In 1993, the Arizona-Mexico Commission and its sister organization, the Comisión Sonora-Arizona, initiated a binational strategic economic planning process to analyze how the two neighboring states could increase their regional competitiveness in the world economy and enhance the overall quality of life for their residents. One of the recommendations of the Strategic Economic Development Vision was to develop a set of indicators as a tool to monitor progress toward the goals of binational economic development. The purpose of the Regional Economic Indicators is to help policy and decision-makers understand and monitor economic changes in the Arizona-Sonora region and to support policies that promote economic transformation, investment and entrepreneurship in the region.

Tourism is one of 12 industry clusters widely considered to be driving the Arizona economy according to the Governor’s Strategic Partnership for Economic Development (GSPED). The term "cluster" refers to a geographic concentration of interdependent companies, suppliers, products, labor pool, and institutions that together constitute an important competitive advantage for a region. In northern Arizona, tourism ranks as the predominant industry cluster. This paper provides a profile of the tourism cluster in Coconino County, with special focus on the Flagstaff area. It examines the cluster’s composition, relative size and importance to the regional economy. It addresses the cluster’s dynamics and requirements for growth. It reviews important national and worldwide trends affecting tourism in Arizona, as well as the special characteristics of gateway communities. And, finally, it presents a menu of actions to choose from for strengthening the cluster in both Flagstaff and Coconino County.