ACS Vacations: US Travel and Tourism

The United States has long stood as a powerhouse in the global travel and tourism industry, with its vast landscapes, iconic cities, cultural attractions, and diverse experiences drawing millions of visitors each year. Even as worldwide travel continues to rebound from the pandemic’s disruptions, the U.S. travel sector remains one of the most significant contributors to the national economy. However, the market today faces evolving dynamics — including shifts in international visitation, domestic travel growth, economic challenges, and policy impacts — shaping its trajectory in 2025 and beyond.

Economic Significance of Travel and Tourism in the U.S.

Travel and tourism are crucial pillars of the American economy. In 2023, the sector contributed a record-breaking $2.36 trillion to total U.S. economic output, making it one of the largest single contributors across all industries. This accounted for nearly 3 % of national GDP, highlighting the industry’s scale and weight.

Employment within travel and tourism is equally impactful. According to recent estimates, the industry supported over 15 million jobs across hospitality, transportation, food services, recreation, and related sectors. These roles range from frontline service jobs in hotels and attractions to managerial and technical positions in travel technology and event planning.

Domestic tourism is the backbone of this economic footprint. American travelers generated substantial spending in 2023 — with leisure travel alone exceeding $972 billion and business travel contributing $140 billion.

Domestic vs. International Travel Trends

A defining characteristic of the U.S. market is the dominance of domestic travel. In 2023, an estimated 1.64 billion domestic trips were taken by American residents, with road travel constituting the bulk of these journeys. Domestic visitors accounted for roughly 85 % of total travel spending, underscoring how internal mobility drives the industry.

This internal demand has helped the sector recover faster from pandemic lows than many international counterparts. Hotel occupancy rates, domestic air travel, and regional tourism spending in popular cities have rebounded strongly, setting records in several major metropolitan areas.

However, international tourism tells a different story. After pandemic restrictions eased, inbound visits climbed back toward pre-COVID levels but have recently shown signs of stagnation or decline. Reports indicate a downturn in foreign visitor numbers in 2025, with several months of reduced arrivals from key overseas markets. This trend marks a notable shift after years of steady recovery and suggests a broader challenge in attracting international travelers.

Drivers of Change: Policy, Perception, and Competition

Several factors contribute to changing travel patterns. Policies affecting entry requirements, visa processing, and border security can influence travelers’ decisions. For example, more stringent entry measures and heightened scrutiny have been cited as deterrents for some international tourists considering the U.S. as a destination, prompting them to choose other countries instead.

Geopolitical and economic dynamics also play a role. Nations in Europe and Asia have intensified their tourism marketing and eased travel restrictions, offering competitive alternatives that appeal to global visitors. Coupled with shifting global sentiment and rising travel costs, these trends create pressure on the U.S. market to innovate and adapt.

Opportunities and Growth Sectors

Despite these challenges, opportunities persist. The upcoming 2026 FIFA World Cup, co-hosted by the U.S., Mexico, and Canada, is expected to generate heightened interest in travel across North America. Hospitality and travel firms are gearing up for a surge in demand, with projections suggesting the event could significantly bolster international and domestic visitor numbers.

Growth areas within the travel landscape also hint at diversification beyond traditional tourism. Culinary tourism, cultural experiences, sports tourism, and adventure travel have witnessed strong gains, reflecting evolving consumer preferences. Sustainability and eco-tourism are attracting a new generation of travelers seeking environmentally conscious travel options.

In addition, digital transformation in travel services — such as mobile bookings, personalization via AI technologies, and contactless experiences — is reshaping consumer expectations and enhancing efficiency across the travel sector.

Future Outlook and Strategic Focus

Looking ahead, industry forecasts suggest a moderate increase in international arrivals over the next few years, with projections estimating inbound visits to rise toward and possibly exceed pre-pandemic levels by 2026–2028. To fully realize this potential, stakeholders emphasize the need for strategic investments in infrastructure, streamlined entry processes, and global marketing initiatives to reinforce the U.S. as a premier travel destination.

Collaboration between public authorities and private tourism entities will be key, as will addressing workforce challenges, especially where labor shortages persist in hospitality and support services.

Conclusion

The U.S. travel and tourism market remains a formidable force in the global landscape — driving economic growth, supporting millions of jobs, and reflecting Americans’ enduring appetite for exploration. While international visitor trends present challenges, strong domestic travel, strategic events like the World Cup, and evolving travel experiences position the industry for sustained relevance and growth. With continued innovation and responsive policy measures, the U.S. can maintain — and potentially expand — its role as a leading global travel destination.