Learn how riverboat stops in Red Wing are boosting the local economy

A recent survey by the University of Minnesota Extension Department of Community Development zeroed in on the economic impact of riverboat travel for Red Wing, Minnesota. The Red Wing Port Authority commissioned the survey to better understand the direct value provided to local businesses, indirect contributions, and the increased awareness these stops raise for the community. With the survey results, local officials and entrepreneurs can better gauge future investments in infrastructure and public spaces as well as the services and products offered to travelers. 

Travelers are satisfied with Red Wing

A standout finding of the survey was 67% of respondents indicated they were highly satisfied with their time in Red Wing, Brigid Tuck, senior economic impact analyst with University of Minnesota Extension, said. An additional 30% reported being satisfied.

“If you look at why people were satisfied, it was the natural and scenic beauty of the region, the historic downtown, the museums, and then the friendliness of the community,” Tuck continued. “Things like natural scenic beauty – it’s hard to control. You’re lucky to have that. But making investments in the historic downtown, making investments  in your museums, and then having a community that is welcoming, all those things combined are really contributing to make Red Wing a place people want to visit.” 

Another key result is many of the travelers are experiencing Red Wing for the first time.

“This is gold for tourism,” Tuck explained. “You’re bringing in new people and exposing them to your community, people who wouldn’t have been here otherwise.” 

Economic impact of travelers

With Mississippi riverboat travel, the river serves as both a destination and a conduit to ports of interest. Red Wing is a stopping point for both Viking River Cruises and American Cruise Line vessels. Some boats visit the town for the day or will dock overnight. On return trips, they may simply stop for fuel. 

To gauge the economic impact of riverboats at the individual level, a survey was conducted in the summer and fall months of 2024. The Extension designed a postcard featuring a survey link and QR code, and these were distributed by riverboat greeters and Roaming Red Wing. During the survey timeframe, 11 boats were able to dock at the traditional Levee Park location, and 139 responses were received. The full capacity of the 11 levee park boats was 2,769.

Average spend per riverboat visitor was calculated as $44.10 based on survey responses, and in a typical year, Red Wing welcomes 5,275 riverboat travelers. Retail shopping claimed the highest portion of the spend at an average of $27.30, with restaurants, lodging, transportation, and entertainment rounding out the top 5 categories. 

In 2024, riverboat travel was negatively impacted by higher-than-normal Mississippi River levels. Using adjusted travel totals of 3,969 passengers, the Extension estimates a total spend of $174,570 in the Red Wing area in 2024. If all 15 expected ships had been able to dock, the total visitor spend would have been an estimated $232,000 – the normal year average. 

These totals do not include fuel and lube spending by the riverboat companies – an additional $249,670 contribution, or the value of group and individual tours organized by the company – a $125,120 addition. With all three sectors of spending totaled, a normal year of riverboat travel adds $606,790 in direct spending to the local economy. 

Outside of direct spending, there are other economic contributions to consider. Indirect and induced effects could be felt in other industries, including real estate, government enterprises, company management, administrative and support roles, and even hospitals. The labor income generated by employees in these sectors is also reinvested in the Red Wing community. When direct, indirect, and induced economic contributions are totaled, riverboats help add $796,190 to Red Wing’s economy each year.

Enhancing future travels

When asked to “name one thing that would have enhanced your visit to Red Wing,” the main thing travelers noted was a desire for additional time to explore. Other responses noted receiving a map of downtown would be helpful or a need for improved physical mobility, such as shuttles to downtown or golf carts. While the riverboats do provide bus services for passengers, they frequently travel to specific points of interest, leaving an opportunity to offer other amenities to travelers looking for more diverse options.

The Red Wing Port Authority helps fuel economic growth in Red Wing. Follow news updates on our website to learn more. Interested in exploring our business services? Click here or contact us today!