Why Chicago sees LGBTQ+ tourism as a growing economic opportunity
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People gather to watch the Pride Parade in Northalsted in 2022. Photo: Kamil Krzaczynski/AFP/Getty Images
This Sunday, the Pride Parade will draw hundreds of thousands of spectators to Northalsted for one of the country's biggest neighborhood parades.
Why it matters: As some states become less welcoming to LGBTQ+ visitors, Northalsted is betting that Chicago's reputation for inclusion can translate into more tourism dollars.
The big picture: Two luxury LGBTQ+ boutique hotels announced plans to open in Northalsted this year. At the same time, Chicago doubled down on one of the neighborhood's most recognizable symbols by renovating its rainbow crosswalks.
The latest: Ald. Bennett Lawson (Lakeview/Northalsted) took to the council floor last week to talk about the importance of the rainbow crosswalks along Halsted Street.
- Lawson argued the crosswalks are more than decoration — they're part of the neighborhood's brand and help signal to visitors that Chicago remains welcoming.
- Bennett warned Chicago not to take them for granted, citing several Florida communities that have removed or challenged rainbow crosswalks amid broader political fights over LGBTQ+ visibility.
Context: Illinois welcomed 112.9 million visitors who spent $48.5 billion in 2024. The state doesn't break out LGBTQ+ tourism, but industry estimates put annual U.S. LGBTQ+ travel spending at more than $65 billion, with research showing LGBTQ+ travelers take more trips than the general population.
Zoom in: One of the boutiques is being developed by Tryst Hospitality, a luxury brand that caters to gay travelers and tourism. Tryst has two big resort locations in Puerto Rico and Mexico, but is rapidly expanding, opening up locations in Fire Island, Provincetown and right here at 3350 N. Halsted Street.
- The boutique plans to be a five-story, 21-room hotel with a restaurant, nightclub and a rooftop bar with a pool.
- The Backbeat Hotel, which is planned for a block south on Halsted Street, will also feature a rooftop pool, a restaurant and a luxury lounge.
What they're saying: "The boutique hotels that will soon be added to the street definitely fill a need," Northalsted Business Alliance's Kevin Barbeau tells Axios. "Often, visitors I speak to in my neighborhood walkarounds have told me they wish they could end their day in the same place they started it!"
- "These hotels, in addition to our district's much-loved Villa Toscana bed & breakfast, help to bring people to the street and stay on the street, so that they and our businesses can mutually benefit," Barbeau adds.
Zoom out: Popular gay destinations like Florida are passing anti-gay laws, including removing rainbow crosswalks, threatening to pull funding for Pride events and even trying to outlaw drag shows.
Yes, but: If tourists don't feel comfortable in those states, Illinois is swooping in.
- "Whether visitors are attending a parade, supporting LGBTQIA+-owned businesses or discovering new destinations along the way, Illinois offers experiences that embrace and uplift everyone," the state's commerce director, Kristin Richards, said in a statement.
The bottom line: Northalsted's leaders see visible investments in the neighborhood, from luxury hotels to rainbow crosswalks, as more than symbolism.
- They're part of a broader strategy to make Chicago an even bigger destination for LGBTQ+ travelers.