Asheville, US Faces New Slow Tourism Recovery Despite Declining Unemployment Rates – Western North Carolina Struggles to Rebound After Tropical Storm Helene

Tuesday, July 8, 2025

In May, unemployment rates in Western North Carolina showed a slight decrease, according to the North Carolina Department of Commerce estimates. However, despite this positive change, early summer tourism in the Asheville area remained below levels observed in 2024, as the region continues to experience a gradual recovery.

Buncombe and Mitchell counties, which had the highest unemployment rates in the region during April, saw these figures drop to 4.5% as the area worked to recover from the impact of Tropical Storm Helene. Despite these improvements, Rutherford County now holds the highest unemployment rate in the region, at 4.6%. Meanwhile, Henderson County’s unemployment rate rose to 3.3%. In total, approximately 6,341 individuals remained unemployed in Buncombe County, according to the Department of Commerce’s data.

Tourism, which is a major economic driver in the region, has been slower to rebound. The Asheville-area tourism industry has reported declines in several key indicators compared to the same period in 2024. According to data from the Buncombe County Tourism Development Authority (BCTDA), hotel lodging demand in May 2024 saw an 8% decrease, and occupancy rates also fell by 5%. In total, only 198,526 room nights were booked in Buncombe County in May, compared to 214,259 the previous year.

This decline in tourism has been attributed to several factors, including regional outfitting companies experiencing similar year-over-year declines and the reopening of local “economic engines,” such as Chimney Rock State Park, which had been temporarily closed for repairs following the storm. The recovery process for many of these attractions has been slow, and the region’s hospitality industry has been particularly affected. Federal data from the U.S. Bureau of Labor Statistics revealed that the leisure and hospitality sector in the Asheville Metropolitan Statistical Area (MSA), which includes Buncombe, Henderson, and Madison counties, saw a significant decline in employment. The sector was down 9.5% in May 2024 compared to the same month in 2023.

In May, more than 25,700 individuals were employed in leisure and hospitality jobs in the Asheville MSA, a decrease from 28,400 workers in May 2024. This decline in employment has been felt by many workers in the hospitality and restaurant industries, signaling the ongoing challenges faced by the region’s most vital economic sectors.

In addition to the decline in tourism and hospitality employment, the area’s overall economic recovery has been a key focus for city leaders. The city of Asheville has been actively encouraging residents to share their views on the region’s recovery efforts. In collaboration with the Urban Land Institute Advisory Panel on Economic Recovery, Asheville will host a public meet-and-greet session on July 28 at Harrah’s Cherokee Center, located in downtown Asheville. This session is part of a series of community engagement opportunities aimed at gathering input on the city’s recovery and resilience strategies. The panel’s visit will also include a final presentation on August 1 at 9:30 a.m.

The city’s leaders recognize the importance of involving residents in the conversation about how to rebuild and strengthen the local economy. With input from both local citizens and experts, Asheville hopes to identify actionable solutions that can support a more resilient and sustainable economic recovery.

As summer continues, the local economy is slowly recovering from the impact of Tropical Storm Helene, but the tourism industry in Asheville and surrounding areas is still struggling to return to pre-pandemic levels. The ongoing challenges faced by the region, particularly in the hospitality sector, reflect the broader impact of the storm and the slow pace of recovery that has affected many communities across Western North Carolina.

While the unemployment rate has improved slightly and the area is working to restore its tourism infrastructure, the full recovery of the region’s key industries, especially tourism and hospitality, is expected to take time. The city’s engagement with residents and the continued focus on rebuilding the economic foundation of the region are essential steps toward long-term prosperity.

With the public’s involvement in shaping the recovery process and the tourism sector slowly regaining its footing, Asheville and Western North Carolina are gradually moving toward economic revitalization. However, a great deal of work remains to be done to fully recover and reestablish the area as a leading destination for visitors from across the country and beyond. The community’s resilience and collective effort will be critical in navigating this challenging period and ensuring a sustainable future for the region’s economy.