By OnMilwaukee Staff Writers   Published May 10, 2011 at 1:06 PM

Despite a still-sluggish economy, tourism is up in Wisconsin, especially the Milwaukee area, where visitors spent approximately $2.5 billion dollars last year.

In the four-county Milwaukee metropolitan area (Milwaukee, Waukesha, Washington and Ozaukee Counties), spending increased by 6.8 percent while overall, visitors spent $12.3 billion in Wisconsin last year, an increase of 1.88 percent.

Tourism spending in Milwaukee County exceeded both the regional and statewide figures with an increase of 7.25 percent to $1.64 billion.

"We're proud of the increase we have had here," Mayor Tom Barrett said Monday at a press conference to kick off National Tourism Week. "It underscores the point that when it comes to tourism, the Milwaukee area drives the tourism economy here in the state of Wisconsin."

Barrett pointed to Milwaukee's well-known summer festivals as a catalyst for attracting visitors and expected to see the numbers get even higher this year with new events this year like the Summerfest Rock 'N Sole Half-Marathon, the 2011 U.S. Open Table Tennis Championships and the "Treasures from the Forbidden City" exhibit coming to the Milwaukee Art Museum in June.

Milwaukee is one of only three cities in the world to host the exhibit which features roughly 90 never-before-seen artifacts from the Qianlong Garden in Beijing, China. The exhibit opens June 11 and runs for four months.

"I think all of us understand what goes on in Milwaukee," Barrett said. "We've got the tough winters, the slow spring and then, pow, the summer comes. We're just about there, and this is where the city really takes off."

An increase in convention business also played a role. VISIT Milwaukee, the city's convention and visitor's bureau, has been aggressive in marketing Milwaukee as a top destination for conventions and it paid off in 2010 as the number of convention-related hotel room nights went up by more than 50 percent compared to 2009.

VISIT Milwaukee President and CEO Paul Upchurch said the city is ahead of last year's pace in terms of convention bookings and other major cities, including places like Las Vegas and Chicago, are adjusting their rates to remain competitive with places like Milwaukee, which is attractive due to its central location and growing airport.

"Being within an eight-hour drive of about a third of the nation's population serves us well," Upchurch said.

A study performed by the research firm of Davidson-Peterson Associates of Kennebunk, Maine found that shopping accounted for the biggest chunk of the travel pie, making up 30 percent of the total. Food and beverage purchases were second, at 28 percent. Recreation accounted for 22 percent of all money spent with lodging and transportation accounting for 12 and eight percent, respectively.

Tourism is essential to local economies, generates significant amounts of state and local tax revenue and is one of the state's leading industries, accounting for approximately 300,000 jobs.

In the Milwaukee area alone, the tourism and hospitality industries were responsible for more than 60,000 jobs last year including 41,000 in Milwaukee County.

With gas prices falling ever so slightly and more people looking to get away from home this summer after choosing to save their money in years past, Barrett predicts another good year for Milwaukee.

"I'm confident that the numbers will continue to grow and we'll do even better," he said.