A new report from the Federal Reserve Bank of Kansas City examines how small towns are using route-based tourism as a strategy for economic development. The report, titled “The Byways Report: The Scenic Route to Rural Prosperity,” focuses on Route 66, which marks its 100th anniversary and spans eight states from Chicago to Los Angeles. Four of these states—Missouri, Kansas, Oklahoma, and New Mexico—are within the Tenth Federal Reserve District.
The study highlights interviews with national experts in rural development and byways tourism, as well as experiences from people involved with byways across the United States. While it centers on Route 66 in Oklahoma, the report includes stories from other regions.
Jennifer Wilding, community engagement advisor at the Kansas City Fed and author of the report, said, “The major theme and biggest surprise from this research is that long-time residents of small towns often can’t see what might draw visitors. Newer or younger residents have helped others see the town with fresh, appreciative eyes and have led the way in spurring unique approaches to economic development in many communities.”
Research cited in the report indicates that a byway can generate between $250,000 and $450,000 per mile per year in visitor spending if it features heritage sites, cultural locations, local accommodations and cuisine, ample opportunities for visitors to spend money, and strong promotion.
The findings suggest that byways are especially suitable for small towns and rural areas because these communities are often separated by miles of countryside that can attract visitors due to their geography. Groups of towns can collaborate to create their own byway based on regional heritage and assets. The report notes that no single town needs to handle all responsibilities; rather, success comes when each community along a route leverages its strengths.
Examples in the report include young entrepreneurs preserving history in Miami, Oklahoma; efforts by the Cherokee Nation; a vintage café experience in Vinita; creative revitalization projects in Clinton; an artist’s contributions in Sayre; as well as stories from Red Cloud, Nebraska and Virginia’s Crooked Road Music Trail.
Wilding’s report also points out technical resources available for states and communities seeking to use route-based tourism for rural prosperity. Ten themes emerged from interviews conducted for the study. These include promoting entrepreneurship as an economic strategy, preserving local history and heritage, focusing on collaboration over competition among towns along a route, and engaging with destination marketing organizations for support.
The full report is available for download or print request at https://www.kansascityfed.org/the-byways-report.
In addition to this research effort supporting financial stability through community engagement initiatives like this one on rural tourism development strategies, institutions such as the Edward J. Bloustein School of Planning and Public Policy contribute expertise through nationally ranked programs focused on urban planning and public health. The school operates as part of Rutgers University—the State University of New Jersey—and advances social impact through research centers dedicated to community development among other policy areas.