Why Tourism Is the Most Underrated Economic Driver for Small Towns
Part of a Series on Small Town Economic Development
This article is part of an ongoing series exploring tourism, downtown challenges, and economic development in small towns.
In my last post, I broke down the economic development flywheel—how awareness, access, activity, and revenue all work together to create growth.
But if you look closely at that system, one piece matters more than most people realize:
Awareness
Because nothing happens without it.
The Core Truth
If people don’t know about your town…
they don’t visit.
If they don’t visit…
they don’t spend.
If they don’t spend…
businesses struggle.
And when businesses struggle:
Revenue tightens
Investment slows
Growth stalls
It all starts at the top of the flywheel.
Why Tourism Gets Overlooked
When people think about economic development, they usually think about:
Industry
Manufacturing
Large employers
Infrastructure projects
And those things matter.
But they often overlook one of the fastest, most scalable ways to bring money into a community:
Tourism
Tourism Brings Outside Dollars In
This is what makes tourism different.
Most local spending:
just circulates money already in the community
Tourism:
brings new money in from outside
That means:
More customers for businesses
More revenue for the town
More economic activity overall
It’s Not Just Hotels and Restaurants
Tourism isn’t just:
Hotels
Restaurants
Gift shops
It impacts:
Retail
Coffee shops
Outdoor experiences
Local services
Even small increases in visitors can ripple across the entire local economy.
Why Most Towns Get Tourism Wrong
Here’s where things break down.
Most towns treat tourism like this:
❌ Build something
❌ Host an event
❌ Hope people show up
But that’s not a strategy.
That’s wishful thinking.
Tourism Is a Marketing Problem
If you want more visitors, you need:
Awareness
Visibility
Consistent messaging
Content people actually see
Because today, people don’t “discover” places by accident.
They discover them through:
Google
Social media
Content
Word of mouth
The Shift We Can’t Ignore
There’s another layer to this.
People are changing how they spend time and money.
They want:
Convenience
Experiences
Quick decisions
That means small towns can’t rely on:
“people will just come”
You have to:
give them a reason to come
Tourism Feeds the Flywheel
This is where it connects back.
Tourism fuels:
Awareness → Activity → Revenue
More visitors:
Create more activity
Support businesses
Increase revenue
Allow reinvestment
Which strengthens the entire system
What This Means for Small Towns
If a town wants to grow without relying entirely on:
Higher taxes
Constant development
Large-scale spending
Then it has to:
bring in outside demand
Tourism is one of the most effective ways to do that.
What Actually Works
Not theory. Not fluff.
In practice, this looks like:
Consistent online presence
Strong content (photos, stories, guides)
Clear positioning (“why visit here?”)
Supporting local businesses
Making it easy to explore
What This Looks Like in a Real Town
You can see this clearly in Front Royal, VA, where tourism isn’t just a seasonal boost — it’s one of the most consistent economic drivers available.
With thousands of visitors heading into Shenandoah National Park and traveling along Skyline Drive, the volume is already there. The missed opportunity is what happens next — whether those visitors continue on their way or stop, explore, and spend time in Downtown Front Royal.
Tourism on its own doesn’t guarantee growth. But when it’s connected to local businesses, experiences, and a reason to stay, it becomes one of the most powerful — and often overlooked — economic engines a small town can have.
The Bottom Line
Tourism isn’t the only solution.
But it’s one of the most underutilized and misunderstood tools small towns have.
Because at the end of the day:
You can’t grow without demand.
And tourism is one of the best ways to create it.
Closing
If you want to grow your town, support your businesses, and reduce pressure on residents…
You have to think beyond local.
You have to bring people in.
More from Scott Turnmeyer
I write about photography, business, mindset, bowling, and the bigger questions that don’t always have easy answers. You can explore more articles, photography, and projects here:
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