Domestic Tourism Rises as Americans Opt for Local Travel

U.S. small business owners in popular tourist spots report an increase in Americans vacationing closer to home this summer. Many are choosing road trips over overseas travel, preferring day trips to extended stays, and opting to cook instead of dining out to save money. This shift towards local travel is influenced by higher airfare and gasoline costs. Other factors like the FIFA World Cup and the upcoming 250th birthday celebrations of the nation encourage residents to create summer memories nearby.

According to AAA, 72.2 million Americans were expected to travel at least 50 miles from home from June 27 to this Sunday. This is 0.5% more than last year’s July Fourth period, mainly from those using cruises, buses, and trains. No increase in driving or flying numbers was anticipated. Tarik Dogru, an associate professor at Florida State University, stated that fewer Americans traveling abroad mean more vacation spending remains local, benefitting small businesses such as regional eateries, local attractions, Airbnb hosts, and roadside establishments.

The reduced travel abroad could help address the U.S. travel and tourism trade deficit begun since the COVID-19 pandemic. Each year since 2020, Americans have spent more on international travel than foreign visitors spent in the U.S.

Morgan Kain, a teacher in Baltimore, shared her family’s decision to limit travel this summer due to financial reasons. While they habitually take several trips, including a week at a Virginia lake house, costly travel expenses have curtailed their plans.

“This summer, we’re still doing a couple overnights and the lake house, but nothing else,” said Kain. “Things are crazy expensive, from travel costs to food costs to gas.”

While gas prices are higher than the previous year, 85% of travelers during Independence Day week were expected to drive, as car trips generally cost less than flying. In destinations like Lake Tahoe, businesses have noticed more visitors arriving by car from nearby cities. Ron Williams, owner of Tahoe Sports, expressed initial concerns about customer turnout but is pleased with the positive business performance, noting a 10% increase in bookings compared to last year.

In Asheville, North Carolina, small business owners have been optimistic for a tourism recovery after Hurricane Helene and flooding caused significant damage in 2024. Aubrey Anderson reduced her river tubing outfitter staff significantly post-Helene but is encouraged by renewed interest. More visitors are coming from nearby regions, including South Carolina and Tennessee, for river activities and local attractions.

Jael Skeffington, CEO of French Broad Chocolate in Asheville, noted a surge in factory tour participants. Visitors often stop at the cafe for treats and purchase chocolates to take home, seeking experiences in addition to simply dining out.

In Kansas City, Missouri, the World Cup has boosted tourism. Made in KC, a chain of cafes and shops, experienced noticeable traffic spikes. World Cup merchandise, especially team-themed hats, has proven popular. Co-owner Keith Bradley observed that American tourists from nearby Midwestern cities often outnumber those from further destinations.

Mollie Lothman, co-owner of McLain’s Bakery, believes Kansas City’s hosting of the World Cup offers cost advantages. As a smaller host city, its more affordable food and lodging options attract families seeking a World Cup experience on a budget.