Mar. 28, 2025

On the heels of the six-month mark of Hurricane Helene, Explore Asheville and the Buncombe County Board of Directors reviewed the latest travel outlook for Buncombe County and the Asheville Area in its board meeting earlier today. We also celebrated the live broadcast of Good Morning America from Asheville this week.

Last fall, Hurricane Helene had a profound impact on our region, including our travel and hospitality industry, presenting significant economic challenges for the livelihoods of residents and the local businesses we all love. While recovery efforts in early 2025 are yielding improvements, Tourism Economics analysts are forecasting a rebound this fall driven by pent-up travel demand and a potential increase in domestic travel. More importantly, visitor spending is anticipated to recover, with a projected increase of 3.5% in 2025, followed by a stronger growth rate of 5.2% in 2026.

Takeaways from the March board meeting include:

• February lodging occupancy and demand;
• Adoption of the FY25 Lodging Forecast at $32.5 million following a finance committee recommendation informed by Tourism Economics data;
• Appointment of three new members to serve on the Tourism Product Development Fund (TPDF) Committee.

We are excited for the return of two spring events that recognize and bring together hard-working members of our travel and hospitality community. The second annual Heroes of Hospitality Awards holds special significance this year as we seek to honor non-managerial employees or volunteers who have provided exceptional guest experiences despite facing tragedy and unprecedented challenges. Speaking of volunteers, we hope you plan to join us and your colleagues in cleaning up key districts of our region’s visitor economy this Earth Day.

February 2025 hotel occupancy was 62%, up 11 points from 2024 and four points from 2019.

Vacation rental occupancy was 43%, up three points from 2024 and down four points from 2019. Vacation rental demand was down 20% year-over-year. Notably following Helene, total vacation rental listings were down 20% compared to February of last year.

Senior Economist at Tourism Economics Daryl Cronk presented an annual forecast and provided context through national and regional comparisons for Asheville and Buncombe County's travel and lodging sector. Main findings included:

• Asheville's hotel room revenue and lodging tax collections are projected to decline by 9% and 24% in FY25 respectfully. In FY26, baseline projections show an increase of 6% in hotel room revenue and 27% rebound in lodging tax collections. Lodging revenue is generally a leading indicator for spending throughout the community and sales tax revenue that ultimately fuels City and County government budgets.
• Although U.S. Airports are busier than ever, national hotel demand is still below pre-pandemic levels. Contributing factors include international travel imbalance, surge in cruise passenger volume, and significant impacts on non-luxury hotel demand due to high interest rates and inflation.
• Despite mounting headwinds, economic conditions in 2025 are forecasted to support modest travel growth. Growth in consumer spending, supported by low unemployment, rising wages, and rising household wealth, should translate to increased travel.
• Public policy poses substantial risks to current forecasts.

The authority approved the Finance Committee's recommendation to establish a FY26 net lodging revenue forecast of $32.5 million. These estimates were informed by a thorough review of three economic outlooks produced by research analysts at Tourism Economics.

• The upside scenario projects lodging tax revenues to reach $36.3 million
• The baseline scenario projects lodging tax revenues to reach $33.5 million
• The downside scenario projects lodging tax revenues to reach $30.4 million 

The Finance Committee’s lodging tax revenue forecast of $32.5 million is slightly below the baseline scenario and is nearly $7 million more than what is expected to be generated in the current fiscal year.

Following the nominating committee’s recommendation, the authority approved three new members, Jack Benton of Parks Hospitality, Lew Bleiweis of the Asheville Regional Airport Authority, and Ken Floyd of The Monte Vista Hotel, to serve on the Tourism Product Development Fund (TPDF) Committee. This volunteer group makes recommendations to the authority for investing in major tourism capital projects that will increase patronage of lodging facilities in and further economic development of Buncombe County. These candidates were selected to fill lodging and tourism appointment vacancies per legislative requirements.

Through TPDF, the authority has committed more than $86 million in 41 community projects since 2001. Project investments have included greenways, parks, public art, sports and recreation facilities, cultural heritage institutions, and other family attractions.

To mark the six-month milestone of Hurricane Helene, Good Morning America hosted Thursday morning’s broadcast live from Highland Brewing Company in Asheville, shining a spotlight on Western North Carolina's inspiring journey of recovery and resilience.

With progress being made every day, our community has shown the world that we’re open, and that visiting our deeply rooted, creative community means more than ever.

Working with Good Morning America producers over the last month, Explore Asheville was proud to play a part in making this morning happen and shine a light on the people and places in our community. The journey following Helene over the last six months has looked different for everyone, but each step forward is worth recognizing.

In addition to the national coverage showing that Asheville is still stunning and standing, Good Morning America and their sponsors donated $2.7 million to local organizations including BeLoved Asheville, Southside Community Farm, and the River Arts District Artists Foundation.

In celebration of National Travel and Tourism Week (May 4–10), Explore Asheville and the authority are now accepting nominations for the second annual Explore Asheville Heroes of Hospitality Awards. This year, Heroes of Hospitality takes on a new meaning. Nominations will be accepted for non-managerial service employees or volunteers who maintained exceptional guest experiences even amid tragedy and unprecedented challenges.

The travel and hospitality community will be invited to celebrate nominees and winners during National Travel and Tourism Week at a luncheon hosted in their honor on May 5th.

April is Volunteer Month, and Explore Asheville invites you to help contribute to the recovery and stewardship of our community. Join us for the 2025 Explore Asheville Travel & Hospitality Earth Day Cleanup, supported by Asheville GreenWorks, RiverLink, and MountainTrue.

Cleanup and Host Venue locations include:

• Biltmore Village: Village Pub
• Black Mountain: Foothills Grange
• Downtown: Kimpton Hotel Arras
• River Arts District: The Radical
• Weaverville: Eluvium Brewing Company

MORE INFORMATION & NEXT MEETING OF BCTDA

Find documents from the March 28 board meeting HERE >>

THE NEXT BCTDA BOARD MEETING
Wednesday, April 30 | 9–11 a.m.
Explore Asheville | 27 College Place
Details to be posted HERE >>

Delivering Balanced 
& Sustainable Growth

Encouraging Safe & Responsible Travel 

Engaging & Inviting More Diverse Audiences

Promoting & Supporting Asheville's
Creative Spirit