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Published on April 27, 2024
Texas Distilleries Contribute $830 Million to State Economy as Tourist Attractions, Study ShowsSource: Google Street View

The Lone Star State's spirit industry is not just about bold flavors, it's also a robust economic engine. Recent data suggests Texas distilleries have poured more than $830 million into the state's coffers through tourism, as recovering industries clink glasses to a post-pandemic boom. CBS Austin reported these distilled dollars are the result of a significant uptick in visitors flocking to the state’s 188 distilleries.

In an industry once staggered by the COVID-19 aftermath, Fierce Whiskers in Austin, a startup at the pandemic's onset, now sees a brighter future. "We really had zero business, until the lockdowns were really lifted," Fierce Whiskers co-founder Tim Penney told CBS Austin. A contributing factor to this resurgence appears to be the allure of Austin itself, which is increasingly considered a top-tier destination city, and these distilleries benefit from the overflow of tourism.

Meanwhile, according to The Whiskey Wash, Tourism Economics, a subdivision of Oxford Economics, crunched the numbers to reveal a direct economic impact of $831.7 million statewide, along with the creation of about 7,700 jobs, and an infusion of $42.5 million in state and local tax revenues. These figures reflect the broader implications of a thriving distillery tourism sector that reaches beyond mere bottle sales.

Tourist expenditures, it seems, don't just evaporate after a distillery visit; they ripple out into the state's economy. Visitors spend significant sums — almost $460 million, says the study — on other indulgences such as dining, lodging, and local retail. "About half of our patrons that come through here are tourists, so they’re staying in hotels in the area, they’re looking for something to do," David Masters, co-founder of Standard Proof Whisky Co., described to CBS Austin, underscoring the symbiotic relationship between distillery tourism and local businesses.

This surge in economic activity has set the stage for a discussion on policy reform. Voices from the spirits industry argue that easing certain restrictions, particularly concerning Sunday and holiday sales, could further distill benefits for Texas's economy. "This study makes clear that continued growth of the Texas distilling industry presents great opportunities for the state," Andy Deloney, senior vice president at the Distilled Spirits Council of the United States, announced, advocating for a modernized approach to what he deems 'antiquated laws.'

As debates over regulatory constraints continue, one thing remains crystal clear: Texas distilleries are claiming their stake, not just in the American spirit market, but as a significant contributor to the state's economic landscape.