasing competition, 2026 numbers indicate that communities across the state are seeing fluctuations in visitation related to weather-related challenges, including lower-than-average snowfall and the proximity of wildfires. Some communities, including mountain resort destinations, have experienced seasonal declines in visitation as high as nearly 40% due to these conditions.

“While the statewide numbers are encouraging, we also recognize that destinations across Colorado are experiencing different challenges — from increased competition to weather-related impacts,” said Timothy Wolfe, director of the Colorado Tourism Office. “We remain committed to working alongside our partners to help communities adapt while continuing to inspire the world to explore Colorado responsibly and respectfully.”