From the outside, Fredericksburg seems like a typical town in Texas Hill Country. It proudly parades its German heritage, features a historic Main Street and has plenty of charming homes dotted throughout. Most people would be surprised to find out that this unassuming town is the epicenter of the Texas Wine Industry.
Benefiting from having high limestone deposits in the soil, the local Wine Industry has quickly grown to make Texas the 5th largest wine producing state. With over 400 wineries and 5,000 acres dedicated to producing wine grapes, Texas wine has contributed an estimated $13.1 billion in economic impact to the state.
In addition to having a bubbling wine industry, Fredericksburg also has a soaring tourism industry. In the face of closures caused by COVID in 2020, Fredericksburg still saw an increase total direct travel spending (2.2%) and direct tax receipts (0.7%) while only seeing a slight decrease in revenue ($2 million) during the pandemic. Even though there was a slight decrease in revenue, the Fredericksburg hotel industry still performed much higher in revenue than the state’s average ($52.35 to $37.88 per available room). Sales tax collection also increased from the previous year by 1.32% despite the pandemic.
